The Rapidly Evolving World of Scams in New Zealand is 'Whack-a-Mole'

In a world where technology is advancing at a breakneck pace, so too are the tactics of scammers in New Zealand. The current landscape of online fraud is likened to a game of whack-a-mole, where one scam is eliminated, only for another to pop up in its place. This is the reality that NZ Herald senior reporter Lane Nichols has been investigating, revealing the complex and ever-changing nature of scams and the challenges in combating them.

According to Nichols, the scammers are highly skilled manipulators, using AI and deepfake technology to target vulnerable individuals. One notable case involved a deepfake of Christopher Luxon convincing pensioners to invest in cryptocurrency, resulting in a woman losing nearly $250,000. These scams are not only financially devastating but also emotionally and psychologically damaging for the victims.

Despite efforts to combat these scams, law enforcement faces significant hurdles. Once the money is transferred offshore, authorities often find it nearly impossible to recover the funds. As Nichols explained, police tend to focus on easier targets, such as domestic money mules, while the ringleaders—often based abroad—remain largely untouched.

In response to this growing threat, the Anti-Scam Alliance was recently launched by Commerce and Consumer Affairs Minister Scott Simpson to strengthen New Zealand’s defenses against scams. Reports suggest that scams cost the economy up to $2 billion annually, making it a priority to address the issue head-on.

While banks are making progress with new protections and compensation rules, there is still room for improvement. One such measure is the introduction of ‘confirmation of payee’, which aims to prevent misdirected payments by verifying that the recipient’s account name matches the one entered into the system. However, Nichols emphasizes that more advanced algorithms are needed to detect unusual transactions and halt them before they cause harm.

Victims of scams often describe a profound sense of loss—not just financial, but also in trust. One particularly heart-wrenching story involved a man from Spain who lost a significant sum of money. He described the emotional toll of the scam, including the shame and the feeling of betrayal by someone he believed to be trustworthy. While he eventually received a 70% refund from the Banking Ombudsman, many others are not so fortunate.

As the landscape of scams continues to evolve, it is clear that a multi-faceted approach is needed to protect New Zealanders. This includes not only stronger legislation and law enforcement, but also increased public awareness and education on how to recognize and avoid scams.

The Front Page, a daily news podcast from the NZ Herald, continues to shed light on these issues and provide insights into how individuals can better protect themselves. Hosted by Chelsea Daniels, the podcast is available on iHeartRadio, Apple Podcasts, Spotify, and other platforms.