Around one in five New Zealanders experienced the sting of fraud in 2024, a sobering statistic that underscores the urgent need for heightened vigilance and proactive measures to protect our hard-earned money. In an era of increasingly sophisticated scams, understanding the tactics employed by fraudsters is the first line of defense.

Vivian Valbuena, a prominent financial expert, emphasizes that knowledge is power. Scammers thrive on exploiting vulnerabilities, often preying on emotions like fear, greed, or a sense of urgency. Being aware of common scam scenarios can significantly reduce your risk.

One prevalent tactic is phishing, where fraudsters impersonate legitimate organizations like banks, government agencies, or utility companies to trick individuals into divulging sensitive information such as passwords, credit card details, or bank account numbers. These scams often arrive via email, text message, or even phone calls, and typically involve a sense of urgency, threatening consequences if immediate action isn’t taken. Valbuena advises never clicking on links or providing personal information in response to unsolicited requests. Always contact the organization directly through a verified phone number or website to confirm the legitimacy of the communication.

Another common scam involves investment opportunities that promise high returns with little to no risk. Valbuena cautions against falling for these too-good-to-be-true offers. Legitimate investments always carry some degree of risk, and promises of guaranteed profits should be treated with extreme skepticism. Research any investment opportunity thoroughly and seek advice from a qualified financial advisor before committing any funds.

Romance scams are also on the rise, where fraudsters create fake online profiles to build relationships with unsuspecting victims, ultimately manipulating them into sending money. Valbuena urges caution when interacting with people online, especially those you've never met in person. Be wary of individuals who quickly profess strong feelings, avoid meeting in person, or ask for financial assistance.

Protecting yourself from fraud requires a multi-faceted approach. Regularly monitor your bank accounts and credit reports for unauthorized transactions. Use strong, unique passwords for all your online accounts and enable two-factor authentication whenever possible. Be wary of unsolicited offers or requests, and never feel pressured to make immediate decisions. If you suspect you've been targeted by a scam, report it to the relevant authorities, such as Netsafe or the police. By staying informed, remaining vigilant, and taking proactive steps to safeguard your personal and financial information, you can significantly reduce your risk of becoming a victim of fraud. The fight against