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A sophisticated fraud gang has been targeting Kiwibank by using fake identification and credit cards to withdraw money from customers' accounts.
The group, which took about $500,000, has focused on Kiwibank branches. But there has been one raid on another bank, Mark Benefield of the Auckland police fraud unit said. The other major banks, BNZ, ASB, Westpac, ANZ and National Bank, all deny they have been affected by the fraud.
The investigation began after a bank customer discovered suspicious withdrawals from their account and contacted police. Police released photos of four suspects, but Benefield said they were probably doing the donkey work, with the operation run by bigger fish.
"I think these guys aren't the main players, I think they're the mules. We want to talk to them and identify who the main players are."
The four alleged fraudsters used fake identification to withdraw money from customers' accounts. They have also created false accounts at Kiwibank and taken money from them. Benefield said the operation was more complicated, but he wanted to hold back information. "It's [about] getting bank accounts, accessing those and getting money from them. There's other parts to it that we aren't going to elaborate on."
Benefield said he didn't know why Kiwibank had been a target over other banks. "Sometimes it's convenience of process or convenience of location - who knows at this stage? It may just be the majority of the offenders use Kiwi-bank. It might just be a feeling of comfort rather than any strategic reason."
Bruce Thompson, spokesman for Kiwibank, said the losses faced by the bank would only reach $10,000. It is believed some of the money originally taken has been recovered.
"We've had some compromised accounts. [But] it's not all about Kiwibank - it's more sophisticated than that." Thompson said Kiwibank was confident in its security.
"We pick things up quickly, and we shut down any dishonest or illegal activity quickly. All banks are vulnerable as we are. But we are satisfied that our security is as good as any major bank operating in New Zealand."
However, Massey University banking expert David Tripe said it was no surprise Kiwibank had been targeted. "They've less experience and less training for dealing with it. The other banks have specialist training staff, and Kiwibank are [being run from] Post Shops."
