In an effort to stem the pre-Christmas tide of fraudulently obtained funds being lost to offshore scammers, Auckland City Police Financial Crime Unit staff will be at some money remittance agencies today to provide crime prevention advice to customers.
Detective Senior Sergeant Aaron Pascoe says that, based on a recent survey of some money remittance agencies, Police are confident that more than $100 million a year is sent to high risk countries from New Zealand.
"How much of this is fraudulently obtained or laundered funds is unclear but the figure is likely to be in the tens of millions, given the low rate of reporting of this type of occurrence.
"High risk countries include Nigeria, Ghana, Malaysia, the Philippines, Indonesia and the Ukraine, however it is not safe to send money to any country if you do not personally know the intended recipient.
"One person recently reported a $17,000 fraud where he paid that amount to 'release' supposed lottery winnings. By working with remittance agencies we identified nine other victims - only one of whom had reported to Police - and then established another $250,000 that had been sent overseas to the same scammers."
Money laundering is the conversion of illegal funds obtained by unlawful means, to seemingly legal funds obtained by lawful means.
Money 'mules' are recruited by offshore organised criminal groups to launder illegally obtained funds through compromised online bank accounts.
"Money stolen through fraudulent means and deposited into a potential 'mule's' account, is then withdrawn to send to a scammer," Mr Pascoe says.
"The scams come in several guises including love online, release of lottery-type winnings, employment opportunities, 'overpayment' and 'refund' requests, assistance to 'new friends' by allowing victim's account to be used to receive stolen funds.
"Victims are either tricked into giving away their own money, or they are tricked into allowing stolen funds to pass through their bank accounts. After withdrawing money, the bank reverses the original deposit and the victim is left out of pocket.
"The bottom line is, if it sounds too good to be true, it is. Once the money is gone there's little or nothing Police or banks can do to recover it so be wise with your cash and let it work for you, not for someone hell bent on financial trickery."
Twelve staff from the Financial Crime Unit will be out and about at various money remittance agencies in the city from 9am until 3pm today including Western Union, Money Gram and DP Exchange outlets on Queen St and nearby locations.
ENDS
Issued by Noreen Hegarty
Auckland City Police Communications Manager
Ph 09 302 6947 or 0274-951-589
Website: www.police.govt.nz