Chinese Restaurants Targeted by Overseas Group Booking Scam

How the Scam Works

Chinese restaurants in Auckland are being targeted by a group booking scam orchestrated by overseas fraudsters posing as customers calling from New Zealand.

The scammers initiate contact by phone, appearing to be legitimate customers wanting to make large group reservations. However, they attach a condition: the restaurant must pre-pay for a large order of abalone (pāua) from a supplier in China before the booking can be confirmed.

Once the restaurant transfers the requested payment to a specified bank account, the scammers send a fake transfer confirmation document that appears to reimburse the restaurant for the prepayment. This fraudulent confirmation looks authentic enough to convince business owners that the money will be returned. However, the initial payment is never recovered.

Scope of the Problem

New Zealand Police have received multiple reports of this scam, with confirmed losses of at least NZ$15,000 (approximately USD$9,000) from a single restaurant. While Chinese restaurants have been the primary target so far, police warn that the scam could easily expand to other restaurant types and industries. The warning is particularly timely as the approach of Christmas season brings an increase in legitimate large group bookings and event reservations, providing cover for scammers' fraudulent inquiries.

Warning Signs to Recognize

Be alert if you encounter these red flags:

• An unexpected phone call requesting an unusually large group booking
• A request to pre-purchase inventory from an overseas supplier as a condition of the booking
• Insistence on bank transfer to secure the reservation
• Confirmation of payment sent via email or digital document rather than through official banking channels
• No formal signed contract or agreement, with all communication occurring digitally

Prevention and Protection Steps

New Zealand Police recommend the following protective measures:

Avoid pre-payments for bookings: Legitimate restaurant bookings, even for large groups, do not typically require full payment in advance, especially not to overseas accounts. Any request for substantial advance payment is a major red flag.

Require in-person verification for large transactions: When significant money is involved, always conduct negotiations and agreements in person. Avoid finalizing large financial commitments through phone calls or emails alone.

Verify customer identity: Ask for identification and business registration details from customers making large bookings. Request proof of legitimacy before processing any payment.

Independently verify confirmations: If you receive payment confirmation documents via email, do not click links within them. Instead, independently contact the payment source using official contact information to verify the transaction.

Use secure payment methods: When possible, use credit card payments or other transaction methods that provide records and allow for chargebacks in case of fraud.

Where to Report

If you encounter this scam or believe you have been targeted, report it immediately to New Zealand Police. Multiple reports help authorities track patterns and pursue the fraudulent operations.