Bar owner jailed after card skim scam

File photo / NZ Herald

A Queenstown bar owner who used New Zealand's "vulnerable banking system" to steal customers' bank details from has been sent to jail.

Marcelo Araujo, 39, originally from Brazil, who earlier admitted the theft, was sentenced to 14 months' jail and ordered to pay $4700 reparation in Queenstown District Court yesterday.

Araujo became aware of an operation where a skimming device was being used to scan customers' bank details, but instead of stopping the scam, Araujo started taking the money as well, The Southland Times reported.

Judge Kevin Phillips said Araujo targeted the vulnerable New Zealand banking system

New Zealand was at risk because cards here did not have a chip in them to stop cloning and Araujo needed to be sentenced in a way that would deter others from "ripping new Zealand citizens off", Judge Phillips said.

Araujo attempted to withdraw $18,000 but only managed to withdraw $4700.

Police became aware of the scam when victims reported using their cards at the bar.

The name of the Queenstown bar has been given name suppression to protect innocent people involved in the business.

- NZPA