Cold call banking and financial scams are on the rise. Photo / Getty Images
It has been another busy and interesting year in our region. We revisit some of our most popular premium stories from 2022. Originally published on July 9.
Three Western Bay people have been fleeced of more than $100,000 by scammers in a week, sparking concerns of a rise in sophisticated frauds targeting seniors.
A businessman who lost more than $30,000 has been left feeling "violated" and "absolutely ropeable" at being tricked by a fast-talking fraudster.
Police say the other two - both seniors - had their accounts cleaned out, with one losing his life savings of about $50,000, the other more than $20,000.
The businessman agreed to tell his story anonymously to the Bay of Plenty Times in the hope of warning others to be vigilant.
"I felt absolutely ropeable that this person has been so clever to have tricked me this way. You hear about scams all the time, but I never thought it would happen to me," he said.
The businessman said the scam started last week with a legitimate-looking email he believed was from his bank, Westpac, stating there had been fraudulent activity on his debit Mastercard, which had been temporarily blocked.
Two more emails followed, plus three phone calls in two days from a foreign-sounding woman claiming to be from the bank's fraud department - the calls starting within a few hours of the first email.
"She asked me for my login ID for verification, and with that and phone number, the person sent me a temporary online password and prompted me to reset it for a new one."
The scammer also told him she made an appointment for him at a local branch to sort the issues and disconnected his phone from his banking app.
She rang back 10 minutes later to bring the "appointment" forward as the problem was "more serious than first realised".
"Obviously, by that stage, this scammer had already got into my banking profile and my personal particulars and altered my online access details to make all these withdrawals."
She called again "fishing" for more information, including his online banking security questions - which he refused to give.
When the businessman visited his bank, he learned there was no appointment. A teller confirmed there had been fraudulent activity on his card, and that it had been cancelled.
He was told the bank would try to stop any fraudulent withdrawals from going through and that its investigation would take about 20 days.
"It was only when I got home later that night and logged into my computer that I found out how many withdrawals there had been, and more than $30,000 had been stolen.
"I was so angry and felt so violated."
The money - destined for tax - was taken from his business account.
"I'm really not sure what will happen if I don't get back the money back."
He said his conversations with the fast-speaking scammer were overwhelming.
"She was very convincing. I didn't realise until it was too late that this was an elaborate scam."
It was fortunate his accounts were not emptied before the bank froze them and started trying to trace the stolen money.
A Westpac spokesperson said the bank was working with other banks in an attempt to retrieve the man's money. Such "complex" investigations, also involving law enforcement, could take several weeks to resolve.
"Becoming a victim of a scam is upsetting, and we sympathise with [the victim] during this stressful time.
"Impersonation scams from trusted companies like banks, telcos and credit card companies have been on the rise and we encourage all customers to exercise extra vigilance with unsolicited contact. If in doubt, hang up and call the company directly on their publicly listed phone number."
Customers should contact the bank as soon as possible if they suspect they have been scammed. The bank worked with organisations to support customers after being scammed.
Constable James Muir said three Bay people, including the businessman, fell victim to scammers in a seven-day stretch.
The one who lost $50,000 was also targeted by a scammer claiming to be from his bank's fraud department.
The elderly woman lost more than $20,000 after receiving a WhatsApp message pretending to be her daughter needing money.
Muir warned that scammers posing as a bank's fraud department was a common tactic.
Often based overseas, they preyed on people's fear and vulnerability.
"People keep falling into these traps and it's a devastating loss, especially when someone close to retirement lost their life savings."
Police advised people not to engage with any cold callers claiming to be from a financial institution or utility company without checking first.
A legitimate caller would know account or personal details and should not need to ask for them, he said.
"[Do] not to give out any personal information, including debit card or credit card details, security passwords and PIN numbers over the phone."
Muir said it was vital to report suspicious account activity and calls to the bank and the police.
Tauranga and Western Bay Grey Power Association vice president David Marshall said the organisation was aware of the "growing sophistication" of banking scams, often targeting seniors.
"It appears many of these callers sound very genuine and empathetic so they are able to defraud people.
"Those seniors scammed can often ill-afford to lose any of their hard-earned savings, and those scamming them are despicable," he said.
Age Concern Tauranga general manager Tanya Smith said these scams were becoming more common and were "very disturbing".
"It's easy to get flustered and overwhelmed when someone tells you there is something wrong with bank account funds.
"Take a breath ... before engaging any further."
She advised looking for "red flags" such as private or blocked numbers, callers refusing to give a number to call them back on, and asking for a login ID or password.
Banking Ombudsman Nicola Sladden recently submitted to the parliamentary Finance and Expenditure Select Committee about the increase in complaints to her office involving scams, including a rise in sophistication and the sums involved.
Sladden says she supported a review of the consumer protection framework for online payments to provide incentives to be more vigilant about scams and respond to them "effectively and promptly".
"For banks, this includes strengthening fraud detection and fund recovery measures."
She said banks were generally liable to refund unauthorised transactions if the customer followed the bank's terms and conditions and took responsible steps to protect their banking information.
"We recommend that customers alert their bank immediately to any unusual or unfamiliar transactions on their account. The bank will then investigate to determine if the payment can be reversed or reimbursed."
Unsatisfied customers can make a formal complaint to their bank directly or via her office.
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Email scams
Victims receive an email from what looks like their bank or other trusted organisation saying they need to confirm some personal details, usually username and password. A link to a website looks like the organisation's but is fake. After victims enter these details, scammers can steal personal information or access accounts to steal money.
• Be extremely wary of emails that ask you to confirm your personal details.
• Don't click on links within any email if you have the slightest suspicion about its authenticity. Simply delete the email. Type the website address into your browser.
Remote access scams
Scammers call pretending to be your bank or telecommunications provider or a government department. They may ask you to download software they say will help but gives them access to everything on your computer - including bank accounts.
• Be very cautious about unsolicited phone calls, no matter how plausible.
• Be alert to requests from service providers that fall outside the scope of the services they offer. For example, a telecommunications provider asking you to log into your internet banking.
• If someone asks for remote access to your device, call the company back on its publicly listed number before continuing. If the company did not contact you, notify your bank immediately.
Impersonation scams
People you have relationships with – friends, family members, carers, employees – might steal cards, spy on PINs and use impersonation to reset internet and phone banking details.
• Take care when accessing your banking around others and check your accounts regularly. Put arrangements in place if you need help managing your accounts.
Money mule scams
Victims are asked to accept and forward money stolen from another victim's bank account. Scammers convince people there is a legitimate reason for the transfer, such as a job application fee or refunding an accidental overpayment from an online purchase.
• If the money is found to have been stolen, a bank may reverse the payment into your account, causing your account to be overdrawn if there isn't enough money in it. The bank will ask you to repay the overdrawn sum.
• The ombudsman's office can consider whether the bank's terms and conditions allow it to reverse the payment/s and whether the bank had sufficient information to conclude the money was stolen before it reversed the payment. If so, you will be held liable for the loss.
Source: Banking Ombudsman’s office
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