Internet Scams: New Zealanders Lose $4.4 Million to Cyber Criminals Believed to be from Morocco, Philippines

Hardly anyone is safe from Internet scams these days as New Zealanders have lost money amounting to more than $4.4 million to online fraud. According to 2012 data provided by Netsafe, cyber criminals have become more determined and organised to dupe more people as much as possible to give up their hard-earned money.

Cybercriminals and online scammers have utilized all resources to victimise at least 10 Kiwis who lost around $100,000. One New Zealander was even duped into handing over $1.1 million.

Due to the alarming rise of online scams, Netsafe has warned Internet users to be wary and suspicious of messages or emails promising large amounts of money in exchange for a "small investment". There are lots of so-called moneymaking schemes circulating in the Internet.

According to the data from 2012, the largest Internet scam loss came from alleged inheritance and government grant scams. The unsuspecting individual was convinced to pay out money as a requirement before the large sum of money was awarded.

Cybercriminals behind these schemes have managed to get away with $1.5 million. Online scams involving romance as bait are now second to government-grant schemes in terms of financial damage. Kiwis who were victims of romance ploys lost around $1.3 million.

Martin Cocker, chief executive of NetSafe, said Internet users should avoid any money-making activity that is too good to be true since they mostly turn out to be operated by cybercriminals. Mr. Cocker also warned Internet users not to send money by wire transfer unless the receiver is a relative or close friend. Once the money is sent, it would be impossible to recover the funds lost especially when the receiver on the other end has claimed the remittance before the sender could cancel the transaction.

Beware of new online scheme

This year, NetSafe has received reports of a new online scam involving the use of blackmail. Online scam victims were convinced to go naked in video chat sessions only to find out later that they were being recorded. The person on the other end will then threaten the victim to upload the video on social networking sites like YouTube unless the victim will pay the specified amount of money.

NetSafe has received several reports of scams involving blackmail with amounts as high as $600 sent to online scammers allegedly from Morocco and the Philippines.

Online trading scams were also reported by more than 350 people who said they did not receive the items that they had paid for. Victims were enticed to buy cheap iPhones and other gadgets. Once they sent money, they never heard from the sellers again and ignored all their messages.