$10m cold-calling scam exposed

Nearly a third of New Zealanders have been targeted by a cold-calling scam involving a non-existent computer virus. File photo / Thinkstock

A cold-calling scam which tricks people into paying to fix a non-existent computer virus has reached nearly a third of New Zealanders, costing the country as much as $10 million.

Ministry of Consumer Affairs' Scamwatch service said one in 20 people were falling for the scam, losing an average of around $200.

The scammers usually claim to be from a Microsoft-related repair company, and persuade people that their computer has a virus. They then request remote access to the computer and charge the victim for ‘computer repair software’.

Scamwatch spokesman Jarrod Rendle said it had grown to be the largest phone scam reported in New Zealand, with 30 percent of adult New Zealanders phoned.

"The message is simple: If someone calls you to say your computer has a virus or problem, it is a scam and you should hang up straight away."

He said that while $500 was the most anyone had lost, there was potential for greater losses. Scammers who secured remote access could also record details like bank passwords, or use the computer to send spam emails.

Scamwatch is teaming up with Microsoft, Trademe, and advertising firm Y&R in a weeklong campaign to inform New Zealanders about the scam.