The Rise of Online Scams in New Zealand: A Growing Concern for Consumers

New Zealanders are increasingly falling victim to online scams, as scammers become more sophisticated and difficult to distinguish from legitimate websites. According to new research by Avast Malware, nearly 80,000 counterfeit websites posing as genuine retailers have been identified, targeting consumers of well-known brands like Pandora, Zara, Swatch, and H&M.

The Scale of the Problem

These scammers are set up with one purpose: to make people part with their hard-earned money. Netsafe’s chief online safety officer Sean Lyons says the numbers are “really quite significant”. Last year’s research with the Global Anti-Scam Alliance estimated that New Zealanders could lose over $2 billion to these scams.

However, Consumer NZ’s acting head of research and advocacy, Jessica Walker, believes this figure could be even higher. She notes that there is no central repository gathering information on online scams, making it difficult to determine the true extent of the problem.

The Difficulty in Spotting Scams

So how do scammers manage to fool so many people? According to Lyons, they exploit our eagerness to shop during holiday periods like Black Friday and Cyber Monday. “People are less likely to take the time to properly check a website’s credibility when they’re more rushed and eager to make purchases,” he says.

Walker agrees that scammers use these tactics to their advantage. “It’s really hard to know where to go and especially when you have a near miss,” she notes. Having a centralised system for reporting scams could help prevent further losses, but Walker advocates for a one-stop shop to tackle this issue.

The Importance of Red Flags

One green flag that many Kiwis look for when checking a website’s legitimacy is a .nz domain name. However, Domain Name Commissioner Barbara Pearse warns that this is not necessarily a reliable indicator. “Having a .nz domain name doesn’t guarantee the website is being operated in New Zealand,” she explains.

Pearse stresses that it’s still essential to check a site’s credibility through other means. Online scams occur in less than 1 percent of websites in the .nz domain, but this doesn’t mean they’re safe.

The Need for Action

Scammers can strike at any time, and their tactics are constantly evolving. With technology making it easier for scammers to operate, it’s essential that consumers stay vigilant. Lyons notes that scammers rely on people being less likely to take the time to check a website’s credibility when they’re more rushed.

“[The scammers] are putting a lot of time and effort into creating these scams, but they’re profitable endeavours,” Lyons says. It’s up to us to be aware of the risks and report any suspicious activity. By working together, we can reduce the impact of online scams on New Zealand consumers.

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