How to spot a scam
Knowing how to spot a scam is the first line of defence in keeping your family and money safe.
Types of scams
The first step in spotting a scam is having an understanding of the common types of scams that are used to target New Zealanders every day. Here we outline some of the ways you can be targeted by fraudsters
Investment scams
Investment scams promise very high returns for minimal risk. Real investments never come out of the blue, and these types of scams can run into tens, sometimes hundred of thousands of dollars in losses. Scammers put a lot of work into making themselves appear legitimate, meaning even the most observant people may be caught out. A good rule to keep in mind is that if it sounds too good to be true, it likely is.
- Uninvited investment offers. It’s illegal in New Zealand to sell financial products (such as shares) through an unsolicited meeting.
- Very vague about who the offer is from, where the business is located and how to contact them.
- Being told this offer is only available to a select few or that you need to act urgently to secure the investment offer. These tactics are used to make you feel special or to pressure you into making a quick decision.
- Ignore uninvited investment offers.
- Do not invest with offshore, online businesses. Overseas businesses are harder to regulate by police, and it is often impossible to recover funds sent offshore.
- If you don’t understand the investment, don’t invest.
- Understand who you are investing with and check its legitimacy. Most financial service providers are required to be publicly registered on the Financial Service Providers Register (FSPR)
- Not everything you see online is true. Scammers will create fake websites, pay for ads on Facebook, or publish sponsored articles on legitimate websites all in the hopes of luring you in.
- Check the Financial Markets Authority (FMA) website for a list of names of businesses and individuals that you should be wary of before investing.
Phishing and smishing scams
Phishing is when you get an unsolicited email that claims to be from a legitimate organisation, such as financial institutions, businesses or government agencies. Scammers ask you to provide or verify either via email or by clicking on a web link, personal or financial information, like your credit card number, passwords, drivers licence or passport details. SMISHing (SMS phishing) is the same thing, except it occurs via text messages. Scammers use scare tactics to trick you into paying a fake fee, or overdue invoice. Remember, scammers and fraudsters are constantly evolving their tactics, so it’s important to stay vigilant and adapt to new threats.
- Be vigilant and cautious. Always maintain a healthy level of scepticism when dealing with emails, messages or websites that ask for your personal or sensitive information.
- Double check the sender’s email address, domain or contact details to ensure they are legitimate. If you’re unsure, pick up the phone and talk to the organisation directly to confirm.
- Don’t click on or open suspicious links: hover your mouse over links in emails or messages to check their actual destination before clicking on them. Copy and paste into checknetsafe.nz to double check.
- Be cautious with attachments. Malicious attachments can contain viruses or malware that can compromise your computer security.
- Keep your software up to date: regularly update your operating systems, web browsers and security software.
- Don’t reply to spam messages even to unsubscribe.
Romance scams
Romance scams are when a scammer pretends to be in a relationship with someone online in order to scam them out of money.
The scammer may start by requesting small sums of money and then build up to requesting larger amounts. They’ll always have a good reason for these requests such as medical expenses, visa issues or an unexpected legal fee.
- Never send money to someone you don’t know or haven’t met in person.
- Don’t give out bank or credit card details or personal information that could be used to impersonate you.
- Be wary of anyone that is never able to meet you in person. They may promise to see you but either cancel every time or offer excuses which delay meeting.
- Beware if the individual asks you to leave a dating or social media site quickly to communicate directly.
- Beware of people who pressure you with urgent requests.
- Beware of people who often talk of money problems or ask for financial help.
- Never transfer money or goods on behalf of someone else.
- Talk to someone you trust about who you’re communicating with online.
- Search for the person’s photo and profile online to see if the image, name or details have been used elsewhere.
Impersonation scams
Impersonation scams are when fraudsters pose as employees from organisations such as the police, government, banks or financial institutions and well-known businesses. Their aim is getting your personal information or accessing your money.
- urgent sounding messages or phone calls
- a believable story
- creating a sense of panic
- claiming to be from the financial organisation or bank's fraud team and make claims such as “funds have been taken from your account and immediate action needs to be taken to prevent further losses.”
- These scams can be very convincing, and upsetting. It is important to stop and think before any action is taken.
- NBS will never email or text you a link to online banking and ask you to log in
- NBS will never ask for your online banking passwords, PINS or two factor authentication codes
- NBS will never ask you for your full debit card number or the CVC (three digit code on the back)
- NBS will never ask you to download software to remotely access your online banking
- NBS will never ask you to transfer money to keep it safe or help catch a hacker
- Don’t be afraid to say no or to feel pressured to immediately comply with requests from unexpected phone calls.
- If you have any concerns regarding who you’re speaking to, hang up and phone the number listed on our get in touch page.
Online shopping scams
Not all online sellers can be trusted. With the rise in popularity of online shopping, it can be hard to know if you are buying the real thing or dealing with a legitimate seller or buyer.
Scammers use a number of tactics such as creating accounts on sites like Trademe or Facebook Marketplace. They encourage buyers with low prices, but the end result may be a poor quality item, or it may not ever be delivered.
Always purchase from established retailers who have reviews outside of their website. If you’re using TradeMe or Facebook Marketplace, verify the quality and legitimacy of the item you are buying before sending money or personal information.
And remember; if it’s too good to be true, it probably is.
Other resources
There are a lot of great resources easily available to help you recognise scams and alert you to current scams circulating around New Zealand.
Here are a few websites that we recommend.
Sorted is a free service by Te Ara Ahunga Ora Retirement Commission, helping New Zealanders get ahead financially. Their website has a lot of great tools and guides to help protect yourself from fraud and being scammed.
Netsafe is New Zealand’s independent, not-for-profit online safety expert
0508 NETSAFE (0508 638 723)
Find more information on how to spot scam warning signs and if the investment provider is registered.
0800 434 567
Contact CERT if you need to report a cyber security problem.
cert.govt.nz
0800 CERT NZ (0800 2378 69)