Netsafe warns of inadequate response to rising online fraud

Crime survey statistics released by the Ministry of Justice today underscore a pressing need for a multi-agency coordinated response to combat scams, according to Netsafe, New Zealand's principal online safety organisation. The statistics are part of the Ministry’s New Zealand Crime & Victims Survey (NZCVS).

CEO Brent Carey expressed alarm over the findings, which show fraud has become the most prevalent crime but remains largely underreported. "What today’s figures released by the Ministry of Justice show is that unsurprisingly, only a fraction of scams and fraud are reported to law enforcement. On top of that issue these numbers show more than one in ten adults will experience at least one incident of fraud and cybercrime. This is nearly three times more than they are likely to experience theft and damage."

The data reveals that reported online fraud has increased to 11% from 8% in 2018. This figure is more than double the 4% of reported crimes related to theft and damage. Despite online fraud being the crime adults are most likely to experience, only 10% of fraud and cybercrime incidents are reported to police, compared to 33% of interpersonal violence cases. According to the survey, one significant reason for this discrepancy is that 24% of respondents had already reported the fraud to their bank.

Carey highlighted the growing threat posed by cybercrime and the inadequate response to it. "These statistics highlight a growing threat that we are failing to address adequately. If we don't prioritise tackling fraud and scams, we'll continue to see an erosion of public trust in our financial institutions, plans to digitise government services and our justice system."

He questioned why victims are hesitant to report these incidents, speculating on whether there is a lack of confidence in the system's ability to deliver justice or a lack of awareness about available resources. "Are they not confident in the system's ability to deliver justice, or are they unaware of the resources available to them? It's a wake-up call that the crimes most affecting people today are the ones we hear the least about. We need a stronger focus on fraud prevention, victim support, and a robust response from our justice system to reverse this trend."

The absence of government funding for incident response and victim remediation exacerbates the issue. Recent research by Netsafe and the Global Anti-Scam Alliance reveals that 53% of New Zealand respondents experienced a significant emotional impact post-scam.

Carey remarked that the rise in online banking fraud and fake selling sites indicates New Zealand's unpreparedness for the digital age's criminal challenges. According to Carey, Netsafe focuses on delivering essential online safety services. He stated, "Our focus remains on combatting scams and giving the public a non-governmental front door for reporting their concerns. It's time for a comprehensive strategy to combat these sophisticated scams. A multi-agency, multi-pronged approach is required. This should include a national anti-scam centre that Netsafe’s scam helpline can feed into."

Netsafe’s current initiatives involve several key areas:

• Education and Awareness - Educating people about common scam tactics and how to recognise them.
• Creating a Safe Reporting Environment - Providing victims with clear reporting mechanisms and treating them with empathy and respect.
• Overcoming Embarrassment - Acknowledging that anyone can fall victim to a scam, highlighting that these crimes do not reflect one's intelligence or vigilance.
• Support Systems - Offering counselling, financial advice, and resources to help victims recover and prevent further victimisation.

Citizens are advised to use strong passwords, enable two-factor authentication, be cautious with sharing personal information, be wary of unsolicited messages, avoid clicking on suspicious links, and report concerns to Police 105, their bank, and Netsafe.

Carey concluded, "Netsafe stands ready to support initiatives aimed at tackling online scams and upholding civil and criminal remedies for online harm. It takes a network of networks and a partnership model to disrupt bad actors. Ensuring New Zealanders have a safe and positive online experience continues to be our focus, but collectively we need a much more coordinated approach."

These figures emerged a week after Netsafe announced the return of ReScam.org, an AI tool designed to waste scammers' time to prevent them from targeting new victims.