End of financial year scams in New Zealand: How to spot them in 2025

Rising Scam Activity: A Digital Heist

In New Zealand, scams have been on the rise, with an alarming $2 billion lost to digital scams in recent years. This statistic highlights the urgency for businesses to stay vigilant. A variety of scams are targeting local companies, and fraudulent vendor payment schemes are among the most concerning. These scams can take many forms, from fake invoices to Business Email Compromise (BEC), where cybercriminals impersonate company executives or suppliers to trick employees into transferring large sums of money.

A recent report highlighted the rising cost of BEC scams, with New Zealand businesses losing up to $2.2 million in just nine months, with the average loss per business reaching $55,000. For instance, one local cleaning supply company paid a $50,000 invoice after receiving a fraudulent email about a change in banking details. This type of attack highlights the importance of solid cybersecurity measures.

Key Scams to Watch Out For

As the EOFY deadline approaches, scams evolve to exploit busy professionals. Common tactics include:

• Business Email Compromise (BEC): Scammers impersonate legitimate vendors or executives, requesting urgent payments. This tactic often relies on email addresses that look almost identical to the real thing, catching unsuspecting employees off guard.
• Invoice Fraud: Fraudsters send fake invoices disguised as legitimate supplier requests, especially targeting finance departments under tight deadlines.
• Phishing Scams: Attackers use emails or messages that look like official communications from financial institutions or government bodies, tricking recipients into divulging sensitive information.

As scams become more sophisticated, it’s critical to stay informed. In New Zealand, businesses are encouraged to report suspicious activity to Netsafe, which is the primary authority for tackling online fraud in the region.

Reporting Scams in New Zealand

Netsafe provides resources and guidance for individuals and businesses to report scams. Netsafe works alongside New Zealand Police and other government agencies to help recover stolen funds and prevent future attacks. If your business encounters any form of cybercrime, it’s important to contact Netsafe immediately.

EOFY Deadlines and Filing Taxes in New Zealand

The EOFY deadline in New Zealand falls on March 31, with businesses having until July 7 to file tax returns. The Inland Revenue Department (IRD) oversees the filing of these returns, so it’s crucial to stay on top of your obligations, especially when facing the heightened risk of scams during this period.

As we’ve seen in New Zealand’s recent $2 billion scam losses, scammers know when businesses are most vulnerable. Their attempts to steal sensitive data or money increase in the lead-up to EOFY, so it’s vital to maintain robust cybersecurity practices throughout the year, not just at the finish line.

Protecting Your Business from Scams

Here are a few simple steps businesses can take to protect themselves:

1. Verify email addresses: Before processing any payment or responding to an urgent email, always verify the sender’s address. Scammers often use slight variations on legitimate addresses.
2. Implement multi-factor authentication (MFA): MFA adds an extra layer of security to your financial accounts and email systems, making it harder for scammers to gain unauthorised access.
3. Educate your team: Ensure everyone in your organisation knows how to spot a suspicious email, particularly those working in finance or administration.

By staying proactive and aware of the risks, New Zealand businesses can avoid becoming victims of scams during this critical time.

With scams costing New Zealand businesses millions, it’s essential to stay informed about the tactics used by fraudsters and take steps to protect your organisation. By referencing trusted resources like Netsafe and staying up-to-date with the latest security measures, you can safeguard your company and its finances.