The following are articles relevant to the Professional Investigator. Click on the title to make a comment or join the conversation.
Investigation & Fraud News – Week ending 28 February 2025
Buyer beware with funds transfer fraud – 21 February 2025
Given that Australians have lost hundreds of millions of dollars to funds transfer fraud in the past decade and a half, there is a surprising lack of authority indicating how courts apportion responsibilities and losses between funds Transferee and Transferor. Article goes through recent case law showing where the Court found in favour of the Seller/Transferee rather than the Buyer/Transferor.
https://www.qlsproctor.com.au/2025/02/buyer-beware-with-funds-transfer-fraud/
OpenAI removes users suspected of malicious activities – 24 February 2025
OpenAI has removed accounts of users from China and North Korea who the artificial intelligence company believes were using its technology for malicious purposes including surveillance and opinion-influence operations. The activities are ways authoritarian regimes could try to leverage AI against the US as well as their own people.
https://www.itnews.com.au/news/openai-removes-users-suspected-of-malicious-activities-615205
Victorian Police warns of scam campaign targeting Chinese-speaking community – 24 February 2025
Victoria Police has issued an updated warning regarding a phone- and social media-based scam campaign that has been targeting the Mandarin-speaking student community since 2017. However, police have recently observed the scammers broadening their victim base, with at least 20 per cent of victims being non-students.
Real-time tech makes life tougher for criminals – 24 February 2025
Industry-wide collaboration is putting the screws on international criminals, with the introduction of new confirmation of payee functionality coming this year to be a key part of this. Confirmation of Payee allows customers making a payment via their banking app to match the bank account details entered with the details held by the recipient’s bank and displaying the outcome to the customer. It’s designed to give Australians more confidence that they’re paying the right account and to decide what to do next – pay, check the details again or choose not to proceed with the payment altogether.
Australian regulator fines two ex-Star Entertainment executives for breach of duty – 24 February 2025
Reuters -Australia’s corporate regulator said on Monday it fined two former Star Entertainment executives a combined A$240,000 ($153,096) and disqualified them from managing any companies after they admitted to breaches of duty while at the casino operator. The Australian Securities and Investment Commission (ASIC) said it fined Star’s former chief financial officer (CFO), Harry Theodore, A$60,000 and disqualified him from managing corporations for nine months. It fined Star’s former chief casino officer, Gregory Hawkins, A$180,000 and disqualified him from managing corporations for 18 months.
https://finance.yahoo.com/news/australias-corporate-watchdog-penalises-two-050536402.html
Fake job ads leading to scam compounds and sexual slavery – 26 February 2025
This article outlines how scamming compounds have boomed across Asia from Sihanoukville in Cambodia to Myanmar. Victims are often sold between different organisations running scam operations. Once victims arrive, if they fail to meet targets, in many cases they’re forced into a kind of sexual slavery. Traffickers often issued fake “employment contracts” to deceive both the victim and authorities.
Facebook and Instagram publish graphic porn ads disguised as fake make-up tutorials – 26 February 2025
Meta has removed a page that published two dozen sexually graphic ads that were able to circumvent the platform’s auto-review process. An ABC NEWS Verify analysis of the ads has linked them to a dubious store that is hawking erectile dysfunction supplements and is filled with deceptive practices. The eSafety Commissioner’s office asked the social media industry to include proposed safety measures against pornographic materials in draft codes to the commissioner by February 28.
Tobacco Wars – 26 February 2025
Four Corners investigative journalist Dan Oakes uncovers the secrets of Australia’s black-market tobacco trade in Tobacco Wars. With illicit cigarettes readily available in cash-only stores and distributed by unmarked vans across the country, this investigation reveals a vast network stretching from Melbourne’s suburban tobacconists to international smuggling routes. Using concealed cameras and exclusive access to law enforcement, the Four Corners team follows the illicit pipeline, exposing the lucrative industry that is fueling violent organised crime while robbing the government of billions in lost revenue.
https://www.abc.net.au/news/2025-02-26/tobacco-wars/104986340
‘I can’t buy food for my children’: Facebook profits from charity scams costing taxpayers – 27 February 2025
Social media giant Meta has been profiting from hundreds of Facebook scam advertisements preying on Australians experiencing financial hardship, leaving taxpayers and charities to foot the bill. The fraudulent ads purport to offer no-interest loans to people with low incomes facing unexpected costs, such as replacing a broken fridge, car repairs so they can get to work, or bond money to secure a rental property. In reality, they trick Australians into handing over sensitive personal details that allow scammers to crack into their myGov accounts, redirect their Centrelink payments and steal their identities.
Six tonnes of party drug bute seized in Sydney after routine police check – 27 February 2025
NSW Police have seized more than six tonnes of the party drug butanediol with a street value of $132 million in Sydney. Officers discovered the warehouse where the drug was stored after a chance find during a routine firearms compliance check at another address. A 26-year-old man and 27-year-old woman have been charged.
https://www.abc.net.au/news/2025-02-27/nsw-bute-drug-seized-after-routine-check-croydon/104988956
‘Shockingly legitimate’: Scammers up their game to steal your hard earned – 28 February 2025
Australians are being inundated with investment scams that look like real products, the corporate watchdog has warned. ASIC says it’s making headway in its efforts to stem the endless tide of scammers, pulling more than 10,240 websites down in just two years. It highlights that in the last six months of 2024, ASIC increased its new investigations by 31 per cent to 109 new investigations, started 15 new court actions, and completed 376 surveillances. The update also reports ASIC was successful in the majority of its civil and criminal prosecutions, securing $46.6m in civil penalties and 13 criminal convictions.
Investigation & Fraud News – Week ending 21 February 2025
How fraudsters are targeting Australians online with the ‘Rom-con’ scam – 15 February 2025
The Australian Federal Police (AFP) is turning the tables on romance scammers by revealing the real-life scripts they use to manipulate and defraud victims. The dialogue, designed to tug at heartstrings and empty bank accounts, was uncovered during an international operation to dismantle a scam compound in the Philippines. The AFP-led Joint Policing Cybercrime Coordination Centre (JPC3), in partnership with the National Anti-Scam Centre (NASC), is now urging Australians to read the script and remain vigilant against fraudsters preying on those seeking love online.
ASIC quick to utilise Federal Court’s expanded jurisdiction to hear criminal matters – 15 February 2025
ASIC has been quick to use the Federal Court’s expanded jurisdiction to oversee a range of criminal matters. The Attorney General’s Portfolio Miscellaneous Measures Act 2024 (the Act), significantly expands the Federal Court’s jurisdiction to include various white-collar crime offences. This Act confers jurisdiction on the Federal Court to hear and determine prosecutions for indictable offences against several key pieces of legislation, including the Corporations Act 2001, the Australian Securities and Investments Commission Act 2001, and specific provisions of the Criminal Code related to white-collar crimes such as bribery of foreign public officials, forgery, identity crime, money laundering, computer offences, financial information offences, and accounting records.
Australian unit of ComfortDelGro probes media allegations of wrongful conduct – 17 February 2025
ComfortDelGro is addressing allegations of scams involving its Australian subsidiaries. According to the article, the scams involve taxi drivers exploiting loopholes in the terminal and payment systems provided by A2B, to overcharge passengers. This benefits the driver and Cabcharge, which “pockets a percentage of every transaction on the terminal”, noted the report. The scams are also said to involve the gaming of Cabcharge fare payment products which A2B supplies to state and federal agencies, companies, hospitals and other health and disability services.
ATO cracking down on $557 million scourge fleecing Aussies – 17 February 2025
The Australian Taxation Office (ATO) is looking to introduce “real-time” fraud detection to tackle a rising tide of tax scams. More than half a billion dollars has been claimed by fraudsters creating fake myGov accounts and redirecting tax refunds.
The ATO has now approached the market for suppliers to build an “industry-leading” fraud risk engine to detect, analyse and prevent fraud as it occurs. This would allow the ATO to stop, halt, delay or double-check suspicious transactions as they happen.
Money Laundering Crackdown: AUSTRAC Puts 50 Firms, Including Crypto Exchanges, On Notice – 18 February 2025
Australia’s financial crimes watchdog, AUSTRAC, has written to over 50 companies, including many involved in the crypto industry, over their failure to meet their reporting requirements under Australia’s anti-money laundering and counterterrorism financing laws. AUSTRAC said it’s already taken action against 13 crypto exchanges this year for failing to disclose the criminal histories of key employees
Smart cameras are transforming mining operations – 18 February 2025
Cameras in mining no longer serve as passive recording devices. They now generate real-time data that enhances decision-making across safety, efficiency, and security. Real-time incident detection allows cameras to trigger automated alarms for safety violations, equipment malfunctions, or security breaches. AI-powered predictive analytics help forecast equipment failures, enabling maintenance teams to act before costly breakdowns occur.
https://www.australianmining.com.au/smart-cameras-are-transforming-mining-operations/
The 31-year-old accused of conning a Wall Street giant in $US175m deal – 19 February 2025
JPMorgan executives are expected to take the stand to testify about how the lender was allegedly defrauded out of $US175 million ($276 million) by young entrepreneurs, drawing fresh attention to how the biggest US bank vets its acquisitions. According to the government, the pair hired a data scientist to create fake accounts showing 4.25 million customers, even though they knew it had fewer than 300,000.
Businesses face growing threat from deepfake scams, Forrester warns – 20 February 2025
Deepfakes are presenting increasing challenges for businesses, according to a new report from Forrester Research. The report outlines how advances in artificial intelligence (AI) are enabling the creation of deceptive digital content, posing risks ranging from financial losses to reputational damage for companies operating online. It suggests that deepfake technology is now more accessible and affordable than ever, allowing fraudsters to create convincing fake identities that can bypass traditional security measures.
https://channellife.com.au/story/businesses-face-growing-threat-from-deepfake-scams-forrester-warns
New anti-scam laws pass parliament – 20 February 2025
The federal government has passed tough anti-scam laws. Banks, telcos, and social media companies under the framework will be subject to comprehensive and enforceable sector-specific rules for what they must do to protect Australians. The rules, yet to be finalised, could include a requirement for social media companies being required to verify advertisers on their platforms to help reduce scam ads. Banks could be required to confirm the identity of payees, and telcos could be required to detect and disrupt scam calls and text messages.
https://www.cowraguardian.com.au/news/new-anti-scam-laws-pass-parliament
Norwegian crypto scam suspects charged with $80M fraud – 20 February 2025
Norwegian authorities charged four men with orchestrating a fraudulent cryptocurrency investment scheme that allegedly swindled investors out of over 900 million Norwegian kroner (approximately $80 million). The economic and environmental crime unit, Økokrim, accused the individuals of deceiving thousands of investors across various countries into believing they were investing in a highly profitable business with interests in gas, mining, and real estate.
Financial watchdog chasing Entain – 20 February 2025
After two years investigating Online and hospitality bet-maker “Entain P/L”, AUSTRAC commenced civil penalty proceedings in December alleging serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
https://pubtic.com.au/financial-watchdog-chasing-entain/
Investigation & Fraud News – Week ending 14 February 2025
AustralianSuper under major scrutiny as $4.1 trillion industry faces big changes – 6 February 2025
Australia’s largest superannuation fund, AustralianSuper, is being investigated by the corporate regulator for allegedly taking too long to pay out death benefits. AustralianSuper announced in December that it would repay $4.2 million to deceased customer’s loved ones as compensation for taking too long to process their death benefit claims. About 7,000 people were impacted, with claims dating back to May 2020 not resolved within the fund’s four-month target.
ASIC permanently bans former financial adviser Lachlan John King – 7 February 2025
ASIC has made two orders permanently banning Queensland based financial adviser Lachlan John King following his conviction of fraud. The conviction related to Mr King misappropriating a total of $1,797,493.66 from eight clients while working as a financial planner and being entrusted with the financial management of multiple clients, including family members.
Mastercard To Get Rid Of Credit Card Numbers By 2030. We Could Be Heading Towards The End Of Cards – 9 February 2025
Mastercard Inc has announced plans to remove the 16-digit number from their credit and debit cards by 2030 in a move designed to stamp out identity theft and fraudulent use of cards. The numbers currently used to identify cards will be replaced with tokenisation and biometric authentication. Biometric options enabling payments to be made with a smile or wave of the hand. Tokenisation converts the 16-digit card number into a different number — or token — stored on your device, so card information is never shared when you tap your card or phone or make payments online.
Crossbenchers introduce whistleblower protection bill – 11 February 2025
A new bill to establish a whistleblower protection body has been introduced following legal action against whistleblowers such as PwC whistleblower Anthony Watson and ATO whistleblower Richard Boyle. Under the new bill, a whistleblower protection authority will be established to oversee and enforce whistleblower protections, facilitate whistleblower disclosures, and safeguard whistleblowers from inside government or businesses that expose corruption and wrongdoing.
https://www.accountingtimes.com.au/profession/crossbenchers-introduce-whistleblower-protection-bill
HR uses of AI may be classified “high-risk” in Australia – 12 February 2025
A federal inquiry has asked the government to classify HR systems that use AI technology “high-risk” and require “meaningful consultation and transparency” with staff around any use of workplace surveillance tech. Excessive monitoring and surveillance technologies can facilitate bullying, harassment, discrimination, and other inappropriate conduct in the workplace. The inquiry is pushing for substantial extra workplace and worker protections around how and where AI and automated decision-making (ADM) technology can be used.
The fake qualifications and financial fraud of Australia’s shadowy private college sector – 12 February 2025
Australian Skills Quality Authority (ASQA) stated, as of December 31, it was handling 174 serious matters including allegations of cash-for-qualifications schemes, fraud, fake diplomas, and fabricated assessments. These cases involve 138 training providers — and 103 of them cater to international students. The scale of misconduct is staggering: 68 per cent of these serious matters involve fraud, from visa scams and funding rorts to sham processes that falsely legitimize unearned qualifications.
‘Dark money’: Warning on corruption – 12 February 2025
Australia has climbed its way back into the top 10 most transparent countries in a global ranking for the first time since 2016 despite claims of “Dark Money”. Transparency International’s annual Corruption Perceptions Index gave Australia a score of 77/100, putting it above its closest allies the US and the UK. The global corruption monitor pointed to a suite of Labor reforms in 2024, including new foreign bribery and anti-money laundering laws and the Administrative Review Tribunal.
https://au.news.yahoo.com/dark-money-warning-corruption-234217118.html
New AI tool to aid forensic investigations – 12 February 2025
Researchers from The University of Western Australia and CSIRO have developed an advanced AI tool that could help forensic investigators estimate biological sex from human skulls. The research, published in Nature Scientific Reports, has the potential to support forensic investigators during natural disasters and criminal analyses by refining techniques that contribute to accurate identification of unknown individuals.
https://www.uwa.edu.au/news/article/2025/february/new-ai-tool-to-aid-forensic-investigations
Australians lost approximately $1.6 billion to bank card fraud over the past year, with millennials the most targeted age group: research – 12 February 2025
Millions of Australians have been the victim of bank card fraud over the past year, new research has revealed – with millennials the “most targeted” by scammers. A recent survey by comparison site Finder has revealed 10 per cent of Aussies, equivalent to about two million people, were the victim of card fraud in the past year. The average victim lost $781 to the type of fraud, which when extrapolated equals roughly $1.6 billion across the country.
‘Disgusted’: Bank returns money to scammers – 12 February 2025
Kim Sawyer, an Australian man whose family had their life savings ($2.5million) stolen has been left “disgusted” that a bank recovered some of the money — yet the funds were later released back to the scammer. He has now revealed that simple technology such as Account name matching, is a basic anti-scam measure that has blocked many fraudulent transactions in other countries and despite a $100 million pledge for Australian banks to roll out the technology, it still isn’t in place.
Fraudster resurfaces as part of legal dispute over surge pricing patents – 13 February 2025
An Australian scammer has emerged as a key player in a legal fight over surge pricing patents that are potentially worth over $20 billion. The patents were originally developed by an Australian company, but are now in the hands of a US-based company investors say has connections to veteran fraudster Brayden Craig. The fate of the patents, which cover a method of surge pricing used by companies like Uber, is set to be decided in courts in Australia and the US.
https://www.abc.net.au/news/2025-02-13/fraudster-resurfaces-in-surge-pricing-battle-allotz/104919438
DeepSeek faces bans amid security & data privacy woes – 13 February 2025
DeepSeek, a rapidly emerging player in the artificial intelligence (AI) sector, is facing mounting scrutiny over its security practices and data management policies. These include hardcoded encryption keys, weak cryptographic algorithms, and SQL injection risks, which potentially expose user data to exploitation.
https://itbrief.com.au/story/deepseek-faces-bans-amid-security-data-privacy-woes
Game-changing anti-scam laws to protect consumers – 13 February 2025
‘Australians will be better protected from online, banking and telecommunications scams after new laws passed parliament. Businesses could be fined up to $50 million if they do not maintain strong scams defences and victims will have clearer pathways to compensation. The laws also establish a scams prevention framework that will subject banks, telecommunications companies and social media organisations to sector-specific rules on protecting Australian consumers.
https://www.northweststar.com.au/story/8891733/game-changing-anti-scam-laws-to-protect-consumers/
Investigation & Fraud News – Week ending 7 February 2025
Corruption probe leads to sacking of BHP contractors – 3 February 2025
BHP has allegedly sacked more than two dozen contractors as part of a corruption investigation into its coal operations in Queensland. According to The Australian, 26 contractors – who were all hired to work at the Saraji mine in the Bowen Basin – have been axed after the mining giant uncovered non-existent work or jobs where the extent of the work was greatly exaggerated. Some of the roles are understood to have been part time or had yet to commence.
https://procurementandsupply.com/corruption-probe-leads-to-sacking-of-bhp-contractors/
Scam alert: ASIC warns consumers about investment bond scam impersonating Bunnings – 3 February 2025
Scammers are impersonating Bunnings Warehouse by offering fake sustainability investment bonds.
The scam offers higher than market returns and claims that investments are protected by the government. It contains links to Bunnings’ genuine website, but Bunnings does not offer bonds or any other investment products.
Weak scam policies placing super members at risk, warns ASIC – 3 February 2025
An ASIC review found that superannuation trustees’ anti-scam practices were insufficient, according to an open letter signed by ASIC Commissioner Simone Constant. Out of the 15 superannuation trustees included in the review, none had an organisation-wide scams policy to protect their customers.
Criticism over inadequate actions to compensate victims in touted Scams Prevention Framework – 4 February 2025
The Albanese government’s new Bill to help victims of scams has been criticised for not doing enough to help people get their money back. Banks, telcos and social media platforms won’t be forced to automatically compensate scam victims, as part of the federal government’s Scams Prevention Framework, aimed at protecting Australians from financial crime.
Coinbase users lose $65M to scams, ZachXBT reports – 4 February 2025
Onchain investigator known as ZachXBT reported that users of the cryptocurrency exchange Coinbase (NASDAQ:COIN) have lost over $65 million due to social engineering scams between December 2024 and January 2025. He revealed how scammers employed stolen personal data from private databases to execute their schemes.
Fraud Section picks monitors for Australian shipbuilder – 5 February 2025
The US Department of Justice has chosen two partners at a risk and compliance consultancy to serve as monitors for Australian shipbuilder Austal, which pleaded guilty in 2024 to misleading investors.
Subscription required to read article
Bank sues customer who lost $2.6m to scammers – 5 February 2025
Sylvia Chou lost $2.6 million to scammers of a sophisticated currency exchange trading scheme. They cleaned out her personal savings then got her to borrow money from friends and family and refinance her properties. NAB is now suing her for $1.4 million plus interest because of a discrepancy when she refinanced her properties. Chou is lending her support to news.com.au’s campaign People Before Profit, calling on the federal government to make it mandatory for banks to compensate scam victims – just like in the UK.
Australian victims of online dating scams lose almost $12k on average – 5 February 2025
New research has revealed that scammers are taking advantage of Australians looking for love via online dating apps, with 40 per cent of Australian users reporting being targeted by some form of dating scam. Catfishing, another form of false identity scam, accounts for 29 per cent of dating scams, while fake dating sites are responsible for another 26 per cent.
Court hears youth justice officer risked jail time by secretly recording murder-accused inside Don Dale detention centre – 6 February 2025
A series of secret recordings of a detainee at the Don Dale Youth Detention Centre were thrown out as evidence in a high-profile murder trial, after a judge found them to be a “significant intrusion into the accused’s rights”. The 17-year-old target of the recordings was last year found guilty, along with three others, of murdering an 18-year-old man in Palmerston in 2022.
Telco issues major scam warning – 6 February 2025
Australia is currently the biggest victim of scam in the world, with Australians losing $100 per head compared with $45 per head in the United States. In the UK scammers are losing around $34 per person. People fall for phishing scams within 10 seconds of arriving in the mailbox. The Australian Signals Directorate (ASD) issued an alert warning of scammers impersonating the Australian Cyber Security Centre.
Westpac Bank strikes $80k settlement with Kiwi scam victims who lost $323k to investment fraud – 6 February 2025
One of the country’s biggest banks has struck an $80,000 financial settlement with a Kiwi couple who lost $323,000 in an elaborate investment scam – offering a “goodwill payment” to resolve the dispute. The stolen cash was tracked to the account of an Australian “money mule”, who claims he was an “intermediary” for investors. Private school principal Mark Geraets accused Westpac of negligence after he and his wife Yvonne lost their life savings in March last year.
