Too often Financial Ombudsman Service, Financial Services Complaints Ltd (FSCL) hears from New Zealanders who have lost significant savings to sophisticated scams.
Many of these people have managed their finances carefully for decades but get caught out by professional fraudsters who know how to gain trust and then deceive, creating panic.
FSCL is a free, fair, and independent ombudsman service which investigates complaints about financial service providers who are participants of the FSCL scheme.
Common scams include phone or text messages claiming to be from a bank or money transfer service; requests to move money to a so-called “safe account”; demands for one-time security codes, or instructions to download remote access software.
Investment scams often promise high or guaranteed returns and may involve cryptocurrency or platforms which look legitimate.
Scammers often create a sense of urgency. The aim is to rush you into acting before you have time to think or talk to someone else. In one phone scam case investigated by FSCL, a woman received multiple calls from someone claiming to be from her bank’s fraud team.
The caller convinced her to move her money to a “safe” account with a money transfer service and downloaded software to “help”. When she realised she had been scammed, the money had gone.
Scammers are extremely skilled. They can create fake websites and social media pages which appear genuine — even mimicking public personalities — and include endorsements and reviews which seem legitimate.
Once money is sent, it is often moved very quickly, sometimes offshore, making recovery difficult or impossible. That is why prevention is so important.
Practical steps to protect yourself. You don’t need to be highly technical or suspicious of everyone. A few simple rules can dramatically reduce your risk:
Be cautious with unexpected contact. If someone contacts you out of the blue about your bank account, credit card, or investment, pause. Hang up and call back the organisation the person is purporting to work for. Use only the organisation’s official phone number.
Never share security information. Never share passwords, PINs, or onetime codes. If anyone asks for these, stop immediately and contact your financial services provider.
Say no to remote access. Do not download screen-sharing or remote access software on your computer at someone else’s request. This is a major red flag.
Treat urgency as a warning. Pressure tactics such as, “act now”, “don’t tell anyone”, or “this offer expires today,” are classic scam signals. Slow down and check.
Check investments carefully. Be wary of guaranteed returns or opportunities which seem too good. Always check whether a provider is registered in New Zealand, and check scam notifications – the Financial Markets Authority often list these on their website.
Talk with whānau and friends. Make it normal to discuss unusual calls, emails, or offers. Having a trusted scam buddy can prevent rushed decisions from becoming serious losses.
If you think you’ve been scammed – act quickly. Contact your financial services provider immediately and ask them to stop or recall any payments. Change passwords and keep a record of what happened. If you are unhappy with how your financial provider responds, a dispute resolution service can help.
All financial service providers in NZ must belong to a dispute resolution service, which is free for consumers.
Scammers can be convincing, but with a few good habits, some support, and the confidence to pause and check, you can continue to manage your money safely and confidently.
