Netsafe report urges urgent reform of digital safety law

Netsafe's Annual Report highlights increasing online threats in New Zealand and calls for urgent changes to the Harmful Digital Communications Act (HDCA).

Netsafe, New Zealand's online safety organisation, has released its Annual Report indicating a notable rise in online threats at both economic and societal levels. The report emphasises the need for amendments to the Harmful Digital Communications Act to keep pace with the rapidly evolving online landscape.

The report reveals a dramatic surge in scams during the past year. Netsafe's scam helpline processed over 14,000 reports, with 3,280 of these resulting in monetary losses, amounting to nearly NZD $22.5 million. Netsafe, in collaboration with the Global Anti-Scam Alliance, reported that total scam-related losses in 2024 exceeded NZD $2.3 billion, with online shopping scams being the most common, surpassing identity fraud.

There was a 12% rise in sextortion cases with at least 43 incidents reported weekly. Deepfake technology and incidents of hate speech and racism have also increased.

Brent Carey, Chief Executive Officer of Netsafe, highlighted the need for legislative updates. He stated, "The advancements in deep fake technology are an example of how New Zealand's legal framework is not keeping pace. While local legislation offers some protection for AI-created or modified images, video, or audio, stronger legal protections and resources are required to manage the increasing volume of synthetic content."

Netsafe has been actively developing various solutions to combat online safety threats. Newly launched initiatives include a partnership with Cybera to recover funds for scam victims, the relaunch of the AI-powered scam-baiting tool Re:Scam, and the introduction of educational programmes such as Hectors World, aimed at children and available in both English and Te Reo.

Among the key trends highlighted, sextortion led to intense emotional distress among victims. The surge in deepfake content and inadequacies in the current legal framework were identified as areas requiring immediate attention.

Scams such as identity fraud, employment fraud, and romance scams remained prevalent. It was noted that males reported losing approximately 31% more than females on average.

The report also detailed 1,645 Child Sexual Abuse Materials (CSAM) reports, of which Netsafe processed 1,092 and referred them to appropriate enforcement agencies. As a member of INHOPE, Netsafe contributes to reducing the time for online material removal and combats online child exploitation.

Netsafe's educational initiatives have expanded, focusing on providing resources to schools. The launch of Kete, a resource for teachers to access online safety materials, saw registration from nearly 7,000 educators.

Cary stressed, "Looking ahead, our focus remains on innovation, trust, impartiality and tech-for-good tools. With a refreshed online presence and new services on the horizon, we are ready to expand our impact nationwide."

Netsafe is also advocating for a national scams centre to help mitigate financial and mental impacts of scams, alongside addressing digital safety alongside mental health, particularly among youth.

Additional efforts will focus on contributions to New Zealand's suicide prevention action plan, revising stalking laws, and informing the public about AI risks and information security.

Carey concluded by praising Netsafe's achievements: "Together as a team, we will continue shaping a safer digital future for New Zealand."