Kiwis lose $184 million to scams

Source: Consumer Affairs – New Zealand Government

The latest figures provided by the major banks to Consumer Protection for Fraud Awareness Week shows $184 million was lost to bank scams.

While the figure has fallen slightly from last year, it still proves scammers keep evolving to become more complex.

This Fraud Awareness Week we’re encouraging New Zealanders to know the signs of phishing, imposter and online shopping scams so they can take action to protect themselves and their family. If you suspect you are being scammed, it’s best to be cautious.

Stop them, before they start

If you are approached for money or personal information trust your instincts and shut down the discussion. Don’t be afraid to delete an unusual text message or hang up on a phone call you weren’t expecting. It’s ok to hang up, walk away, ignore it and move on.

Learn how to shut down scams before they start. 

Stop them before they start — Consumer Protection

If you have been targeted by a scam:

•    stop all contact with the scammer
•    do not make any more payments
•    contact the bank or service you sent money through
•    report it to Cert NZ.

Report an incident – business and individuals(external link) — Cert NZ

Monitoring the system – Results of the 2024 New Zealand Consumer Survey are now available

Source: Consumer Affairs – New Zealand Government

The latest consumer survey was undertaken earlier this year, and was for the first time completed entirely online.

The survey, which is under taken every two years, had 3,500 participants and was a joint collaboration between MBIE’s Consumer Services and the Commerce Commission. This survey is the fifth in the series, providing trend analysis over a substantial period of time.

These results have now been published and offer a comprehensive picture of consumer confidence, experience, and overall awareness of consumer matters. As a result, the Ministry of Business, Employment and Innovation (MBIE) is better positioned to work with our partners in the system to empower and build the capability of everyday consumers to resolve issues.

Some of the key findings show;

Purchasing, and reports of problems have both decreased since the previous survey in 2022

Consumers are significantly less likely to have purchased items in many of the product and service categories in 2024 compared to 2022. Concurrently, fewer consumers report having experienced a problem with a product or service over the last two years, down from 55% in 2022 to 41% in 2024.

Of those who had a problem with a purchase, 68% took action to resolve their most recent problem which is approximately in line with the results seen in 2022 (67%).

Motor vehicles from a private seller have the highest incidence of problems (22% vs 12% avg)

This has significantly increased in prevalence since 2022 and motor vehicles from a car dealer follow closely behind with 17% incidence of problems. Private vehicle sales are also the most expensive to fix, with overall cost to fix averaging over $12,000.

Only half of consumers (52%) agree that there is adequate access to services that help resolve disputes

Use of dispute resolution services has increased in 2024, however of the 68% of consumers who took action to resolve a problem in the last two years, only 17% contacted a dispute resolution service, (up from 11% in 2022). Feedback on the survey shows that a lack of knowledge is the main barrier to use of dispute resolutions services.

Online purchases continue to grow

The vast majority (93%) of consumers have made an online purchase in the last six months and there is a slow but steady increase in the number of consumers who shop online frequently, up to 65% in 2024 compared to 62% in 2022 and 58% in 2020. However, online purchases had a lower incidence of problems (42%) than offline purchases (58%) and they are more likely to be a result of non-delivery and less likely to be faulty or damaged.

Knowledge of consumer rights and legislation remains high, but knowing more is key to resolving issues

Almost all consumers (94%) are aware that New Zealand laws exist to protect basic consumer rights when purchasing products and services, and just over half (55%) say that they know at least a moderate amount about their rights.

Knowledge of rights is important because those who know little or nothing about their consumer rights are significantly less likely (61% and 48% respectively) to seek resolution if a problem occurs. 

The full New Zealand Consumer Survey 2024 can be found here.

New Zealand consumer surveys(external link) — Ministry of Business, Innovation, & Employment

Consumer information – Serene Heaters safety recall

Source: Consumer Affairs – New Zealand Government

This applies to all units imported, sold, or installed since June 2018.

More information about this recall and the retailers who are working with MBIE:

Serene S2068 Bathroom Heater. Originally published February 2024(external link) — Product Safety New Zealand

The hazard

Serene S2068 heaters have a manufacturing defect. There have been 17 reported fire events associated with these heaters.
There is a significant risk of people being seriously harmed and property being damaged.

What are my rights around unsafe products?

The Consumer Guarantees Act (CGA) guarantees that products must be of acceptable quality, including safe to use. Where a product is unsafe – or doesn’t meet mandatory product safety requirements – you have the right to return it to the business who you purchased it from for a refund, repair, or replacement.

These rights apply regardless of whether the retailer has issued a voluntary recall.

More information about your rights under the CGA:

Consumer Guarantees Act

Check if this heater is in your home

The prohibited S2068 heater is described as:

  • Wall mounted fan heater with step-down thermostat with pull-cord on-off switch, for fixed-wired installation in bathrooms and similar locations
  • Mirror polished stainless steel metal shell with die cast grille OR White shell with die cast grille
  • Dimensions: 300 mm wide, 210 mm high and 110 mm deep.  

Serene S2068 Bathroom Heater. Originally published February 2024(external link) — Product Safety New Zealand

What you should do if you have a Serene bathroom heater in your home or rental property

Check to see if you have an affected heater with model number S2068. If you do, stop using it immediately.

Consumers can contact the business to return the goods under the Consumer Guarantees Act and ask the supplier they purchased it from for a safe replacement (if available) or a refund.

If the heater has been installed by fixed wiring, consumers can also require the supplier to arrange for its removal by an electrician.

If consumers can’t identify the supplier, they will have to arrange an electrician to remove this heater at their own cost.

If the heater is plugged into the wall, consumers can switch off the electricity, unplug, and remove the heater.

Please ensure that all units are safely disposed of so they cannot be reused or resold.

If you are a tenant of a rental property, discuss a course of action with your landlord.

Are there other Serene models affected?

Energy Safety have also issued notices on two other models.

  • They have prohibited sale, installation, and importation of Serene S207T wall mounted bathroom heaters. This prohibition applies to all units imported, sold, or installed since January 2018.
  • Serene S2069 wall mounted bathroom heaters imported, purchased, or installed after June 2018 have had their approval withdrawn. This confirms they cannot be legally sold in New Zealand.

Although Energy Safety have not declared these two models to be unsafe, they advise there is a low risk from continued use. If consumers observe an unusual smell or noise from the heater, do not use it and contact an electrical worker to check it over. You can also report the incident to WorkSafe for further investigation.

Notification of a non-workplace event(external link) — WorkSafe New Zealand

If you have a S2069 or S207T installed in your home and are concerned, you can also contact the supplier to seek a remedy under the CGA. Some suppliers have also undertaken a voluntary recall of these heaters. You can also find out more on the Product Safety New Zealand website:

Serene S207T Bathroom Heater(external link) — Product Safety New Zealand
Serene S2069 Bathroom Heater(external link) — Product Safety New Zealand

More help

We recommend that you first contact the business you purchased the heater from to agree a course of action and appropriate remedy.

If you have questions about your rights or need help to get a fair deal we suggest you contact your local Citizens Advice Bureau or use this website to learn about your next steps to resolve your issue.

Serene Classic S2068 wall mounted bathroom heaters recalled due to fire risk

Source: Consumer Affairs – New Zealand Government

Serene S2068 heaters manufactured in March 2021 have a manufacturing defect. There have been at least 15 fires and overheating events associated with these heaters.

There is a significant risk of people being seriously harmed and property being damaged from the use of these heaters.

The prohibited S2068 heater is described as:

  • Wall mounted fan heater with step-down thermostat with pull-cord on-off switch, for fixed-wired installation in bathrooms and similar locations
  • Mirror polished stainless steel metal shell with die cast grille 
  • Dimensions: 300 mm wide, 210 mm high and 110 mm deep.  

The prohibited S2068 heaters have a serial number in the following ranges:

  • VH145173 – VH147003
  • VK154294 – VK160567
  • WF167045 – WF168874

The serial numbers can be visible without dismounting the product.

The Consumer Guarantees Act (CGA) guarantees that products must be of acceptable quality, including safe to use. Where a product is unsafe — or doesn’t meet mandatory product safety requirements — you have the right to a refund, repair, or replacement.

What should you do if you have these products?

Check to see if you have an affected heater with the serial number as above, If you do, Stop using it immediately and remove it from the home.

Consumers can reject the goods under the Consumer Guarantees Act and ask the supplier they purchased it from for a replacement (if available) or a refund.

If the heater has been installed by fixed wiring, consumers can also require the supplier to arrange for its removal by an electrician. If consumers can’t identify the supplier, they will have to arrange an electrician to remove this heater at their own cost.

If the heater is plugged into the wall, consumers can switch off the electricity, unplug, and remove the heater.

Check for button batteries this Christmas

Source: Consumer Affairs – New Zealand Government

Button batteries are widely used in musical greeting cards, toys, remote controls, and key fobs. If they are swallowed or placed in a child’s nose or ears, they can quickly burn through tissue causing serious injury leading to possible death.

They’ve been identified as a high-risk product by MBIE, especially for the harm they can cause to children and their families.

Ian Caplin from MBIE’s Consumer Protection team says people need to be especially mindful of the dangers these button batteries can pose when they are purchasing presents and decorations this time of year.

“The National Poisons Centre receives on average 41 calls a year related to button batteries being swallowed or stuck in ears or nose (between 2019-21)”.

Children under five are particularly vulnerable, says Ian.

“Knowing if button batteries are in your home and knowing where they are is incredibly important. Not only could they be in gifts tamariki may get at Christmas, but also in everyday items like key fobs, or kitchen scales or hearing aids.”

“Over 60% of the incidents involving button batteries coming loose from inside these sort of items, with a further 29% coming from batteries that weren’t disposed of or stored safely.”

MBIE is encouraging New Zealanders to check and see where button batteries are in their home.

If you can, change the products that have these batteries to ones that use other types of batteries, says Ian.

“For those products you can’t change, make sure the battery compartment cannot be opened by a young child or when dropped.”

“When you change the batteries, make sure the used ones are disposed of somewhere out of reach of children, and any spare ones are kept secure and away from children.”

“And finally, when Christmas is all over and you’re packing up the decorations for another year, take a quick look to see if there aren’t any tiny button batteries left behind in amongst all the left over pine needles.”

The Product Safety website contains up to date information about button battery safety.

Button batteries(external link) – productsafety.govt.nz

‘Pause before you Pay’ this Black Friday

Source: Consumer Affairs – New Zealand Government

Major promotional events like Black Friday and Cyber Monday see scammers use the heightened sense of urgency to attract consumers with fake online shops and advertisements. These often particularly revolve around brands which do not have a direct presence in New Zealand.

These websites often end in nz.com or newzealand.com rather than .co.nz

A recent survey from Netsafe found shopping scams were the second most common form of scam in New Zealand.

The State of Scams in New Zealand – 2023 [PDF 756KB](external link) – netsafe.org.nz

Ian Caplin from MBIE’s Consumer Protection team says consumers should consider three things when they’re shopping over the promotional weekend.

“Check the online trader is who they say they are, that they’re contactable if there is a problem with your order and that they will deliver what you ordered in good time.”

“Things to look out for include lack of local contact details, a web address that doesn’t match what’s being sold and if the price is noticeably lower than everywhere else. Make sure any website asking for your information has a padlock symbol next to the web address in your browser.”

“You can also protect yourself by using trusted payments systems like PayPal, Apple Pay or Google Wallet.”

CERT NZ’s new consumer-focused website, Own Your Online, contains up to date guidance for anyone concerned about online shopping scams.

Own Your Online(external link) – ownyouronline.govt.nz

Kiwis lose $200 million to scams

Source: Consumer Affairs – New Zealand Government

The numbers show that scammers are smarter and more active than ever before. Scammers know all kinds of ways to trick you out of your money especially if you’re looking to invest. This week as part of Fraud Awareness Week we’re asking Kiwis to Stop and think – is that return for real?

If you are approached for money or personal information, it’s important to remember:

  • Real investments don’t come out of the blue.
  • Check your source to make sure it’s real.
  • Get a second opinion before handing over money.
  • if you don’t understand an investment, walk away.

Visit Fraud Awareness 2023 to learn how to protect your money.

Owners of older top loader Samsung washing machines urged to check model numbers after fire

Source: Consumer Affairs – New Zealand Government

The units were voluntarily recalled in 2013. Anyone with one of the recalled units that has not been repaired is encouraged to contact Samsung on 0800 SAMSUNG to request a repair, replacement or refund.

Auckland fire

A family of five had to leave their home on the 25 September after their smoke alarm went off and they found their washing machine on fire. The fire was able to be extinguished without it causing significant damage.

Fire and Emergency’s Community Risk Manager for Counties Manukau Thomas Harre says smoke alarms helped prevent what could have been a much worse outcome.

“This family was very lucky to have been ambient and awake with working smoke alarms meaning they all evacuated to safety with minimal property damage, however the outcome could indeed have been very different.”

Voluntary recall

The washing machine model was subject to a voluntary recall in 2013, with MBIE, Energy Safety and Samsung all working together. Communications with consumers included direct mail fliers, text alerts, calls and paid advertising.

Simon Gallagher, National Manager, Consumer Services at MBIE says over the following four years, over ninety-six percent of impacted washing machines were repaired, replaced or refunded to remedy the fault.

“While this remedy rate is considered high for electronics recalls, I’d encourage anyone who has a Samsung top loader washing machine model built between 2010 and 2013 to check their model number to confirm it isn’t one of the models affected. If it is, they should get in touch with Samsung.”

Consumers can check the Product Safety New Zealand website for details of product recalls or subscribe to receive regular updates on recalls.

Affected washing machines were manufactured in 2010, 2011, 2012 and some models in 2013. Affected model numbers:

  • SW75V9WIP
  • SW65V9WIP
  • SW80SPWIP
  • SW70SPWIP

Media contact

MBIE email media@mbie.govt.nz

Fire and Emergency email media@fireandemergency.nz