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New Zealand banks take scam-preventing measures

Tuesday 19 September 2023 10:51 CET | News

A series of banks from New Zealand have revealed that they will introduce new measures to prevent scams targeted at their customers.

 

These new measures include the establishment of a national Anti-Scam Centre, pooling resources to combat money laundering, and enhancing public awareness. Representatives from the New Zealand Banking Association cited by Reuters conveyed in a statement that this collaborative effort among retail banks is anticipated to have a positive impact on the fight against fraudulent activities and scams. 

Data from the New Zealand government's Computer Emergency Response Team revealed that during the second quarter of 2023, a total of 1,950 scams were reported, resulting in financial losses of NZD 4.2 million (equivalent to USD 2.48 million). 

Officials further elaborated that the banking sector would actively support the creation of a centralised and coordinated national Anti-Scam Centre. Additionally, there are plans in place to introduce an account name-checking service, as well as commit to the removal of all web links from text messages sent to customers, and explore the possibility of sharing real-time information among organisations affected by scams. The timing for the implementation of these initiatives will depend on their complexity and feasibility. 

It's worth noting that Australia, home to four of New Zealand's largest retail banks, is also in the process of introducing similar measures. Australia has established a specialised unit comprising government, law enforcement, and private sector representatives aimed at disrupting scams and minimizing financial losses.

 

A series of banks from New Zealand have revealed that they will introduce new measures to prevent scams targeted at their customers.

 

Fraud analytics and prevention

According to the New Zealand Banking Association, banks have made significant investments when it comes to fraud analytics and prevention. These investments aim to help identify unusual spending on credit cards and check with customers before processing those payments, as well as warn of potential scams when customers make payments in suspicious circumstances. 

New systems can also shut down fake bank websites and phone numbers used in scams and leverage two-factor authentication, which allows customers to confirm they would like to action a payment. Banks also invest in systems that provide pop-up messages in online banking and mobile banking apps to remind customers to be wary of scams, and to alert customers to activity occurring in their accounts. 

The New Zealand Banking Association shared a few simple tips to help customers avoid scams. These include staying on top of the warning signs of scams, contacting banks before making payments or giving any personal details, using unique, long passwords and changing them regularly, and never giving out PINs or passwords to anyone. The association also advised customers to report any suspected scam-related activity to their banks.


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Keywords: banks, financial institutions, scam, fraud prevention
Categories: Fraud & Financial Crime
Companies: New Zealand Banking Association
Countries: New Zealand
This article is part of category

Fraud & Financial Crime

New Zealand Banking Association

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