A multinational police investigation's under way into how a hacker posing as a European TV contractor convinced Team New Zealand to send a large payment to a Hungarian bank account

New Zealand Police have confirmed they're investigating the scam, with the help of European and Hungarian authorities.

The payment was referenced among a raft of allegations set out in a letter from Auckland Council and MBIE to Team New Zealand and America's Cup Events.

Team New Zealand says it was swindled out of a large figure - but has hit back at concerns over its handling of public money.

Boss Grant Dalton has stressed that it's not government money that's gone missing... and says it was immediately reported to MBIE.