New Zealanders lose millions to scams. Here's how to avoid being duped

Thursday, 30 August 2018

It can be awkward when you try out a phone scam, only to realise you have called the police by mistake. (Video first published August 29, 2018)

Scamming is so widespread that even police get dodgy phone calls trying to dupe them 'regularly'.

Recently, a scammer tried to tell an officer their internet connection wasn't secure, leading to an awkward moment and an apology.

'Unfortunately Police receive these types of calls regularly, just as members of the public do - the scammers don't discriminate,' police said.

There is plenty of advice around on how to avoid being tricked, but reported scamming is still going up.

**READ MORE:

The Malaysian travel brochure scratchie scam: 'You've won $US190,000, now just send us some money to cover fees and taxes.'

* Here's what happens when a scammer tries to trick the police

* Kiwis targeted again by Malaysian travel scratchie scam

* Woman knew blackmail email was a scam

* 'You've won $190,000': Why we're still falling for scams**

The 2824 scams and frauds reported to Netsafe in the second quarter of 2018 were up 17.3 per cent compared to the first quarter.

That was an 'all-time high', the online safety organisation said.

So far in 2018, a total of $18.6m had been reported lost in 760 scams where losses occurred, Netsafe said.

That was way above the total lost in all of 2017, $10.1m. Not all scams reported involved losses.

In 2017, Consumer psychologist Kit Yarrow wrote about our vulnerability to being scammed in an article, titled 'The Science of Why We Fall for Scams That Are So Obviously Scams', published in Money.

'Anyone with a heart, with a family, or with common desires or insecurities can be victimised by the sophisticated mind games used by today's fraudsters,' she wrote.

SOME BASIC TIPS TO AVOID BEING SCAMMED

There's a lot of advice out there.

Here's the Ministry of Business, Innovation and Employment Consumer Protection website's steps to reduce the risk of being scammed.

- Be suspicious. Scammers try to appear trustworthy. Do some research or thinking before you engage with a person or opportunity.

- Don't trust unexpected contact. Scams most often come through cold contact, eg an unexpected phone call or email. Find out more before considering any offers.

- Do research. Use Google to look into the names of people or companies who approach you.

- Resist demands to act quickly. Anyone presenting a legitimate opportunity will allow you time to consider your response. If you feel under pressure, take some time or turn it down.

A Wellington man spent $35,000 for a bride after seeing this notice in the Dominion Post in June 2016. The woman was from Malaysia and was already married to an Australian.

- Keep your computer virus protection up to date.

- Never open attachments or click on links in emails if words or images make you feel unsure about the sender. You have nothing to lose by deleting the email.

- Use different passwords for logging in to online services. If some of your information is compromised, you won't lose it all.

- Reserve the right to be impolite. Sometimes you need to be firm to keep yourself safe from scams. It's OK to say no outright if you have a bad feeling about something.

The Consumer Protection site also offers a tool for how to check for scams.

A warning on Facebook from 2017 with an example of one of the scam messages a user had received.

CHANGING NATURE OF SCAMS

Police say there are multiple scams operating at various times.

They're often being told about new scams, but the way scammers operate and their frequency varies due to social media and other technology constantly changing.

Consumer Protection says 'scams usually target money, but they can also affect a person's relationships, self-confidence, online security and privacy.'

There's also a page that provides scam alerts so you can say up to date with what scams are doing the rounds.

Netsafe also provides information about common scams and how they work.

POLICE ADVICE ON KEEPING SAFE

Police advice says, basically, if you think it could be a scam, then it probably is.

Here's the police guide for anyone who gets a suspicious call.

The Netflix email scam that targeted millions of users worldwide.

- Never provide any personal information over the phone under any circumstances.

- Find out who the caller actually is. Always ask for a full name and the company or agency details.

- Check the caller's phone and ask that they call you from a landline if they are using a mobile.

- Ignore calls from unknown mobile numbers.

- Don't share personal details until you're convinced the caller is legitimate.

- If you are threatened, hang up - Inland Revenue or any other government agency will not threaten someone.

- Don't trust anyone who calls you and asks for financial information such as your account details and password - hang up, call them on their published contact 0800 number or arrange a meeting at the relevant agency branch.

REPORTING A SCAM

Police say anyone who thinks they're a victim, be that in person, over the phone or online, should immediately report it to their bank, and then to them.

You can also report a scam to Netsafe or let the National Computer Emergency Response Team know about cybersecurity issues.

There's also Netsafe's Re:scam chatbot that pretends to be a person and wastes the time of would-be scammers. You can get it to work for you by providing it with a potential scammer's email address.

WHY WE GET SCAMMED

Yarrow wrote in her her article for Money that, particularly in stressful situations, people paid attention to information that supported their beliefs and ignored what didn't.

Those who were lonely or eager to make a quick buck were highly likely to fall for online dating scams and money-winning scams.

'When people feel like something they desire deeply is impossible to possess through their own efforts, they are especially susceptible to believe that destiny or some magic stroke of luck will come to the rescue,' Yarrow said.

When scammers called warning about a computer problem, people could panic because of the potential consequences of something going wrong. With the natural urge to avoid loss, blame and shame, people could feel compelled to make the supposed problem go away as quickly as possible.

The standard fraud playbook was to create a sense of urgency, raising emotions and decreasing rationality. In one scam - where a man was told he needed to pay $2000 to bail his step-grandson out of jail - the scammer introduced a time limit but sounded like he didn't care whether the money was paid or not.

Yarrow's best advice to avoid getting scammed was to talk to someone you trust about what was going on.