Andrew Bayly Unveils Strategy to Tackle Online Scams Amid $200M Loss to Kiwis

Minister Andrew Bayly unveils strategy to combat online fraud with national and international collaboration.

As Fraud Awareness Week begins, Commerce and Consumer Affairs Minister Andrew Bayly has announced a comprehensive government-led initiative to combat the growing threat of online financial scams in New Zealand.

“Online financial scams are a growing problem for New Zealand. New data released today shows that Kiwis lost nearly $200 million to scammers in the last year. Considering estimates suggest that only one in five scams are reported, the real losses to New Zealanders are significantly higher,” Minister Bayly revealed.

A Growing Concern with Significant Impact

Scammers have exploited digital technology to orchestrate increasingly sophisticated schemes, many originating offshore. With most scams underreported, the scale of financial and emotional damage to New Zealanders is believed to be much larger than the reported figures.

“Tackling online financial scams is part of our plan to rebuild the economy and crack down on crime by supporting Kiwis to safely transact and do business online,” Minister Bayly emphasized.

Key Challenges and the Need for Coordination

The fast-paced nature of digital technology has made scam detection and prevention complex. Current efforts, while commendable, are fragmented and lack a centralized system for reporting or responding to scams quickly.

“There is no centralised, instantaneous method for reporting scams, which hampers our ability to respond quickly,” Bayly stated. “Additionally, the focus has been on shutting down individual scams rather than addressing systemic issues.”

Minister’s Plan for Action

As the newly appointed lead anti-scams minister, Bayly has outlined a three-pronged plan to enhance coordination and effectiveness in combating scams:

Improved Government Coordination: Streamlining efforts across ministerial portfolios and public sector agencies to improve information sharing and response times.

Industry Collaboration: Partnering with sectors such as banking and telecommunications to develop robust, industry-led solutions and foster cross-sector cooperation.

Regional and International Cooperation: Working with counterparts in Australia, Singapore, and other countries to create a coordinated regional approach and share expertise.

Additional Measures Underway

To strengthen the initiative, the government plans to establish a centralised online scam-reporting platform, enabling real-time tracking and response to fraudulent activities. Educational campaigns will also be launched to raise public awareness about common scams and equip Kiwis with the tools to protect themselves online.

Banks and telecom providers are being encouraged to adopt advanced fraud-detection technologies, and the government will explore legislative changes to further empower authorities in combating online scams.

International Partnerships for Global Solutions

Bayly also highlighted the importance of working with international partners. “Many of these scams originate offshore, so tapping into global expertise and forming regional alliances is critical to addressing this issue effectively,” he said.

A Call to Action

“By enhancing our coordination efforts and tapping into international expertise, we can significantly improve our effectiveness in tackling this pervasive problem and prevent more Kiwis from becoming victims,” Minister Bayly concluded.

The Government’s plan aims to curb the impact of online scams and restore public confidence in the safety of digital transactions, a key step in fostering a more secure economic environment for all New Zealanders.