Telco companies and digital platforms need to step up to protect people from scams.
That's the message from the New Zealand Banking Association as they roll out a new suite of their own protective measures.
Chief Executive Roger Beaumont told Mike Hosking scammers prey on the vulnerable and cost New Zealanders billions every year.
He says while it's not the Bank's problem, they're putting in safeguards to reduce the risk of it happening.
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Speaker 1 (00:00):
I'm soon going to be able to be reimbursed by
their bank. If the bank is found to be at
fault for failing to adequately warn and protect their customers,
payments of up to half a million could be made.
The announcement comes following the government pressure urging banks to
do better. The New Zealand Banking Association boss Roger Beaumont,
is what this, Roger, very good morning to you.
Speaker 2 (00:16):
Oh, good morning Mike, and good on you for working
the three day week. Not at all.
Speaker 1 (00:19):
I try my best and good on you. I'm assuming
you're working and not coming in on an a slash. Well,
now were you likewise? Were you dragged to this kicking
and screaming?
Speaker 2 (00:29):
Oh, not at all. Banks had been dealing with this
issue for some time before the minister became involved. This
is a global issue that's playing out in every jurisdiction
around the world, and our bank chief executives were working
at quite some pace to try and get in front
of the issue before the government engagement.
Speaker 1 (00:49):
Okay, the level of scamming and its sophistication. How big
an issue is it?
Speaker 2 (00:54):
Oh, It's massive and it's very hard to put a
dollar value on it. And the figures that affect New
Zealand range in everything from two hundred million to two billion.
And the reason it's such a broad range is because
of underreporting. People are pretty embarrassed if they've been scammed
and so they tend not to report it in a
lot of cases.
Speaker 1 (01:14):
Well, in some of the rules and regulations you're putting
forward to some of the help you're offering, you talk
about high risk investments. What's a high risk investment? Is
that a scam or is that just choice?
Speaker 2 (01:24):
Well, yes, it's a really good point. What we need
to do and what we will do with these new
measures is in that example, we will flag if someone
is making an investment that that might be a high
risk transaction or are you sure that your investment inverted
commas is a safe one? And so it's a matter
(01:44):
of taking the giving the custom of the opportunity to
have us think about whether they are doing the right
thing in that moment when they're about to authorize a paper.
Speaker 1 (01:54):
Is this going to be overbearing for a person like
me who really doesn't want you in my life anyway?
And I kind of know what I doing, and I'll
back myself and am I just going to get endless
numbers of alerts and emails from you going second guessing me.
Speaker 2 (02:06):
Hopefully not, because hopefully our banks will be able to
tailor the sorts of flags and warnings that you get
based on your transactional history. Now, it might be quite
common for you to make a payment over ten thousand dollars,
whereas for other people it might be very rare for
them to make a payment over ten thousand dollars, and
so that will be taken into account in the warnings
(02:31):
that you're given. Yeah, we're really aware that it's a
critical that these warnings and these flags don't become wallpaper
so that you just ignore them and move on.
Speaker 1 (02:40):
The gross negligence bar that they have in the UK
is that going to open you, guys up to people
being agreed? In other words, unless you've been grossly negligent,
you don't pay anything. Therefore people feel like they've been
scammed themselves and dealing with you.
Speaker 2 (02:55):
Well, what we're saying is customers need to take reasonable care.
So that means if you're making a payment and for example,
you're doing a confirmation of payee where you're matching the
account name with the account number, if that comes back
and says that this does not match, but that you
then proceed to still make that payment. Well, that's on
(03:18):
you because you haven't taken reasonable care about that payment.
Speaker 1 (03:22):
All honesty, Roger, How much of scamming is basically people
just being gullible or greedy or thick.
Speaker 2 (03:29):
Well, look, it's really hard because what scammers do is
to prey on your emotion and vulnerability, and whether you're lonely,
or whether you're looking for a new job, or whether
you're just looking for hope, scammers will play on that
emotion and it's very easy to get caught up on that.
Speaker 1 (03:46):
But that's not your problem, though, is that's correct?
Speaker 2 (03:50):
That's correct, It's not our problem. But what we're doing
is trying to put safeguards into place that will reduce
the chances of that happen, and people need to just
sometimes take a set to check and think about what
they're doing.
Speaker 1 (04:02):
All right, good luck with it, Appreciate it, Roger Bayamont.
That's in by November. By the way, the New Zealand
Banking Association CEO.
Speaker 2 (04:11):
For more from the Mic Asking Breakfast, listen live to
news Talks at b from six am weekdays, or follow
the podcast on iHeartRadio,
I'm soon going to be able to be reimbursed by
their bank. If the bank is found to be at
fault for failing to adequately warn and protect their customers,
payments of up to half a million could be made.
The announcement comes following the government pressure urging banks to
do better. The New Zealand Banking Association boss Roger Beaumont,
is what this, Roger, very good morning to you.
Speaker 2 (00:16):
Oh, good morning Mike, and good on you for working
the three day week. Not at all.
Speaker 1 (00:19):
I try my best and good on you. I'm assuming
you're working and not coming in on an a slash. Well,
now were you likewise? Were you dragged to this kicking
and screaming?
Speaker 2 (00:29):
Oh, not at all. Banks had been dealing with this
issue for some time before the minister became involved. This
is a global issue that's playing out in every jurisdiction
around the world, and our bank chief executives were working
at quite some pace to try and get in front
of the issue before the government engagement.
Speaker 1 (00:49):
Okay, the level of scamming and its sophistication. How big
an issue is it?
Speaker 2 (00:54):
Oh, It's massive and it's very hard to put a
dollar value on it. And the figures that affect New
Zealand range in everything from two hundred million to two billion.
And the reason it's such a broad range is because
of underreporting. People are pretty embarrassed if they've been scammed
and so they tend not to report it in a
lot of cases.
Speaker 1 (01:14):
Well, in some of the rules and regulations you're putting
forward to some of the help you're offering, you talk
about high risk investments. What's a high risk investment? Is
that a scam or is that just choice?
Speaker 2 (01:24):
Well, yes, it's a really good point. What we need
to do and what we will do with these new
measures is in that example, we will flag if someone
is making an investment that that might be a high
risk transaction or are you sure that your investment inverted
commas is a safe one? And so it's a matter
(01:44):
of taking the giving the custom of the opportunity to
have us think about whether they are doing the right
thing in that moment when they're about to authorize a paper.
Speaker 1 (01:54):
Is this going to be overbearing for a person like
me who really doesn't want you in my life anyway?
And I kind of know what I doing, and I'll
back myself and am I just going to get endless
numbers of alerts and emails from you going second guessing me.
Speaker 2 (02:06):
Hopefully not, because hopefully our banks will be able to
tailor the sorts of flags and warnings that you get
based on your transactional history. Now, it might be quite
common for you to make a payment over ten thousand dollars,
whereas for other people it might be very rare for
them to make a payment over ten thousand dollars, and
so that will be taken into account in the warnings
(02:31):
that you're given. Yeah, we're really aware that it's a
critical that these warnings and these flags don't become wallpaper
so that you just ignore them and move on.
Speaker 1 (02:40):
The gross negligence bar that they have in the UK
is that going to open you, guys up to people
being agreed? In other words, unless you've been grossly negligent,
you don't pay anything. Therefore people feel like they've been
scammed themselves and dealing with you.
Speaker 2 (02:55):
Well, what we're saying is customers need to take reasonable care.
So that means if you're making a payment and for example,
you're doing a confirmation of payee where you're matching the
account name with the account number, if that comes back
and says that this does not match, but that you
then proceed to still make that payment. Well, that's on
(03:18):
you because you haven't taken reasonable care about that payment.
Speaker 1 (03:22):
All honesty, Roger, How much of scamming is basically people
just being gullible or greedy or thick.
Speaker 2 (03:29):
Well, look, it's really hard because what scammers do is
to prey on your emotion and vulnerability, and whether you're lonely,
or whether you're looking for a new job, or whether
you're just looking for hope, scammers will play on that
emotion and it's very easy to get caught up on that.
Speaker 1 (03:46):
But that's not your problem, though, is that's correct?
Speaker 2 (03:50):
That's correct, It's not our problem. But what we're doing
is trying to put safeguards into place that will reduce
the chances of that happen, and people need to just
sometimes take a set to check and think about what
they're doing.
Speaker 1 (04:02):
All right, good luck with it, Appreciate it, Roger Bayamont.
That's in by November. By the way, the New Zealand
Banking Association CEO.
Speaker 2 (04:11):
For more from the Mic Asking Breakfast, listen live to
news Talks at b from six am weekdays, or follow
the podcast on iHeartRadio,
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