Police have arrested a 26-year-old English man for impersonating a police officer to take advantage of vulnerable, older people.
They recovered several hundred thousand dollars of cash and gold from his accommodation, believed to be the proceeds of the fraudulent activity.
The offending is alleged to have taken place over the past 10 days across the wider Wellington district including Hutt Valley, Porirua, Ōtaki, and Wellington City.
The scam starts with a cold call from a person claiming to be a police officer.
They tell the victim of dishonest activity taking place at banks and gold exchanges and request their help to 'catch' the 'dishonest employee' working at these places.
The victims are then instructed to go to the bank or gold exchange to withdraw cash or purchase gold to assist the police in obtaining evidence against the employee.
And once the victim has taken out the cash or gold, a person posing as a courier working for police uplifts it from their address.
Wellington police have received complaints from at least 17 victims so far.
The man is due to appear in the Wellington District Court on Saturday facing eight charges of obtaining by deception, three for attempting to obtain by deception, and one for resisting arrest.
Detective Senior Sergeant Tim Leitch said it was highly likely that this scam will continue to operate despite the arrest on Friday.
Police believe the operation is coordinated and executed by offenders offshore who were directing the "couriers" on the ground in New Zealand to the addresses for pickups.
People should be extremely vigilant and careful if they receive calls asking them to assist police in the way described, he said.
Police would never contact people and ask them to withdraw money, nor would they contact people seeking banking details, card numbers, PIN or password."
Police urge anyone who has been the victim of this scam to call 105 and reference Operation Bourbon File 240731/0649.