Latest news with #CommerceandConsumerAffairs


NZ Herald
a day ago
- Business
- NZ Herald
The rapidly evolving world of scams in NZ is ‘whack-a-mole'
'Most of the time, the money's been whisked offshore, and once it goes offshore, the police tend to throw their hands up and say it's too difficult. We don't have jurisdiction... 'What police tend to do is go for the low-hanging fruit, which is the domestic money mules whose accounts have been used to receive the money and transfer it off... those ones are a little bit easier for police to identify and prosecute. But that leaves the ringleaders, who are generally offshore, free just to carry on doing what they're doing,' he said. The National Cyber Security Centre's latest insight report, released last month, revealed $7.8 million in financial losses were reported to the government agency in the first quarter of 2025. Financial losses rose 14.7% compared with the previous quarter ($6.8m). This month, Commerce and Consumer Affairs Minister Scott Simpson announced the launch of the Anti-Scam Alliance to 'strengthen New Zealand's scam defences'. 'Some reports suggest scams cost the economy up to $2 billion annually, and it is crucial we get on top of the problem,' he said. Banks have agreed to updated protections and new compensation rules, committing to reimburse customers up to $500,000 in losses in circumstances where banks fail to meet anti-scam commitments. Several other protections are being rolled out, including the 'confirmation of payee,' which makes sure the account name being sent money matches the one inputted into the system, to help prevent misdirected payments. Nichols said banks are working hard towards anti-scam measures, but more could be done. 'In a lot of the cases I've seen, people have made a very unusual series of transactions which are completely at odds with their history of banking. I think there needs to be better systems, algorithms that pick up those really unusual transactions and put a halt on it, put a bit of friction in the system. 'One thing I know the banks are working on is trying to share more information about known mule accounts. Mule accounts are people who have agreed to receive money, and then they are under instructions to send it straight overseas. 'There have been cases where banks have known that they are harbouring a suspect account or customer, they haven't shared that information with other banks, and these people have been able to go on and open other bank accounts and keep receiving money,' he said. Nichols has spoken to multiple scam victims and said there are many commonalities. 'The emotional toll, the embarrassment, the shame, the financial stress it's put them under... But the worst thing was the loss of trust in humanity. How do you ever trust anyone ever again when someone that you believe to be honest and helping you has swindled you for everything you've got? 'Everyone is different. There have been some real tales of heartache and a lot of tears on the phone. One that really sticks out to me is a Spanish fellow who's a lovely guy. He lost a very, very large sum of money when he was singled out by a scam that was going around. He talked to me about his loss and what he'd gone through... he told me that he felt he had failed his wife, and that was really hard to hear. 'Fortunately, the Banking Ombudsman found BNZ was at fault, and he received a 70% refund in that case, which was great for him. But like I say, a lot of people aren't so lucky,' Nichols said. Listen to the full episode to hear more about Lane's years of reporting on scams and how you can better protect yourself. The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016. You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.


Techday NZ
11-07-2025
- Business
- Techday NZ
New government 'alliance' formed to combat online scammers
The coalition government is promising a crackdown on financial con-artists, bringing together agencies, industry and consumer groups to shut down online scams. As part of the new 'Anti-Scam Alliance', officials would work with police, major banks, telcos and digital platforms to increase data and intelligence sharing. Commerce and Consumer Affairs Minister Scott Simpson said more information would be shared in real-time, allowing a quicker response to threats. "Up until this point, New Zealand's anti-scam efforts have developed in an ad hoc way and suffered from a lack of coordination," Simpson said. "We frequently hear that real-time information on scams is sourced from different areas across government and the private sector, making for a fragmented and often slow response." Simpson said the new formalised structure would help "seal up the cracks that scammers are slipping through". As well, participants committed to rolling out public education campaigns and training programmes, and to set up or update sector guidelines. Work on the plan would continue for the next six months, before rollout early next year. Simpson said he was also considering legislative changes - including amendments to the Fair Trading Act - to allow for more pro-active intelligence sharing and collaboration, without breaching privacy or competition laws. "There is no silver bullet to address scams, but by working together across sectors to disrupt scams, we can significantly shift the dial." The alliance includes: Police Netsafe National Cyber Security Centre Consumer NZ Banking Ombudsman ASB ANZ BNZ Kiwibank Westpac New Zealand Banking Association 2degrees One Spark NZ Telecommunications Forum Google Meta Ministry of Business Innovation and Employment Department of Internal Affairs Financial Markets Authority Inland Revenue Department Commerce Commission Banking Association chief executive Roger Beaumont said the announcement was a step in the right direction towards a co-ordinated multi-sector approach. "Banks cannot fight scams alone," he said. "Scams typically start when people are deceived by fake websites and search engine results, fake emails, texts, social media ads and chats, and phone calls, so there's a role for telcos, social media companies and global tech platforms to help stop them in the first place." Beaumont said banks had significantly stepped up their scam prevention efforts, including through the rollout of a new confirmation-of-payee service. He said the Code of Banking Practice would also be updated this year, with a commitment to provide pre-transaction warnings for certain payments, identify high-risk transactions, provide a 24/7 scam reporting channel and share information about accounts used by criminals with other banks. "Where banks fail to meet those commitments, they will compensate all or part of the loss for eligible customers," Beaumont said.


Scoop
10-07-2025
- Business
- Scoop
New Zealand Launches Anti-Scam Alliance
Hon Scott Simpson Minister of Commerce and Consumer Affairs Important progress in the fight against online financial scams has been made with the launch of a new initiative between government, industry and consumer groups, Commerce and Consumer Affairs Minister Scott Simpson says. 'It is unacceptable that so many Kiwis are swindled by scammers every day,' Mr Simpson says. 'Some reports suggest scams cost the economy up to $2 billion annually, and it is crucial we get on top of the problem. 'That is why I'm pleased to announce the NewZealand Anti-Scam Alliance – a new national effort that seeks to reduce the number of Kiwis falling victim to online financial scams. 'Up until this point New Zealand's anti-scam efforts have developed in an ad-hoc way and suffered from a lack of coordination. We frequently hear that real-time information on scams is sourced from different areas across government and the private sector, making for a fragmented, and often, slow response. 'The Alliance addresses this by establishing a formal structure for government agencies, banks, telecommunications companies, digital platforms sectors, and consumer groups to share data about scams and shut them down in real-time. 'By better coordinating our efforts across industry and government, we should be able to seal up the cracks that scammers are slipping through. 'The Alliance has also agreed to take coordinated action to update industry codes, strengthen consumer protections and educate Kiwis about how to protect themselves from scams. 'The Anti Scam Alliance represents a significant step forward and is the first in a series of actions that will strengthen New Zealand's scam defences. However, there is more work to do. 'The Government is also exploring other initiatives to support this work, including amending the Fair Trading Act so that government and industry can have the confidence to proactively share scam-related intelligence and collaborate on disruption initiatives without breaching competition or privacy laws. 'There is no silver bullet to address scams, but by working together across sectors to disrupt scams, we can significantly shift the dial.'


Scoop
18-06-2025
- Business
- Scoop
New Certification Scheme Unlocks $200M Market For Kiwi Cosmetics In China
Hon Todd McClay Minister for Trade and Investment Hon Scott Simpson Minister of Commerce and Consumer Affairs Trade and Investment Minister Todd McClay and Commerce and Consumer Affairs Minister Scott Simpson have welcomed a new certification scheme, announced by the Prime Minister in Shanghai today, that unlocks access to China's $200 million cosmetics and skincare market — a move that will drive stronger returns for New Zealand exporters and boost the economy. 'This is a smart, practical step that removes a long-standing trade barrier and opens up valuable new channels for our exporters,' McClay says. 'It means more high-quality, innovative New Zealand products on shelves in China - not just online, but in stores across one of the world's fastest-growing consumer markets.' The scheme, developed with International Accreditation New Zealand (IANZ) and the Ministry of Business, Innovation and Employment (MBIE), provides exporters with a Government-issued Good Manufacturing Practice (GMP) certificate that meets Chinese regulatory requirements. 'This certification allows Kiwi-made cosmetics to be sold through traditional retail channels in China, significantly expanding market reach beyond cross-border e-commerce and supporting our goal of doubling exports by value in 10 years,' Mr McClay says. Minister Simpson says the scheme is a strong example of the Government's commitment to backing New Zealand businesses and removing barriers to growth. 'With global demand for health and beauty products rising, this gives our exporters the confidence to grow and compete in China; quickly, credibly, and at scale,' Mr Simpson says. 'It's another example of how we're cutting red tape and aligning our standards with key trading partners to give Kiwi firms the certainty they need to succeed.' How it works: Exporters complete an independent GMP assessment with IANZ. If successful, MBIE confirms compliance with a certificate signed on behalf of the Government. New Zealand's ban on animal testing for cosmetics remains in place, giving Chinese consumers assurance that Kiwi products are high-quality, safe, sustainable, and ethically produced.


Scoop
15-06-2025
- Business
- Scoop
Telecommunications Industry To Review Scam Prevention Code With Consumer Focus
The New Zealand Telecommunications Forum (TCF) today announces it will commence with a review of its Scam Prevention Code. Since its inception, the Code has played a key role in improving the sector's response to preventing scams and anti-scam sector collaboration. The purpose of the Code is: To reduce the volume of scam calls and scam SMS, stopping them as close as possible to the source. Coordinate sharing of scam call and scam SMS information within the sector and with other third parties. Minimise the risk of harm to New Zealand consumers from scams. Define how retail providers, network operators and A2P SMS partners identify and communicate scam calls and SMS with each other. To educate consumers on scam awareness and protections. The Code ensures telecommunications providers have in place mechanisms to detect, verify, block, and report suspected scam activity. Alongside the telecommunications providers signatories there are currently nine non-telecommunications organisations who have signed a memorandum of understanding to the Scam Prevention Code, including most of the major New Zealand banks and key government agencies. This agreement enables non-telecommunications organisations to submit scam SMS and call notifications to telecommunications providers for investigation who can then take action to block messages that may harm New Zealand consumers. As scam tactics evolve and consumer harm persists, the TCF has committed to reviewing the Code to ensure it is still fit for purpose and incorporates the new anti-scam initiatives that telecommunications providers are implementing today. 'The Scam Prevention Code has helped create a robust framework for industry-wide cooperation. But scams are becoming more sophisticated, and the impacts on everyday New Zealanders are increasing,' says Paul Brislen, Chief Executive of the TCF. 'This review will ensure we maintain a high standard of technical response, while also strengthening the Code's accessibility and relevance to consumers.' The review will focus on incorporating feedback from the Ministerial roundtable that has been set up to coordinate activity between industry, law enforcement and government. The TCF plans to also review consumer education and reporting mechanisms to better support public awareness and response to scams. Hon Scott Simpson, Minister of Commerce and Consumer Affairs and the Government's lead anti-scam Minister, says: 'Combatting scams is a joint effort, requiring strong collaboration between all the players in the 'scam ecosystem'. It's essential that New Zealanders feel safe and confident when using telecommunications services, and I welcome the Telecommunications Forum's proactive steps to align industry action with the needs and expectations of consumers.' The revised Code will be developed with a view to engaging more closely with digital platforms – a key partner in the fight against scams. 'Enhanced cross-sector coordination is essential to counter the increasingly complex scam landscape. By sharing insights, intelligence, and best practices across sectors, the TCF aims to build a more unified national response that better protects New Zealand consumers from harm,' says Paul Brislen.