How to avoid the most common online scams in NZ
Did you know that in 2020, Kiwis collectively lost almost $19 million to online scams? Despite being generally tech-savvy, people often fall prey to scams that range from phishing schemes to identity theft. At Union Plus, we understand the importance of safeguarding your financial well-being, so we’ve put together a helpful guide on the most common online scams in New Zealand and how to avoid becoming the next victim.
The Most Common Online Scams in New Zealand
Phishing Scams:
A phishing scam is when scammers pretend to be trustworthy entities like banks or NZ Post to obtain personal information.
Example: You receive an email from ‘your bank’ that asks you to click the link and sign in for some reason.
How to avoid:
Always check the email address or number the communication is being sent from.
Be cautious with unsolicited texts or emails asking for personal details.
If you’re not sure of the legitimacy of any communications you receive, contact the company or institution directly to check.
Online Shopping Scams:
With these types of scams, fake online retail pages are created to trick users into entering sensitive information.
Example: You believe you’re purchasing a genuine product from a website but are in fact doing nothing but entering your credit card details and address into their databases.
How to avoid:
Think twice. If a deal seems too good to be true, it probably is.
Purchase only from reputable websites and scrutinise reviews from previous buyers.
Dating and Romance Scams:
Dating and romance scams are where scammers build online relationships, gaining trust before requesting money.
Example: You meet someone online and spend hours talking to them. You think you’ve found a genuine connection, but they then start asking you to send them money for whatever reason.
How to avoid:
Be cautious about who you communicate with online.
Never send money to someone you've never met, regardless of the emotional connection.
Identity Theft:
Identity theft is when scammers use stolen personal details for financial gain.
Example: A scammer takes out a substantial loan under your name.
How to avoid:
Monitor your financial statements regularly and invest in anti-virus software.
Use complex passwords and change them regularly. Don’t write them down.
Keep key identification documents, such as birth certificates and passports, in a safe place.
Employment Scams:
Employment scams occur when someone offers you a job that does not exist.
Example: You see a job that advertises a great paycheck, working from home, and little responsibilities. You apply, and they then ask you for your bank information or a fee to pay for set-up supplies.
How to avoid:
Job offers that seem too good to be true often are.
Verify job offers directly with the company, and never pay any fees upfront.
False Bills and Invoices:
Often targeted at businesses, these kinds of scams occur when a scammer sends you a fake bill for services or products that you never ordered or received.
Example: Your business receives an invoice for something that seems like a typical expense, but you didn’t actually order it at all. While you’re investigating it, you receive further emails saying there will be a penalty if it is not paid urgently.
How to avoid:
Double-check every invoice that your business receives, or make it a priority for whoever handles your accounts.
If you receive urgent notices threatening penalties or legal consequences only a few days after receiving the invoice, note that it’s probably a scam.
Hacking Scams:
These are advanced technological scams where hackers break into your laptop, computer, or phone to gain access to your personal information.
Example: You receive an email stating that your computer has a virus and you need to download certain software to fix it.
How to avoid:
Avoid downloading software from unknown providers and invest in cybersecurity measures.
If you receive a call or an email from someone claiming to be an IT security expert, don’t engage them; do your research and ask friends and family first.
How to Avoid Getting Scammed Online in New Zealand
Staying vigilant is key to avoiding online scams. Here are some practical tips to protect yourself:
Never click on links from unknown numbers.
Verify email addresses from companies and institutions.
Banks won't ask for your password – be cautious of such requests.
Avoid logging in through email links; use official websites.
Don't send money to unknown individuals.
Hang up on calls requesting personal information; call the company directly to verify.
Pay bills only for products and services you ordered and received.
Never save credit card details online.
Be cautious of offers that seem too good to be true.
Use reputable websites for online shopping.
Invest in up-to-date antivirus software.
Cancel lost credit cards immediately.
Check reviews before buying online.
Use different and strong passwords for various accounts.
Keep an eye out on websites like Scamwatch or your bank’s website for the latest scams.
Online scams are prevalent, but with awareness and caution, you can protect yourself and your family. By staying informed and cautious, you can keep your finances safe in the digital age.
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