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Investigation & Fraud News – Week ending 30 August 2024
‘Game-changer’ ruling to hit dodgy business tactics – 23 August 2024
The High Court ruled Captain Cook College used a dodgy incentive scheme to help recruiters sign up students. This landmark court decision will mean Corporations could now be held directly responsible for predatory business models.
https://citynews.com.au/2024/game-changer-ruling-to-hit-dodgy-business-tactics/
E-scooter firm accused of audacious scam – 25 August 2024
The Australian revealed at the weekend that a Singapore-based company had allegedly put hundreds of extra “phantom” e-scooters on city streets in Australia and New Zealand to cheat local governments out of vehicle registration fees and in defiance of pedestrian safety caps.
Access to digital version of the Australian required to read article
Pig butchering: The vicious love scam trapping victims around the world – 25 August 2024
There’s a sickening reason most scammers are so persistent: if they fail – or refuse – to con us out of our savings, they’re punished, beaten and tortured. Many are trafficked and held captive in vast compounds under the guard of armed militia, on the lawless Myanmar side of the Thailand border.
Security robots are starting to join the ranks of human guards. Here’s what we know – 26 August 2024
From New York to Hawaii, people can spot security robots equipped with a suite of sensors patrolling the perimeters of some residential communities and apartment buildings.
Security robots are rapidly becoming a viable complement to human security guards, sparking concerns about privacy issues and potential job losses in the security field.
Critics are also raising questions about their effectiveness of keeping the public safe.
Former Brisbane financial adviser Ben Jayaweera sentenced to 12 years imprisonment for fraud at retrial – 27 August 2024
Ben Jayaweera, a former financial adviser and director of Growth Plus Financial Group Pty Ltd (in Liquidation), has been sentenced to 12 years’ imprisonment. A jury found Mr Jayaweera guilty of 28 counts of fraud. Over the course of 28 transactions, Mr Jayaweera caused 12 former clients a total detriment of $5,958,870.
ASIC finds Australian banks’ scam detection, prevention and response practices to be ‘less mature than expected’ – 27 August 2024
In April 2023, ASIC released Report 761 Scam prevention, detection and response by the four major banks (Initial Report) which found that the big four banks’ approach to scam strategy and governance was ‘less mature than expected’. ASIC has now released ‘REP 790 Anti-scam practices of banks outside the major four banks’ (Report). ASIC’s key message is that all banks and financial services businesses should consider the findings in this Report and the Initial Report, and take steps to advance their scam prevention, detection and response activities. In ASIC’s view, this should be one of the highest priorities for these organisations.
APESB defers decision on CA ANZ request for new reporting – 27 August 2024
The Accounting Professional and Ethical Standards Board (APESB) has responded to a request by Chartered Accountants ANZ (CA ANZ) to introduce a requirement for members to report wrongdoing committed by other members to the relevant professional body. The APESB has concerns about the “potential unintended consequences” on members if mandatory reporting is implemented without adequate legislative protections for whistleblowing.
‘Bored’ CBA staffer stole details of hundreds of customers to feed fraud – 27 August 2024
Curtis McNulty stole more than $53000 from PayPal while working for the bank in Sydney, mainly by using fraudulent refunds for items such as $3000 sneakers.
Access to digital version of SMH required to read article
NDIA and Fraud Fusion Taskforce intensifies investigations to catch crook – 27 August 2024
A recent series of early morning raids, payment locks and increased prosecutions on suspected fraudulent and criminal National Disability Insurance Scheme (NDIS) providers is showing Labor’s crackdown on frauds and rorts is having big results. In the past few weeks alone, three warrants have been executed by the National Disability Insurance Agency-led Fraud Fusion Taskforce, with hundreds more prosecutions expected to result from other ongoing investigations.
Banking Ombudsman launches investigation after Westpac customer loses $323,000 in investment scam, bank CEO ‘sorry’ for loss – 28 August 2024
The banking watchdog has launched an investigation into one of the country’s biggest banks after an Australian-based Kiwi couple lost more than $300,000 in an investment scam. The victim said the bank gave him “false confidence” that the investment proceeds were being safely transferred to an account set up under his own name. In reality, the account name wasn’t checked, the money was sent to a “mule” account under a different name and the supposed investment was a sham.
Sydney man sentenced for fraud offences after swindling $53,000 from financial organisation – 28 August 2024
A former Australian bank employee used personal identification information of bank customers to facilitate fraudulent activities, resulting in obtaining more than $53,000 in criminal proceeds from the financial organisation. The man utilised bank customer details to open falsely registered accounts and obtain numerous debit cards.
He investigated murders, then got a law degree. Now he’s coming after bad execs – 29 August 2024
Dale McQualter turned in his badge for a practising certificate after more than a decade in the Victorian Police. He is part of a small but growing cohort of lawyers who have leveraged investigations experience at regulators or law enforcement agencies to carve out a practice in a growing area of demand as large companies look to law firms to handle sensitive internal issues.
Investigation & Fraud News – Week ending 23 August 2024
Westpac accuses Meta of failing to deal with scams after hundreds of customers affected – 19 August 2024
Westpac has accused Facebook owner Meta of failing to deal with scam posts through the social media platform, after hundreds of incidents over the past year impacted customers. The big four bank took aim at the social media giant in a letter to Meta on August 2, where it was noted that 360 scam incidents had been found by the bank since October last year, with some customers losing tens of thousands of dollars.
Australia’s ASIC Clamps Down on 615 Crypto Scams Amid Elections – 19 August 2024
ASIC intensified actions against crypto scams during Australia’s federal election period. They have shutdown over 600 cryptocurrency scams in the past year and more than 5,000 fake investment platforms. These scams have cost Australian consumers $1.3 billion in the last year alone. ASIC cooperated with other cybersecurity companies to identify and block the websites quickly. ASIC’s crackdown is part of a broader effort against fraudulent online investment platforms and phishing scam.
Australian gang leader pleads guilty to Colombia cocaine plot after elaborate $2m sting – 20 August 2024
An Australian national has pleaded guilty to participating in a conspiracy to launder money and import cocaine from South America through the U.S. to Australia. U.S. officials said that between 2019 and 2021, 42 year old Jordan Curry “led an international drug trafficking and money laundering organisation”.
‘Dystopian’: Coles store in Melbourne slammed for huge number of security cameras installed above checkouts – 20 August 2024
A Coles store on the outskirts of Melbourne has copped a barrage of criticism after an image surfaced online appearing to show an overwhelming number of security cameras installed at the checkout area. At least 11 cameras can be seen suspended from the ceiling above the self-serve and regular checkout area. Coles say they use surveillance technologies in accordance with stringent privacy laws, and they have strict protocols in place around access to the footage.
Retail surveillance company Auror faces privacy investigation – 20 August 2024
Retail surveillance company Auror is under investigation by Australia’s privacy watchdog following a report into the Australian Federal Police’s (AFP) use of its software. Last year, Crikey revealed internal emails from the AFP showing that more than 100 members of its staff had used the software without any agency guardrails around its use.
https://www.crikey.com.au/2024/08/20/retail-surveillance-company-auror-faces-privacy-probe-afp/
ASIC Releases Damning Non-Major Bank Anti-Scam Findings – 20 August 2024
ASIC has released a report into the “less mature approach” to anti-scams strategy and governance of 15 banks outside the Big Four majors. The report examining scam prevention, detection and responses highlighted issues including significant variability in the maturity of scam strategies and governance, inconsistent and narrow approaches to determining liability and a lack of support for scam victims.
https://eastandpartners.com/news/asic-releases-damning-non-major-bank-anti-scam-findings/
Commissioner responds after whistleblower rips apart Queensland government department – 21 August 2024
The commissioner of the embattled government department (The Queensland Building and Construction Commission) has hit back after a whistleblower lifted the lid on what they claimed was a toxic work culture.
Whistleblower claims false survey data was provided to Australian defence department – 21 August 2024
An insider at a government-contracted market research firm is alleging it was “standard practice” to fabricate survey data on potential defence recruits for a military recruitment project. The allegations were made as part of a formal disclosure process as the insider seeks corporate whistleblower protection under federal law.
How a bank teller saved a man from losing $500k to investment scam – 21 August 2024
A westpac customer was eager to transfer $500,000 into an ING term deposit. A bank tellers intuition led her to double-check the banking details, where she discovered that the BSB didn’t match any ING account and it was a scam. The unusually high interest rate was also concerning and didn’t match ING rates on their website.
https://www.northweststar.com.au/story/8737009/westpac-teller-foils-500k-term-deposit-scam-in-victoria/
Labor suspends government work being done by firm accused of fabricating Indigenous data – 22 August 2024
A Whistleblower claims he was told to fabricate location data for AEC during Indigenous voice campaign and claims this false survey data. . He alleged this was done to cut costs while still presenting field research conducted with Indigenous Australians across metropolitan and regional areas.
Federal government orders investigation after ABC uncovers alleged bikie threats towards CFMEU over taxpayer-funded project – 22 August 2024
The ABC has uncovered allegations that Comancheros bikies are holding themselves out as “directors” of a security provider on a taxpayer-funded project in Brisbane and have threatened a CFMEU delegate. The security provider, Host Group, has denied having any links with the bikies.
https://www.abc.net.au/news/2024-08-22/comancheros-bikies-government-project-bmd-cfmeu/104223674
PwC expecting six-month China ban over Evergrande audit – 22 August 2024
The auditor PwC China has reportedly told clients that it expects to receive a six-month ban from Chinese authorities, and potentially a large fine, as a punishment for its role in auditing the collapsed property developer Evergrande.
‘It’s an industry-wide issue’: Top lawyer says ‘more people coming forward’ after Four Corners’ Seven investigation – 22 August 2024
A Four Corners investigation has found Channel Seven uses non-disclosure agreements to silence staff who have made formal complaints of sexual harassment and unlawful discrimination. Article delves into the investigation and related interviews.
Investigation & Fraud News – Week ending 16 August 2024
Canberra gambler avoids jail for stealing over $70,000 from Master Builders Association while employed by organisation – 13 August 2024
A man who stole over $70,000 from the Master Builders Association while working as its event organiser has been convicted of fraud in the ACT Supreme Court. The court heard Luke Lowes did not intend to keep the ticket funds funnelled into his accounts, but hoped to have a gambling win large enough to pay it back.
Australian retailers hit by surge in fraud amid cost crisis – 14 August 2024
A significant rise in returns fraud is being reported, with consumers increasingly exploiting retailers’ return policies. A recent report by Loop, a return management platform, indicates that 60% of Australian retailers have encountered returns fraud or policy abuse in the past 12 months. This figure is somewhat lower compared to the global rate, which stands at 99%.
https://securitybrief.com.au/story/australian-retailers-hit-by-surge-in-fraud-amid-cost-crisis
Broken dreams – More than 20 investors allege they have lost their life savings to Mr Amit Miglani – 14 August 2024
More than 20 investors allege they have lost their life savings to Mr Amit Miglani and those in his orbit, claiming the investment opportunities offered by his ex-wife and staff members were nothing but a scam. The ABC understands the allegations are now under investigation by (ASIC), and have also been passed onto Consumer Affairs Victoria, which is expected to formally refer the allegations to Victoria Police.
CBA bribery scheme involved ‘corruption at highest levels’ – 14 August 2024
The Crown alleged the principal shareholder of ServiceMesh, Eric Pulier, paid more than $US2 million to Waldron and an IT executive manager at CBA in 2014 as a reward for helping ServiceMesh strike two software deals with the bank, in 2013 and 2014. Pulier has denied wrongdoing.
Digital version of SMH required to read article
Rolex, Cartier jewellery, Tesla among goods seized after alleged $10 million fraud – 15 August 2024
Two people have been charged and luxury items have been seized after an investigation into an alleged $10 million fraud plot in Sydney. Investigators allege that a criminal syndicate was using the allegedly stolen personal information of more than 33 people to apply for loans for luxury cars that did not exist.
Bank impersonation scam gets around two-factor authentication process – 15 August 2024
Danielle Maddock says she thought her experience as a police officer would have given her an edge at picking up a scammer. The key components of bank impersonation scams is offering snippets of information about the customer to build trust, fused with a sense of urgency to make them less likely to question the scammer wanting their their two-factor authentication codes.
ACCC finds half of crypto ads on Facebook are scams or violate Meta’s policies – 15 August 2024
The Australian Competition and Consumer Commission began court proceedings against Meta in 2022 over celebrity scam ads, alleging the company had engaged in false, misleading or deceptive conduct in publishing the ads.
Operation Blot: Fraud Offences, Warwick – 16 August 2024
A 26-year-old Warwick man has been charged with numerous fraud offences after police shut down what they allege is a “cash for demerit points” scheme involving hundreds of falsely nominated tickets. Police will allege the man advertised on social media that he would take fines and demerit points for people in exchange for money. He would then allegedly sign the ticket over to an unsuspecting third party who was the victim of identity theft.
https://mypolice.qld.gov.au/news/2024/08/16/operation-blot-fraud-offences-warwick/
Queensland Opposition Leader David Crisafulli paid $200,000 settling claims from liquidators over Southern Edge Training – 16 August 2024
Queensland Opposition Leader David Crisafulli paid $200,000 in settling claims from liquidators who alleged a training company he was a director of, may have been trading while insolvent. The department did not provide settlement details, but the ABC obtained company accounts – filed with the corporate regulator – which list three “receipts from” David Crisafulli in the “settlement of other liquidators’ actions”.
Foreign diplomat ordered to pay more than $500,000 to a former domestic worker in wage exploitation case – 16 August 2024
Ms Danaratna was employed as a domestic worker in the home of the then-deputy high commissioner of Sri Lanka, Himalee Subhashini de Silya Arunatilaka, between 2015 and 2018. Over the course of those three years, she was only paid $11,212 which equates to 65 cents an hour. Her employment was in breach of Australian employment laws under the Fair Work. In addition to $374, 000 in unpaid wages, the court ordered Ms Arunatilaka to pay more than $169,000 in interest, bringing the total owing to more than $543,000.
Investigation & Fraud News – Week ending 9 August 2024
PwC wrongfully claimed legal privilege over documents to frustrate Tax Office, inquiry told – 2 August 2024
Consulting giant PwC systematically frustrated the Tax Office by wrongfully claiming legal privilege over thousands of documents, according to the evidence of the former general counsel and chief executive in their first statements since they resigned following the tax leaks scandal.
Access to digital version of SM required to read full article
AFP discovers 2000 compromised Australian cryptocurrency wallets – 4 August 2024
The Australian Federal Police has found more than 2000 Australian-owned cryptocurrency wallets were compromised by offshore scammers, poised to steal millions of dollars in digital assets. The trove was discovered as part of a multi-nation effort dubbed Operation Spincaster, the local arm of which was run out of the AFP-led Joint Policing Cybercrime Co-ordination Centre, also known as the JPC3.
Australia: An increasingly global approach to criminal investigations – 5 August 2024
This article considers the major Australian government investigative, law enforcement and regulatory agencies (as well as the tools and techniques utilised by these agencies) to address domestic and transnational investigations, with a particular focus on their increasing need to adopt a global approach to adequately protect Australians from criminal threats, both local and internationally.
ANZ boss may have to hand back millions – 5 August 2024
ANZ chief executive Shayne Elliott is facing a potential multimillion-dollar hit to his pay and the prospect of handing back bonuses as he grapples with a major bond trading scandal.
Access to digital version of The Australian required to read article.
Westpac shuts down RAMS Financial amid regulatory probe – 6 August 2024
Westpac will shut down its troubled RAMS Financial business, which it has unsuccessfully tried to sell and which is currently under investigation by the corporate watchdog, ending the brand’s 33-year run in Australia. RAMS was once the largest non-bank originator, funder and servicer of home loans in Australia.
Facebook whistleblower Frances Haugen says Australia has a ‘once-in-a-decade chance’ to fix its social media law – 7 August 2024
Australia is at risk of fumbling a “once-in-a-decade opportunity” to regulate social media, according to Facebook whistleblower Frances Haugen. Three years ago, Ms Haugen smuggled tens of thousands of documents out of the world’s largest social media company, revealing that its executives knew the risks Facebook and Instagram posed to billions of users — in particular, children. The Australian government is now poised to update its key social media law the Online Safety Act, amid rising public anxiety about predatory algorithms.
Australia:Cyber incidents return as biggest worry for businesses in 2024 Allianz Risk Barometer – 7 August 2024
Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies in Australia, according to the Allianz Risk Barometer 2024, the 13th edition to date. Cyber risk dislodges natural catastrophe risks as the topmost risk in the country. The proportion of businesses that ranked this risk increases to 52% in this year’s report compared to the 2023 Barometer. Cyber was ranked joint No. 1 risk with business interruption in 2022.
CFMEU, health union probed over alleged millions spent on ‘ghost printing’ – 7 August 2024
Two of Australia’s most prominent trade union figures, ex-CFMEU boss John Setka and the Victorian head of the Health Services Union, Diana Asmar, are facing a multi-agency investigation into allegations that more than $3 million of union money was paid to printing firms for non-existent or “ghost” services. Ms Asmar, is now also separately facing questions over almost $200,000 of members’ funds she allegedly spent on work expenses, including Gold Class movie tickets, alcohol, meals and items from IKEA.
Australians don’t want to be monitored at work, in shops – 7 August 2024
Australians overwhelmingly believe police should be able to use facial recognition technology (FRT) to identify suspects from photos and CCTV footage – but a new survey has found near universal agreement that using FRT in workplaces and public spaces is a bridge too far.
https://ia.acs.org.au/article/2024/australians-don-t-want-to-be-monitored-at-work–in-shops.html
Why my face keeps appearing on crypto scams – 7 August 2024
Posing as someone else, scammers use phoney profiles to interact with potential victims, attempting to win their trust by using bogus credentials. The Australian Government is saying enough is enough, announcing a code of conduct for banks, telcos, and social media platforms. The code will fine companies and hold them liable for victim compensation if they do not meet their obligations to detect, prevent, and disrupt scam activity.
https://www.moneymag.com.au/ben-rose-binance-face-keeps-appearing-on-crypto-scams
Former bank staffer ‘destroyed’ after being charged with 120 fraud offences – 8 August 2024
A former bank employee’s life has been “destroyed” by allegations she defrauded multiple banks out of tens of thousands of dollars. Prosecutors allege she siphoned money into the fake accounts and used the ill-gotten gains to fund a lavish lifestyle
Queensland government announces investigation into Brisbane’s Wolston Park – 8 August 2024
The Queensland government will launch an investigation into a Brisbane mental health institution following reporting by the ABC into historical allegations of abuse at the facility. As part of an ABC investigation, former patients spoke for the first time about the alleged abuse they experienced, sharing medical files ordinarily sealed for 100 years.
https://www.abc.net.au/news/2024-08-08/queensland-government-to-investigate-wolston-park/104200482
Ombud publishes myGov fraud investigation – 9 August 2024
The findings of a Commonwealth investigation into Services Australia’s response to myGov fraud have been released to the public following complaints made to the ombud’s office. Services Australia has accepted the report’s four recommendations, which broadly call for improvements to security controls for unauthorised linking and high-risk transactions; how Services Australia and individual member services manage shared risks within the myGov ecosystem; and the way three member services respond to customer reports of fraud and breaches to individual records
https://www.themandarin.com.au/252185-ombud-publishes-mygov-fraud-investigation/
