He said all players were being given a 90-minute presentation on match-fixing risks, including honey traps.
That will be backed by an ICC briefing before the tournament begins with the Black Caps playing Sri Lanka on February 14.
Mills said honey traps were one of many tactics used by sophisticated international criminal groups, which blackmailed players in order to beat the bookies.
Players were sometimes groomed for years before the trap was set.
"They might notice the person has got family troubles, they might notice they've got financial issues or mental health issues [which they can threaten to expose].
"The honey trap might be part of that grooming process where there are compromising images or what-have-you," Mills said.
The stark warning comes as joint host Australia confirmed it had intelligence suggesting players were sabotaging matches.
Detective Superintendent Scott Cook told the Daily Telegraph players were being set up to cheat on their partners and then blackmailed with the evidence.
New Zealand Racing Board TAB spokesman Mark Stafford said such blackmail could prove more persuasive than traditional match-fixing.
"In days gone by match fixing was: 'I'll give you two grand to let two goals in or score less than two runs.' It was a straight payment for an act," he said.
"[With blackmail] they will entice you ... into something that is socially unacceptable, secretly film it and ask you to let two goals in or score less than 10 runs.
"If you say, 'No, I'm not going to do that', they say, 'Well if you don't, I've got it on film and I'll expose you'."
Match fixing became a crime last year with the passing of the Crimes (Match Fixing) Amendment Bill. This gives police more power to investigate the offence, which carries a maximum penalty of seven years in jail.
The Racing Board's submission to the bill warned that blackmail could trap players trying to protect their marriage.
Stafford said a player overseas had become involved with a woman purporting to represent a major brand.
After signing a deal, the player was sent to a hotel room where there was "an attractive woman and a bag full of cash" and secret cameras filming.
"It's always a married man in those situations," Stafford said.
Mills said sportsmen were often young and oblivious to fraudsters' tactics. And New Zealand's athletes were particularly vulnerable as many were semi-professionals who didn't earn much money.
"If you've got an athlete who's struggling to make ends meet ... then they become at risk," he said.
Over the past 10 years, the association had been approached dozens of times by players who suspected they had been approached by match fixers.
He would not say if any involved honey traps.
"If you have events that are broadcast on TV around the world, someone somewhere in the world is betting on it and someone who's betting on it will be trying to influence the outcome.
"That's a fact."
