How an Auckland-based foreign student was forced to fake his own kidnapping, further testimony is expected from the father in the Lauren Dickason trial and could inflation finally dip below 6%? Video / NZ Herald
A foreign student caught up in an elaborate ‘Chinese officials’ financial scam was made to hire an Auckland hotel room where he faked his own kidnapping to convince family to send money to offshore criminals.
Police say the man was instructed under duress to spend 10 days in the hotel and make videos of himself to send to relatives in China warning of the kidnapping plot and begging for them to wire funds to safeguard his life.
Police have described the scenario as “essentially a hostage situation”.
Detectives from Auckland City’s financial crime unit say more victims have come forward in the last month as organised criminal groups, likely based in Hong Kong or mainland China, target Chinese students or older Chinese migrants now living in Auckland.
Auckland skyline with inset of fake warrant for arrest from China inset. Photo / Hayden Woodward
The scammers impersonate Chinese government officials and claim the victim has been implicated in a foreign crime, usually money laundering, being investigated offshore.
They are told to remit large sums of money to foreign bank accounts to remedy their legal situation.
In some cases, the criminals, who use WeChat or WhatsApp to communicate, have detailed information about the victim’s family, who are also threatened as part of the sinister conspiracy.
Two victims have lost a combined $560,000 while a third was on the hook for $600,000 before police learned of the fraud.
“Already the sums that we’ve seen are eye-watering,” Detective Sergeant Tony Darvill told the Herald.
“That’s why we need to get in front of it so we can stop this happening and take New Zealand off the map as a community to offend in for global criminals.”
Darvill said the scammers provide fake arrest warrants, non-disclosure agreements and asset seizure notices to add legitimacy to the sophisticated ruse.
They present elaborate, scripted stories, and have impersonated Chinese embassy staff, police, Customs officials and even the Chinese attorney-general.
The scammers used fake Chinese arrest warrants to implicate fraud victims in foreign money laundering crimes in order to extort large sums of money.
In a ploy to exert control over victims, the scammers schedule regular video “check-ins” to ensure they are complying with instructions and not talking to anyone about their terrifying ordeal.
In several cases, students were made to hire Auckland hotel rooms in order to isolate them from their support networks while the scam played out.
“Scared people are going to do this,” Darvill said. “They’re scared and confused. But clearly, no legitimate government department is going to make you do that.”
The male student who spent 10 days alone in a hotel last year was “coached” by the scammers to pretend he had been kidnapped in order to convince his family to wire funds.
Police caught wind of the scam and contacted the man before any money was sent.
Detective Sergeant Tony Darvill of the Auckland City financial crime unit is urging anyone who suspects they've been scammed to contact police. Photo / TVNZ
“When you’re that young person in that situation at that moment, that was all completely real to him,” Darvill said.
“Effectively he was being held there because he believes what he’s been told. He’s fearful for his family, he’s fearful for himself. That’s why he’s taken these extreme measures.
“He physically could get up and walk out of that room. But because he’s been so convinced by these scammers about what’s happening, effectively he’s hostage to the situation.”
Darvill said bank records show the money is usually sent to accounts in Hong Kong or China, which is where the organised criminal group responsible for the scam is likely based.
Given the scammers had detailed information about some victims’ families, it appeared some of them had been deliberately targeted.
Darvill was convinced the scammers were still operating and seeking out more NZ-based victims.
Police are urgently trying to warn the community to be vigilant and to contact police immediately if someone suspects they are being scammed or have already fallen victim.
“The scams are sophisticated and they’re evolving,” Darvill said.
“Intelligent and educated people are getting caught out in these financial scams.
“There’s no shame in coming to police.”
A community meeting co-ordinated by police and the Chinese consulate was held in Auckland last week to raise awareness. Chinese police also addressed the meeting by video call.
Detective Senior Sergeant Craig Bolton said police were “extremely concerned” that more vulnerable people were being scammed.
“Given the large sums of money being transferred, we are asking people to be extremely vigilant with their communications so as to not fall victim to this scam.
“While we are doing everything we can to hold the offenders responsible to account, we implore those who may be targeted to be wary of who is contacting them and where they are sending money.
“Your report could be the thing which helps us locate an offender and bring them before the court.”
Anyone with information can contact police at 105.police.govt.nz or by calling 105.
It’s estimated international scammers are siphoning hundreds of millions of dollars from Kiwi victims every year.
National's police spokesman Mark Mitchell says NZ will be viewed as a soft target if we don't go after international scammers. Photo / Jed Bradley
National’s police spokesman Mark Mitchell yesterday called for new measures to crack down on scammers, including partnerships with remote countries where criminals reside and the placement of Kiwi police liaison officers to investigate and prosecute offshore offenders.
He said New Zealanders were losing their life savings to sophisticated scams and police did not have sufficient resources to tackle the growing problem.
“The reality is if there isn’t determination between governments in terms of getting on top of this then this is turning into a multibillion-dollar scam around the world. In my view, it’s time to turn our mind to it seriously.”
However, Police Minister Ginny Andersen rubbished National’s suggestions.
While scams were difficult crimes to investigate, putting NZ officers on the ground in countries we had no jurisdiction in would create more bureaucracy and waste police resources, she said.
The Government worked closely with international partners and had invested an additional $30.6 million in CERT NZ to tackle cybercrime.
