How to spot a scam before it’s too late

Slow down, see the scam for what it is...

If something feels off, pause. Scammers often pressure you to act quickly – don’t let them.

This might be in the form of a ‘limited time offer’ or an unpaid invoice with high fees if you don’t pay immediately. These messages are designed to evoke the emotional side of your brain, encouraging you to act before your rational brain has time to step in. 

Remember: legit businesses shouldn’t rush you into decisions. If they’re putting the pressure on, it’s likely something’s up.

… but speed up as soon as you notice one happening! 

There are times you need to act fast. Rob first realised he was being scammed when he received multiple emails about changing passwords and attempting purchases he knew nothing about.  

The most concerning was one from his international bank provider. He contacted them immediately and they were able to freeze his account.  

“The key really was to contact the affected agencies as quickly as possible to minimise the potential impact,” says Rob. 

Get something out of the blue? Double-check the source 

There are often subtle clues in website URLs and emails that hint that the scammer is not who they say they are. Before you click a link, take a close look at the URL – are there any rogue numbers, letters or misspellings in there? Also, check the email address – does it match up to the supposed sender?  

The display name can often be used as a cover, so check the actual email address to ensure it’s legitimate. You can search the organisation’s name and ‘scam warnings’ on Google to see if anyone has reported scam activity.  

If you’re still unsure if the contact is real, reach out to the organisation directly using official contact information. If they think it’s a scam, they should be able to act right away.  

This tax scam brought on a mountain of stress 

Katie was caught out by a scam pretending to be the government, asking if she’d like her tax return to be deposited into her bank account. Because she had just submitted her tax return, she didn’t think twice about the authenticity of the sender until it was too late. 

“Although I was lucky enough to get my money back, it didn’t happen straightaway. It took a few weeks – and a mountain of stress. 

“They had cleared me out, so I didn’t even have money on hand to pay for parking – let alone gas! Luckily, I didn’t have kids or a mortgage at the time, and I also had people I could call on to tide me over if I got desperate. It could have been a lot worse.” 

Talk to someone you trust, get their opinion first 

It can help to talk to a friend, family member or someone else you trust to see what they think. A third party might have a more rational response, as it’s not their money that’s impacted. 

Take some time to digest their opinion. It’s common to get defensive or feel self-conscious about the thought that you might be being scammed. We all think we’re too smart for scams, but unfortunately everyone is vulnerable. It’s not about how smart we are – we’ve all got a lot going on.  

Katie never thought she’d be caught out by a scam. “I used to think I was so switched on and scam savvy, and able to spot fraudulent activity a mile away, but it still happened to me” she says.   

If you’re on the other side and a friend or family member approaches you for help, remember to be kind and empathetic in your conversations, so they feel safe to open up and listen to your perspective.  

Strengthen your defences by using 2FA and other safeguards  

Wherever you can, enable two-factor authentication (2FA) on your accounts. It’s also important to use strong, unique passwords and change them regularly.  

After his experience of being scammed, Rob advises everyone to utilise all the safeguards available for your accounts. “Frequently change passwords, use two-factor authentication and ultimately just be aware of the potential for scammers to target all of us.” 

Look out for these red flags

There are telltale signs you’re being targeted, such as when you’re: 

• Contacted out of the blue  
• Asked for your password  
• Asked to verify your account or details   
• Asked to provide remote access to your device  
• Being pressured to make a decision quickly  
• Asked to pay in an unusual way. 

Where to go for help when you’re targeted 

If you’ve been affected by an incident online or targeted by a scammer, visit ownyouronline.govt.nz to report an incident.  

For more information, read our guide on how to protect yourself from fraud and being scammed. 

If you’d like to join the conversation and share your own experiences with money, we’d love to hear from you. Fill in this form, and we’ll get back to you. Ngā mihi!