Westpac NZ research shows many small businesses remain unprepared for rising scam threats
More than a third of New Zealand small and medium businesses have been targeted by scammers over the past year, with new Westpac NZ research showing many remain under-prepared despite mounting losses, particularly from bank impersonation scams.
Scam attempts widespread, losses climbing
Of 657 business owners surveyed, 38% reported receiving one or more fraud or scam attempts in the past 12 months, with businesses earning between $100,000 and $500,000 in annual revenue targeted most often, typically via email.
One in 10 of those targeted suffered a financial loss as a result. Despite the scale of the threat, only around half of businesses said they had invested in specific measures to reduce their fraud and scam risk over the same period.
Matthew Kinney, Westpac NZ senior manager financial crime operations, said the findings highlight a gap between the scale of the threat and how businesses are responding.
"These findings should serve as a wakeup call to business owners that the threat of financial crime is very real, and they should stay vigilant and prepare their businesses accordingly – whether through beefed up systems or staff training on how to spot scams," Kinney said in a media release.
Bank impersonation scams have emerged as the costliest threat facing business customers this year.
"Bank impersonation scams made up 71% of gross losses experienced by our customers in the first half of this year," Kinney said. "The average gross loss to the end of June this year compared to the same period last year jumped up by 78% to more than $150,000."
Westpac NZ separately warned this month of scammers using fake Facebook complaints pages to trick customers into handing over personal and banking details, after a fraudulent page impersonating the bank was taken down at its request — another sign of how quickly impersonation tactics are evolving across channels.
A real-world case shows how quickly losses can escalate
Kinney detailed a case in which a scammer posing as a Westpac representative convinced a business customer to download remote access software, ultimately transferring $148,000 to a money transfer company before a staff member there flagged the transaction as suspicious. The scammer later compromised the customer's mobile phone the following day and impersonated them directly to Westpac staff, attempting to release further funds. Bank staff identified the irregular activity, and a relationship manager visited the customer in person to confirm they were dealing with a scammer rather than the bank, ultimately helping block the fraudster's access and prevent close to $500,000 in attempted transfers.
"This is a good example of how we're getting better at seeing and stopping scams all the time," Kinney said. "But customers need to remain vigilant – especially smaller companies that often have fewer formal systems, processes, or internal checks, and limited time, expertise, and resources to combat scams."
Advisers can play a role in raising awareness
For advisers working with small business clients, the results underscore the value of raising scam awareness alongside standard lending conversations, particularly for smaller operators with limited internal resources.
Westpac NZ said it would never ask customers to share login details by phone or email, send direct login links via SMS, request remote access to a device, or ask customers to move funds to "protect" them from fraud — red flags advisers may wish to reinforce with clients navigating borrowing capacity and cash flow decisions in an increasingly complex fraud landscape.
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