Payments NZ reported that last year, ~$265m was lost to scams
The government has rolled out the “safe harbour” legal shield for banks, telecommunications providers and digital platforms to quickly block potential online scams.
Commerce and consumer affairs minister Scott Simpson indicated that the protection is for online service providers that act in good faith and take reasonable steps to block suspected scams propagated through fraudulent websites, text messages and social media.
Payments NZ reported ~$265m gross scam losses through New Zealand bank accounts in the past year.
“Entities tell us they want to pull these scams down earlier, but they worry about being prosecuted if they accidentally take down a legitimate customer or website. These changes give them more confidence to act when something looks wrong”, Simpson said.
The safe harbour applies under the following conditions:
“This is about fast, decisive action to combat scammers. If a bank wants to pause a suspicious payment, or a telco wants to block a fake website link in a text campaign, we want them to be able to do that promptly without looking over their shoulder”, Simpson said.
This initiative backs the work of the New Zealand Anti Scam Alliance, which comprises government agencies, banks, telecommunications providers, digital platforms and consumer representatives. The alliance is also considering the establishment of a “trusted flagger” system through which online providers can obtain reliable information about potential scams from regulators and law enforcement.
Moreover, the New Zealand Banking Association launched a fraud intelligence tool to prevent scammers from setting up “mule” accounts through which stolen funds can be moved through the banking system. The system enables banks to quickly identify and publicise potential mule accounts and to freeze funds where they are.
Banks will also be able to meet commitments to warning customers if they are at risk of moving money to a high-risk accounts effective 30 November.
“This technology will help banks move faster when money is at risk, and it fits well with the Government’s push to give providers more confidence to intervene early”, Simpson said. “Scams are constantly evolving, and no single organisation can tackle them on their own. These changes are about backing the providers who see scams first, and giving them the tools and confidence to shut them down faster”.
The government will provide more information on the Anti Scam Alliance’s work in the next few months.
