There are some simple things we can all do to fight bank card fraud says the New Zealand Bankers’ Association.
“Most of us use cards on a daily basis because they provide a convenient and safe way to pay others and perform a range of electronic banking transactions,” said New Zealand Bankers’ Association chief executive Kirk Hope. “You can help keep your money safe by remembering a few simple tips.”
Card safety tips:
- Guard your card. Treat it like cash. Don’t leave it lying around. Make sure you know where your card is at all times.
- Protect your PIN. Never tell anyone your PINs or passwords – not even the police, bank staff, friends or family.
- Cover up. When entering your PIN number at ATMs and EFTPOS terminals, shield the PIN pad with your other hand. Criminals may ‘skim’ your card details by attaching a device to the card reader, and then ‘shoulder surf’ or use hidden cameras to record your PIN.
- Check your statements. Advise your bank immediately of any unauthorised transactions.
“New Zealand banks take customer security very seriously and operate systems to fight fraud. Customers have an important role to play in helping banks prevent financial crime,” said Hope.
The New Zealand Bankers’ Association has issued a seven point list to combat online banking fraud as Fraud Awareness Week 2012 kicks off.
“Public vigilance is crucial in the fight against financial cyber crime. Customers have an important role to play to protect themselves and their money,” said New Zealand Bankers’ Association acting chief executive Martin Philipsen.
The seven tips for the public to avoid online scams are:
- Do not give your PIN or internet banking username or password to anyone.
- Keep your anti-virus and firewall software up to date.
- Logon to internet banking by typing in your bank’s full web address. Do not use links that appear to take you to your bank’s website.
- Check you have a secure connection, which is shown by a padlock symbol somewhere on the page, and that the website address starts with ‘https://’. The ‘s’ stands for ‘secure’.
- Do not use public computers for internet banking, e.g. internet cafes, libraries or hotels.
- Protect your identity information and only provide it to trusted people and organisations. This includes your date of birth, address, driver’s licence number and passport details.
- If you suspect you’ve been taken in by a scam, contact your bank immediately.
“Online fraud to watch out for includes hoax emails purporting to be from your bank and asking you to update your personal information such as PINs and logon details. Your bank will never ask you for this confidential information,” said Philipsen.
“Customers should also be aware of websites that ask for personal banking details. These can redirect you to a replica of your bank’s website, which is designed to steal personal information.”
Online customer security is a major priority for banks. New Zealand banks work hard to prevent their customers from becoming victims of any kind of financial crime. “Banks take care to protect bank accounts from misuse and fraud. For example, bank systems can detect unusual spending patterns and prevent attempts by fraudsters to access accounts,” said Philipsen.
The Code of Banking Practice, which applies to all New Zealand Bankers’ Association members, protects customers in case of genuine fraud. Customers are not liable for losses resulting from unauthorised transactions where it is clear they have not contributed to the loss.
Internet scams are the focus of this year’s Fraud Awareness Week campaign, which is co-ordinated by the Ministry of Consumer Affairs.
More information about online banking security awareness is available here. Ministry of Consumer Affairs advice can be found here.
Financial Markets Authority
New Zealand Bankers’ Association (NZBA) is pleased to announce that Kirk Hope will step into the role of chief executive of the NZBA at the end of March, taking over from acting chief executive Martin Philipsen.
A Wellington-based banking professional with over a decade of experience in the New Zealand financial services sector, Kirk Hope is a Victoria University Law School alumni and former head of regulatory affairs and government relations at Westpac. He joins NZBA after two years serving as executive director of the Financial Services Federation, an industry advocacy body representing 36 of the largest financiers in New Zealand.
NZBA Council chairman Andrew Thorburn welcomes the appointment of Kirk Hope to this pivotal leadership role within the New Zealand banking industry.
“Kirk has the full spectrum of experience required to manage this portfolio with comprehensive understanding of legal, regulatory and industry processes, hands on experience in banking and at the NZBA, and is well versed in managing multiple stakeholders.”
Hope will take over the helm of the NZBA at the end of March from Martin Philipsen who was appointed acting chief executive in December 2011.
Finance and Expenditure Committee
The Co-operative Bank has joined the New Zealand Bankers’ Association bringing the total number of member banks to 13.
New Zealand Bankers’ Association acting chief executive Martin Philipsen welcomed the new member bank. “We are pleased to have New Zealand’s newest registered bank join us. Having The Co-operative Bank on board strengthens our role as the voice of the New Zealand banking industry,” said Philipsen.
“As a bank that is owned by its customers, it will be great to represent their voice within the New Zealand Bankers Association” said The Co-operative Bank chief executive Dr Girol Karacaoglu.
Established in 1928, and formerly known as PSIS, The Co-operative Bank became a registered bank in October 2011.
As the industry’s voice, the New Zealand Bankers’ Association supports a safe and successful banking system that benefits New Zealand. Member banks work together on non-competitive industry issues. Membership of the Association is open to any bank registered under the Reserve Bank of New Zealand Act 1989.
Other New Zealand Bankers’ Association members are ANZ National Bank, ASB Bank, Bank of New Zealand, Bank of Tokyo-Mitsubishi UFJ, Citibank, Hong Kong and Shanghai Banking Corporation, JPMorgan Chase Bank, Kiwibank, Rabobank New Zealand, SBS Bank, TSB Bank, and Westpac New Zealand.
Reserve Bank of New Zealand
New Zealand banks are well positioned in the face of current international financial tensions.
“Our banks’ strength lies in the fact that they are well capitalised and regulated,” said New Zealand Bankers’ Association chief executive Sarah Mehrtens.
New Zealand banks all meet the international standards, and the Reserve Bank of New Zealand requirements which are based on these international agreements. The capital adequacy ratio mandated by the Reserve Bank is 4% for tier one and 8% for total qualifying capital. On average, New Zealand’s major banks’ capital holdings exceed the required tier one and total qualifying capital ratios by 5.96% and 4.80% respectively.
Capital adequacy rules form an important part of the regime which regulates banks. Good regulation is needed because of the importance of the banks to the economy.
“Our banking system is robust and well regulated, and served us well during the global financial crisis. Our banks did not get caught up in the debacle that many of the international banks are now facing. We need to stay focused on striking the right balance between lending and growth on the one hand, and safety on the other,” said Mehrtens.
Ministry of Consumer Affairs
Law Commission