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Investigation & Fraud News – Week ending 1 August 2025
Why Australia’s fraud detection needs a fresh approach – 1 August 2025
As fraud becomes smarter, detection requires more than just tech. Boards, staff and auditors must work together to fight cyber and internal fraud risks. Emerging fraud types such as cyber-enabled scams and synthetic identities demand both advanced technology and a strong internal culture to detect. Experts warn that ethical leadership, proactive education and a questioning culture are the most effective — and affordable — tools against fraud.
Lawyer for ATO whistleblower Richard Boyle urges court not to impose convictions – 1 August 2025
ATO whistleblower Richard Boyle says he should not have any convictions recorded against him because he was acting in the public interest when he raised concerns about the agency.
The prosecutor told the court, Boyle’s motivations did not change the fact he acted unlawfully. Boyle will be sentenced later this month.
No respite for Brindabella directors as liquidators to press investigations – 1 August 2025
Liquidators of the company that ran Brindabella Christian College will continue to investigate its affairs and lodge a report with the corporate regulator. The Second Creditors Meeting held on Thursday (31 July) voted to wind up Brindabella Christian Education Ltd in the wake of a damning report from Deloitte administrators, which alleged multiple breaches of the Corporations ACT, including some that could bring criminal charges. The school reform group welcomed the decision to appoint liquidators and called for greater scrutiny from regulators of charities and private schools.
Telco uses AI chatbots to keep scammers hanging on the line – 3 August 2025
AI chatbots are being used by telco firm TPG to scam the scammers, engaging them in fake conversations to reveal their schemes and the types of organisations they are impersonating. TPG’s trial with Apate.ai, which started in April and runs to the end of August, has diverted around 280,000 scam calls to the chatbots so far.
Action at Last from Regulators on $1 Billion Superannuation Scams – 4 August 2025
Regulators have decided to come down hard on superannuation scams. Australian Securities and Investments Commission (ASIC) chair Joe Longo said the regulator had doubled the number of investigations into misconduct by financial advisors to send a strong signal that it would not tolerate any actions that reduced confidence in the $4.2b superannuation system. That confidence has taken a significant hit this year with the failure of the managed investment schemes Shield Master Fund and First Guardian, threatening around $1b of superannuation savings belonging to around 11,000 people.
https://smallcaps.com.au/action-at-last-on-dollar-billion-super-scams/
Australia: an increasingly global approach to criminal investigations – 4 August 2025
This article considers the major Australian government investigative, law enforcement and regulatory agencies involved in domestic and transnational investigations, with a particular focus on their global approach to adequately protect Australians from criminal threats, both local and international. The article examines the new internationalised mindset of Australian law enforcement, the effects of globalisation and the increased level of international collaboration between government agencies, as well as the tools and techniques utilised by these agencies to address the increasingly complex and ‘borderless’ nature of investigations.
Bizarre Albanese deepfake scam ads on YouTube promise tax ‘dividends’ – 4 August 2025
A deepfake clone of Anthony Albanese has appeared on a new wave of AI-generated scam ads targeting Australians on YouTube, prompting demands for the tech giant and the government to do more to prevent them. The bizarre scam sends users to a website purporting to be for Canadian broadcaster CTV, spruiking how “citizens can officially receive up to $3000 per month”.
Michael Grochowski’s Deceptive Empire: A $24 Million Landbanking Fraud – 5 August 2025
In the annals of Australian financial misconduct, few cases are as egregious as the landbanking schemes orchestrated by Michael Grochowski and Ian Edward Stephens. These two individuals, operating under the guise of legitimate property developers, preyed on the trust of unsophisticated investors, luring them into schemes that promised lucrative returns but delivered only financial devastation. The Australian Securities and Investments Commission (ASIC) exposed their operations, revealing a web of deceit that raised over $24 million through fraudulent landbanking ventures in Victoria. This article delves into the sordid details of their schemes, the devastating impact on victims, and the systemic failures that allowed such misconduct to flourish, painting a damning portrait of Grochowski and Stephens’ legacy of greed and betrayal.
Financial Crime Squad charge additional two allegedly involved in fraud syndicate; $53 million now restrained by NSWC – 5 August 2025
Detectives from State Crime Command’s Financial Crimes Squad have charged an additional two people allegedly involved in a highly sophisticated fraud and money laundering syndicate operating across Sydney. In January 2024, detectives attached to State Crime Command’s Financial Crimes Squad and the NSW Crime Commission launched an investigation into a criminal syndicate targeting Sydney automotive financing companies under Strike Force Myddleton.
Australian police accuse ex-cop of leading $190M money laundering scheme – report – 5 August 2025
AUSTRALIAN police have accused Michael Featherstone, a former Queensland detective, of running a $190 million (US$ 123 million) money-laundering network, according to reports. Mr Featherstone, once a fraud squad officer and later a private investigator, allegedly coordinated the operation, according to court filings by the Australian Federal Police (AFP).
Man accused of defrauding 98-year-old victim learns fate in freedom bid – 6 August 2025
An Indian national accused of swindling thousands of dollars from a vulnerable elderly woman in Portland has failed in his second bid at bail despite offering a $5000 surety.
https://www.standard.net.au/story/9029874/court-to-decide-on-bail-in-portland-elder-bank-scam-case/
Digital version of standard required to read article
Four people charged with money laundering in fake investment scam – 7 August 2025
Dimitrios (James) Podaridis, Peter Delis, Bassilios (Bill) Floropoulos, and Harry Tsalikidis, all from Victoria, have been charged with money laundering offences for their involvement in investment scams targeting individual investors. ASIC alleges that between January and July 2021, the four were involved in facilitating a sophisticated financial investment scam targeting Australian investors offering fraudulent bonds and other financial products (bonds scam). ASIC alleges that the four dealt with victim funds which were the proceeds of crime and were reckless as to whether those funds were proceeds of crime.
Man arrested in alleged $38m fraud scheme to remain in custody – 8 August 2025
A man allegedly involved in a massive $38m fraud scheme will remain in custody on remand after his arrest at a $37,000-a-month Barangaroo penthouse rental. NSW Police began investigating a luxury “ghost car” loan fraud scheme in January 2024 but now say the alleged scam run wider into large-scale personal, business and home loan fraud.
SW attorney-general approves $2 million compensation payment to Kathleen Folbigg after release from prison – 8 August 2025
The NSW attorney-general has granted $2 million in compensation to Kathleen Folbigg, who was wrongly accused of murdering her four children between 1989 and 1999. The decision comes two years after she was released from prison after 20 years. Ms Folbigg’s solicitor says an inquiry needs to occur to understand how the government decided on the figure.
Investigation & Fraud News – Week ending 1 August 2025
Chalmers urged to pull the leash on ASIC – 28 July 2025
Former corporate cop James Shipton says Treasurer Jim Chalmers’ failure to issue a statement of expectations to the Australian Securities and Investments Commission and lack of oversight by parliamentary committees is allowing ASIC to avoid accountability for enforcement actions against business. Shipton backed remarks by former Treasury secretary Martin Parkinson, who said aggressive corporate regulators were hurting the economy with a “gotcha” approach, and that their administrative red tape was stifling investment.
https://www.afr.com/policy/economy/chalmers-urged-to-pull-in-the-leash-on-asic-20250728-p5mib5
Access to financial version of AFR required to read Full article
Scammers, fraudsters and the tax office’s missing $50 billion – 28 July 2025
The ATO is one of the most powerful and secretive institutions in the country, but for years, it’s operated without effective scrutiny. In this major Four Corners investigation, award-winning financial journalists reveal how inaction and flawed systems have allowed more than $50 billion in tax to go uncollected. They unpick how a simple scam, supercharged on social media, saw tens of thousands of Australians fraudulently claim at least $2 billion in GST refunds. They also show how corporate operators extracted millions more through fake invoices and phantom construction projects, often without triggering even basic checks. And they expose how deep cuts, digital automation and a lack of independent oversight has left one of Australia’s most powerful institutions wide open to exploitation.
https://www.youtube.com/watch?v=lCNsluZrbvU
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Banks to refund millions in fees to more than 700,000 customers – 29 July 2025
ASIC last year said Commonwealth Bank, ANZ Bank, Westpac and Bendigo and Adelaide Bank would provide to people on low incomes, particularly First Nations customers, after a review found the customers had been kept in high-cost products even though they were eligible for lower-cost accounts. Since that report, refunds went up to $33 million, and ASIC has widened its work with banks to look at the effect on all low-income customers from charges including dishonour, overdraw and account-keeping fees. It brings the total payout to customers receiving government concession payments, whom ASIC said were typically known as “low-income customers”, to $93 million.
Too good to be true: Sydney exec testifies in $253m Perth fraud trial – 29 July 2025
The investors who entrusted him with more than a quarter of a billion dollars say Chris Marco held himself out to be an experienced businessman – a leprechaun who could take them to the pot of gold at the end of the rainbow. Only there was no pot of gold, prosecutor Steven Whybrow, SC, told the Western Australian Supreme Court, just a flimsy scheme kept afloat by the flow of funds being used to pay off old investors that was taking on water fast.
Access to digital version of AFR required to read article
ASIC doubles investigations into advisers after $1b failures – 30 July 2025
The corporate regulator says the $4.2 trillion superannuation industry is a honeypot for bad actors hoping to scam unsuspecting consumers out of their life savings and has doubled the number of investigations into misconduct by financial advisers over the past year. Australian Securities and Investments Commission chairman Joe Longo said the sharp rise in misconduct risked “damaging trust in a system as a whole”, sparking further legislative and regulatory intervention.
Access to financial version of AFR required to read Full article
Australian gambling giant Mounties taken to court over alleged AML breaches – 30 July 2025
AUSTRAC has launched civil proceedings against Mount Pritchard & District Community Club, known as Mounties, accusing it of serious breaches of AML (anti-money laundering) laws. The regulator filed the case in the Federal Court, alleging that Mounties failed to manage the risk of criminals laundering money through its poker machines. Mounties operates 10 venues in New South Wales, eight of which run about 1,400 machines.
Forward together: Addressing misconduct in financial services – 30 July 2025
Article is the keynote address by ASIC Chair Joe Longo at the FSC Symposium ‘Shaping Advice in a Time of Change’ on 30 July 2025. Joe Longo explains how ASIC is working to make the Australia’s superannuation system safer for consumers and how consumers can their part.
Alleged ringleaders behind defrauding banks for luxury cars, homes and business loans face almost 200 charges – 31 July 2025
Two Sydney men — aged 34 and 38 — have been charged as the alleged ringleaders of a scam defrauding banks out of tens of millions of dollars. Police allege the two men, were at the head of a syndicate that began by using stolen identification to apply for loans to purchase luxury “ghost cars” that did not exist. Two Bentleys and a Ferrari were among the $38 million in assets seized by NSW Police. The pair have been denied bail and are due to appear in court.
Bank insiders involved in alleged $178m Ponzi scheme – 31 July 2025
The accused ringleaders of a large-scale fraud and money laundering scheme allegedly used stolen personal information to apply for home and business loans with the help of trusted industry insiders to defraud several major banks and financiers of $178 million over seven years. Police allege that 38-year-old Bing “Michael” Li and 34-year-old Yizhe “Tony” ran a major crime syndicate before they were arrested by Strike Force Myddleton detectives in sweeping raids across Sydney.
It’s time to talk about AI and national security – 31 July 2025
The federal government has recently introduced legislation to extend the looming sunset clause on compulsory questioning powers originally granted to the Australian Security Intelligence Organisation (ASIO) following the 9/11 terrorist attacks. The nature of the threat posed by terrorism is now seen more objectively with the benefit of hindsight, and the wide recognition that repressive counter-terrorism measures potentially pose a far greater threat to democracies and social cohesion than isolated terrorism incidents. The federal government’s action in seeking to extend ASIO’s executive powers, is discussed in this paper by Bill Calcutt.
https://johnmenadue.com/post/2025/07/its-time-to-talk-about-ai-and-national-security/
Corporate wrongdoing and what insurance can do about it – 31 July 2025
Across Australia’s business landscape, regulators are wielding their sword through an increasing number of investigations and penalties. From workplace safety issues to climate disclosure failures and misleading products, firms are being held to account, including individual directors. The penalties can run into millions of dollars and their insurability can be a major issue for firms and their insurers. According to global broker Marsh, whether insurance will cover these penalties “is frequently far from clear” and is discussed in this article.
Review of Australia’s whistleblower scheme clocks more public sector inquiries – 1 August 2025
A review of the Public Interest Disclosure Act 2013 (PID act) tabled in parliament this week reports recent reforms are working as planned. According to the Commonwealth ombud, whistleblower disclosures under the PID scheme are being made and, where appropriate, allocated and investigated. Overall, 355 disclosures were received by agencies, 100 of which were allocated for investigation. Many finalised within an acceptable period.
Investigation & Fraud News – Week ending 25 July 2025
Wapu Sonk stands down from PNG NRL franchise board amid corruption allegations – 18 July 2025
A director of PNG’s new NRL franchise has stood down after it was revealed he allegedly tried to influence a Chinese state-run corporation to give a contract to his company. Wapu Sonk has not publicly commented on the allegations. PNG Prime Minister James Marape said Mr Sonk was “entitled to due process and the opportunity to clear his name”.
https://www.abc.net.au/news/2025-07-18/wapu-sonk-stand-down-png-nrl-corruption-allegations/105547490
Cambodian elites complicit in cybercrime despite latest government crackdown, experts warn – 18 July 2025
Cambodian authorities have launched a crackdown on cybercrime making more than 1,000 arrests in the past week.
Police raided cybercrime compounds across at least five provinces and arrested people from across Asia. A transnational crime expert says the operation was a performative exercise and there is no evidence the government is serious about tackling the illicit industry.
Malaysian fugitive Jho Low allegedly using fake Australian passport while living in China – 20 July 2025
Investigative reporters responsible for exposing the 1Malaysia Development Berhad (1MDB) corruption scandal say they have located the alleged mastermind in China. Jho Low is reportedly using a forged Australian passport. The federal government says use of a false Australian passport can attract a maximum of 10 years’ imprisonment and/or a $330,000 fine.
Cyber security expert outlines the scams Qantas customers can expect after data breach – 21 July 2025
A cyber security expert has warned Qantas customers are still in danger of sophisticated financial scams even though no credit card or passport information was compromised in the recent data leak. Qantas admitted 5.7 million passenger details were stolen in a data breach on June 30 from a call centre in Manila. The airline has been open and transparent about the breach and detailed the broke down the information that was taken including names, addresses, phone numbers, dates of birth and Frequent Flyer numbers.
Dodgy operators put on notice as AUSTRAC targets new tranche of industries for financial crimes – 22 July 2025
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has outlined new plans to reduce the harms from serious financial crime, and says it is turning its focus to a renewed push on enforcement. AUSTRAC has released its regulatory priorities for the 2025-26 financial year, showing it is preparing to regulate “tranche 2” industries and targeting gaps in high-risk sectors such as cash and digital currencies. Tranche 2 includes real estate agents, lawyers, conveyancers, accountants, trust and company service providers, dealers in precious metals and stones, and other designated service providers. It refers to a set of proposed reforms that will extend Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations.
Inside Employment podcast series – Investigations, Part 1 – What’s the fuss with whistleblowing investigations? – 22 July 2025
In part one of this podcast the technical and legal dimensions of workplace investigations are discussed, with a spotlight on whistleblowing. Together, Tony Wood and Lucy Boyd explore how clients can navigate the complexities of internal complaints, regulatory obligations and reputational risks. They spend time discussing the overall trend towards greater transparency, for example through positive duty obligations and shareholder activism, and how this is reshaping how organisations respond to complaints and how they conduct investigations.
Banks, mules and government fools let scammers run free in Australia – 22 July 2025
Dr Kim Sawyer explains in this article that behind every scam that robs Australians blind, is a system that protects the banks, ignores the victims and enables the crime. Australia has been a soft target due to retirees with superannuation. Australia has also been a soft target because regulators were too slow to act and banks were unwilling to share liability. All that the international crime syndicates needed were middlemen within Australia to set up companies to launder the money and mules with accounts to be used for money laundering, and a system that protected them.
Reform of Australia’s electronic surveillance framework – 22 July 2025
Australia’s laws governing electronic surveillance are undergoing major reform. The reform aims to establish clear laws to enable law enforcement and intelligence agencies to access information in response to serious crime and threats to national security. The laws will:
• protect privacy;
• promote transparency; and
• be explicit for agencies, oversight bodies, industry and the public.
Macquarie Group-backed ATM provider begins removing machines from suspected illegal tobacco stores – 24 July 2025
An ABC investigation found ATM companies were cutting deals with tobacco criminals and installing their machines in illegal cigarette shops. Now Macquarie Group-backed Next Payments is removing more than 40 of its machines from suspected illegal tobacco stores, after the company said it had not previously been aware of the extent of the issue. The company’s CEO said the ABC had highlighted the “size and rapid spread” of the issue.
Tearful ICAC witness recalls ‘very improper’ meeting with transport official – 24 July 2025
A traffic controller has told the corruption watchdog he would pass kickbacks “under the table” at a Western Sydney restaurant. The kickbacks would eventually see a government worker allegedly net more than $11 million over 15 years. Subject of the inquiry, Transport for NSW staffer Ibrahim Helmy, is missing and wanted on a warrant to appear before the commissioner.
FCA maintains its focus on non-financial misconduct – 25 July 2025
The FCA (Financial Conduct Authority) says that serious non-financial misconduct (NFM) such as bullying, harassment and violence is a matter of regulatory concern, not just for banks, but for all regulated financial services firms and their staff. With the long awaited release of a policy statement and a further consultation opens in a new tab on “tackling non-financial misconduct in financial services”, the FCA has re-emphasised its expectation of financial services firms to foster healthy and inclusive workplace cultures that empower staff to speak up and raise concerns.
Investigation & Fraud News – Week ending 18 July 2025
Fraud has evolved – has your organisation – 11 July 2025
At this year’s 36th ACFE Global Fraud Conference, one message was clear: fraud risk is accelerating, and many organisations are not adapting fast enough. The modern fraud landscape is increasingly shaped by digital behaviour. Offenders are exploiting remote and hybrid work environments, leveraging AI to create synthetic identities and deepfakes, and taking advantage of employee behaviour patterns that don’t show up in traditional monitoring systems. In this environment, simply relying on transactional analytics is not enough. Detection must also consider context and behavioural cues.
Fraud case ends broker’s career in permanent ASIC ban – 12 July 2025
The Australian Securities and Investments Commission (ASIC) has permanently banned Jason Damien Prasad, a former insurance broker operating in New South Wales, after he was convicted of fraud-related offences. The regulatory action, which took effect on July 3, follows Prasad’s conviction for dishonestly obtaining a financial advantage by deception.
Liquidator probes transfer of Queensland government funds to bank account of Cryptoloc Holdings founder Jamie Wilson – 14 July 2025
Liquidators are probing the transfer of $1.55 million from cybersecurity company Cryptoloc to the private account of its founder, Jamie Wilson. The company was wound down late last year, months after winning a lucrative $15 million Queensland government cybersecurity contract. The liquidators’ investigation is continuing and Customer Services and Open Data Minister Steven Minnikin says an audit is underway into the cybersecurity tender process.
https://www.abc.net.au/news/2025-07-14/qld-liquidators-probe-cryptoloc-cybersecurity/105509012
Pensioner takes NAB to Supreme Court over $1,338 in fraudulent transactions – 14 July 2025
Ian Williams has spent an enormous amount of time studying Australian banks’ obligations while representing himself in court. Williams said the reason he was suing for the vast amount of $380 million was because he believed NAB demonstrated “a systemic abuse of power”, knowledge of his vulnerability, “and deliberate disregard for fair dealing”. Williams claimed the bank:
• Failed to secure his banking credentials and transaction data.
• Failed to use its fraud detection protocols, which he said would have flagged the two transactions as fraudulent.
• Breached its duty to “protect customers from unauthorised transactions”.
• Failed to comply with the ASIC ePayments Code by not conducting a fair and transparent investigation or reasons for its decision to not pay Williams back.
The matter has progressed to the Supreme Court.
Victims of collapsed First Guardian, Shield may lose more than $700m – 16 July 2025
The regulator is investigating if First Guardian and Shield had disclosed the risks to their investors properly, many of whom were signed up via lead generators and high-pressure sales calls. While Shield promised diversified assets and better returns than industry super funds, ASIC believes it and trustee Keystone Asset Management actually held risky, illiquid assets. Compensation for thousands of consumers could reach $300 million, despite almost $1 billion in superannuation being at risk between the two entities.
Cybersecurity strategist explains ‘ghost tapping’ credit card scam – 16 July 2025
Cybersecurity strategist Eward Driehuis explains how ‘ghost tapping’ credit card fraud works and what can be done to avoid falling victim to the scam. The fraud involves making a digital copy of a stolen credit card on a criminal phone using an Apple or Google wallet, before laundering the victim’s money by purchasing and re-selling gift card.
https://www.youtube.com/watch?v=QWWYMyBjf9Y
EPA secures enforceable undertaking with concrete company following investigation – 16 July 2025
The NSW Environment Protection Authority (EPA) has agreed to a $100,000 Enforceable Undertaking (EU) with Reinforced Concrete Pipes Australia (NSW) Pty Ltd (RCPA), following an investigation into unlicensed concrete works at its Somersby facility. The EPA began investigating RCPA when the company applied for an Environment Protection Licence in December 2022 and discovered it had produced more than 30,000 tonnes of steel-reinforced concrete pipes annually between 2018 and 2022, without a licence. The scale and duration of the unlicensed activity raised serious concerns as RCPA operated for several years without formal monitoring of dust, water pollution or noise.
I transferred $1.6 million into a scammer’s bank account. I don’t blame myself for it – 16 July 2025
Harriet Spring thought she was doing all the right things to set up her and her four sisters’ financial future. One phone call changed the fate of her family’s $1.6 million inheritance. The term deposit account she transferred the $1.6 million into was ‘mule’ account used by criminals to move money around. She was told that only $232 was all that was left. The police arrested the criminals who ran the mule accounts, but that won’t bring the money back. Harriet believes it was her personal failure but a system failure that is just getting worse as AI gets better.
Private ATMs in tobacco shops face being cut off from payment network EFTEX following ABC investigation – 17 July 2025
Payment processing company EFTEX will stop facilitating transactions from ATMs situated inside tobacco stores and other “high-risk” businesses. It comes after an ABC investigation revealed major private ATM suppliers were targeting the illegal tobacco industry. Financial crime expert Neil Browne says it is a “step in the right direction,” and he would like to see more payment providers follow suit.
https://www.abc.net.au/news/2025-07-17/tobacconist-atms-cut-off-payment-networks-eftex/105539942
Crypto ATM providers to meet minimum standards – 17 July 2025
AUSTRAC is placing conditions on cryptocurrency ATM providers to help reduce their exposure to money laundering, terrorism financing and other serious financial crimes.
CEO Brendan Thomas says a cryptocurrency taskforce found some providers have not been complying with anti-money laundering and counter-terrorism financing (AML/CTF) laws.
“Some of them are not taking the right steps to understand their customers and risks, or they’re not reporting to us”.
And with around 150,000 transactions every year moving close to $275 million, this is a serious concern.”
https://www.austrac.gov.au/crypto-atm-providers-meet-minimum-standards
Samsung boss cleared of fraud by South Korea’s top court – 17 July 2025
Samsung boss Lee Jae-yong has been cleared by South Korea’s top court of fraud charges, concluding a years-long legal battle over his role in a 2015 merger deal. Lee, the grandson of Samsung’s founder and the de facto head of the company since 2014, had been accused of using stock and accounting fraud to try to gain control of the firm.
In its final verdict, the Supreme Court in Seoul upheld a not guilty verdict, after Lee was acquitted of all charges in two earlier trials. The case drew widespread scrutiny of the technology giant, as the country grapples with corporate corruption scandals involving its powerful family-run conglomerates known as chaebols.
https://www.bbc.com/news/articles/ckgj04nw19zo
Big banks warn businesses of Kimberley scam cluster – 17 July 2025
Two of Australia’s major banks are warning regional customers that sophisticated phone scammers are impersonating bank employees. The East Kimberley Chamber of Commerce and Industry says it has received reports of a “cluster” of fake calls targeting businesses in Kununurra, in Western Australia’s north. NAB and Westpac banks are urging people to report any suspicious behaviour.
https://www.abc.net.au/news/2025-07-17/bank-scammers-target-kimberley-businesses/105529024
