Financial Crime World

Fraudulent Activities in Finance Industry Skyrocket in New Zealand: Survey Reveals Alarming Rise

A recent survey by the Ministry of Justice has uncovered a shocking increase in fraudulent activities across New Zealand, with 10.2% of adults reporting being victims of at least one fraud and deception event between November 2021 and November 2022. This represents a significant jump from 6.2% in 2021, highlighting the alarming rise of financial fraud in the country.

Prevalence of Fraudulent Activities

The survey found that:

  • Fraud and Deception: 10.2% of adults reported being victims of at least one fraud and deception event.
  • Harassment and Threatening Behavior: 120,000 individuals were impacted by these types of offenses.

Repeat Victims of Fraud or Deception

A staggering 55,000 people reported being repeat victims of fraud or deception. This raises concerns about the effectiveness of current prevention and detection measures.

Expert Insights

Julie Haggie, CEO of Transparency International New Zealand, asks: “What are the underlying factors driving this surge in financial fraud? What types of fraud are victims experiencing? Where are these fraudsters based, and what modes are they using to carry out their illegal activities?”

Call for Action

The survey highlights the need for:

  • Better Monitoring and Recording: Improved monitoring and recording of fraudulent activities.
  • Improved Support and Resources: Enhanced support and resources for victims of fraud.
  • Adequate Consumer Protection Measures: Strengthened consumer protection measures to safeguard individuals from scammers.

International Comparisons

  • The Australian Bureau of Statistics reported a rise in card fraud to 8.1% in 2021/22, while scam victimisation decreased during that period.
  • The UK’s latest Crime Survey shows that total fraud has returned to pre-pandemic levels following a significant spike during the COVID-19 period.

Recommendations and Concerns

The Independent Police Complaints Authority report published last November found major deficiencies in the way police respond to fraud complaints. The Banking Ombudsman is urging banks to fast-track resolution of fraud complaints and for all parties involved to work together to combat sophisticated online fraud.

Conclusion

The situation has raised concerns about whether New Zealand’s financial institutions are doing enough to protect consumers from fraudulent activities. As the country grapples with this issue, it is clear that more needs to be done to prevent and detect financial fraud, as well as provide adequate support for victims.