Netsafe CEO Brent Carey says "digital ram raids" are a 24-7 operation. Photo / Michael Craig
Netsafe CEO Brent Carey says "digital ram raids" are a 24-7 operation. Photo / Michael Craig
Online watchdog NetSafe has unveiled a new scam detection weapon to stop “digital ram raids” and protect Kiwis from foreign-based organised crime syndicates.
Launching today in association with tech giant Meta and the Global Anti-Scam Alliance, a new website will help New Zealanders spot fake URLs that overseas criminals are using to lure victims into elaborate investment scams.
NetSafe CEO Brent Carey said scams were growing in sophistication, with estimates that foreign crime networks are siphoning $200 million a year from local victims, many of whom were tricked by fake websites set up to extract money.
“It’s a digital ram raid,” Carey told the Herald. “But it’s more than one a night. It’s a 24/7 operation.”
He said the effects of losing large sums of money could be devastating for victims, including loss of digital confidence, emotional distress and poor mental health.
“We see denial, we see wanting to believe it, shame and hope that there will still be some way to resolve it.”
NetSafe is today rolling out Checknetsafe.nz. The website has access to a global network of scam intelligence powered by overseas agency ScamAdvisor.
Carey said Checknetsafe.nz can instantly determine the legitimacy of a website and provide consumers with a comprehensive risk assessment, including warnings to be cautious when interacting with suspect websites or social media URLs.
“This is a massive step in New Zealand’s war against scams,” Carey said.
“People are now armed with a tool that uses real-time scam data. It’s going to make it more difficult for scammers to get away with exploiting New Zealanders.
“People have lost millions of dollars because of complex schemes that look real. Now they can check websites against a vast global database that shows in real-time if a website is legitimate.”
A Herald investigation has highlighted a raft of shocking cases where New Zealand victims lost their life savings after registering details on fake investment websites, then being contacted by scammers posing as financial advisers at reputable foreign banks.
Carla O'Neil, 45, believed she had done proper due diligence and that the investment opportunity was legitimate. Photo / Michael Craig
North Shore real estate agent Carla O’Neil lost $100,000 in February. She had clicked on a website comparing bank term deposit rates before being duped by a well-spoken man with an English accent who claimed to be a Citibank portfolio manager.
And Whangārei health worker Borja Ares lost $330,000 after clicking on a similar website in May. He was also contacted by a man claiming to be a Citibank investment manager who convinced Ares to invest proceeds from the sale of his family home.
Borja Ares and Alfiya Laxmidhar have lost $330,000 in an elaborate Citibank-branded investment scheme. Photo / Michael Cunningham
Carey said the new scam detection website could have given O’Neil and Ares an “early warning system about their online behaviour”, and stopped them falling victim to scammers.
Developed in association with Consumer NZ and ID Care, it aimed to “disrupt the criminals” who were part of major organised crime syndicates operating from overseas by giving Kiwis tools to protect themselves and live safely in the digital world.
“New Zealanders deserve to enjoy their online experience and not worry about becoming a victim if they click the wrong thing or trust a suspicious text.”
The Herald reported last week that police have shelved efforts to solve international scam cases due to the complexity of identifying foreign offenders and tracing stolen money overseas.
There are growing calls for banks to invest in better security systems to detect and prevent scams, with suggestions banks should be forced to refund customers tricked into sending money to cyber criminals.
Carey said banks needed to show “good corporate social responsibility”. He questioned whether sufficient safety had been built into the banking system.
The issue was also one of enforcement, and whether police had sufficient resources to tackle global criminal networks.
Carey said a cross-agency approach was needed, including banks, enforcement agencies, social media platforms, telcos, consumer advocates and the Banking Ombudsman to address scams.
This could provide a co-ordinated response, sharing latest intelligence on emerging scams and fake websites, while also focusing on public education and “victim remediation.
It was untenable for hundreds of millions of dollars to be drained fraudulently from the economy each year.
