[s ]Fewer people have complained of bank scams but those caught out have lost more money, while financial hardship complaints rose.
People losing money to banking scams are losing more, while hardship complaints about banking have increased (file photo). Photo: Unsplash/ Vitaly Gariev
Fewer people are complaining about bank scams but those who do get caught in a ruse are on average losing more money, while financial hardship complaints related to banks were up, a banking review has found.
In its annual report, released Wednesday, the Banking Ombudsman Scheme says scam-related complaints have fallen 17 percent this year compared to last year, with 694 cases in 2024-2025.
However, the reported average loss from a bank scam has grown 10 percent, to $88,000.
"We think the reduction in cases can be attributed to better customer awareness and also the response from the banks, with some of their initiatives resulting in positive outcomes, like the introduction of 'Confirmation of Payee'," says Banking Ombudsman Nicola Sladden.
While there are fewer scam-related complaints, scammers appear to be having a greater impact on victims' bank balances, and Nicola Sladden warns against thinking scammers are on the ropes.
"There is still a lot of work to be done," she says.
Total complaints to the Banking Ombudsman Scheme rose 4 percent this year and the scheme was asked to step in on 7 percent more disputes than the previous year.
Common areas of customer dissatisfaction were around personal accounts, property lending and credit cards.
Hardship complaints up: Banks reminded to talk to their customers
Financial hardship complaints were up 55 percent, with the majority related to home loans and KiwiSaver withdrawals.
"Banks have taken steps to improve their hardship support, including setting up specialist teams and we urge them to continue to improve their communication and their responsiveness," Sladden said.
Service-related complaints grew by 11 percent. Poor communication with customers is a recurring theme, according to the ombudsman.
"Customers who are experiencing financial difficulty should contact their bank as early as possible to explore the support options available.
"Banks are obligated to treat their customers fairly through this even if hardship assistance isn't available in every case."
New chair for banking watchdog
Long-time Banking Ombudsman Scheme board chair Miriam Dean will step down from her governance role and will be replaced by KC and former Solicitor General Michael Heron in January.
Dean, who has completed 12 years in the role, said Heron's skills and experience, particularly in online dispute resolution, make him an ideal candidate to take over.
The scheme changed the make-up of its board earlier this year, on the recommendation of an independent review, to help signal its independence from the banks. The board now includes two bank representatives, two consumer representatives and two independent directors.
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