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Investigation & Fraud News – Week ending 5 January 2024
19 stories this week:
Inspector-General of Taxation investigates ATO myGov scams that ‘rattle confidence’ in the tax system – 15 December 2023
The inspector-general of taxation is investigating the theft and hijacking of personal information that has allowed millions of dollars of tax fraud by professional scammers. Once inside the account, scammers redirect tax refunds to their own bank accounts, sometimes creating bogus claims and illegally claim refunds belonging to another taxpayer.
Thai police are hunting a notorious fugitive in the jungle. ‘Wealthy Pang’ is daring them to catch him – 15 December 2023
Since escaping custody in late October, Chaowalit Thongduang, has led authorities on a manhunt across multiple provinces, involving over 500 police and costing more than $500,000, all while declaring his innocence via social media and claiming he’s been treated unfairly by the Thai justice system. His widely publicised case has also raised serious questions about corruption and misconduct among police and prison officials in the country and sparked an investigation into some of Thailand’s most powerful institutions.
https://www.abc.net.au/news/2023-12-15/thailand-wealthy-pang-criminal-taunts-police/103225890
Vatican jails cardinal Angelo Becciu, who was once a papal contender, for fraud over London property deal – 17 December 2023
A Vatican court has sentenced a once-powerful Italian cardinal to five years and six months in jail for financial crimes. Angelo Becciu and nine others were on trial for financial crimes related to a London property purchase. Becciu is accused of embezzlement, abuse of office and witness tampering.
https://www.abc.net.au/news/2023-12-17/vatican-sentences-cardinal-angelo-becciu-fraud/103238616
Inside the ‘bizarre’ financial crime that connects an outback town to a Melbourne school – 17 December 2023
Mudasir Mohammed Naseeruddin was arrested and charged in late 2020 in relation to dishonest conduct against six investors with around $500,000 in self-managed super funds. It is alleged that at least 28 SMSFs were created with a total of $2.4 million. After pleading guilty, Naseer had his bail revoked pending sentencing. He now faces up to 15 years in jail.
https://www.abc.net.au/news/2023-12-17/smsf-super-fraud-investment-scams-accc-asic/103233956
Market manipulation – an evolving space to watch – 20 December 2023
A Recent ASIC investigation has led to the managing director of Eneco Refresh Ltd (Eneco), to plead guilty to one count of market manipulation and one count of creating a false or misleading appearance of active trading. Eneco is a company that produces bottled water and is listed on the ASX. ASIC’s allegations include that the managing director used the names of his family members 24 times to manipulate Eneco’s share price. Each contravention of market manipulation carries a maximum penalty of 15 years imprisonment.
ASIC’s focus in 2023 – Enforcement Priorities – 20 December 2023
ASIC’s enforcement priorities for 2023 focused on greenwashing, predatory lending, and interrupting investment scams. As we move into the new year it is important that Licensees keep in mind the 2023 enforcement priorities as ASIC is likely to continue to take enforcement action in these areas in addition to the 2024 enforcement priorities.
Airbnb Fined A$15 Million For Misleading 63,000 Australian Customers – 21 December 2023
Airbnb has been slapped with an A$15 million fine and has agreed to pay compensation after misleading nearly 63,000 Australian customers. Certain property rentals on the company’s website were in US dollars instead of the local Australian currency, a detail not initially communicated. It led to unexpected higher costs for some users for their lodgings.
Rudy Giuliani files for bankruptcy in wake of court order to pay $217m in defamation damages – 22 December 2023
Rudy Giuliani has filed for bankruptcy just days after being ordered to pay $US148 million ($217 million) to two former Georgia election workers he falsely accused of fraud following Donald Trump’s 2020 presidential election loss. Mr Giuliani also faces criminal charges in Georgia. Mr Giuliani’s bankruptcy filing will pause all of the pending civil lawsuits against him.
Scammer sentenced for defrauding vulnerable Australians – warrant issued for alleged scheme mastermind – 22 December 2023
A man was recently sentenced for his role in a scam in which perpetrators impersonated government employees – including claiming to be from the AFP – and defrauded Australians of over $153,000. The victims were told they had the option to be arrested for money laundering offences or settle the matter by providing identity information, funds and bank details to the ‘government employee’ on the phone. By choosing the latter option, victims were allegedly instructed to pay the syndicate through a variety of methods.
Sydney woman charged over alleged card skimming scheme worth $3.75 million as police warn public to be wary of Christmas scams this holiday season – 23 December 2023
A woman was arrested following an investigation into an alleged card skimming scheme worth $3.75 million. She was charged with 133 offences including participation in criminal group and dealing with property suspected of being proceeds of crime, and 131 charges of deal with identity information to commit indictable offence.
Australia’s NACC Initiates New Investigations Amid Calls for Stronger Whistleblower Protections – 26 December 2023
The National Anti-Corruption Commission (NACC) in Australia has initiated an in-depth probe into ten new cases even as it rejected a whopping 88% of the 2,327 referrals it has received to date. Independent MP Helen Haines, underscored the urgent need for robust whistleblower protections. She pointed out the glaring deficiencies in the existing system that fails to safeguard individuals of the likes of David McBride and Richard Boyle.
Hackers stole $2 billion in crypto in 2023, data shows – 27 December 2023
For yet another year, hackers stole billions of dollars in crypto. But for the first time since 2020, the trend is downwards, according to crypto security firms. This year, hackers stole around $2 billion dollars in crypto across dozens of cyberattacks and thefts. The year before, hackers stole $3.3 billion. It’s impossible to predict what will happen in 2024. But given the poor security implemented by many crypto and web3 projects and the sheer amount of monetary value they hold, , we can expect hackers to continue targeting the growing industry.
https://au.finance.yahoo.com/news/hackers-stole-2-billion-crypto-140555052.html
Workplace cultural issues continue to plague Australian Antarctic Division, leaked survey shows – 29 December 2023
A leaked internal survey shows there are still morale issues and concerns about reporting harmful behaviours at the Australian Antarctic Division (AAD). The previous review revealed multiple staff complaints about a predatory culture of sexual harassment, including everything from unwanted requests for sex to offensive displays of pornography. One expeditioner who responded to the survey said the AAD workforce was “the most monocultural” place they had worked at.
‘Pig butchering’: Scammers using slaves in Southeast Asia to rob billions from victims in cryptocurrency scam – 29 December 2023
Reporters at CNN conducted an investigation into ‘pig butchering’: where scammers pretend to be women online, building relationships with victims and influencing them to invest in fake cryptocurrency platforms before taking the money themselves. In Southeast Asia, workers from various countries have been trafficked to Myanmar. These workers are then forced by Chinese crime syndicates to conduct online pig butchering scams for them, taking billions of dollars for the owners of the organisations. According to the FBI, pig butchering scams caused losses of up to $4.2 billion throughout 2023.
Andy Cohen scammed out of ‘a lot of money’ by fraudster who got his bank account details – 2 January 2024
TV personality Andy Cohen was scammed after a fraudster duped him into handing over his personal details over the phone. The fraudsters hacked the caller ID system, so the name of Cohen’s bank appeared when they dialled him and named credits he had made – the charges – because had access to the account. The TV host said by the time he realised he was being scammed, it was too late.
US court releases list of people connected to deceased financier Jeffrey Epstein – 3 January 2024
The names of more than 150 people mentioned in a lawsuit by Virginia Giuffre, one of Epstein’s most prominent accusers, were kept under seal for years until a federal judge ruled last month that there was no legal justification to keep them private.
https://www.abc.net.au/news/2024-01-04/jeffrey-epstein-associate-names-to-be-released/103283648
The secret donors behind the millions in ‘dark money’ fuelling WA politics – 4 January 2024
Most of the millions donated to WA political parties is shrouded in secrecy with donors denying they are seeking influence over policy. But ‘cash for access’ is how some characterise it and legal loophole is protecting their identities – meaning we may never know who is paying for access to the highest levels of government.
Investigation & Fraud News – Week ending 15 December 2023
19 stories this week:
Amanda Power faces 62 new charges of fraud in court after allegedly fake cancer diagnosis – 30 November 2023
A former Cancer Council ambassador who police allege lied about a cancer diagnosis has had 62 new charges laid against her. Amanda Power, appeared in the Townsville Magistrates Court on Thursday on 71 fraud charges including dishonestly gaining benefit, obtaining property and causing detriment to others. Police allege she secured thousands of dollars from friends and the community between 2014 and 2019.
Man who swindled $180,000 from women on dating site jailed by Victorian court – 1 December 2023
Rick McLeod, 74, convinced four women he met through a dating site to invest through his so-called broker business.
Over a two-year period, the four women each sent McLeod large sums of money, which McLeod used to fund his drinking and gambling habits. McLeod will serve just under four years in jail before being eligible for parole, and has been ordered to pay one of the victims $78,000 in compensation.
https://www.abc.net.au/news/2023-12-01/dating-site-conman-jailed-scamming-women/103178116
Mother and daughter who scammed two Victorian TAFEs sentenced to jail and community corrections orders – 4 December 2023
Rebecca Taylor and Heather Snelleksz scammed more than $2 million from two Victorian TAFEs have been handed jail time and community correction orders. The women claimed training services they did not provide.
Developer facing risk of jail over fraud charge – 4 December 2023
A bankrupt former Gold Coast developer is facing risk of up to 20 years jail after being charged with 20 criminal offences including fraud. Ian Omar Chester had planned to build the first residential apartments on the ritzy Sovereign Islands before companies in his Vested group failed.
Frustrations run high for NDIS recipients following estimated $1.4 billion loss to payment errors and fraud – 5 December 2023
An estimated $1.4 billion was lost from the National Disability Insurance Scheme last financial year due to “payment errors” including fraud and over-claiming, a five-fold increase from two years ago. The NDIS minister Bill Shorten is preparing to release the NDIS review later this week, which is expected to outline measures to rein in spending.
https://www.abc.net.au/news/2023-12-05/ndis-fraud-costs-billion-dollar-loss/103184130
Byron Bay data breach victim has Adidas case dismissed in US court, NBA action looms – 5 December 2023
A Byron Bay woman who was facing nearly $2 million in damages after her data was stolen and her PayPal account breached has had a major win in a United States court. Cyber criminals gained unauthorised access to Sarah Luke’s PayPal account to trade hundreds of counterfeit items, including merchandise from Adidas and the National Basketball Association (NBA).
Tesla whistleblower raises doubts over safety of self-driving cars – 5 December 2023
A Tesla employee has raised fresh concerns over the AI used to control the firm’s self-driving vehicles, claiming the technology is not safe enough to be let out on public roads. Tesla’s assisted driving feature has been under investigation from various agencies.
https://au.news.yahoo.com/tesla-whistleblower-raises-doubts-over-103607237.html
Getting on the front foot to fight cybercrime – 6 December 2023
Despite a growing awareness of invoice fraud and other financial scams, Australian banks still only block 13 per cent of scam payments, with losses for major bank customers exceeding $550 million per year, according to the financial regulator ASIC. The key to staying safe is to ensure this segregation of duties is actually built into systems and workflow.
https://www.afr.com/technology/getting-on-the-front-foot-to-fight-cybercrime-20231127-p5en3o
Guy Sebastian’s former manager Titus Day to face retrial after embezzlement convictions quashed – 6 December 2023
Titus Day (Guy Sebastian’s former manager) was sentenced to four years’ jail after being found guilty of embezzling more than $600,000. Mr Day was released on bail in June after a court upheld one ground of his appeal.
Fraud Offences in Australia – 6 December 2023
Article provides a good summary of fraud offences across Australia, including the general categories of fraud, the ‘essential elements’ (or ingredients) of the offences, and the penalties and defences that may apply.
https://www.sydneycriminallawyers.com.au/blog/fraud-offences-in-australia/
“Who are you?” – Don’t be scammed by a stranger – 7 December 2023
Impersonation scams have stolen $92 million from Australians and made up more than 70 per cent of reports to Scamwatch from January-September this year. Imposter bond scams were the costliest to date, with $35 million stolen from unsuspecting victims.
https://www.thesenior.com.au/story/8451139/scams-awareness-week-2023-ask-who-are-you/
CommBank and Vodafone share real-time intelligence on SMS scams – 7 December 2023
Commonwealth Bank of Australia is collaborating with Vodafone to share SMS scam intelligence in near real-time, allowing the telco to identify and disrupt scammers while the bank makes proactive blocks on fraudulent payments. The pilot project comes as the latest statistics published by Australia’s National Anti-Scam Centre in November 2023 show text messages as the most popular delivery method used by fraudsters,
ChatGPT tool could be abused by scammers and hackers – 7 December 2023
A ChatGPT feature allowing users to easily build their own artificial-intelligence assistants can be used to create tools for cyber-crime. Experts say OpenAI does not have the same rigour as the public versions of ChatGPT, potentially gifting a cutting-edge AI tool to criminals.
https://au.news.yahoo.com/chatgpt-builder-helps-create-scam-000416408.html
How AI is upping scam sophistication – 7 December 2023
The latest weapon in the arsenal of scammers is artificial intelligence generated ‘deepfakes’: videos in which a subject’s face or body has been digitally altered to make them look like someone else. Scammers use celebrity deepfakes for investment scams to facilitate building trust with customer. The best weapon we have to combat scammers, is “remaining alert and having a level of healthy scepticism”.
Hunter Biden, son of President Joe Biden, accused of failing to pay $2.1m in taxes – 8 December 2023
The Department of Justice has filed new criminal charges against Hunter Biden, the son of US President Joe Biden, accusing him of failing to pay $US1.4 million ($2.1 million) in taxes while spending millions of dollars on a lavish lifestyle. Hunter Biden faces up to 17 years in prison if convicted on the charges.
https://www.abc.net.au/news/2023-12-08/hunter-biden-facing-up-to-seventeen-years-in-prison/103206462
Police raids, criminal gangs and $1 billion: Inside the gold scam that made a fortune off a GST loophole – 1 December 2023
Article tells how the gold refining sector was the target of an international GST rort involving dodgy gold traders and organised criminal syndicates that exploited loopholes in our GST laws. The ATO issued retrospective assessments for GST to most of the refining industry and most didn’t have the funds to challenge the ATO, but the Pallion Group did.
Scammers turn to QR codes as banks warn of Christmas dange – 12 December 2023
Banks and consumer groups are warning that Christmas-time scams are on the rise, but criminals are turning to a new way of stealing personal data using COVID-era QR codes whereby malicious links are hidden in QR codes.
https://www.thenewdaily.com.au/finance/consumer/2023/12/12/scam-qr-codes
Man charged over alleged SMS phishing scam responsible for sending over 17 million fraudulent text messages – 13 December 2023
Cybercrime Squad detectives have charged a man following an investigation into an SMS phishing scam, allegedly responsible for sending over 17 million fraudulent text messages pretending to be from Linkt and Aus Post. Subscriber Identity Module (SIM) boxes, which are an electronic device used to send bulk text messages across the Australian telecommunications network were allegedly used.
Investigation & Fraud News – Week ending 24 November 2023
10 stories this week:
Sydney man charged after allegedly obtaining $60k from ‘elaborate’ rental scam – 17 November 2023
Scott Maxwell Jeffries allegedly stole money from prospective tenants. It is alleged he would advertise properties on social media and ask potential tenants to pay him a bond. Mr Jeffries was charged with 34 offences, including obtaining a financial advantage by deception, dealing with the proceeds of crime, and using a fake identity.
https://www.abc.net.au/news/2023-11-17/nsw-merrylands-property-scam-rentals/103117346
Andrew Spira pleads guilty to fraud and drugs charges in Darwin, handed $39K fine – 17 November 2023
Andrew Spira, a Sydney entrepreneur who concocted an elaborate plan to flee Australia, became a drug-dealer in South-East Asia, hijackrf a yacht and fundrf an armed militia, has pleaded guilty to a string of fraud and drug charges in Darwin. He was handed a $39,000 fine and an 18-month good-behaviour bond.
Fake celebrity scam ads hijack Facebook accounts to target Australians – 18 November 2023
ABC News has uncovered multiple examples of multinational companies having their Facebook pages compromised by scammers. These include DoorDash in Australia, a network of pages run by Ethiopian Airlines, and the Paddington Bear movie, along with a series of politicians and musicians. Meta claims to be constantly tackling scams through a combination of technology, such as new machine learning techniques and specially trained reviewers, to identify content and accounts that violate policies.
https://www.abc.net.au/news/2023-11-18/celebrity-scam-ads-hijacking-facebook-accounts/103111094
How cybercriminals are using bogus login pages to steal your banking information – 18 November 2023
Russian cybercriminals have a sophisticated new malware campaign, with Australians specifically in their sights. Unsuspecting victims are being swindled with bogus login pages on their banking apps, which appear authentic to even the technologically savvy eye. If you punch in your details into the wrong page, your bank details are sent directly to scammers. This is a relatively new malware called Octo and it’s the latest offering from cybercriminals which can be privately purchased on the dark web.
https://www.abc.net.au/news/2023-11-18/bank-bogus-octo-scam-apps-phishing/102992426
Colombian singer Shakira reaches deal with Spanish tax authorities before fraud trial – 20 November 2023
Colombian singer Shakira has reached a settlement with Spanish tax authorities to avoid a trial over charges she failed to pay $24.18 million in income tax between 2012 and 2014. The prosecution substituted jail time for a fine of half of the amount owed, more than 7.3 million euros.
https://www.abc.net.au/news/2023-11-20/shakira-avoids-14-million-euro-tax-fraud-trial/103128904
Craig Robert Dale pleads guilty to defrauding remote Kimberley community of Warmun – 21 November 2023
Craig Robert Dal, a convicted fraudster has pleaded guilty to ripping off $2.7 million from a remote WA Aboriginal community. Dale offered to build staff housing for the community and reconstruct a burnt building. He demanded payment up-front and the community paid a total of $2,770,275 into his personal bank account. None of the work was done, and Dale spent the money on himself, mainly for gambling.
Former NSW Labor minister Joe Tripodi to be prosecuted for alleged misconduct in public office – 21 November 2023
Former NSW government minister Joe Tripodi will be prosecuted for misconduct in public office for allegedly leaking a “highly confidential” Treasury document to development firm Buildev, which benefited the company. At the time, Buildev was part-owned by former billionaire Nathan Tinkler.
Swyftx says Binance CEO Zhao Changpeng conviction a ‘line in the sand’ – 22 November 2023
The founder of Binance Zhao Changpeng, the world’s largest cryptocurrency exchange has pleaded guilty to money laundering charges and stepped down as CEO, triggering concern for Australian consumers. Several of Australia’s largest cryptocurrency trading platforms, including Swyftx, use Binance to complete trades on behalf of Australian consumers.
https://www.abc.net.au/news/2023-11-22/swyftx-reacts-binance-ceo-zhao-changpeng-conviction/103135366
Female WA Corrective Services officer guilty of indecently assaulting colleagu – 23 November 2023
An officer at a prison in regional Western Australia has been found guilty of indecently assaulting a colleague at work, in a trial that heard of a “toxic” culture at several of the state’s corrections facilities. The case centred on two female workers and the offender was fined $3,000.
Perth Mint avoids fine over ‘compliance issues’ with anti-money laundering laws – 23 November 2023
The Perth Mint has escaped being fined for “compliance issues” with anti-money laundering laws, instead agreeing to a voluntary undertaking. The Mint was legally required to carry out rigorous checks on the sale of gold to high-risk customers and examine the source of their funds, but is alleged to have failed to do so.
Investigation & Fraud News – Week ending 17 November 2023
11 stories this week:
Cold Rock Ice Creamery Shepparton owners convicted of 16 child employment breaches – 10 November 2023
The owners of Cold Rock Ice Creamery Shepparton have been convicted and fined $4,500 after pleading guilty to 16 criminal charges around breaches of the Child Employment Act. The breaches were in relation to the number of hours worked and lack of adequate breaks for children under the age of 15. Business owners G & K Pearse Pty Ltd pleaded guilty to 16 charges and were fined $4,500.
The inside account of how Commonwealth Bank tried to bury the scandal that sparked a royal commission – 10 November 2023
Article tells the story of how Jeff Morris, blew the whistle on the Commonwealth Bank’s wealth management team. Morris had revealed how the bank’s business model in its wealth management division was driven by commissions and bonuses. It promoted bad behaviour such as switching customers from the safety of term deposits into riskier mortgage funds, so the team could be paid higher commissions and bonuses. In June 2014 a senate inquiry recommended the government establish a Royal Commission, after finding thousands of Australians had lost their life savings due to shoddy financial advice from the CBA.
Boss slapped strung-up apprentice at Christmas party – 13 November 2023
Steven Yousif (sole director) of Melbourne Glass solutions is trying to avoid conviction after he slapped a young apprentice while the man was strung upside down from a crane at a workplace Christmas party. Mr Elkharraz the apprentice, lodged a complaint with WorkSafe, telling investigators he was also verbally abused and threatened by Yousif between April 2019 and May 2021.
https://www.canberratimes.com.au/story/8421701/boss-slapped-strung-up-apprentice-at-christmas-party/
Banker accused of fraud in Aspen and California appears in Australia – 13 November 2023
A former Australian banker accused of defrauding investors in California and Aspen before moving to Bali has been holidaying in Australia and asking for funds, despite being pursued by authorities in the United States. Andrew Waters, is accused of reeling in wealthy investors by inviting them to dinner and befriending them, then selling them “worthless” shares in a company called ECom Products Group Corporation.
Optus decision highlights challenges for privilege claims over investigation reports – 13 November 2023
The Federal Court has found that a report by Deloitte on its external review of Optus’s data breach is not privileged, despite Optus’s claim that the report’s dominant purpose was to assist its lawyers in advising it in relation to the September 2022 cyberattack. This is the latest in a line of Australian court decisions that have exposed the significant challenges in making legal professional privilege claims over investigation reports or ‘root cause’ analyses that can often follow major unexpected events or alleged corporate wrongdoing.
https://www.allens.com.au/insights-news/insights/2023/11/Optus-decision-highlights-challenges/
Victorian man loses life savings to tech support scam amid ACCC calls for uniform bank policy – 15 November 2023
A 76-year-old customer of Bendigo Bank lost more than $21,000 in a scam involving fake tech support. The ACCC believes inconsistencies in how banks approach scamming makes the country’s banking systems and their customers vulnerable. It wants the National Anti-Scam Centre and federal government to establish cross-industry standards and codes that banks must follow and are enforceable.
Billion-dollar crime syndicate allegedly helmed by Sydney brothers – 15 November 2023
An alleged billion dollar organised crime syndicate, with tentacles spanning from Beirut to Australia, has suffered a major blow after police arrested two brothers, the alleged chiefs, in Sydney’s airport and Lebanon. Police believe the year-long investigation into the gun, drug, tobacco, and money-running gang could also mark the end of one of Sydney’s most notorious criminal careers. Potentially, they were the biggest criminal network and enterprise in Australia at the current time.
New Report Finds That More Than 80% of Organizations Across APAC Are Using Artificial Intelligence (AI) to Tackle Fraud – 15 November 2023
Banks and payment service providers across Asia Pacific have progressed with fraud prevention, but it still remains a challenge. The use of advanced technologies, like AI, has definitely enhanced the ability to detect and prevent scams. While many organizations have comprehensive controls in place, the capability to leverage enterprise data and adapt to the changing fraud landscape remains a significant concern. With potential scam reimbursement regulations just around the corner, banks and payment service providers will need to become more proactive in real-time fraud mitigation.
https://finance.yahoo.com/news/report-finds-more-80-organizations-010000893.html
Sales of fake Australian IDs rampant on the dark web, second only to the US – 17 November 2023
New research has found that, fake Australian identity documents such as driver’s licences are some of the most commonly bought and sold products on the dark web. Criminal organisations distribute fake identity documents on the dark web to be used in many illicit activities, such as identity crime, money laundering, human and drug trafficking, illegal immigration, scams and espionage.
Mother in custody after admitting $2m ‘sausage factory’ TAFE scam – 17 November 2023
Text messages between a mother and daughter who swindled more than $2 million from education providers, including South West TAFE, revealed a fear their plot was “too good to be true”. The due created fake applications and pocketed the funds.
Access to digital version of the standard required to read article.
Footy club legend Ian Collins launches lawsuit over alleged $100m Ponzi scheme – 17 November 2023
Carlton Football Club legend Ian Collins has accused a suburban Melbourne law firm as being behind a suspected multi-million-dollar Ponzi scheme, of secretly placing fraudulent mortgages over his properties as part of a sophisticated strategy to swindle investors. AMS Ivanhoe Lawyers is being investigated over claims its recently deceased founder John Adams misappropriated up to $100 million in clients’ funds.
