Financial scams are a major concern in New Zealand, with scammers using increasingly sophisticated tactics to steal money and personal information. Between January and March 2024 alone, CERT NZ handled 1,537 incidents, totalling $6.6 million in financial loss, up a whopping 84% from the previous quarter. Find out how you can protect yourself from scammers, safeguard your finances and ensure your personal information doesn’t end up in the wrong hands with these essential tips.

What are financial scams?

Financial scams are intended to trick people into giving away money, personal details or financial information. Scammers use a variety of methods to gain access to your money and personal data, including:  

• Fake websites that look identical to legitimate ones, often copying logos, layouts and content.
• Phishing emails that appear to be from a trusted source, asking you to verify your account details or click on a link which often leads to a fake website where scammers capture your login details.
• Phone calls from scammers pretending to be from your bank or a financial institution, asking for personal information such as your account number or PIN.
• Text messages, also called "smishing," where scammers pretend to be from legitimate companies and ask you to click a link or reply with sensitive information.
• Social media platforms like Facebook or Instagram are increasingly being used by scammers who pose as someone you know or a trusted company. They might offer "exclusive deals" or pretend to help you recover a lost account, but they’re really trying to steal your information.

What should you look out for?

Here are some signs that could indicate you’ve been financially scammed in New Zealand:

• Unexpected contact through email, text, phone call or social media from a company or person you don’t know or have never contacted.
• Being asked to pay for something using an unusual payment method, such as wire services, cryptocurrency or an overseas bank account. 
• Pressure to act quickly to avoid a negative outcome or to take advantage of a limited opportunity.
• Requests for passwords. Legitimate organisations will never ask you for these.
• Requests for remote access to your laptop or computer unless you initiated the request.
• Deals that seem too good to be true, usually aren’t all they promise to be!
• Unusual links that take you to websites that look legitimate but really aren’t.
• Emails from an unknown person claiming you've made a profit, won something, or received an inheritance that you know nothing about.

If you think you’ve been the victim of a financial scam, contact your bank or credit card issuer to report the transaction and seek advice. You can also report a scam to the Financial Markets Authority (FMA) and find out what scams are currently being investigated.

What can you do to protect yourself?

With realistic-looking messages, fake websites and even phone calls, scams can be incredibly convincing, so it’s vital you stay vigilant to prevent your financial and personal information from falling into the wrong hands.

To protect yourself from financial scams, you should:

• Research investments thoroughly before committing any money. Use the anti-scam site nz to verify a company’s website, check the company’s legal name, and confirm if they’re regulated by the FMA.
• Be cautious when sharing information and don’t share banking passwords or card PINS with anyone.
• Be suspicious if someone asks you to receive or send money on their behalf, even if you know them.
• Take care online when using dating apps or social media, and avoid sharing personal information or bank accounts details with people you haven’t met in person.
• Report scams to your bank or the New Zealand Police.
• Secure your computer by running regular virus checks.
• Use unique, strong passwords for all accounts, and a password manager to store and generate passwords for you.
• Check your credit report regularly for unfamiliar debt or unrecognised accounts and report any issues to the credit reporting agency.
• Shred sensitive documents that could be used for identity theft.
• Use secure internet connections and avoid public Wi-Fi particularly for online financial transactions.
• Resist the pressure to act immediately and take time to review the information before making any hasty decisions that could have a long-term impact on your finances.

If you're concerned about your financial security or have questions about safeguarding your assets, reach out to our expert team of mortgage advisers. Contact Mortgage Express today to connect with an adviser near you.