Taking Down the Scammers

Scams. 😡 Scammy fraudsters are ripping off hard-working Kiwis. 😤 But does it actually happen in New Zealand? Yes. Yes, it does, and it’s actually a huge problem. 😧

Last year, New Zealanders were duped out of a staggering $20 Million, according to data provided by the government’s cybersecurity arm [CERT NZ]. The losses in 2022 were 19% higher than the year before. In fact, Kiwis have been swindled out of more and more money year after year.

The number of reports of scams correlates with the losses we’re seeing. Interestingly, as reports of scams increased, the total losses plateaued. Last year, reports dropped, and we saw bigger losses. It makes sense that the more New Zealand is able to identify and report scams, the harder it will be for fraudsters to bamboozle Kiwis.

Just this past April, New Zealand Financial Services Director Nicola Ponsonby of EY reported that a whopping 87% of customers at a particular bank had been exposed to scams or scam attempts in the past six months [EY 2023]. Maybe you’ve been the victim of a scam, or maybe you’re one of the lucky ones. Or, maybe you’re wondering what all the fuss is about. Scams are easy to spot, right? Hmmm… Not necessarily.

Although many people today are aware of the infamous “Nigerian Prince” phishing scam closer to home, these fakes are getting smarter and more daring. One of the latest text cons, known as the “Hey Mum” scam, tricks parents by impersonating their own kids [One NZ]. 

Other common types of scams are as follows:

• Card details are stolen online
• Confidence tricks and app scams
• Card details are stolen or skimmed in person
• Bank account hacked
• Identity theft
• Card lost or stolen
• Digital wallet account hacked

And it’s still happening right here in New Zealand. Just this past July, Shelley Fitzpatrick lost $12,000 when a man pretending to be from her bank called her about suspicious activity on her account [Newshub]. He used personal information about her to convince Shelley and her husband that he was legitimately from the bank so that she would give him more details so that he could access her account. That kind of stuff gives me the heebie jeebies. What’s being done to prevent cybercrimes in the first place?

Debut’s multi-pronged approach to card and payments fraud

While we build next-gen banking products in New Zealand with Debut, we’re also actively seeking out the best methods to protect Kiwis from fraud both online and out in the world. These are some of the technologies and techniques we’re building into Debut.

Transaction Authentication 🤝

Every time you use your Debut card online, we use the latest 3D Secure 2 authentication standard to catch and freeze fraudulent transactions as they’re happening. When you pay, 3DS2 will try to work out if it’s really you or someone else using your card online. If we’re not confident it’s you, we might send you a one-time code just to really make sure. 3DS2 also checks if the online shop’s bank account and the payment network are genuine.

Real-time Risk Assessment 🦾

Debut uses machine learning to evaluate the risk of every transaction. This technology creates a dynamic risk profile by looking at where the transaction is taking place, what device is being used, whether the customer has an account with the online shop, the shop’s traction history, the customer’s purchasing history, and other factors leading up to the transaction. These checks are performed securely in the background so that when you’re ready to pay for that FIFA Women’s World Cup signed football on TradeMe, it all happens in an instant.

Real-time Transaction Notifications 👋

Contactless payments are fast, easy and super convenient, though sometimes you might tap and go without even checking the price. Every time you use your card or money is moved in your account, you’ll receive a notification; think of this as a quick heads-up. This also acts as a visual confirmation that the transaction has gone through. Thanks to these instant notifications, you’ll also know if someone else is using your card. You can immediately head to settings and pause your card to prevent further charges. If your card has been stolen, you’ll be able to report it inside the app.

Country Blocking 🗺

Unless you’re on holiday, getting charged for poolside drinks in Fiji would generally qualify as a red flag. 🌴🍹🚩 By default, if your Debut card is used outside of New Zealand the transaction will be blocked. This prevents someone else from using your card, like if your card details get leaked online. But what if you’re ordering something from overseas online? That’s easy; we just ask you. 

Two things happen if your card is used online or offline in a new place outside of New Zealand: 

1. The transaction authentication and machine learning risk assessment mentioned above checks to see if the transaction looks legit. 
2. If everything looks good, we let you know where your card is being accessed and by whom, like the shop or a personal bank account. You can decline the transaction if it wasn’t initiated by you, or you can choose to allow it once or always.

If the machine learning blocks the transaction, we'll let you know. From there, you can instantly freeze your card or ask us to trust the processor going forward.

This extra friction helps you stay in control. If you’re travelling, Debut can recognise the location and check in with you to allow your card to be used locally, so you can still get those duty free deals. These checks only happen if your card or card number is used outside of New Zealand. When you use Google Pay and Apple Pay with biometric authentication, e.g. FaceID, TouchID, country blocking does not apply.

What can you do?

So, we’ve learned about some dangerous scams in New Zealand. How can you keep yourself and your family safe? 

Take a sec’ to check 👀

CERT NZ worked with NZ banks to roll out a campaign reminding people to “Take a sec’ to check.” Basically, if something doesn’t feel right (or even if it does), take a moment to double-check people are who they say they are, especially if they’re asking for money or access to your bank account.

“Take a sec’ to check.”

Tagline to a campaign launched in January 2023 encouraging Kiwis to verify the authenticity of people or businesses asking for financial details.

Report a scam 🚨

If you’ve experienced a cyber security scam, phishing email or txt or scam phone call, you can report it on the CERT website below or contact your bank directly using the number on the back of your card.

Report a Scam.

Join the Waiting List to get Debut

Debut is working together with our customer community to build next-gen banking in New Zealand. From best-in-class security to top-notch customer service and so much more, you’re in good hands with Debut.

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Please note, Debut is not a registered bank under the Banking (Prudential Supervision) Act. This is about our future intentions. Investments with us are not supervised currently by the Reserve Bank of New Zealand.