NZ GVT announced that banks have committed to better protect consumers from scams with a new safeguards and compensation scheme; banks will reimburse victims up to NZD 500k if they fail to adequately warn and protect a consumer from a scam.
Follows NZ GVT Mar. 2024 said it wrote to banks on expectations re scams, #203160.
Outline of Banking Commitments
Confirmation of payee service allowing customers to verify recipient name matches account number (already being rolled out); pre-transaction warnings to consumers based on payment purpose; identification and response to high-risk transactions.
In addition to unusual account activity, ability to block, delay suspicious transactions.
24/7 reporting channel for customers who believe they have been scammed, with responsive account protection measures; information sharing agreements.
Namely, across industry and government to prevent criminal activity, including sharing of scammer account data between banks and freezing funds where it is appropriate.
NZ GVT highlighted banks must continue to prioritize security and adapt to evolving scams environment; similar expectations for telecom companies and digital platforms.
Effectiveness
Updated banking code comes into force on Nov. 30, 2025.
