Combatting online financial scams
This section provides information about the all-of-government approach taken to combat online financial scams.
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What are online financial scams?
Online financial scams are a growing problem in New Zealand. Losses were just under $200 million dollars in 2023. The issue crosses a number of sectors, including banking, telecommunications, and digital platforms. Work has been underway to establish a coordinated approach to combatting scams.
More information can be found on scams including the types of scams, and how to report and avoid them here:
Scamwatch(external link) — Consumer Protection'
Key developments
Industry engagement
In late 2024, open letters were issued to the telecommunications, and digital platforms sectors. These letters urged industry-led initiatives and developments, including improving consumer protection and redress measures.
All of government approach to online financial scams
In October 2024, the Government agreed to an all-of-government approach to online financial scams. This has informed the Minister of Commerce and Consumer Affairs to lead engagement measures across government, with industry, and internationally.
You can read the Proactively released Cabinet Paper and associated Minute here:
Open letter to the banking sector
In February 2024, the Minister of Commerce and Consumer affairs wrote to the banking sector urging it to introduce the three key recommendations from the Committee’s inquiry. Work has begun on these, with the banking sector progressing a Confirmation of Payee system and investigating a compensation scheme.
You can read the full letter below:
Finance and Expenditure Committee inquiry
In 2022, the Finance and Expenditure Committee launched an inquiry into scams. The Committee found that banks’ processes should be strengthened to better protect New Zealand consumers against scams. In February 2024, the Government responded to the Committee’s inquiry, three of the key recommendations by the Committee included: Adopting a Confirmation of Payee system, urging the New Zealand Banking Association to update its Code of Banking Practice, and introducing a voluntary reimbursement scheme for authorised payment scams.
You can read the Committee’s recommendations and the Government’s response:
Read the Cabinet paper and associated Minute:
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Government Responses to inquiries by the Finance and Expenditure Committee into cryptocurrencies and banks’ processes and consumer protection for scams [PDF 374KB]
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Government Responses to inquiries by the Finance and Expenditure Committee into cryptocurrencies and banks’ processes and consumer protection for scams – Minute of Decision [PDF 356KB]