Faster fraud detection promises safer payments for Kiwi customers
New Zealand’s retail banks have deployed new fraud-intelligence technology designed to stop scammers from using “mule” accounts to move stolen money.
The system helps banks meet five new scam-prevention commitments coming into force on 30 November under the Code of Banking Practice. The announcement coincides with Fraud Awareness Week.
The rollout also follows a wider government crackdown on scams, with Commerce and Consumer Affairs Minister Scott Simpson saying: “It is unacceptable that so many Kiwis are swindled by scammers every day,” and warning that scams may be costing the economy up to $2 billion annually.
Technology speeds up mule-account detection and fund recovery
Mule accounts are often used to quickly transfer and obscure stolen funds, including sending money offshore where recovery becomes extremely difficult. The new technology allows banks to identify high-risk accounts more rapidly, share information across banks, and freeze funds before they disappear.
While still early, banks report thousands of intelligence-sharing cases have already helped recover or prevent the loss of millions of dollars.
The system can also warn customers before they send money to known high-risk accounts, reducing exposure to scams.
The new platform provides enhanced data-reporting capabilities, helping banks understand scam patterns, and respond proactively. It also supports more consistent consumer guidance on emerging risks.
NZBA: speed is essential in stopping scammers
Roger Beaumont (pictured), New Zealand Banking Association chief executive, said the rollout is a major step in delivering on banks’ new scam-prevention commitments.
“The fraud intelligence technology is another milestone for our banks in meeting their new scam prevention commitments that come into force at the end of the month," Beaumont said in a media release. "We have a prevention-led strategy to fighting scams, which aligns with global best practice.
He said banks were already sharing information on mule accounts, but the new platform makes the process much faster – a critical factor given scammers “tend to move quickly”.
Beaumont said the new fraud intelligence technology works alongside Confirmation of Payee and is part of a broader package of tools, noting there is no single initiative that will stop scams or prevent people authorising payments to criminals.
The NZBA chief also stressed the need for a wider response beyond the banking sector.
“Banks are investing millions of dollars each year to help stop scams, but they’re only part of the solution," Beaumont said. "Industries such as social media companies, global tech platforms, and telcos – where scams usually start – also have a big role to play in preventing scams and the harm they cause. Consumer vigilance is also important in helping to keep people safe.”
Cross-industry rollout underway
GetVerified – the cross-industry entity formed by New Zealand’s retail banks – has implemented the new fraud-intelligence platform across participating banks.
It also oversees Confirmation of Payee, introduced in April, which helps customers confirm that an account name matches the account number before transferring funds.
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