Scammers creaming $447m off Kiwis yearly

Debbie Plank and daughter Rachel. Photo / Janna Dixon

Warning: thousands of Kiwis are being conned by scams each year - and there's a reasonable chance you'll become one.

Figures from the Ministry of Consumer Affairs' Scamwatch section estimate 15 per cent of the population has been the victim of a scam over the internet or by other means, costing them money and causing emotional stress and embarrassment.

Scammers often play on emotional heartstrings, such as in the case of an Auckland woman who was fleeced of $33,000 by an African she met in Auckland through a dating website.

He left for the United Kingdom, where he claimed he had been robbed, and involved in a car accident.

He then asked for money so he could return home to West Africa and work on an oil well.

He provided a certificate of the oil well's authenticity and his flight details.

The woman parted with $33,000 in 14 payments over four days.

She finally realised it was a con and stopped sending him money. However, the woman is still receiving demands for cash from him.

Scamwatch says the financial loss to the country is estimated at $447 million. Around 5.75 per cent of the population is victim to a fraud every year.

Sixty per cent of frauds in New Zealand are estimated to be for $1000 or less, while 13 per cent of scam victims part with $20,000 or more.

Scamwatch spokesman Richard Parlett said the 3000 scams reported each year would be the tip of the iceberg.

Scams range from "phishing", when fraudsters use fake emails claiming to be your bank and ask for personal details such as your account and PIN number, to chain letters and charity scams.

"We would hope that nowadays most people would just hit delete," Parlett said.

Banking Ombudsman Deborah Battell said customers may be liable for any money lost if they have voluntarily or negligently disclosed their PIN numbers or passwords to another person.

Parlett said some scams were highly organised and operated like call centres where staff work 12-hour days to try to rip people off: "They spend all day every day coming up with ideas. It's their day job, it's all they do."

Parlett said scammers are especially good at inventing emotional stories to try and gain a person's sympathy, or excite them into a "get rich" scheme.

Detective Sergeant John van der Heuvel, of the police National Cyber Crime Centre, said the Rugby World Cup could also be targeted by scammers.

An unofficial website worldcup2011.com appeared earlier this year, but it had a major flaw - it used an image of rugby league legend Stacey Jones on its front page.

Have you been scammed?

Sour notes at concert

Debbie Plank says she was once too trusting. But no more after buying Black Eyed Peas concert tickets on Trade Me and collecting them from the seller's house.

The Auckland mum spent $455 on three tickets for last October's Vector Arena concert. It was a 16th birthday treat for her daughter Rachel.

Unbeknown to Plank, the tickets had been cancelled by the original buyer after they had not arrived as expected by courier.

Somehow they turned up for sale on Trade Me.

Plank was told the tickets were invalid when she arrived at the concert.

The matter is before the courts.

Scams to watch for

Holiday voucher scam:
A Canterbury couple received a phone call from "Annie" who had an Indian accent trying to sell vouchers for very cheap accommodation in New Zealand and Australia. Annie quoted details from a survey about where New Zealanders and Australians liked to travel. Annie asked for their credit card details. The couple did not fall for the scam.

Puppy dog scam:
A Manukau woman received a call from "Tammy" claiming to be based in Christchurch offering the sale of a Teacup Yorkie puppy for $700 including delivery. Once payment was made, the woman was told the dog would be sent on the next available flight. She was then emailed to say the cargo company was charging an extra $500 for tax. When the woman phoned Air New Zealand no "Tammy" or a dog was listed on the flight.

Bank/phishing scam:
An Auckland man fell for a fake bank email claiming his last two transactions had not gone through. The email said the problem could be fixed by clicking on a link. The scammers stole $6000 from his account.

Flatmate scams:
An Auckland University student was scammed out of $1200 after finding a Viaduct apartment for rent advertised on the internet. When he contacted the landlord via email, the landlord replied he was in the UK, but the student could look at the flat provided he sent a deposit of $1200 in case anything was stolen from the apartment during his visit. He sent the money and has heard nothing from the landlord.

Email anna.rushworth@hos.co.nz