A weekend police survey in Hamilton discovered only two beggars were actually homeless and the others were bringing props and even dogs to help them appear poor.
The survey found only two of the 15 beggars were homeless.
The remaining 13 had brought duvet covers, cardboard signs and even sickly looking pets to give the impression they were living on the streets.
The city's business community has called for change after beggars have been harassing or intimidating residents, according to TVNZ.
The general manager of Hamilton Central Business Association Sandy Turner said a new campaign was aimed at helping the homeless while it was only a "moderate" problem.