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Investigation & Fraud News – Week ending 19 April 2024
Criminals used an Australian company to launder $450,000, but no charges were laid – 9 April 2024
Peter Correy thought he was buying Treasury bonds from an Australian oil company, but instead, his money was sent offshore and the company refused to give it back. Weaknesses in Australia’s regulatory system are being exploited by criminals to launder money through company bank accounts and experts want action taken to stop it. Financial crime experts say the government needs to move faster to simplify and expand Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws.
Nursing executives stood down pending investigation of ‘potential financial irregularities’ – 10 April 2024
The board of the Australian College of Nursing has hired independent legal and forensic financial experts to investigate “potential financial irregularities”. Three executives have been stood down while the investigation takes place but the industry body says “no conclusions should be drawn at this time”.The investigation will continue into next week.
Australian register of stolen data blocks more than 300,000 attempts of identity fraud – 10 April 2024
A register of stolen credentials that was created after the 2022 Optus data breach has blocked more than 300,000 attempts of identity fraud.
Attorney-General Mark Dreyfus says the register disrupts other illegal activities that rely on stolen credentials, such as scams and money laundering. He added that protections against privacy breaches would be strengthened in coming months.
Cyber criminals gather together, researchers find – 11 April 2024
An Australia-UK-French research team nominated Russia, Ukraine, China, the USA, Nigeria and Romania as key cyber crime host countries. Australia ranked 34 on the list.
The World Cybercrime Index is designed to let law enforcement and the private sector to concentrate their efforts on “key cyber crime hubs”, co-author Dr Miranda Bruce of UNSW Canberra said.
https://www.itnews.com.au/news/cyber-criminals-gather-together-researchers-find-606846
Adelaide surgeon James Ian Spark handed suspended sentence over $50k fraud – 11 April 2024
James Ian Spark pleaded guilty to multiple deception charges relating to more than $52,000 worth of fraudulent claims. During sentencing, a magistrate said the “most serious” deception related to “an entirely fictitious patient, Ms Smith”. Spark’s medical registration is “highly likely” to be suspended, the court heard.
Charges against Meta sparked by Andrew Forrest over false cryptocurrency ads on Facebook discontinued – 12 April 2024
Criminal charges against Meta for publishing scam cryptocurrency ads featuring Andrew Forrest have been discontinued in a Perth court. Mr Forrest wanted Meta to be held accountable for the ads, which he argued targeted the vulnerable. A civil court case filed in the US by Mr Forrest against Meta is ongoing in California.
Tycoon’s death penalty in $12.5 billion fraud case highlights Vietnam’s corruption crisis – 12 April 2024
The death sentence handed to a real estate tycoon in a $12.5 billion financial fraud case is the latest punishment meted out by Vietnam in the Southeast Asian country’s sweeping “blazing furnace” anti-corruption campaign. Truong My Lan, was found guilty of bribery, violating bank regulations and embezzlement, and sentenced to death, though her family has indicated she will appeal.
Russian hackers steal US government emails from Microsoft – 12 April 2024
Russian state-backed hackers have stolen email correspondence between US government agencies and Microsoft via a breach of the software giant’s systems. Microsoft has notified “several” US federal agencies that the hackers may have stolen emails that Microsoft sent to those agencies that included login information such as usernames, or passwords.
Suncorp’s bank suffers breach, customer funds stolen – 12 April 2024
Insurance and banking conglomerate Suncorp is dealing with a cyberattack in which an intruder has accessed some customers’ bank balances and withdrawn funds. But the institution says it has found the funds and returned them to affected account holders in full, which is unusual in digital breaches where stolen funds are often rapidly funnelled out of the country.
https://www.afr.com/technology/suncorp-s-bank-suffers-breach-customer-funds-stolen-20240412-p5fjfx
Roku says 576,000 user accounts hacked after second security incident – 13 April 2024
Roku said about 576,000 user accounts were accessed using a technique known as credential stuffing, where malicious hackers use usernames and passwords stolen from other data breaches and reuse the logins on other sites. Roku said in fewer than 400 account breaches, the malicious hackers made fraudulent purchases of Roku hardware and streaming subscriptions using the payment data stored in those users’ accounts.
https://techcrunch.com/2024/04/12/roku-second-user-accounts-hacked/
‘AI pimps’ and their fake influencers are mass-harvesting women’s videos to peddle porn – 14 April 2024
ABC Investigations has identified a north-east Adelaide man, Antonio Alvaro, as a member of an international network of these so-called “AI pimps” that is engaging in mass misuse of women’s images to help sell porn subscriptions. It involves creating faces with AI and then transplanting them onto videos of women’s bodies sourced from social media accounts.
https://www.abc.net.au/news/2024-04-14/how-ai-pimps-influencers-are-using-womens-videos/103658046
Digital driver’s licences are becoming common but without security standards people are vulnerable to fraud, theft – 15 April 2024
Cyber security experts are warning unless digital driver’s licence apps meet internationally recognised security standards, they could increase risks of fraud. They are calling on state governments to ensure digital licence apps are built to the “gold class” standards. Victorians will gain access to digital driver’s licences next month, as the state becomes the fourth to launch the new form of ID.
Optus customer in $10,000 fraud attack forced to leave telco altogether after second breach – 17 April 2024
Just days after Townsville man Andrew Ryder regained control of his stolen phone number, criminals accessed his Optus account again. He had recently lost $10,000 to fraudsters and was in the process of replacing cards and changing bank accounts. Optus said fraud-affected customers should change their phone numbers and passwords.
Concerning spike in celebrity endorsement scams – 18 April 2024
Recently Dr Karl is seen promoting various health products that have been published on Facebook and Instagram. Generative AI blurs the line between fact and fiction, scammers are being given a shiny new toolbox of tricks to try and lure us in. This podcast explains.
University of Sydney professor fights sacking, claims bribery and corruption – 18 April 2024
A senior brain researcher who accused a Sydney University academic of attempting to bribe and blackmail another staff member is suing the institution after he was fired for “serious misconduct”. Professor Manuel Graeber, a leading neuropathologist who was the university’s Barnet-Cropper chair of brain tumour research, says he was sacked because he made serious allegations about university management.
Investigation & Fraud News – Week ending 29 March 2024
How can we protect critical infrastructure from cyber threats? – 22 March 2024
Chris Novak, managing director of cybersecurity consulting at Verizon Business talks about data breaches, ransomware, scams and cybersecurity. He says everyone from individuals to the highest levels of the government. In particular, companies like the telcos which are critical parts of our infrastructure need to be ready for potential catastrophe.
Canberra married couple sentenced to two years in jail for staging car crash to commit insurance fraud – 22 March 2024
Canberra couple Rabea Fares and Lina Faris have been sentenced in the ACT Supreme Court for staging a car crash to commit insurance fraud. Acting Justice Peter Berman said the plan unravelled due to “bad luck, bad planning”, and a lack of understanding of how experts investigate fraud. They were both sentenced to two years jail, but the wife will serve her time on an intensive corrections order so she can stay with the couple’s children. The husband will be eligible for parole after a year in jail.
North Korea is behind cyberattacks worth $US3 billion and is stealing cryptocurrency to fund weapons programs, UN report find – 22 March 2024
The United Nations is investigating cyberattacks worth $US3 billion allegedly orchestrated by North Korea. An expert panel has found the regime is funding its nuclear and weapons programs with the stolen cryptocurrency. A number of other investigations are underway for other breaches of UN sanctions.
Australians among those allegedly scammed out of about $120,000 in fake Bali villa swindle – 23 March 2024
Two Australians claim they were victims of a villa investment scam in Bali after transferring more than $120,000 for a villa “that didn’t exist”, while people from the other side of the world were allegedly conned by a different ruse run by the same alleged con woman, who the ABC understands has just returned to NSW.
How much does it cost for a scammer to hack your email? The answer is probably less than you think – 25 March 2024
New data reveals the cost of fake or stolen documents like passports and driver’s licenses on the dark web has gone up significantly, as demand increases and the number of people being scammed decreases. According to a report from accounting firm BDO, the average cost of buying a fake or stolen passport on the dark web is now $2,372 (up from $1,399 in the previous quarter), while a driver’s license will set you back $844 (up from $465).
Student’s legs amputated in alleged $1.3 million insurance fraud ploy – 25 March 2024
A university student who had his legs amputated after claiming he suffered frostbite during a motorbike ride faces charges of insurance fraud.
https://www.abc.net.au/news/2024-03-25/student-amputates-feet-for-insurance-police-say/103631028
Chinese property developer Evergrande faces a $120 billion fraud accusation and its chairman is barred for life. Here’s what we know so far – 26 March 2024
The founder of embattled property developer Evergrande has been barred for life from China’s financial markets after the company allegedly falsified its revenue by almost $120 billion. Mr Hui, also known as Xu Jiayin, was fined 47 million yuan ($9.95 million) and banned from China’s markets for life.
https://www.abc.net.au/news/2024-03-26/evergrande-fraud-fines-explained/103621114
Fraud investigation: An overview – 26 March 2024
This paper explores the process of uncovering deceit, identifying perpetrators, and mitigating losses for organizational integrity and security. Detecting potential fraud is crucial to an organisation’s effective functioning. Organisations of all kinds and sizes can be victims of fraud. And the dangers are likely to continue and even grow.
https://legal.thomsonreuters.com/blog/what-is-fraud-investigation/
Australian companies are being used in scams and authorities are struggling to catch the culprits – 27 March 2024
Legitimately registered Australian companies are being used to allegedly shift scam victims’ money overseas and the directors are not being prosecuted.
One financial crime expert says “the vast majority” of investment scam crimes are using shell companies to create plausible deniability. Scam victim Jo O’Brien is trying to sue a company allegedly linked to the disappearance of her funds, in the hope she’ll get some money back.
Former sex industry worker sues employer over claims she was fired due to her past – 27 March 2024
A Melbourne woman claims she was fired two days into a new job after her employers learned of her history in the sex industry. She has lodged a case with Victorian Civil and Administrative Tribunal (VCAT) seeking financial compensation for her termination.
https://www.abc.net.au/news/2024-03-27/former-sex-industry-worker-sues-employer-over/103638428
Big Tech: what will the new Digital ID law mean for you? – 28 March 2024
Online fraud and scams are a growing risk, putting pressure on the government to tackle identity theft.
This week a new Digital ID law has passed which the government hopes will help keep our personal information safe. We look at how it will work and what it will mean for you.
Investigation & Fraud News – Week ending 22 March 2024
IT contractor sentenced for cybercrime and fraud offences after swindling more than $60k – 18 March 2024
A Sydney man has been sentenced to two years and six months imprisonment for swindling more than $66,000 from a dozen victims after abusing his role as an IT contractor with a third-party provider to the Australian National Maritime Museum (ANMM). The man used illegally changed his bank account details to his own.
Evergrande Accused of China’s Largest Financial Fraud – 18 March 2024
Chinese developer Evergrande has been slapped with a $580 million fine in the country’s largest financial fraud case. The latest penalty is another setback for the embattled property firm.
https://www.firstpost.com/vantage/evergrande-accused-of-chinas-largest-financial-fraud-vd7085/
https://www.afr.com/world/asia/china-accuses-evergrande-of-shocking-78b-fraud-20240319-p5fdnz
Death sentence sought for Truong My Lan, the woman allegedly behind Vietnam’s largest-known financial fraud – 20 March 2024
Vietnamese prosecutors have called for the death penalty to be handed to Truong My Lan. She is accused of netting $18.8 billion in a financial scam. Truong My Lan is also accused of bribing officials to hide her embezzlement.
Andrew Donald Steele pleads guilty to persistent sexual abuse of child overseas – 20 March 2024
Andrew Donald Steele pleaded guilty to multiple child sex offences committed outside of Australia. A court document states he used an instant messaging app to produce and distribute child abuse material while in Indonesia. The maximum penalty for persistent sexual abuse of a child is 30 years’ imprisonment, and Steele will be sentenced at a later date.
WA Corruption and Crime Commission officer hid intimate relationship with informant, report finds – 21 March 2024
An officer with WA’s Corruption and Crime Commission has been dismissed after having “an extensive and intimate relationship” with an informant. She passed on sensitive information to her lover during the secret relationship, including the identity and location of another CCC informant. The CCC has commissioned an independent review of the failures that allowed “the officer’s deception”.
https://www.abc.net.au/news/2024-03-21/wa-ccc-officer-dismissed-for-misuse-of-position/103615164
Melbourne man on trial for exit trafficking after allegedly leaving wife stranded overseas without passport – 21 March 2024
Mohamed Ahmed Omer was charged with exit trafficking after he allegedly left his wife stranded overseas without a passport. Its alleged Mr Omer secretly withdrew his sponsorship for his wife’s partner visa before booking the trip and flying home without her. Mr Omer has pleaded not guilty to the charge.
Why strict non-disclosure agreements in sexual harassment cases shouldn’t be the only option – 21 March 2024
These days, NDAs are widely used in Australian workplaces, but questions are increasingly being raised about who they benefit the most. Wil Stracke, Assistant Secretary of the Victorian Trades Hall Council, says these agreements allow toxic workplace cultures to continue and they are “incredibly harmful for those who sign them”.
https://www.abc.net.au/news/2024-03-21/ndas-for-the-law-report/103580610
Strata firm Netstrata apologises, managing director steps aside from peak body after being found to be charging excessive fees to home owners – 21 March 2024
The Strata Community Association NSW confirmed it has launched an investigation after the ABC revealed a decade-long history of self-dealing and conflicts of interest at Netstrata. The ABC reported Netstrata has been using its wholly owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate. The company was also exposed for having taken kickbacks from contractors and suppliers it hires using the strata funds of more than 1,000 buildings, and 35,000 apartments, across NSW.
Australian Bureau of Statistics reveal details of ‘sizeable’ increase in card fraud as Australians lose $2.2 billion in 2023 – 21 March 2024
There has been a “sizeable” increase in the number of Australians affected by card fraud in 2023, compared to the previous year. An Australian Bureau of Statistics report says an estimated gross amount of $2.2 billion was lost to card fraud. The ABS and ACCC say Australians are becoming “more and more aware” of personal fraud and scams.
https://www.abc.net.au/news/2024-03-20/abs-card-fraud-scam-data/103609822
PwC chairman refuses to share tax leaks scandal investigation with Australian parliament – 21 March 2024
PwC’s global chairman, Bob Moritz, has refused to comply with a request from the Australian parliament to share a copy of an investigation used to contain the tax leaks scandal to Australia. The decision will likely set up another showdown with Australian politicians who have strongly criticised the firm for not sharing the report, and frustrate government departments that have believe it should be shared.
Consumer group calls for action on super scams – 21 March 2024
Advocacy group Super Consumers Australia is urging the Federal Government to introduce a superannuation industry anti-scam code. Heather Gray, the lead ombudsman for superannuation at the Australian Financial Complaints Authority (AFCA), told Super Consumers that superannuation funds have fallen behind the banks in their ability to detect and prevent scams and fraud.
https://nationalseniors.com.au/news/finance/consumer-group-calls-for-action-on-super-scams
Ethics committee for Formula 1 clears FIA president Mohammed Ben Sulayem of wrongdoing in whistleblower complaint – 21 March 2024
FIA president Mohammed Ben Sulayem was accused of interfering in two races during last year’s F1 season. An independent ethics committee cleared Ben Sulayem of wrongdoing after a 30-day investigation.
The F1 returns to Australia this weekend, with the main race set to start on Sunday at 3pm (AEDT).
Investigation & Fraud News – Week ending 14 March 2024
Spanish police uncover Banksy fakes workshop, four arrested in alleged syndicate – 6 March 2024
Four people have been arrested in Spain accused of running a syndicate selling counterfeit Banksy artworks. The ring is suspected to have sold at least 25 works around the world at prices up to 1,500 euros ($2,480) a piece. Police are continuing to investigate and have not ruled out further arrests.
https://www.abc.net.au/news/2024-03-08/spanish-police-smash-banksy-fakes-syndicate/103564140
INTERPOL Financial Fraud assessment: A global threat boosted by technology – 11 March 2024
A new INTERPOL assessment on global financial fraud highlights how the increased use of technology is enabling organised crime groups to better target victims around the world. The use of Artificial Intelligence (AI), large language models and cryptocurrencies combined with phishing- and ransomware-as-a-service business models have resulted in more sophisticated and professional fraud campaigns without the need for advanced technical skills, and at relatively little cost. Analysis behind the INTERPOL Global Financial Fraud Assessment also points to the global expansion of human trafficking for the purpose of forced criminality in call centres, particularly to carry out ‘pig-butchering’ scams – a hybrid scheme combining romance and investment frauds, using cryptocurrencies.
How to protect your personal data from China’s mass surveillance regime, according to top cyber experts – 12 March 2024
Top Canberra insiders and cybersecurity specialists reveal how China is weaponising artificial intelligence and social media like TikTok to undermine Australian democracy. “We are facing an authoritarian regime that can reach right into our bedrooms, into our kids’ room, into our lounge room, and we don’t know how to handle that,” intelligence expert Professor John Blaxland, whose research confirms that China has penetrated Western countries with a multitude of advanced AI-led surveillance and cyber espionage capabilities.
Toormina man sentenced in Coffs Harbour after financially scamming Sydney law firms – 12 March 2024
Toormina man Anthony Gerard Kent has been sentenced at Coffs Harbour Local Court after scamming more than $700,000 from Sydney law firms and charities. The court heard he was not the “mastermind” behind the operation, but used emails and fake bank accounts. He will serve a 15-month intensive corrections order in the community.
https://www.abc.net.au/news/2024-03-12/law-firm-email-scammer-anthony-gerard-kent/103493452
Experts concerned over ASIC’s lack of phoenixing prosecutions – 12 March 2024
Experts say little has changed in illegal phoenixing since the $105 million Plutus tax fraud, as the building industry deals with a wave of claims about multi-million dollar tax-dodging schemes operating over decades. University of Sydney Business School Professor Clinton Free, found in a recently published analysis that despite the former Morrison government introducing laws to combat illegal phoenixing in 2020, the corporate watchdog had not yet used the new powers to bring criminal or civil prosecutions.
Access to digital version of AFR required to read article.
‘Nobody gets a free pass’ Australian Government delegate tells Facebook at Global Fraud Summit – 13 March 2024
Federal assistant treasurer Stephen Jones called for social media giants to ‘do better’ when it comes to fraud and scams while attending the Global Fraud Summit. Member nations of the summit, including Britain, Canada, Germany, Italy, France, Japan, Korea, Singapore, New Zealand and the US, resoundingly backed Jones’s call for Facebook (NASDAQ:META) parent company Meta, in particular, to up its game in the fight against fraud and scams. The summit heard that some states had seen a threefold-plus increase in complaints to their attorneys-general in the last year from consumers who had social media accounts hacked.
New ACCC figures show sharp rise in older people being fleeced in social media scams – 13 March 2024
Australians lost a total of $477 million to scams last year, according to new ACCC figures. The Scamwatch report also showed year-on-year losses dropping by $92 million, especially for investment scams. The government has plans to introduce mandatory codes for banks, telcos and social media companies which it says will impose tough new standards.
Fatal Ballarat mine collapse under investigation – 14 March 2024
Victoria’s workplace safety regulator has launched an investigation into a mine collapse at Ballarat that killed one miner and badly injured another.
Former Fiji prime minister Frank Bainimarama found guilty of interfering in police investigation – 14 March 2024
A court has found former Fiji prime minister Frank Bainimarama guilty of attempting to pervert the course of justice. State prosecutors had appealed a decision by a lower court to acquit Bainimarama, after it found there was insufficient evidence to convict him of interfering in a police investigation. Bainimarama will face sentencing back in the magistrates court on March 28.
NT ICAC commissioner says investigations ‘thwarted’ by denial of access to cabinet documents, inadequate funding – 14 March 2024
The NT ICAC says on four occasions since July 2022, the NT government has refused to hand over cabinet documents that could assist its investigations. Commissioner Michael Riches has also raised concerns around his office’s budget and staffing levels, and government transparency. The concerns have been aired in a report tabled in NT Parliament this week, in which Mr Riches said his office currently had 15 active investigations.
https://www.abc.net.au/news/2024-03-14/nt-icac-report-says-government-refusing-cabinet-document-access/103582196
NSW government doubles penalties for environmental crimes to ‘make polluters pay’ after asbestos-contaminated mulch fiasco – 14 March 2024
The NSW government has given stronger powers to the Environment Protection Authority (EPA) to penalise environmental fines. The move was spurred by a criminal investigation into 78 sites testing positive with asbestos-containing mulch, and include a $4 million penalty for related offences for companies.
Whistleblowers allege they were targeted by Queensland Health after exposing problems with tuberculosis patient care – 14 March 2024
The frontline unit established to combat tuberculosis (TB) in Queensland is alleged to have lost key medical files, employed systems that potentially compromised patient care and persecuted two of its most senior staff, forcing them to seek whistleblower status. The allegations emerged after two of the unit’s most senior medicos – infectious diseases expert Doctor Emma McBryde and the unit’s former head nurse – made complaints to the state’s Crime and Corruption Commission seeking protection as official whistleblowers.
Boeing death a stark reminder of the need for a Whistleblower Authority – 14 March 2024
The reported suicide of Boeing whistleblower John Barnett in Charleston, South Carolina (US), is a reminder of the need for reform in Australia. Following the PwC tax leaks scandal, the Government has introduced a Bill to extend whistleblower protections to cover disclosures made to the Tax Practitioner board. A comprehensive review of Australia’s tax and corporate whistleblower laws will commence in July. Proposals for strengthening whistleblower protections will include extending its breadth – who and what is covered, at what stage, and on what basis.
https://michaelwest.com.au/lendlease-whistleblower-calls-for-whistleblower-authority/
How AI-powered technologies can eventually eradicate retail crime – 14 March 2024
Retailers are hoping AI-powered surveillance and other technologies can eventually make theft a thing of the past.
Video surveillance systems, locked cases that can be operated by smartphones, and AI-powered heat maps are just a few of the anti-theft advancements on the market. The live heat map pulls in real-time data from a variety of sources, including retailers, law enforcement, and fire rescue agencies. The map aims to track and prevent theft – or, at a minimum, alert other retailers on the app if a crime occurs nearby.
Australia introduces Scam Safe Accord to combat AUD $3.1bn scam crisis – 14 March 2024
Australia’s efforts to combat an alarming tide of scams have culminated in the launch of the Scam Safe Accord, a consolidated and innovative response conceived by the country’s financial institutions. According to sources, Australians lost a staggering AUD $3.1 billion to scams in 2022 alone, marking a 253% surge over two years. The Scam Safe Accord, brought to fruition by the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), aims to staunch this bleeding of resources and protect Australians from further financial exploitation.
