Police have arrested a teenager after disrupting a 'sophisticated smishing scam' using new technology never seen in New Zealand before.

Authorities have described smishing - a form of phishing - as when a device known an 'SMS Blaster' is used as a fake cell tower and tricks nearby cellphones to connect to its fraudulent network.

This 'SMS Blaster' has reportedly sent thousands of fake texts claiming to be from banks - in order to encourage people to share their passwords, account details and other sensitive information.

National Cyber Security centre team lead Tom Roberts says the messages look professional.

He explained people click on the link thinking it's from the bank or insurance company - without realising they're entering in details for someone to steal. 

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