Rogue operators are charging residents to remove rubbish from their homes before they dump it on the roadside.
Auckland Council say they are struggling to hunt down the culprits.
New figures on illegal rubbish dumping have been released to the NZ Herald at one of the busiest times of the year for rubbish removal, as offices and homeowners clear out ahead of the New Year.
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Auckland Council said illegal dumping cost ratepayers more than $1 million a year in clear-up costs.
It had issued 472 infringement notices in the last five years, with fines totalling $94,350 over that period.
But the council has recovered less than half of that, with only $43,600 in fines being paid in the last five years.
That means fines contribute an average of less than $9000 a year to the annual cost.
Auckland Council's waste solutions general manager Ian Stupple said he was aware of some "repeat offenders" and investigations into many of those cases were ongoing.
Stupple said they had tools to tackle repeat offenders, from fines through to prosecution through the courts under the Litter Act.
The council was also regularly investigating individuals who offered to take people's rubbish away from their properties for cash.
"The rubbish is then dumped on roads or public spaces, instead of being taken to appropriate disposal sites," Stupple said.
"The people responsible do not provide invoices for their services, and it can be very difficult for us to track them down.
"Any information that people have with regards to offences such as this would be very useful to us."
Stupple said they had identified the problem after tracking rubbish back to individual houses. The occupants then told them they had paid in cash for removal.
Stupple urged consumers to check whether the company they were dealing with was legitimate.
The council had a licensing scheme for anyone who collected and disposed of more than 20 tonnes of rubbish each year.
"Check that they are a credible company. The chances are if it's a really cheap deal, it's probably not [credible]," he said.
"We ask residents to question where that waste is disposed."
Damon Berry, director of rubbish removal company A1 Services, called on the council to do more to tackle illegal dumping.
"They make all these legitimate people like myself be licensed, yet they don't police it. You see piles of rubbish everywhere, on the side of the road."
He placed the blame with people who were too lazy to go to the dump themselves.
"I don't think it's coming from rubbish companies to be honest, because you're going to get a bad name. It's not going to take you long to get caught," he said.
"Why would you waste your time dumping rubbish [illegally] to save $50?"
Junk2Go founder and director Dave Lewis said summer was a busy time of year, with one day ahead of the holidays racking up 50 job bookings.
"We're busy all year round, but it is extremely busy [now]. We're just adding another truck," he said.
"We'll do anything from one couch to multiple loads from offices having an end-of-year clean-up."
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Council infringement penalties
Less than 1L of rubbish - $100 fine
Between 1-20L- $150 fine
Between 20-120L- $250 fine
More than 120L - $400 fine
Repeat offenders - $400 fine
Litter Act penalties
A fine of up to $5000 for individuals
A fine of up to $20,000 for organisations
One month in prison or a fine of up to $7500 for individuals dumping hazardous waste
A fine of up to $30,000 for organisations dumping hazardous waste
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