Australian man arrested after scamming Kiwis out of $200,000 in sophisticated scheme

An Australian man has been arrested on New Zealand soil after scamming Kiwis out of nearly $200,000.

Police are urging people to be aware of the sophisticated scam which has re-emerged over the last few months.

Auckland City CIB’s Detective Senior Sergeant Craig Bolton said people need to act quickly if they believe they have fallen victim to the scam.

Bolton said a Gore victim’s swift actions were enabled to get his money back and bring down the scammer.

He said earlier this month, the victim contacted his bank concerned about a $40,000 withdrawal into another New Zealand bank account.

“Following information received from this victim, Police making inquiries into the scam identified a man believed to be involved,” Bolton said.

The man was a 30-year-old Australian citizen visiting Auckland Central. He was arrested and has been charged with four counts of engaging in money laundering.

He was also charged with scamming an Aucklander out of $150,000.

“It is absolutely devastating for those who are losing money in such huge quantities like this,” Bolton said.

“Police will always do everything we can to try and recover the funds, including working with banks, however, this does demonstrate some of the complexities we face,” Bolton said.

The man is due to appear in court on August 6.

Bolton said it is alleged the victims were both hit by the “term deposit scam”, which re-emerged last year.

“Victims are entering their contact details online and talking to an ‘investment advisor’ on the phone, before completing online documents, which often look professional, before transferring their money into a NZ bank account,” Bolton said.

“At this point the money is usually transferred off-shore by the holder of that bank account.”

Bolton urged Kiwis to adhere to the following advice to ensure they do not fall victim to the same scam.

• Never enter contact details into any online website that offers “term deposit” rates
• If you think you may have entered your contact details on a website offering fake term deposits, do not engage in conversations over the phone with a person purporting to be from a bank - disconnect the call and phone back to a number displayed on the bank’s website
• You can always call your bank to seek reassurance and confirmation you are talking to a trusted and legitimate employee
• Seek advice from a trusted friend or family member, or someone who has knowledge of investments before sending any money anywhere
• Check the URL of the website that you are directed to and confirm it is the valid website for the bank that you believe you are dealing with
• The Financial Markets Authority publishes the names of suspicious companies on its website.

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