Online scams have cost New Zealanders an estimated $2.3 billion over the past year, marking a significant increase from the $2 billion reported in the previous year, according to the State of Scams in NZ report by Netsafe and the Global Anti-Scam Alliance (GASA).
The report attributed the rise partly to a decline in scam reporting, with many victims unsure of where to report incidents or doubting that filing complaints will have any impact. This trend has enabled scammers to operate largely unchecked.
The report revealed that online shopping scams have become the leading source of financial losses, overtaking identity theft.
With major shopping events like Black Friday and Cyber Monday on the horizon, Netsafe chief executive Brent Carey warned of heightened risks. He also emphasised that advances in artificial intelligence are making scams more convincing and harder to detect.
The State of Scams in NZ report survey of 1,071 adults conducted for the report found that 364 participants had lost money to scams, with an average loss of $3,105 per person. When extrapolated to the entire adult population, this suggests total losses of $2.3 billion – equivalent to 0.6% of New Zealand’s gross domestic product.
The New Zealand government is preparing to roll out additional measures to combat the rising tide of scams.
A key initiative is the introduction of a “confirmation of payee” system by banks later this month. This process, which matches account names with account numbers before transactions are completed, aims to reduce fraud by adding an extra layer of verification.
Commerce and Consumer Affairs Minister Andrew Bayly said that financial institutions have a critical role to play in preventing scams.
However, Carey argued that broader action is necessary, advocating for a centralised Anti-Scam Centre and clearer leadership by consolidating oversight under a single government minister.
“Confirmation of pay just means we’re catching up with the rest of the world, which is great,” he said, as reported by NZ Herald. “But as [the] report shows, banking is one part of the scam vector. We’ve got 53% of New Zealanders saying they’re being scammed in social media or telco settings [text messages are the most popular medium for scams, the report says] and others. So, banks are just part of the equation.”
He also called for a more streamlined reporting process and better support for victims seeking compensation.
During Fraud Awareness Week (Nov. 18-24), the Ministry of Business, Innovation and Employment (MBIE) is urging the public to stay vigilant against common scams.
Recent data from Payments NZ indicated that $194.3 million was lost to scams over the year ending Sept. 30. This figure, drawn from reports by 11 major financial institutions, reflects both authorised and unauthorized transactions involving scammers.
The Banking Ombudsman has noted a sharp rise in bank impersonation scams, which are increasingly difficult to identify.
“Bank impersonations are becoming more difficult to spot. Before you send any money or information, check for yourself with the institution by contacting them directly using the contact details on their official website. Do not trust links or contact details supplied by callers,” she said.
MBIE is emphasising the importance of early action if a scam is suspected. Recommended steps include stopping all contact with scammers, notifying financial institutions, and reporting incidents to CERT NZ.
