“The banking sector is already the biggest taxpaying industry in the country, paying around 22% of all corporate tax. Banks pay their fair share of tax alongside millions of dollars in additional levies to fund regulators. The Government should chase tax avoiders such as digital platforms. For example, last year Google paid only $4.6 million in tax here, despite sending $1.17 billion offshore. That’s less than 1% of what they sent offshore,” Beaumont said.
More than 5000 New Zealand bank accounts have been used by scammers to transfer stolen funds over the past nine months. According to the New Zealand Banking Association, the accounts are often used to send money overseas where it’s almost impossible to get it back.
“The $10 million recovered from scammers is $10 million that might otherwise have been stolen from everyday New Zealanders, causing a great deal of emotional and financial harm,” he said.
Over the last nine months banks have used their new Fraud Intelligence Exchange (FIX) to recover around $10 million in stolen funds for scam victims.
FIX also identified nearly 5000 money mule accounts, which are domestic bank accounts used by scammers to transfer stolen funds, either knowingly or unknowingly by the account owner. Mule accounts are often used to send money overseas where it’s almost impossible to get it back. The new technology means banks can more quickly identify and share information about mule accounts, and freeze funds before they’re moved.
New Zealand Banking Association chief executive Roger Beaumont says: “It’s great to see this tech having a tangible impact in a relatively short time. The $10 million recovered from scammers is $10 million that might otherwise have been stolen from everyday New Zealanders, causing a great deal of emotional and financial harm.
“It’s worth noting that the $10 million only relates to FIX, which is just one tool banks use to help recover customer scam losses.
“Scams are becoming more sophisticated, which is why banks are investing millions each year to help protect their customers from losing money to these criminals.”
New Zealand’s retail banks made five new scam prevention commitments that went live in an update to the Code of Banking Practice last November. Those commitments provide:
- Pre-transaction warnings to customers for certain payments
- A Confirmation of Payee service for customers to check that the name of the person they are paying matches the account number
- Identification of and response to high-risk transactions or unusual account transaction activity, and the ability to delay or block transactions in some cases
- Providing a 24/7 reporting channel for customers who think they’ve been scammed, and responding to protect accounts
- Sharing scammer account information with other banks to help prevent criminal activity, and freezing funds where appropriate. This is known as FIX.
“Our scam prevention initiatives are only part of the solution. Social media companies and global tech platforms, where scams usually start, also have a big role to play in preventing scams and the harm they cause,” adds Beaumont.
The data points were provided by GetVerified Ltd, which delivers both FIX and the new confirmation of payee service. GetVerified is a not-for-profit anti-scam solutions provider.
ENDS
New Zealand Banking Association chief executive Roger Beaumont said it made sense for businesses providing banking services could call themselves banks, provided they were subject to the same high regulatory standards as traditional banks.
That’s so long as they are subject to the same high regulatory standards as traditional banks. This includes regulation that supports the strength of the banking industry through strong prudential and capital requirements, as well as conduct regulation to help ensure banks treat their customers fairly.
“Most people know what a ‘bank’ is but may not be clear on what a ‘deposit-taker’ is, so it makes sense that businesses providing banking services call themselves banks so long as they are subject to the same high regulatory standards as traditional banks,” Beaumont said.
Nicola Willis announced a new banking levy to raise $200m over four years and pay for regulation of the banks. Roger Beaumont is the CEO of the Banking Association and spoke to Guyon Espiner.
New Zealand Banking Association chief executive Roger Beaumont said: “Banks understand the need for appropriate funding for regulators.”
Education and Workforce Select Committee (more…)