Sophisticated scams increase

Consumer NZ is urging banks to raise their game and provide better protection to New Zealanders who fall victim to scams.

“In New Zealand at least $200 million is lost to scams each year,” says chief executive Jon Du y.

“We know there is widespread underreporting, so that number is likely to be much higher. Many of these losses are not covered by banks.”

Under the New Zealand Banking Association Code of Practice, banks only have to refund customers who fall victim to unauthorised payment fraud. Consumer thinks this is unfair in many cases.

“If your wallet is stolen and someone goes on a shopping spree using your credit card, this is classed as an unauthorised transaction – and your bank should reimburse you.

“However, as scams become increasingly sophisticated, people are at higher risk of being lured into making authorised payments by professional scammers.

“Of course, people must take their banking safety seriously and should do all they can to avoid falling victim to scams.

“But to suggest that with so many resources at their disposal, the banks should have no responsibility to protect and refund their customers when they are scammed into authorising a transaction feels wrong.”

Banks are often the last line of defence between professional scammers and innocent victims.