New protections aim to stop fraudulent payments early
The government has announced new legal protections designed to help banks, telecommunications providers and digital platforms block scams more quickly, as part of Fraud Awareness Week.
Commerce and Consumer Affairs Minister Scott Simpson said too many New Zealanders were being targeted by fraud spread through fake websites, texts and social media.
The new “safe harbour” protection will allow providers to take reasonable, good-faith steps to disrupt suspected scams without fear of prosecution if they mistakenly block a legitimate customer, RNZ reported.
“Entities tell us they want to pull these scams down earlier, but they worry about being prosecuted if they accidentally take down a legitimate customer or website. These changes give them more confidence to act when something looks wrong,” Simpson said.
Enabling faster intervention on suspicious activity
The protections are designed to support quick action.
“This is about fast, decisive action to combat scammers. If a bank wants to pause a suspicious payment, or a telco wants to block a fake website link in a text campaign, we want them to be able to do that promptly without looking over their shoulder.”
The safe harbour will apply when:
- providers have reasonable grounds to believe the activity or site is a scam
- the action taken is reasonable and proportionate
- any disruption to legitimate users is corrected promptly
Backed by a cross-sector anti-scam alliance
Simpson said the work supports the New Zealand Anti Scam Alliance, which includes government agencies, banks, telcos, digital platforms, and consumer groups.
The alliance is also exploring a “trusted flagger” system so regulators can quickly provide reliable information about suspected scams to service providers.
Payments NZ data shows about $265 million in gross scam losses flowed through New Zealand bank accounts in the past year.
“Those numbers are too high. We need a prevention first approach, where scams are blocked as early as possible,” Simpson said.
Banks launch new fraud-intelligence tools
The New Zealand Banking Association has also introduced a new fraud-intelligence system to target “mule” accounts and stop stolen funds from being transferred onward. The system will help banks:
- identify and share information on suspected mule accounts
- freeze funds faster
- warn customers from 30 November if they attempt to pay a high-risk account
The technology enables real-time intelligence sharing, faster scam-pattern detection, and improved reporting, allowing banks to intervene earlier when suspicious activity appears.
“This technology will help banks move faster when money is at risk, and it fits well with the government's push to give providers more confidence to intervene early,” Simpson said.
‘No single organisation can tackle scams alone’
Simpson said a coordinated approach remains essential.
“Scams are constantly evolving, and no single organisation can tackle them on their own. These changes are about backing the providers who see scams first, and giving them the tools and confidence to shut them down faster.”
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