Joyce Eilleen Blondell (also known as Conwell) was jailed for life with a minimum period of 12 years in 2000 after confessing - out of the blue - to murder and attempted murder.
She turned up at a Dunedin police station and said she provided a shotgun to Murray Childs, which he had earlier used to kill Alex Rodgers in Christchurch.
Blondell also told officers she attacked her friend Doreen Middlemiss in a Lees St care facility 15 months earlier.
After being released by the Parole Board, the woman spent five years out of trouble living a quiet life in Oamaru.
But in 2017, Blondell was sentenced to 14 months' imprisonment for her role in an international fraud syndicate.
That sentence has been served but she since resumed serving her life term and has not been considered safe for release.
Blondell met a Nigerian man on Facebook and committed several criminal acts on his behalf.
"Joe Weimer'', as he called himself, had convinced her they were in love and he was coming to New Zealand, while siphoning stolen cash through her bank accounts.
By April 2016, $100,000 had travelled overseas through Blondell's bank accounts.
Family were convinced she was an unwitting party to the fraud and she truly believed her online contact had honourable intentions.
At Blondell's previous parole hearing in December, the board said her release proposal needed fine-tuning.
When she appeared before them last month, the plan had changed significantly.
Panel convener Sir Ron Young deemed the prisoner an "undue risk'' and proposed a way forward.
Firstly, he suggested a whanau hui involving family and Probation who would be involved with supporting her in the community.
Secondly, Sir Ron said there should be further investigation of any other short-term accommodation with "maybe a better beginning for Ms Conwell out of prison''.
Blondell will appear before the board again in September.
