A scam has been uncovered in Christchurch in which fraudsters allegedly steal beneficiaries’ identities to swindle payments from the Ministry of Social Development.
Charges are expected to be laid against two people accused of identity theft and fraud.
A single parent, who asked to remain anonymous, told The Star her MSD account was accessed by fraudsters in September.
They allegedly used her personal information to trick an MSD call centre operator into transferring $3000 into their account, claiming it was for a rental bond.
The caller allegedly impersonated the woman and said they needed an emergency hardship payment from MSD to cover the bond payment.
The woman realised something was wrong when she found her MSD account had been locked and her accommodation supplement was lower than usual, prompting her to contact the ministry.
At first, she said MSD “grilled” her with questions until her landlord provided a letter confirming she had not moved house or required a bond payment.
After speaking with the woman and investigating the matter further, MSD determined that fraud and identity theft had taken place.
“It was quite traumatic. They got all my personal information and they knew my address,” the woman told The Star.
She is not alone. Four other beneficiaries are believed to have had their identities used and accounts accessed in similar ways.
The woman said she knew the alleged offenders but had cut off contact because they are “horrible people”.
“I do believe me knowing them helped them hack my account.”
After discovering the identity theft, she reported the matter to police and MSD.
The woman said she was frustrated the fraudsters were able to access her account, and believes stronger safeguards should be in place.
“I think the MSD guy on the phone should have been able to tell something wasn’t right as well,” she said.
MSD declined to confirm or deny the details of the case when contacted by The Star.
However, client service support group general manager George van Ooyen said the ministry had no tolerance for fraud or misuse of client information and takes such activity very seriously.
“When someone seeks financial support from MSD, we require specific identification standards to be met,” he said.
“MSD is continually reviewing our processes to ensure they are fit for purpose and will always look for areas we can improve.”