In a big win for Kiwi consumers, banks are introducing stronger safeguards and a new compensation scheme for scam victims, now including the potential for reimbursements of up to $500,000.

This comes in response to the Government's call for greater responsibility from banks in protecting their customers.

Commerce and Consumer Affairs Minister Scott Simpson applauded the changes, noting that these protections are crucial for consumers across New Zealand, including those here on the Hibiscus Coast.

“These changes will make a difference for our local community, ensuring that Kiwis can continue to bank and shop online with more confidence,” said Mr Simpson.

“Scams have become a real issue for many of us, but with these new commitments, banks are stepping up to prevent them.”

The banks’ updated Code of Banking Practice will feature vital improvements such as pre-transaction warnings, identifying high-risk transactions, and offering a Confirmation of Payee service.

This service lets consumers ensure that the recipient’s name matches their bank account before transferring funds.

As scams continue to evolve, these new protections are a welcome development for Coasties, but the Government stresses that staying vigilant is still essential.

The updated Code will take effect from 30 November 2025, giving banks time to fully implement these safeguards.

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