Is scamming NZ’s fastest growing business sector?

Have you or your business been scammed?

It feels as if scamming is one of the fastest-growing business opportunities and I nearly fell for the pitch recently.

I’m a trustee for a Family Trust, and I received instructions to invest some of the funds for a 12-month holding period. All the local banks were offering was an interest rate of nothing more than 2.9% – which is less than the Inflation rate. So, I kept investigating.

I looked at NZ-based second-tier lenders. An Auckland-based property development company were offering 10% for 12 months which smelt decidedly fishy and after digging a bit further I found some fraud and legal activity, so I rejected that and moved on.

Next, I moved to web-based NZ banks including a USA-based bank, Citibank, which is with an NZ wholesale product offering. I knew the name and had previous small contacts with them.

I left the search for a day or so, deciding to come back to it later.

After two days I received a phone call – no caller ID – the caller noted that I had been on the Citibank website and could he help me with any issues. This should have been a ‘red flag’, but I didn’t pick it up as he had a good reply and explanation and the proposal fitted my needs. I gave him my email address.

I then received a good looking professional proposal which was followed by an email asking how I was getting on. This email included an attached application form with detailed instructions which I started to fill out. My gut, however, was not happy.

I realised that all the contacts had been one way. I had not phoned him. So, I attempted to contact him directly.

All I have from correspondence was a phone number, that went to an answer phone, and an email address.

So, I got the contact details for Citibank in Auckland and spoke to their reception, and as soon as I mentioned the person I wanted to speak to – she said “don’t talk to him, he does not exist, it is a fraud, ring the police.”

I felt terrible, relieved, furious, gullible, and thankful – all at the same time.

On reflection, the good news is that the Trust still has its funds. But – how did he get my phone number from looking at the city bank website? Citibank wasn’t helpful at all and reporting it to NZ authorities was not easy, as no one seems interested.

I was lucky that my gut rumbled at the right time. But it could have been very different. None of the people I tried to contact were interested in helping – I wonder if this could be a gap in the market for a new Tech Startup, here in Queenstown?

Learnings from my experience – Understand the red flags and inconsistencies, trust your gut if something doesn’t feel right and check. All the banks have formal details on their websites. MBIE also has some info.

Post scrip – they are still onto me. 9 days after the first contact they sent a reminder email asking If needed help in filling out the application/lodgement form.

I’m telling my story, so others are not reeled in and become a victim.

Be careful out there!!