Govt Introduces Safe Harbour Rules to Help Providers Block Scams Faster

Commerce and Consumer Affairs Minister Scott Simpson says the changes will empower frontline organisations to intervene sooner without the fear of legal repercussions if they make an honest mistake.

The Government has unveiled significant new legal protections designed to help banks, telecommunications companies and digital platforms act more quickly to stop online scams before they cause harm. Commerce and Consumer Affairs Minister Scott Simpson says the changes will empower frontline organisations to intervene sooner without the fear of legal repercussions if they make an honest mistake.

Simpson stressed that online scams have become increasingly sophisticated, with criminals using fake websites, phishing links, impersonation tactics and fraudulent social media accounts to deceive the public. "Too many Kiwis are being ripped off by scams that spread through fake websites, texts and social media," he said. Losses are rising sharply despite ongoing public awareness campaigns, and the Government is seeking a more proactive response from the private sector and digital service providers.

New "Safe Harbour" Protection for Faster Intervention

The centrepiece of the Government's new approach is the introduction of a safe harbour provision for online service providers. This protection shields organisations that take reasonable and good-faith actions to disrupt suspected scams from facing legal consequences if they inadvertently interrupt legitimate activity.

Banks and telecommunications providers—some of the most frequent first responders to suspicious activity—have long expressed concern that intervening too quickly could expose them to lawsuits, especially if a legitimate customer or business is affected. The safe harbour aims to remove that hesitation.

Under the new framework, a provider can take swift action—such as blocking a suspicious link, pausing a transaction, or disabling a fake account—if:

• They have reasonable grounds to believe the activity or website is linked to a scam.

• Their action is proportionate to the risk identified.

• Any disruption to legitimate customers is remedied immediately once discovered.

Simpson describes the policy as a "fast, decisive tool" in the fight against scammers. "If a bank wants to pause a suspicious payment, or a telco wants to block a fake website link in a text campaign, we want them to be able to do that promptly without looking over their shoulder."

Backing the Anti Scam Alliance

The safe harbour sits within a broader cross-sector effort coordinated through the New Zealand Anti Scam Alliance, which brings together banks, telcos, digital platforms, regulators, law enforcement agencies, and consumer groups. The focus is on prevention—detecting patterns quickly, sharing intelligence, and intervening before funds disappear.

To support the safe harbour, the Alliance is exploring the development of a "trusted flagger" model, where law enforcement and regulatory agencies can pass reliable, verified warnings about suspected scams to providers. This would give companies clearer, more authoritative information when deciding whether to block or pause activity.

Scam Losses Continue to Rise

The urgency behind these changes is underscored by troubling statistics. Payments NZ reports that gross scam losses reached around $265 million in the past year alone, with criminals increasingly relying on "mule accounts" to launder stolen funds through New Zealand banks.

"These numbers are too high," Simpson said. "We need a prevention-first approach, where scams are blocked as early as possible."

New Anti-Mule Intelligence Tool from Banks

In a parallel development, the New Zealand Banking Association has today announced a new fraud intelligence tool designed specifically to track mule accounts and stop fraudulent transfers more quickly. The tool will enable banks to:

• Detect and share information about suspected mule accounts in near real-time

• Freeze stolen funds before they can be transferred offshore

• Warn customers from 30 November if they are about to send money to a high-risk account

This initiative aligns closely with the Government's reforms and strengthens early detection efforts across the financial sector.

A Unified, Prevention-Focused Approach

Simpson highlighted that scammers are constantly adapting, making it crucial for government and industry to collaborate more closely. "No single organisation can tackle them on their own," he said. "These changes are about backing the providers who see scams first, and giving them the tools and confidence to shut them down faster."

The Government expects to release further updates on the Anti Scam Alliance's work in the coming months, as New Zealand continues advancing a more coordinated, intelligence-led defence against online fraud.