Scam victim numbers are down, but losses are up. The Banking Ombudsman said the drop in scam cases has reflected bank action.
The Banking Ombudsman Scheme helped more than 5,800 bank customers and facilitated compensation or refunds totalling more than NZD 2 million, according to its latest annual report. The most common complaints were about personal transaction accounts, property lending and credit cards.
Complaints and disputes were up four percent and seven percent, respectively. Despite this, the scheme exceeded its timeliness targets and maintained high satisfaction among users (more than 80 percent).
Financial hardship complaints rose 55 percent, according to the report. Most involved vehicle and home loans and KiwiSaver withdrawals. Service-related complaints rose 11 percent. Poor communication was a recurring issue in many of these complaints.
Scam-related complaints fell 17 percent to 694 cases, but the average reported loss increased 10 percent to NZD 88,000 this year, up from NZD 80,000 in 2023-24.
Banking Ombudsman Nicola Sladden said the drop in scam cases reflected recent initiatives by banks to tackle scams. However, she cautioned against any suggestion that scammers were on the ropes.
"Scams remain a serious concern, especially given their increasing sophistication and impact," said Sladden.
"We are pleased to be part of the new Anti-Scam Alliance, and we continue to push for stronger industry codes and coordinated action to protect consumers."
The scheme underwent an independent review during the year, which concluded the Banking Ombudsman Scheme is "a modern ombudsman scheme that makes a valued and credible contribution to a fair banking sector". The reviewer made 11 recommendations, all of which have been implemented.
The annual report also announced the retirement of the chair of the scheme’s board, Miriam Dean, who has held the position for 12 years. She will be replaced in January by Michael Heron, a well-known KC and former Solicitor General with expertise in commercial law, dispute resolution and governance.
Dean said Heron’s skills and experience, particularly in online dispute resolution, made him an ideal candidate to take over the role. She added that the scheme would remain a trusted voice in helping customers when things go wrong.
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