Phone scammers prey on vulnerable (Photo: Getty)
Phone scammers prey on vulnerable (Photo: Getty)

SocietyApril 5, 2019

Why we need a central scam agency

Phone scammers prey on vulnerable (Photo: Getty)
Phone scammers prey on vulnerable (Photo: Getty)

Different scams are dealt with by different agencies, leaving many consumers confused as to where to go. The Commission for Financial Capability’s Bronwyn Groot says it’s time to centralise how we report scams in New Zealand. 

News this week that the money lost through online scams had ballooned to $33 million in 2018 – triple the amount lost the year before – only confirmed for us here at CFFC that something needs to change in how New Zealand fights this form of crime.

The Netsafe report also revealed that 13,000 instances of online scams and fraud were reported last year, up from 8,100 cases totalling $10.1 million in losses in 2017.

That’s 13,000 people, and 13,000 families still suffering the long-lasting effects of having their hard-earned money – sometimes their life savings – stolen from them. Fraud is not just about financial loss. It takes an emotional toll that affects a person’s psychological wellbeing for months and sometimes years afterwards.

Unfortunately, all of the agencies working in fraud prevention know these numbers are just the tip of the iceberg. Most scams go unreported partly because victims are embarrassed, but also because they don’t know where to turn, and if they do find someone to report to, they come away disillusioned. Our research shows a vast number of people don’t bother reporting scams because they think nothing can be done.

And therein lies the problem – the system is fractured with a number of agencies covering different types of fraud and few providing support for victims. There’s Netsafe for online scams, CERT (the Cyber Emergency Response Team) for cybersecurity fraud such as ‘sextortion’, blackmail, phishing and malware, and the FMA (Financial Markets Authority) for investment scams. The Department of Internal Affairs for spam and until recently, postal scams, ID Care for identity theft, telephone companies for phone scams, the police, and for general information, Consumer Protection, Scamwatch and us.

Each organisation does a fantastic job in its respective area, but consumers are confused. If they do approach an agency and it’s the wrong one, they are passed on and must go through the trauma of explaining the crime they’ve suffered over and over again, often with little result. It’s no wonder they give up.

Investigation of this form of crime stops before it starts, and victims feel isolated as they sink into a mire of shame and self-recrimination that can lead to depression, marriage break-ups and, at worst, suicide.

A spam email message (Photo: Getty)

If New Zealanders knew there was one central agency that could help them, we would know how big this problem really is. A central point could provide a rapid response to reports, triage cases to teams expert in different types of fraud who know the buttons to push to stop money being lost, start tracking offenders, put preventative measures in place to stop victims being targeted again, and support them through recovery.

The agency could also co-ordinate alerts to the public warning them of the latest scams because, like viruses, they morph and multiply by the month. Scams are not run by a single person sitting in a dark room: they are sophisticated international businesses employing thousands of people and using the latest technology to stay one step ahead of enforcement. Millions of dollars are siphoned out of the New Zealand economy every year and into organised crime – guns, drugs, human trafficking – and into the lifestyles of those who run it.

A woman I worked with recently knew none of this. Mary lost $68,000 through an investment scam – she’d been cold-called by someone offering her shares in a company that didn’t exist. She was led through a maze of fake websites, fake documents and was convinced to transfer multiple payments to various overseas bank accounts before her family got wind of what was going on and took her to report it to the police. The police said there was nothing they could do and suggested she contact the FMA. The FMA took Mary’s report and referred her to me.

I’ve worked with Mary and her family to show them how the scam operated and support them as they come to terms with the loss. Sometimes I can help people contact enforcement in the country in which their money has disappeared to put a stop on bank accounts and try to track offenders, but success is rare. Scammers move money quickly between accounts and countries, change contact names and company names, and stay several steps ahead of us.

The latest statistics show we’re losing the fight against scammers. We need to get as smart as they are, move as quickly as they do, while also wrapping a security blanket around the victims. I believe, like my counterpart at Netsafe, Martin Cocker, that this can best be done by pooling our resources and expertise into a central scam agency. Several of the agencies mentioned above could be developed into a national response centre; CFFC would support them with our work in mapping individual scams, supporting victims and public education. We just need the political will to bring us together.

It’s been done overseas. The Canadian Anti-Fraud Centre is an example of the one-stop shop that could work here. We could start small, grow the agency gradually as we get processes in place; we’d have no problem sourcing demand.

Then, the next time a friend or relative is scammed, or you fall victim (because it’s not a case of if, but when), you will know exactly where to turn. Your distress will be met by professionals who will not judge you, but place the blame firmly where it belongs, with the offenders, and immediately get to work. We expect no less when reporting any other kind of crime.

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Photo: Getty Images
Photo: Getty Images

SocietyApril 4, 2019

Auckland Grammar principal: Education Hubs would be a disaster for schools

Photo: Getty Images
Photo: Getty Images

A review of the school system has recommended sweeping changes, most controversially the implementation of a new organisation structure based around centralised Education Hubs. Auckland Grammar principal Tim O’Connor thinks that’s a terrible idea.

The government is considering radical changes to New Zealand’s community-led state-school system. Claire Amos, principal of Albany Senior High School, yesterday welcomed the recommendations of the Tomorrow’s Schools Taskforce, which would see community control of local schools snatched from locally elected boards of trustees and given to new government bureaucracies called ‘hubs’.

Amos’ is entitled to her views but has ignored the widespread and justified alarm about what will this mean for our community-led schools, from parents, education policy experts, and unions.

New Zealand’s largest education union, NZEI Te Riu Roa, says its members have expressed concern that hubs could mean “a loss of responsiveness to local communities” and a “loss of appropriate decision making in favour of bureaucratic paralysis”. It rightly points out that “personal and professional autonomy could be reduced if school leaders become state servants directly employed by hubs”.

An initial group of 44 schools from across the country, the Community Schools Alliance, has launched a campaign to raise awareness of the consequences of the Taskforce’s hub plan.

It’s an important debate; much too important to let some of the myths surrounding it go unchallenged.

The first myth is that our school system is in some kind of crisis. Cheerleaders for centralisation have even gone beyond the Taskforce’s own claims that most students and schools are performing well but that some students (specifically Pasifika and Māori) are under-achieving.

The truth is that statistics from the independent Education Review Office suggest only one in 16 schools requires any kind of intervention. To put that in perspective, around 93% of schools, representing 95% of all students, are doing well. New Zealand has been named the best school system in the world for preparing students for the future, by the influential Economist Intelligence Unit.

Supporters of the hub plan have used divisive rhetoric, suggesting support or opposition to hubs is about “rich schools” versus “poor schools”, as Amos did when she said that “well-heeled” communities support the status quo.

Among the Community Schools Alliance’s membership, we have schools from deciles 1 through to 10, from right across the country.

It is strange for Amos to claim, from the vantage point of Auckland’s North Shore, that Kaikohe, Murupara and Whangārei are “well-heeled communities”. But what our members Northland College, Hora Hora Primary School, and Te Kura Kaupapa Motuhake o Tāwhiuau have in common is communities who care about and take an active part in their children’s schooling, and well-justified concern about their schools being put under the control of distant bureaucrats appointed by Wellington politicians.

Opposition to the hub plan comes from a diverse range of schools, precisely because the hub plan threatens the diversity and responsiveness of our school system. All schools are not the same, because all communities are not the same. What’s important is that schools can respond to the particular expectations and needs of their communities.

As I told my schools community in a recent newsletter, we are proud of the educational and wider opportunities we offer our students, but we have never claimed to be the best school in New Zealand. Indeed, for some, we may not even be the best school in Mountain Road. Students and communities are different and there is ultimately no such thing as the best approach for everyone. That was the genius insight of David Lange’s Tomorrow’s Schools: that school communities know best the individual needs of their young people.

In stark contrast, a strong stench of paternalism runs through the Taskforce recommendations. Its starting premise is that boards of trustees cannot be trusted to run schools. Instead, it proposes “one size fits all” hubs.

Currently, each school is responsible to its own Board of Trustees, elected by parents from mums, dads, old girls and boys, and members of the community. The board employs the principal and sets the direction of the school through strategies, budgets, property plans, enrolment policies and hiring principals and teachers.

The chair of the Taskforce, Bali Haque, has said that boards will still exist under the Hub plan. But that’s the same as saying that after your vehicle is written off in a crash, you still technically own a car.

Under the Taskforce’s recommendations, all these legal responsibilities for a particular school would be handed to a hub, each of which would be responsible for up to 125 schools. As education policy expert Dr Simon Smelt says, there will be little left for boards of trustees to do except choose paint colours and run cake stalls. Meaningful, direct parental involvement will be destroyed.

After seeing the negative initial reaction to his report, Haque has now changed his tune on principal appointments. He says the Taskforce never intended that principals be moved around at the whim of Hubs from school to school.

The problem is that his recommendations have not changed in line with his rhetoric. The recommendation is crystal clear: “Education Hubs would provide principals with ongoing employment and appoint them to a particular school for a five-year contract. This would allow principals to … contribute where their expertise is needed across the community of schools.”

Although the watered-down boards of trustees will have a role in principal appointments, they may not even get to consider their existing principal as a candidate if the hub in its wisdom decides otherwise.

There is no evidence hubs will improve our schools in any way. What can we do instead? McKinsey released an analysis of what sets the best performing school systems apart. It concluded that changes to governance structures had little effect across the whole of the school system. What mattered at individual schools was strong leadership, and what mattered through the whole system was attracting, training and retaining the best teachers.

That’s why we should invest in teaching rather than new government offices.

There are challenges. A small minority of schools are not performing as well as we would all want. In many cases, this is because of wider social issues. Māori and Pasifika students continue to be over-represented among low achievers. Where we have seen some of the most spectacular progress is in kura schools which proudly and unequivocally design their school around the most positive values of their communities.

These aren’t secrets that the Taskforce discovered. The education sector has been talking about them for decades and asking for help where needed.

But greater centralisation through Hubs is most certainly not the help we need.

Where schools are struggling because of social deprivation, and need and want more assistance and support, they should get it.

If there is a huge pot of extra funding that can be dedicated to education – and the hub plan itself is impossible without a massive injection of new spending – it would do the most good going to targeted support for disadvantaged students along with a big new investment in teacher training, pay and conditions.

The Community Schools Alliance is not opposed to all the Taskforce’s recommendations. In particular, we support its proposals to:

  • improve teacher professional development programmes
  • implement greater flexibility in our teacher training programmes to dramatically increase the supply of quality teachers
  • prioritise and better support Te Reo teaching
  • boost funding for learning support in schools, particularly for students with special needs; and
  • encourage further collaboration across schools.

The government could take these steps now, without the time-consuming and expensive empire-building of new bureaucracies. They would represent real progress towards tangible improvements to our school system, while not wrecking part of what makes our community-led schools so special. They would attract the universal support of teachers, principals, schools and parents. It would bring the education sector together again without the expensive and divisive distraction of hubs.

Agree? Disagree? Read the full Tomorrow’s School’s Independent Taskforce report here and decide for yourself. Public submissions on the report close on April 7.

Tim O’Connor is the principal of Auckland Grammar and a member of the Community Schools Alliance.