At DFK Oswin Griffiths Carlton, we understand the importance of safeguarding your financial well-being. As scams become increasingly sophisticated, staying informed and vigilant is crucial. In 2023 alone, online scams became New Zealand’s largest crime, surpassing traditional crime statistics. New Zealanders lost millions to scams, with online purchases, phishing, and fraud among the most common threats.
Common Financial Scams Targeting Small Businesses and Investors in New Zealand
Phony Invoices
Scammers send fake invoices for products or services never ordered or received, hoping businesses will pay before verifying the details. Always double-check invoices, especially from unknown suppliers.
Unordered Merchandise
Fraudsters send unordered goods and then demand payment, claiming the order was legitimate. Keep accurate records of your orders and verify unsolicited shipments.
Business Email Compromise (BEC)
Scammers hack or spoof email accounts of executives or vendors to trick employees into transferring funds or sharing sensitive information. In New Zealand, this method has become one of the most successful tactics cybercriminals use. Always verify payment requests or sensitive information through a secondary, known contact.
Remote Access Scams
Fraudsters pose as trusted organisations such as the IRD or familiar tech providers to convince individuals to download remote access software, which can lead to data theft. Be wary of unsolicited calls requesting remote access, and always verify the caller’s identity before proceeding.
Tech Support Scams
Scammers impersonate IT support, claiming issues with your computer systems to get online access or charge for unnecessary services. Protect your business by using reputable IT services and avoid responding to unsolicited tech support requests.
Payment Redirection Scams
Weak passwords can lead to compromised business email accounts, allowing scammers to redirect payments to fraudulent accounts. Always verify payment instructions directly with the vendor, and avoid using contact details provided in suspicious emails.
Directory Listing Scams
Scammers offer to list your business in a directory for a fee, but the directory is often fake or offers no real value.
Credit Card Processing Scams
Scammers promise lower credit card processing rates but use deceptive contracts with hidden fees. Always review processing agreements carefully.
Loan Scams
Fraudulent lenders offer loans with attractive terms but require upfront fees or personal information. Verify any lender’s credentials through official channels such as the Financial Markets Authority (FMA).
Investment and Crypto Scams
Investment scams have become rampant in New Zealand, with scammers enticing victims through low-risk, high-return offers. Most fraud was identified through social media. Victims only realise the scam when they attempt to withdraw funds. Always verify the legitimacy of investment companies with the Financial Markets Authority (FMA) before engaging.
Invoice Scams
Invoice scams remain one of the most prevalent types of fraud in New Zealand. Fraudsters may intercept legitimate invoices, alter payment details, or send fake invoices that look authentic. Use official contact details to verify all invoices and payment changes with the service provider.
Money Recovery Scams
After falling victim to an investment scam, scammers may target individuals again, promising to recover lost funds for a fee, often resulting in further losses. Be cautious, especially if they’ve already been scammed. Verify the legitimacy of fund recovery services independently.
Simple Steps to Protect Your Business and Investments in New Zealand
Secure Communications
Protect apps and email accounts with strong passwords and two-factor authentication. Due to weak security measures, Many New Zealand businesses have been victims of cyberattacks.
Stay Informed
Stay current with common scams through platforms like CERT NZ and share this information with your team, clients, and family.
Train Employees
Educate your team on recognising scam tactics and encourage them to verify suspicious communications. Scammers often target employees to gain access to company data or finances.
Verify Invoices and Orders
Always double-check invoices and orders for legitimacy, particularly from unfamiliar sources.
By staying vigilant and educating your team and clients, you can help protect your business and finances from sophisticated scams. For further information on protecting yourself and your business from scams, visit resources like CERT NZ and the New Zealand Government’s Own Your Online guide.