Thousands of New Zealanders stay silent on scams

New research from Bank of New Zealand (BNZ) shows that:

  • 15% of Kiwis who lose money to scams suffer in silence and tell no one
  • more than half of Kiwis (58%) who fall victim to scams do not report the crime
  • 13% of New Zealanders are hesitant to go online due to their fear of being scammed
  • 35 – 44 year olds are prime targets for scams.

The new research, commissioned by BNZ and my2cents1, shows the effect the deluge of scams is having on New Zealanders.

Ashley Kai Fong, Head of Financial Crime, says, “there’s a tidal wave of scams hitting New Zealanders. Scammers are taking advantage of good people and Kiwis are drowning and not putting their hand up for help.”

“It’s worrying that the fear of being scammed is stopping New Zealanders going online. Cutting yourself off from the digital world can do more harm than good as we know being connected to family and friends is important to people’s overall wellbeing.”

“This week BNZ is focused on helping New Zealanders be safer online by helping them spot scams and learn how to recognise the telltale giveaways through our Scam Savvy tools. We want New Zealanders armed with the tools they need to avoid being scammed so the internet feels like a safe space,” says Kai Fong.

Beware the busy parent: 35 – 44 year olds squarely in scammers’ sights

New Zealanders think the elderly are most vulnerable to scammers, but BNZ’s research showed that busy parents in the 35 – 44 year old range are just as likely to have lost money to a scam as the elderly. 

“Scammers are increasingly sophisticated and manipulative. They prey on our desire for convenience, the time-poor and those whose attention is pulled in several directions. Scammers are selling fake tickets and subscriptions, giving away grants and prizes, mimicking the taxman and invoicing departments of businesses we use for products and services. In some instances they are even imitating colleagues and friends,” commented Kai Fong.

The BNZ research found that 35 – 44 year olds were specifically at risk of losing money when buying, selling or donating goods or services online and inheritance scams, and of the 81% of Kiwis that had been the target of a scam.

Top five scams

  1. Fake lottery, prize or grant scam
  2. Tech scam phone calls (no computer access)
  3. Nigerian letter fraud
  4. Scams masquerading as government services or departments
  5. Inheritance scam

“Scammers look and feel like the organisations many of us interact with each day, but there are tell-tale giveaways that we want all Kiwis to be wise to” said Kai Fong. “I encourage everyone to get along to a BNZ Scam Savvy session or find it online and get clued-up so they don’t become scam victims,” he went on to say.

How to get Scam Savvy

This week BNZ is hosting Scam Savvy sessions in its branches and Partner Centres. BNZ staff will also be operating Scam Savvy Schools in malls and local communities to guide people through the types of scams that typically target New Zealanders, and show them what to look for and what to do if they are scammed.

Kai Fong advises that you don’t need to be a BNZ customer to take part. Anyone can attend a Scam Savvy session by contacting their local BNZ branch or visiting malls in the main centres between 9am – 5pm over the course of the week.

Malls where Scam Savvy sessions will be held

  • Auckland: Albany Westfield, Manukau Westfield, St Lukes Westfield, Sylvia Park
  • Hamilton: Chartwell Westfield
  • Wellington: Queensgate Mall, Johnsonville Mall, North City Plaza
  • Christchurch: Riccarton Westfield

BNZ’s Scam Savvy tools can also be found at www.getscamsavvy.co.nz.

1The research was conducted with my2cents (Camorra Research), a financial services online panel. The sample of n = 800 is weighted to be nationally representative in terms of age, gender and region.

Thousands of BNZ staff mobilise to take on scammers

BNZ Scam Savvy sessions will help New Zealanders be safer online

A BNZ staff member sits in conversation alongside a BNZ customer

Thousands of Bank of New Zealand (BNZ) staff will hit the road next week, taking to malls and libraries, rest homes and RSAs, and visiting community groups and businesses to help New Zealanders be safer online and avoid being scammed.

In some regions BNZ staff are going the extra mile. BNZ’s Hastings team will be driving hundreds of kilometers during the week visiting Gisborne and the Wairarapa to conduct sessions with rural customers and organisations, and in Coromandel, Banking Adviser Lorna Field has already reached capacity for a scam savvy session conducted in the local hall next week.

In Wellington, the BNZ Customer, Products and Services team will be showing up in six local libraries, three Citizens Advice Bureaus and conducting a session with the Wellington Indian Association, and BNZ Scam Savvy will be in the Beehive on Monday 26 August with BNZ CEO Angie Mentis.

Paul Carter, BNZ Chief Customer Officer, says, “Unfortunately we see heartbreaking stories all the time and not a week goes by without one of our staff helping a customer who is being scammed.

“BNZ bankers regularly stop customers transferring thousands of dollars to scammers who are impersonating trusted, NZ organisations or offering prizes, grants and lottery wins.

“Scammers are taking advantage of good people and we’re determined to help New Zealanders know what to look for and how to avoid scams so they can be safer online,” he says.

BNZ’s Scam Savvy week (August 26 – 30) will see BNZ branches and Partner Centres hosting Scam Savvy sessions and staffing Scam Savvy Schools in malls and local communities to guide people through the types of scams that typically target New Zealanders, and show them what to look for and what to do if they are scammed.

A BNZ staff member holds an iPad displaying some of BNZ's Scam Savvy digital resources

Carter says, “There’s been significant demand for our Scam Savvy sessions. We’ve got more than 600 sessions booked at our branches and Partner Centres across the country and are running sessions with the police, businesses, community organisations and associations.

“We want the digital world to feel like a safe space for people. Scam Savvy will help give Kiwis the confidence to identify and deal with scams. It will improve their online experience, reduce harm and benefit us all,” says Carter.

Anyone can take part in a Scam Savvy session by contacting their local BNZ branch or visiting the following malls between 9am – 5pm over the course of next week:

  • Auckland: Albany Westfield, Manukau Westfield, St Lukes Westfield, Sylvia Park
  • Hamilton: Chartwell Westfield
  • Wellington: Queensgate Mall, Johnsonville Mall, North City Plaza
  • Christchurch: Riccarton Westfield

BNZ’s Scam Savvy tools can also be found at getscamsavvy.co.nz.

BNZ commits to help Kiwis escape loan sharks

BNZ and partners celebrate five years of Community Finance programme

Bank of New Zealand (BNZ) has reaffirmed its commitment to disrupt predatory lending practices in New Zealand, ramping up its involvement in Community Finance programmes and pledging to provide millions more dollars in no and low interest lending to tens of thousands of Kiwis over the next five years.

BNZ has boosted funding and resourcing for the Community Finance programme and will double the number of community loan workers issuing no and low interest loans.

BNZ Chief Executive, Angie Mentis, says, “We are on a mission to disrupt predatory lending and today is another important step in the right direction.

“We want to rid our communities of loan sharks who prey on our most vulnerable by offering a much better alternative – no and low interest loans, and a conversation about money that sets Kiwis up to manage their money and improve their quality of life,” Mentis says.

In its first five years, Community Finance has lent nearly $5 million to over 1,700 families with estimated savings of $2.46 million in interest and fees.

Research1 also shows that community finance loans are having a broad and positive impact helping New Zealanders pay off debt faster (46%), save more money (40%) and understand their finances better (54%). Community Finance is also having an impact on employment with the proportion of participants employed increasing 10% after receiving a Community Finance loan verses those that didn’t.

Mentis says, “Over the past five years, Community finance has helped more than 1,700 families get access to low and no interest lending. It’s a good start, but a drop in the ocean considering the 300,000 New Zealanders that we estimate are stuck using third and fourth tier lenders.

“For this reason we’re fast tracking our plans for Community Finance and looking to help tens of thousands more individuals and families over the coming years.

“In partnership with Good Shepherd New Zealand, we’re working on a debt consolidation programme that will help pry people out of unsustainable debt to loan sharks and lift them out of the cycle of debt. We also know our customers want access to appropriate financial support through different channels, such as over the phone and via a digital solution, and we are looking at a range of ways to make our services available,” Mentis says.

Woman in car filled with sporting goods and kitchen sink, with a fluffy cat

Good Shops put squeeze on mobile traders

As part of BNZ’s focus on tackling predatory lenders and traders, BNZ is also taking aim at mobile traders offering products at extortionate prices.

Mentis says, “Just as loan sharks pray on desperation and convenience, there are mobile shops trawling neighbourhoods across New Zealand offering $45 cans of Milo to anxious parents who simply want to feed and clothe their kids – it’s disgraceful.

“In partnership with The Salvation Army, government and other great New Zealand organisations, the Good Shop visits vulnerable communities, offering necessary and everyday items at everyday prices. It is a viable alternative to the overpriced offerings from predatory traders. We have two operating presently in Porirua and Manurewa, and hope to launch another soon,” says Mentis.

“Taking on the predatory lending market is a constant battle. We are tackling this issue on multiple fronts, disrupting the loan sharks and mobile traders and driving them out of communities, and working with government on strengthening regulatory frameworks for lending,” says Mentis.

Evaluation of the Community Finance Programme, Malatest International, 2018