Insights
Don’t get scammed

A sad reality of life today is that you’ve either been a victim of online fraud, or you likely know someone who has.

With so many aspects of daily life now built around online tools, scammers are working 24/7 to find and exploit gaps in digital security. Once they get their foot in the door, they can steal money, data, and even a victim’s identity.

While the fraudsters are relentless, the good news is that it doesn’t take much time, or much knowledge, to improve your own cyber defences. A little bit of ‘know how’ can go a long way.

With that in mind, here’s some food-for-thought about staying vigilant and understanding the various small actions that can make a big difference.

I should clarify that I’m not writing this in response to I.T. breaches at Pathfinder. Instead, I’m sharing these insights because our team cares about the financial well-being of our members.

The evolution and growth of KiwiSaver schemes have made them more attractive targets to digital fraudsters. At last count, New Zealanders had invested $111.8 billion in the schemes – an impressive feat for an investment solution that’s less than 20 years old [i].

For the thieves, everyday savers and investors are often seen as easier prey than companies or governments who invest big money in their cyber security programmes.

One of the scammers’ tactics is to try and get access to a KiwiSaver member’s personal data and I.D. Once successful, the next stage is to attempt to use that information to transfer out the victim’s assets to an alternative provider, from where the thief makes withdrawals.

To make matters worse, the advent of fast-working and sophisticated AI tools enables and empowers today’s savvy thieves to run their malicious activity at both speed and scale.

Broadly speaking, a combination of activity can support your safety online:

Passwords:

Are your online passwords easy to guess? Do you use the same password across multiple sites? Has it been a while since you last changed your passwords? If you answered ‘yes’ to any of these questions, then you’re immediately putting yourself on the backfoot in the fight against online crime. We get it’s a drag but spending a small amount of time to diversify and strengthen your passwords – across email, social media, bank accounts, investment accountants and more – can create a much more effective barrier against scammers. It’s much easier to change a password than to deal with losing your retirement savings. Feel good about having strong passwords and head scammers off at the pass.

Two-factor authentication

If you are offered the chance to use ‘two-factor authentication’, take it. It’s another string to your bow in the fightback against scammers. At Pathfinder, we offer that functionality to our members, and we recommend that you activate it at the earliest opportunity.

Social media:

If you use Instagram, Facebook, TikTok, LinkedIn and other social media platforms, it pays to lock it all down. Having a publicly visible profile on these platforms opens a window into your private life, from where online thieves can harvest personal information. Think how many of your passwords might involve a pet’s name, a child’s name, a house number, a road name, a city, an employer name, and so on. And then think how much of that information is open for all to see on your social platforms. Top tip – make your social profiles private and reject any invitations to connect from people you don’t know.

Email hygiene:

As sad as it might sound in a country where we value friendliness and trust, it actually pays to be skeptical about the emails you receive. The tactic known as ‘phishing’ is a common way for fraudsters to trick you into taking a harmful action. Typically, they’ll send you an email that looks realistic on the surface, but in fact contains a fraudulent invoice for payment, or a corrupted link to click on. Some common clues that all is not what it seems, include:

- Spelling and grammar mistakes, hinting that the email might originate from outside NZ.

- A sender whose name and email address you don’t recognise. If you have any doubts, just delete the email.

- A sense of urgency: Is an email rushing you to make a payment, or to a click a link? Hurrying you to do something is a common ploy by scammers. Instead, take your time and try to research the sender and/or the action being asked of you. If you’re not sure, just delete the email.

- Asking you to share personal information. Never share a password over email, or any log-in details. Those are personal to you. If someone is asking you for them, it should be an immediate red flag. The same applies for phone calls – be very careful what you divulge. If anyone calls claiming to be from Pathfinder, and you’re not sure that they’re genuine, just hang up. You can always contact us via our correct channels, and we’ll let you know if the call (or email) was genuine or not.

When you give Pathfinder a call, we’ll ask some security questions to verify your identity. We may ask for your birthday, address or email address. This is a great time to update your information with us.

Sudden interest

If you’re approaching 65 years of age and are suddenly getting interest from someone about your KiwiSaver, then it might be a sign that you’re being lined up for a scam. Likewise, if someone is suddenly pressuring you to make a withdrawal, stop and think about your actions. Remember, your KiwiSaver investments are there for your future. They’re worth being protective of. If something feels off about an approach or a query, then keep your defences up. It’s better to be safe than sorry – or perhaps we should say - it’s better to be rude than scammed.

Be proactive and stay vigilant

By sharing these insights, I hope that we can help you stay safer online – both regarding your Pathfinder account, and your wider online presence.

Cyber criminals don’t discriminate, and their efforts are both financially and emotionally damaging.

By understanding which threats to look out for and knowing how to tighten-up your own I.T. security, you can make a real positive difference to your financial well-being.

Stay safe!

[i] Source: https://www.fma.govt.nz/library/reports-and-papers/kiwisaver-report/