$2bn scam threat prompts coordinated response
The New Zealand Government has announced the launch of the New Zealand Anti-Scam Alliance, a joint initiative between government, industry, and consumer groups aimed at tackling the country’s growing scam epidemic.
“It is unacceptable that so many Kiwis are swindled by scammers every day,” said Commerce and Consumer Affairs Minister Scott Simpson (pictured left).
“Some reports suggest scams cost the economy up to $2 billion annually, and it is crucial we get on top of the problem.”
The Anti-Scam Alliance marks a formal commitment to share scam-related intelligence across sectors – including banks, telecommunications, digital platforms, and consumer groups – to stop scams in real time.
“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 in a media release.
“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.
“By better coordinating our efforts across industry and government, we should be able to seal up the cracks that scammers are slipping through.”
Industry codes and education to be strengthened
The Anti-Scam Alliance’s mandate includes updating industry codes, strengthening consumer protections, and running education campaigns to help New Zealanders recognise and avoid 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,” Simpson said.
The government is also exploring amendments to the Fair Trading Act to support data-sharing and disruption initiatives while addressing legal barriers around competition and privacy.
“There is no silver bullet to address scams, but by working together across sectors to disrupt scams, we can significantly shift the dial.”
Banking sector backs coordinated approach
The New Zealand Banking Association (NZBA) has welcomed the new Anti-Scam Alliance, calling it a “good step” toward the multi-sector collaboration banks have long advocated.
“We’ve been calling for a co-ordinated multi-sector approach to scam prevention and consumer protection since 2023,” said NZBA chief executive Roger Beaumont (pictured centre), in a media release.
“For a long time, we have encouraged other sectors involved in the scam ecosystem to do more to prevent scams because banks cannot fight scams alone.”
Beaumont said banks have already stepped up, including completing the nationwide rollout of Confirmation of Payee in April across 13 retail banks.
“This can stop mistaken payments and avoid payments to scammers,” he said.
The NZBA chief also announced additional protections to be included in the updated Code of Banking Practice later this year, including:
- Pre-transaction scam warnings
- Identification of high-risk payments
- A 24/7 scam reporting channel
- Interbank sharing of account data linked to scammers
- Compensation for eligible customers when commitments are not met
FMA calls collaboration ‘a vital factor’ in scam prevention
The Financial Markets Authority (FMA) also endorsed the Alliance, reinforcing that disrupting scams is a key regulatory priority.
“Collaboration is a vital factor in the fight against scams. We look forward to playing our part in the Alliance,” Clare Bolingford (pictured right), FMA executive director of licensing and conduct supervision, said in a media release.
“We want investors and consumers to make good decisions, know their rights and know how to protect themselves.”
In the year to June 30, FMA issued 110 new scam warnings and took disruption action against hundreds of flagged websites, sharing alerts widely through its website, social media, industry participants and the I-SCAN international alerts network.
“We support the alliance and consider this Alliance a significant move forward in a coordinated New Zealand response to scams,” Bolingford said.
