Fraudulent Activities in New Zealand’s Finance Industry Exposed: Banks Introduce New Measures to Combat Scams
Background
A recent surge in reported scams has prompted major banks in New Zealand to take a united stand against fraudulent activities, announcing a series of new measures aimed at protecting their customers from financial losses. According to data released by the Computer Emergency Response Team (CERT), a staggering 1,950 scams were reported during the second quarter of 2023, resulting in a total loss of NZD 4.2 million (approximately USD 2.48 million).
New Measures Introduced
As part of its efforts to combat this growing problem, the New Zealand Banking Association has committed to establishing a national Anti-Scam Centre, which will pool resources from retail banks to tackle money laundering and fraudulent activities more effectively.
- Account name-checking service: Banks will introduce an account name-checking service to verify customer identities.
- Removing web links: Banks will remove web links from text messages sent to customers to prevent phishing scams.
- Real-time information sharing: Banks will explore real-time information sharing among organizations affected by scams to facilitate quicker detection and response.
Enhancing Fraud Analytics and Prevention
New Zealand banks have made significant investments in identifying unusual spending patterns on credit cards, warning customers of potential scams, and shutting down fake bank websites and phone numbers used in scams. Two-factor authentication is also being leveraged to confirm customer actions before processing payments.
- Identifying unusual spending patterns: Banks are investing in advanced analytics to detect unusual spending patterns on credit cards.
- Warning customers: Customers will be warned of potential scams through various channels, including email, SMS, and phone notifications.
- Shutting down fake websites and phone numbers: Banks are working to shut down fake bank websites and phone numbers used in scams.
Simple Tips for Customers
The New Zealand Banking Association has shared some simple tips for customers to avoid falling prey to scams:
- Stay vigilant for warning signs
- Contact banks before making payments or giving out personal details
- Use unique and long passwords
- Never share PINs or passwords with others
- Report any suspected scam-related activity to the bank immediately
Conclusion
As the finance industry continues to grapple with the growing threat of fraudulent activities, these new measures are seen as a crucial step towards protecting consumers and maintaining public trust in the banking sector. The introduction of these measures is a response to similar initiatives implemented in neighboring Australia, where a specialized unit has been established to disrupt scams and minimize financial losses.