Fraud Awareness Month - Phishing for your funds
Published17 Mar 2006
"May I steal your bank account details and money, please?" We all know exactly how to respond to a question like this, no matter how genuine or polite the caller sounded.
"May I steal your bank account details and money, please?" We all know exactly how to respond to a question like this, no matter how genuine or polite the caller sounded.
"When the same question is disguised in 'phishing' emails or calls, however, many consumers fall hook, line and sinker", said Liz MacPherson, General Manager of the Ministry of Consumer Affairs.
Using trigger words and phrases to attract attention like 'WARNING - Security breach of your account', or 'Account Verification Required', 'Account Suspended' and 'Billing Error', these scams prey on a consumer's desire to protect their personal assets.
"These words are carefully chosen to obtain one particular response - for the consumer to open the email and respond immediately without pausing to think," said Liz MacPherson.
Phishing scams send customers an email out of the blue, apparently from a New Zealand or Australian retail bank seeking personal banking information or confirmation of passwords. The link within the email takes consumers to a website designed by the scam operators to look exactly like the bank's authentic website.
Phishing is not a new phenomenon. What is new is the intensity and technical sophistication of these scams. They not only trick people into disclosing personal details such as PINs and passwords, but clicking on the email link can upload dangerous code onto the consumer's computer, designed to continually capture personal information.
"Scammers are also using 'spoofed' websites that look authentic, making their whole package seem genuine and urgent to people", said Deborah Battell, Director of Fair Trading for the Commerce Commission. "It is important to note that phishing emails or calls do not only come from banks or other financial institutions. Online auctions have also been targeted."
Banks strongly advise consumers do not respond to these emails and inform them of any that appear. Banks do not communicate with customers through email, or request personal information in an unsecure environment.
The Ministry of Consumer Affairs and the Commerce Commission have renewed calls for consumers to take precautions against phishing as part of a four week campaign by the Australasian Consumer Fraud Taskforce to help people protect themselves from scams. If you have received an email of this type, contact your bank to report it or check for news information on the bank's real website.
Consumers are the frontline defence against a phishing scams - the best protection against scammers is to hit the delete key or hang up!
Tips to help consumers protect themselves from phishing 1. First, stay calm.
2. Suspect a scam.
3. Keep your computer secure.
4. Only go to the official website for your financial institution.
5. Avoid using computers at public places, such as internet cafes and libraries, for any online banking
6. Take a few privacy precautions
7. Never click on a link.
8. Act quickly if you think you've been conned.
Background
Consumers should always check www.scamwatch.org.nz to see if the scam is listed. If it is, consumers should delete the email or throw away the letter. If it's not listed, consumers can forward the email to scamwatch or send a copy of the letter to the Ministry of Consumer Affairs and the Commerce Commission.
As part of a trans-Tasman approach to combat consumer fraud and scams targeted at consumers, the Australasian Consumer Fraud Taskforce was established in March 2005 and comprises 18 government regulatory agencies and departments in Australia and New Zealand.
Agencies participating in the Taskforce are:
New Zealand Government:
Australian Government:
State and Territory Governments:
Consumers who think they've spotted a scam can get more information and report them on the Scamwatch website at www.scamwatch.org.nz . Consumers can also report any scams to the Commerce Commission: contact@comcom.govt.nz or visit www.comcom.govt.nz for more details.