Financial Crime Surges in New Zealand: Experts Warn of Growing Threat

A recent surge in financial crime and fraud has left New Zealand’s economy and financial stability on high alert. According to a Ministry of Justice survey, the number of fraud and deception crimes jumped from 288,000 to 510,000 cases in just one year.

Causes of the Rise in Financial Crime

Global interconnectedness: The increasing global connectivity has created new opportunities for financial crime.
Economic pressure: Economic pressures have led to a rise in fraudulent activities as individuals seek quick fixes to their financial problems.
Emergence of cryptocurrencies: The emergence of cryptocurrencies has introduced new risks and challenges for the financial system.

Cybercrime: A Growing Concern

Phishing scams: Phishing scams have become increasingly common, with scammers using sophisticated techniques to trick victims into revealing sensitive information.
Identity theft: Identity theft is a growing concern, with scammers using stolen identities to commit financial crimes.
Investment scams: Investment scams are another growing threat, with individuals being lured into high-return investment opportunities that often turn out to be fraudulent.

Underreporting: A Major Concern

A significant number of financial crime and fraud cases remain unreported, often due to victims’ embarrassment or a lack of awareness regarding reporting procedures. A recent Crime and Victimization Survey highlighted the underreporting of cybercrime, with as few as 7.5% of fraud and cybercrime incidents being reported to the police.

Banks Take Action

As of September 15th, New Zealand banks have announced a series of new measures to combat scams and protect their customers. These initiatives include:

Establishment of a national Anti-Scam centre: This centre will provide a coordinated approach to combating scams and protecting customers.
Pooling resources to combat money laundering: Banks are working together to enhance their anti-money laundering efforts and prevent illicit activities.
Enhancing public awareness: Banks are taking steps to educate their customers about the risks of fraud and scams.

Raising Awareness

Promoting public awareness about the risks of fraud and scams is paramount. Organizations like the Financial Markets Authority (FMA) are actively engaged in educating citizens about potential pitfalls.

A Growing Demand for Experts

The sector is experiencing remarkable growth in the realm of Risk & Compliance, with teams dedicated to fraud detection in banks and cybersecurity expanding. A growing demand for individuals who excel in problem-solving, possess exceptional analytical skills, and can communicate complex topics effectively to build relationships and transform data into actionable intelligence.

If you are a financial institution looking to expand your expertise in this space, consider reaching out to experts in the field to source the right people for your team.