Battling fraud: the need to make consumers wary

Western Union and Crimestoppers launch Security and Fraud Prevention program in New Zealand

Battling fraud: the need to make consumers more sceptical

Auckland, New Zealand October 12, 2009 – The Western Union Company has joined forces with Crimestoppers New Zealand to roll-out a national Security Awareness and Fraud Education (SAFE) Campaign.

It is aimed at making New Zealanders aware of consumer fraud and educate them on some simple steps which they can take to prevent and report fraudulent behaviour.

The SAFE program is hinged on educating customers to be more skeptical.  This is important, if we are to make headway in battling the scourge of consumer fraud, said Mr Duane Ritter, a former US state police investigator and now Vice-President of Global Security and Government Initiatives at global payment services company, Western Union.

“Security systems implemented by companies that provided payments systems for goods and services including financial services, were not enough if the consumer was willing to suspend disbelief and be drawn into a scam,” he said.

“More attention needed to be paid to the psychology of fraud victims, and imaginative warnings are necessary to intervene in what is an emotionally inspired decision-making process.

“A ‘let’s give it a go attitude” can mean you are at risk of losing everything, when it comes to a get rich overnight scheme. Therefore creating a “reality check” is necessary to question if the offer is too good to be true.  This helps the rationale part of the brain activate.

“Consumers need to also take on more ownership in protecting themselves.  All of this education is ineffective if consumers are not willing to pay attention.

“The message to our customers is that you must send money to someone you know or whose identity you can verify.  If an offer sounds too good to be true……it probably is.

“Law enforcement alone cannot hope to arrest the growth of international fraud, now at a multi-billion US dollar level. As a global leader in money transfer services, Western Union believes that fraud is an industry-wide issue and its prevention is a shared responsibility among law enforcement, consumers and the corporate community.

“Working directly with law enforcement and collaborating with independent organizations like Crimestoppers, New Zealand to launch consumer awareness programs is an important strategy in dealing with this issue,” he said.

"The strength of the Crimestoppers service is that people who, for various reasons, may have been reluctant to contact law enforcement agencies directly now have a safe way of doing something about family violence, drugs, gangs, fraud, dishonesty and other types of anti-social behaviour and offending, says Crimestoppers New Zealand CEO and former Chief of Army Lou Gardiner.

“Western Union’s collaboration with Crimestoppers sets a stellar example in its commitment to fighting consumer fraud.  They recognize their responsibility as an industry leader to stand up against fraud and do not just talk the talk, it walks the walk.

“We agree with Western Union that fraud is a shared responsibility between the public and private sectors. We hope others will follow Western Union’s example in collaborating Crimestoppers to drive anti-fraud initiatives,” said Mr Gardiner.

People can contact Crimestoppers anonymously by calling 0800 555 111 or submitting an encrypted online form via www.crimestoppers-nz.org.

As a part of the campaign

§ The Western Union® Money TransferSM forms will be redesigned by Western Union to include information on fraud prevention and free call number and website of Crimestoppers New Zealand.

§ New fraud prevention posters and flyers containing the contact details of Crimestoppers New Zealand will be designed, printed and distributed throughout select Western Union® Agent locations across its 700 strong network across New Zealand.

§ Development of website for Crimestoppers NZ – so as to promote messages on fraud prevention. A hyperlink to the Crimestoppers New Zealand website will be placed on the local New Zealand Western Union website so that consumers can log onto www.westernunion.co.nz and click through to the Crimestoppers New Zealand website for further information on how to prevent fraud.

§ Education and training of Western Union agents on consumer fraud awareness in participating Agent locations (through news letters, face to face training, web-based training).

The top five on-line scams identified by Western Union are internet purchases, bogus prizes, counterfeit cheques or money orders, lonely hearts websites and loans.

The top destinations for the billions of dollars reaped from scams are in descending order, Canada, USA, UK, Nigeria and Jamaica.

The US National Institute of Statistics estimates that nearly one in four people in the world have fallen for an internet phishing scam. The Australian Bureau of Statistics estimates six million Australians are exposed to scams and frauds during any given year, with over 800,000, or one in seven falling victim. According to the Australasian Consumer Fraud Taskforce's SCAMwatch, it is netting fraudsters one billion Australian dollars a year.

Mr Ritter said Western Union spends US$35 million annually to deploy a global compliance team of former police officers and security experts to identify new scams and alert the company’s customers, who send US$67 billion around the globe every year.

Western Union offers people on the move an easily accessible, convenient, customer-friendly, expeditious and regulated route to move money. Eighty percent of Western Union’s customers are global workers sending money home via more than 200 countries and territories and 385,000 locations.

Western Union’s money transfer services are very popular with migrant workers sending money back to families in their homeland where cash and locations closer to home whether in urban or rural areas are preferred. “Our business is a balancing act: we have to ensure our service is easy to use and accessible for our 1 million customers a day, yet rigorous enough to smoke out those who seek to violate the service we offer, and ultimately the customers we serve,” Mr Ritter said.

About Western Union:

The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta and Pago Facil branded payment services, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. Western Union, Vigo and Orlandi Valuta operate through a combined network of more than 385,000 Agent locations in 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com

About Crimestoppers NZ

Crimestoppers NZ is modelled on the UK service, which has been running there successfully for more than 20 years.  Its genesis in New Zealand was the 2007 theft of 11 sets of medals from the Waiouru Army Museum. During 21 years of its operations in the UK Crimestoppers has received over 1 million actionable calls which have resulted in more than 90,000 arrests and charges.

Founder, Chairman of Crimestoppers UK and Victoria Cross collector Lord Ashcroft KCMG, helped post a reward for the return of the medals. While in New Zealand, he discussed setting up Crimestoppers here with Police Commissioner Howard Broad.

Businessman and Police advisor John Perham was asked to establish the charity in New Zealand and chair the Board of Trustees. Other trustees are Dr Allan Freeth, Chief Executive of TelstraClear, retired Assistant Police Commissioner Gavin Jones, advisor and director Phillip Meyer and CEO Lou Gardiner.

The strength of the Crimestoppers service is that people who, for various reasons, may have been reluctant to contact law enforcement agencies directly now have a safe way of doing something about family violence, drugs, gangs, fraud, dishonesty and other types of anti-social behaviour and offending.

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