Banks want government support for anti-scam centre after crims pilfer millions from Kiwi victims

Banks need help from the Government and other industries to protect people from scams, New Zealand Bankers' Association chief executive Roger Beaumont says. Photo / Dean Purcell

Banks want government support for a national anti-scam centre - and say other industries and search engines should help out too.

The banking sector has been under fire for deficiencies in its payment system which overseas criminals have exploited to steal an estimated $200 million from Kiwi victims last year.

But today, the New Zealand Banking Association (NZBA) has asked the Government to consider leading scam prevention in New Zealand.

“Banks have got the ball rolling with the anti-scam centre by targeting mule bank accounts, which are used by criminals to move stolen money,” NZBA chief executive Roger Beaumont said.

“To take the centre to the next level, we’re initially asking the Government for operational support by involving the police and other relevant agencies.”

He added: “To truly strengthen New Zealand’s scam defences, everyone in the ecosystem needs to step up, and that includes government, telcos, social media companies, and search engines. Banks can’t protect New Zealanders on their own.”

The association today said it had written to Consumer Affairs Minister Andrey Bayly outlining its views on the anti-scam centre.

“We’re also asking the Government to help remove any regulatory barriers to the anti-scam centre working effectively, and to set scam-prevention expectations for other industries.”

The Banking Ombudsman has repeatedly called for banks to improve consumer protections and review fraud reimbursement rules for people who lose money through authorised payment fraud, such as romance or investment scams.

A select committee at Parliament made similar recommendations.

Bayly wrote to banks last month, warning them to improve protections for customers voluntarily or face government regulation.

“Nearly $200 million was lost to scams last year. This needs to change,” he told the Herald.

The UK has already introduced confirmation of payment technology, since credited with drastically reducing scam losses.

British banks have also been forced to refund customers who lose money in authorised payment fraud.