TL;DR: Under changes to the Code of Banking Practice that took effect 30 November 2025, NZ banks can reimburse victims of authorised payment scams (where you made the payment yourself, as in romance or investment scams) up to $500,000 if your bank or the receiving bank failed to meet one of five commitments. How much you get depends on whether you took "reasonable care." Report to your bank and Police within 3 months of discovering the scam and within 12 months of the last payment. Purchases on Trade Me or social media marketplaces aren’t covered. If you disagree, go to the Banking Ombudsman.
How we got here
| Date | What happened |
|---|---|
| 2023 | Scam losses reached almost $200 million, according to interest.co.nz |
| Feb 2024 | Commerce and Consumer Affairs Minister Andrew Bayly wrote to the banks asking them to investigate a reimbursement scheme |
| Apr 2025 | Confirmation of payee finished rolling out; the NZ Banking Association (NZBA) announced the reimbursement scheme |
| 30 Nov 2025 | The updated Code took effect |
Before this, banks generally didn’t have to reimburse authorised payment scams such as paying a fake invoice, though they usually did reimburse unauthorised fraud such as someone breaking into your online banking.
The rules
From Bell Gully’s summary:
| Area | Rule |
|---|---|
| Authorised payment scams | Reimbursement up to $500,000 where your bank or the recipient bank failed its commitments |
| How much | Some or all, depending on whether you took reasonable care |
| Above $500k, or 3+ claims | At the bank’s discretion |
| Deadline | Report to the bank and Police within 3 months of discovering it, and within 12 months of the last payment |
| Which payments | To NZ bank accounts, made after 30 November 2025 |
| Unauthorised payments (scammer got into your account) | Compensated if you weren’t dishonest or negligent, took reasonable steps and cooperated |
The five bank commitments
The NZBA’s go-live announcement (28 November 2025) lists them. Banks must provide:
- Warnings before certain higher-risk payments.
- Confirmation of payee, which checks the payee’s name matches the account number.
- Systems to identify and respond to high-risk or unusual activity, including delaying or blocking some payments.
- A 24/7 reporting channel for scam victims.
- Information sharing between banks to freeze funds and shut down mule accounts.
If your bank skipped one of these and you lost money, that’s your strongest argument. For example: no warning on a large, unusual payment to a new payee, or a name-mismatch that confirmation of payee should have flagged.
NZBA chief executive Roger Beaumont said banks "cannot take on full liability for scam losses that are beyond their control," pointing to scams that start on social media, in fake ads and in search results.
The catches
Consumer NZ has been the scheme’s sharpest critic:
- Voluntary, designed by the banks, with no penalties for not complying.
- "Reasonable care" is a lower bar for banks than the UK’s gross-negligence test. Consumer NZ legal expert Aneleise Gawn: "A failure to take reasonable care is a much lower bar than gross negligence."
- Speed: reimbursement within 30 business days, but only after the bank has gathered information, with no set start for that period. In the UK, Consumer NZ says victims are generally reimbursed within five business days.
- Marketplace exclusion: scams buying goods on Trade Me or Facebook Marketplace aren’t covered. Consumer NZ quotes BNZ saying nearly 40% of authorised payment scams start on online marketplaces.
- You may be ineligible if you acted dishonestly or paid through a third-party service.
The Banking Ombudsman’s record matters too. In one case reported by the NZ Herald, a man who lost $100,000 to a fake BNP Paribas bond scam didn’t get his money back; Ombudsman Nicola Sladden found banks had no obligation to monitor payment references for known scams. That case predates the new Code, but it shows how narrowly bank duties can be read.
Why it matters now
Bank impersonation is rising. In October 2026, ASB pointed to Netsafe data showing 34% of August 2026 impersonation reports involved a scammer posing as a bank or financial institution, up from 20% between April and July. Westpac NZ said bank impersonation made up 71% of gross scam losses among its business customers in the first half of 2026.
How to claim
- Call your bank immediately. Every hour counts for freezing funds.
- Report to Police online at 105.police.govt.nz or by calling 105. The Code requires both reports.
- Keep records: screenshots, messages, call logs, payment details, any warnings the bank showed you.
- Ask in writing for reimbursement under the Code of Banking Practice, and note which commitment you think was missed.
- If you disagree with the outcome, complain to the Banking Ombudsman. It’s free.
How NZ compares
Australia took a different route with its legislated Scams Prevention Framework; the UK has mandatory reimbursement. Consumer NZ wants a government-led framework that also makes telcos, social media platforms and marketplaces share responsibility.
Scammers often start with breached data. A free exposure check shows if your email is in the breaches they use.
Frequently Asked Questions
Will my NZ bank refund money I lost to a scam?
Possibly. Since 30 November 2025, banks can reimburse authorised payment scam losses up to $500,000 where they or the recipient bank failed to meet their commitments, depending on whether you took reasonable care.
How long do I have to report a scam to claim?
Within three months of discovering it, and within 12 months of the last payment, to both your bank and Police.
Are Trade Me or Facebook Marketplace scams covered?
No. Consumer NZ says scams involving purchases on online marketplaces are excluded.
How fast will my bank pay?
Banks pledge to pay within 30 business days, but only after gathering information.
What are the five bank commitments?
Payment warnings, confirmation of payee, systems to catch high-risk activity, a 24/7 reporting channel, and information sharing between banks.
What if my bank refuses?
You can complain to the Banking Ombudsman for free.
Sources
- NZ Banking Association: New banking scam protections and compensation go live (28 Nov 2025)
- Bell Gully: Banks commit to new protections and reimbursement for scam victims
- Consumer NZ: New Zealand's scam response, papering over the cracks
- interest.co.nz: Government asks banks to set up reimbursement scheme
- NZ Herald: Banking sector launches review of fraud reimbursement rules
- NZ Adviser: ASB warns as bank impersonation scams rise (Oct 2026)