Source: New Zealand Government
The Government supports the recommendations of the Finance and Expenditure Committee reports on bank scam processes, Commerce and Consumer Affairs Minister Andrew Bayly says.
“Scams are becoming more sophisticated and causing a growing number of vulnerable Kiwis significant emotional harm and financial loss.
“Altogether, nearly $200 million was lost to scams last year. This needs to change.
“Bank processes need to be strengthened to give Kiwis better protections. A range of industry work is already underway, including establishing a confirmation of payee service, but there is more to be done.
“We agree that the Code of Banking Practice needs updating to protect consumers, and banks should investigate a voluntary reimbursement scheme to improve consumer compensation.
“I have written to the banking sector, setting out my expectations. I will monitor progress in the coming months.”
In 2022, the Finance and Expenditure Committee launched an inquiry into banks’ processes and consumer protections against scams. This inquiry reported back to the House in August 2023 with three recommendations.
