New Zealand is regarded as having one of the lowest levels of corruption in the world, but Transparency International and the Serious Fraud Office have expressed concerns recently about the growth of organised crime in New Zealand, poor accountability in public sector procurement, weaknesses in border controls and an increase in fraud and cybercrime.
Corruption involves activities such as bribery, embezzlement, nepotism, fraud, and conflicts of interest, among others. The Crime and Victims Survey in 2024 revealed that fraud is the fastest-growing crime in New Zealand, making up nearly 30% of all crimes. Online scams are particularly prevalent, with research suggesting that two-thirds of New Zealanders have been targeted and one-third have fallen victim to scams. Digital fraud schemes, including business email compromises and crypto investment scams, are becoming more sophisticated, often utilising social engineering tactics and artificial intelligence.
A 2025 Ministerial Advisory Group defined corruption as the abuse of power, particularly in the context of organised crime. The group highlighted that despite New Zealand's reputation for being relatively free from corruption, organised crime, particularly drug importation, represents a growing "insider threat" involving trusted individuals within institutions, especially at the borders. Airport baggage handlers, customs employees, and police officers have been implicated in facilitating illicit activities. Organised crime rings often use employees to retrieve drug shipments before they are inspected, a trend consistent with global findings on maritime drug seizures.
Business-related fraud is also increasing, with external parties such as vendors or third-party suppliers, responsible for 84% of fraud incidents. Fraud in New Zealand spans various sectors, including local councils, government agencies, and educational institutions. Cyber-enabled fraud, procurement fraud, and large-scale scams have been on the increase, particularly targeting businesses in high-value industries like law firms and real estate. The National Cyber Security Centre reported that scams had caused financial losses exceeding NZ$25 million in 2024, a 40% increase from 2023. However, estimates suggest that the total cost of fraud may be as high as NZ$2 billion annually, including unreported cases.
Tax evasion and avoidance are also significant issues. Tax avoidance, primarily through multinational corporations shifting profits offshore, results in revenue losses, such as $167 million in 2023. Conversely, tax evasion, which is illegal, is estimated to cost New Zealand around NZ$1.2 billion annually, though only a small percentage of offenders are prosecuted. The national tax debt in 2024 stood at NZ$8.5 billion, with efforts to recover over $4 billion in unpaid taxes by mid-2025.
Benefit fraud is much smaller in scale, with most cases involving overpayment recovery rather than criminal charges. In the 2021/22 period, benefit fraud led to overpayments of around NZ$2.4 million, although the total scale of welfare fraud in New Zealand is believed to be between NZ$10-20 million annually.
The prevalence of political corruption is unclear, but concerns are growing about the impact of political lobbying and conflicts of interest. The lobbying industry is unregulated in New Zealand, allowing former politicians to transition into lobbying roles, potentially influencing policy decisions. Examples include lobbying efforts by industries like finance, alcohol and tobacco, which have contributed to weak regulations and public crises, such as the finance company collapses and the leaky homes crisis.
A related concern is the lack of transparency surrounding political donations, which can grant undue influence to wealthy individuals and corporations. Scandals involving the National Party in 2018 and the New Zealand First Foundation in 2019 revealed loopholes in donation laws and raised questions about the integrity of the political process.
While corruption in New Zealand’s police force remains relatively low, individual officers have been involved in several controversies, including the manipulation of evidence and the use of prison snitches which have led to historical wrongful convictions. The Police National Integrity Unit is responsible for monitoring and investigating police misconduct.
International ranking New Zealand is regarded as having one of the lowest levels of corruption in the world. Transparency International's 2025 Corruption Perceptions Index scored 182 countries according to the perceived corruption of their public sector on a scale from 0 ("highly corrupt") to 100 ("very clean"). Those countries were then ranked by their score; the country ranked first was perceived to have the most honest public sector. In the 2025 Index, New Zealand earned the fourth-highest score worldwide at 81. In the Asia Pacific region New Zealand's was the second-best score, after Singapore.
Definitions of corruption
Although corruption is generally described as the abuse of entrusted power for private gain, it can take different forms including bribery, embezzlement, nepotism, extortion, kickbacks, money laundering, fraud, and conflicts of interest.Corruption Comes in Many Forms, Raoul Wallenberg Institute
In 2025, a Ministerial Advisory Group defined corruption as the "abuse of access or authority to advance the objectives of organised crime" and said that despite New Zealand's longstanding reputation for being free of corruption, organised crime represented an "insider threat," whereby individuals in trusted positions are being targeted, particularly at the borders, to facilitate illicit drug importation. Government warned corruption and 'insider threats' increasing in New Zealand, RNZ, 10 June 2025
The Auditor General of New Zealand states that corruption is a type of fraud,Some Definitions, Controller and Audiitor General and the Ministry of Justice says fraud is currently the most prevalent and fastest growing crime type in New Zealand.New Zealand Crime and Victims Survey Published, Ministry of Justice Money laundering is now estimated at $1.35 billion NZD per year, reflecting illegal activity connected to drug markets, tax evasion, and other financial crimes.Dirty Money, Transparency International NZ
Organised crime
In May 2025, the Ministerial Advisory Group on Transnational, Serious and Organised Crime presented a report to Cabinet on the growing threat to New Zealand and the Pacific posed by organised crime.Corruption in New Zealand and the Pacific, May Report. It identified instances of corruption involving airport baggage handlers,Craig Kapitan (22 February 2025) ‘Baggage handler Sese Vimahi gets longer prison term for repeat meth smuggling at Auckland Airport’, New Zealand Herald. Customs employees assisting in the importation of illicit drugs, Sam Sherwood (25 February 2025) ‘How a massive methamphetamine shipment was disguised as paper’, Stuff. the exploitation of migrants, and a police officer who was paid $70,000 by an organised crime group to share sensitive information from the police database.Catrin Owen (1 December 2019) ‘Corrupt Auckland cop who sold police database information to gangs jailed’, Stuff.
The Report said New Zealand is more susceptible than ever to corruption at our borders and that this is an increasing threat. A majority of interceptions of drugs at our ports and airports involve trusted insiders helping to retrieve concealed shipments before customs inspects them - consistent with an unpublished global report which estimates that 70% of maritime seizures worldwide involve insider cooperation.Corruption in New Zealand and the Pacific, May Report.
Business related fraud
However, in business related fraud, a report by KPMG in 2012, found that only 17% of perpetrators are employees or 'insiders' within the victim organisation, including both management and non-management staff. Fraud, Bribery and Corruption Survey, 2012. KPMG Fraud has been committed in local councils, transport authorities, educational institutions, government ministries, and by business consultants. Notable public sector examples include council employees manipulating procurement processes, senior managers in government agencies, and individuals in leadership roles at public entities.Public Sector Fraud and Corruption, Serious Fraud Office
KPMG said that around 84% of perpetrators in business related fraud are external parties or 'outsiders,' such as vendors, customers, or third-party suppliers. These external actors often engage in procurement fraud, cyber-enabled fraud, and large-scale scams.
The National Cyber Security Centre reported that in the first three months of 2025, more than half of the financial losses from scams were suffered by businesses, especially those handling large financial transactions such as law firms and real estate agencies. In 2024, scam losses came to NZ$25.7 million, up 40% from NZ$18.3 million in 2023. However, independent estimates suggest that the true annual cost of fraud — including unreported incidents — could range from NZ$200 million to NZ$2 billion.Rise in financial losses reported to the NCSC, NCSC, 22 July 2025
Tax evasion and tax avoidance Tax avoidance: New Zealand loses significant sums of revenue through legal tax avoidance mechanisms, especially through multinational corporations shifting profits offshore. For example, in 2023, about USD$167.6 million in tax revenue was lost this way. The Tax Justice Network wants an end to global tax abuse that deprives countries of tax revenue. NZ Loses Millions Offshore - Report, Tax Justice Aotearoa, 26 July 2023
Tax evasion: Tax evasion is a subset of avoidance that is illegal. Figures from Inland Revenue show that, in the first half of the 2024/25 financial year, audits uncovered $600 million in additional tax that should have been declared - suggesting the annual total of taxes evaded by new Zealanders would be in the vicinity of $1.2 billion. Only 60–80 tax evasion cases are prosecuted each year, targeting just 0.01% of taxpayers. This reflects the often complex and less visible nature of such offending.IR uncovers half a billion in undeclared tax in compliance crackdown, 1News, 7 April 2025
At the end of 2024, New Zealand’s tax debt (including overdue, unpaid, and evaded taxes across all sectors) stood at $8.5 billion. A significant increase in prosecutions means Inland Revenue is on track to collect over $4 billion in overdue and evaded taxes for the financial year ending June 2025.Tackling New Zealand’s rising tax debt, Beehive media release, 22 May, 2025
Benefit fraud: In comparison, most benefit fraud in New Zealand is relatively small, and the majority of benefit fraud cases involve overpayment recovery rather than criminal prosecution. In the 2021/22 year 4,638 cases of benefit fraud were investigated, but only 33 resulted in criminal prosecutions, with $2.4 million identified as total overpayments. To target benefit frauds or tax evaders? ACT leader questioned, 1News, 17 December 2023
However, the overall scale of welfare fraud in New Zealand is in the range of $10–$20 million per year - although overpayments may not necessarily be the fault of the recipient. In the year ending June 2024, the Ministry of Social Development recorded 1,092 completed benefit fraud investigations, resulting in a total of $12.24 million in overpayments for that financial year.Benefit Fraud, MSD Tables
Personal victimisation According to data from the 2024 Crime and Victims Survey, fraud is now the most prevalent and fastest growing type of crime in New Zealand, accounting for around 29% of all crimes committed. Our fraud epidemic, Serious Fraud Office, 18 November 2024