New Zealanders losing $3.8m weekly to online scams

New Zealanders are losing an average of NZD $3.8 million weekly to scammers, according to the National Cyber Security Centre (NCSC), prompting a renewed call for vigilance during Cyber Smart Week.

A survey from 2023 conducted by the Ministry of Business, Innovation and Employment reveals that individuals across the country lose NZD $22,708 every hour due to scams. These losses range dramatically, from people forfeiting their life savings to businesses losing significant investments, and even smaller amounts, such as NZD $100, to social media scams.

Tom Roberts, Lead of the NCSC's Threat and Incident Response Team, highlighted the psychological tactics employed by scammers. "The Scamathon riffs off the idea of a Telethon, playing on all the different ways scammers appeal to us, to take advantage of us. It was even filmed out at Avalon studios, the home of the original Telethon," he said.

"While the message is conveyed through some dark humour, it highlights a hard truth that New Zealanders are giving away large amounts of money to online criminals. Most people think they wouldn't fall for a scam, believing we're too savvy, but the reality is scammers prey on our good nature, and through our digital devices can get to us at any time of the day or night."

This year's reporting trend foreshadows potentially record-breaking losses, according to Roberts. He stated, "Cyber Smart Week will come to an end, but The Scamathon doesn't stop. We need to stay aware and keep working to block cyber criminals, and it's something we can all do together."

The NCSC is urging citizens to employ basic protective measures to combat online fraud, such as using strong, unique passwords and enabling two-factor authentication (2FA). Research indicates that a significant portion of New Zealanders neglect these practices—43% use the same password for multiple accounts, 30% acknowledge their passwords lack strength, and 32% do not utilise 2FA.

"It's important to get the basics right. A long, strong and, importantly, unique password is going to stop a lot of cybercrime. Add in 2FA, and you're a long way to keeping scammers out of your online accounts. These are crucial steps we all need to get right," said Roberts.

The "Own Your Online" campaign offers resources on enhancing cybersecurity, including guidelines on creating robust passwords and implementing 2FA for vital accounts such as banking.

Throughout Cyber Smart Week, the Scamathon project will be updated continuously, illustrating in real time the financial impact of scams on New Zealand citizens.