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Investigation & Fraud News – Week ending 7 June 2024
National drugs syndicate used WA construction firm to launder cash, police allege – 2 June 2024
WA detectives have busted a national drugs syndicate they allege used a local construction firm to launder its dirty money. The alleged head of the syndicate, who used the name Fatboy, was arrested last Saturday, shortly after flying into Perth from NSW.
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How Australia is tackling financial crime with technology – 3 June 2024
With more financial transactions moving online, cyber-enabled financial crimes are on the rise. According to the Australian Cyber Security Centre (ACSC), 500 ransomware attacks were reported in the 2020-21 financial year, an increase of 15% from the previous year. Continuous investment in technology, alongside a commitment to regulatory compliance and international cooperation, will be pivotal.
https://fintech.global/2024/06/03/how-australia-is-tackling-financial-crime-with-technology/
Austrac issues warning over money ‘mules’ – 4 June 2024
Banks are being urged to be on watch for unusual transactions in accounts opened by international students and migrants, amid a surge in criminals using their access to move funds. Today AUSTRAC released a new financial crime guide to help businesses identify and report suspicious activity related to criminal networks targeting vulnerable international students and temporary residents as money mules.
Trio on trial accused of $21 million fraud plot against NAB – 4 June 2024
Three people are facing trial over an elaborate fraud scheme that allegedly tried to cheat National Australia Bank out of more than $21 million through fake bank vouchers.
The trio each pleaded not guilty to a slew of fraud-related charges and will fight the accusations against them.
Global Corporate Crime and Investigations update – May 2024 – 4 June 2024
This six-monthly publication calls on experts from around the network to provide updates on significant new developments and enforcement trends in their jurisdictions. In Australia, there have been key developments in the Australian corporate crime landscape in relation to sanctions and corporate bribery.
https://www.lexology.com/library/detail.aspx?g=6ce81e9b-9c30-483f-83d6-d47a91374eb8
ASIC lawsuit reveals up to $2.8m axed from audit oversight – 4 June 2024
The corporate watchdog has admitted it ripped up to $2.8 million out of its audit and financial report inspection program, resulting in at least six senior analysts being reshuffled or made redundant. It is the first time the Australian Securities and Investments Commission has acknowledged the extent of changes that led to its annual report card on the big four accounting firms’ audit quality being scrapped.
ASIC to implement new threat intelligence platform – 4 June 2024
(ASIC) is to implement a new cyber threat intelligence platform following the receipt of recent federal funding. The financial and business regulator, alongside the Australian Prudential Regulation Authority (APRA), received $206.4 million from this year’s federal Budget for a program of technology and cyber uplifts. ASIC chair Joseph Longo, said part of the funding will be allocated to implementing a new threat intelligence platform to “improve information collection, time to detection of internal and external cyber threats”.
https://www.itnews.com.au/news/asic-to-implement-new-threat-intelligence-platform-608538
Medibank is being sued by the privacy regulator, a move welcomed by former customers and cybersecurity experts – 5 June 2024
The Australian Information Commissioner is suing Medibank over a data breach at the health insurer in 2022. The Medibank and ahm hack was one of the largest-ever breaches of Australian customers’ data. The commissioner says the health insurer failed to protects it customers data. The maximum potential fine is about $21 trillion but it will be up to the Federal Court to determine the final amount.
https://www.abc.net.au/news/2024-06-05/medibank-taken-to-federal-court-over-cyber-attack/103936664
UK tech tycoon Lynch cleared of HP fraud charges in $16.5b deal – 7 June 2024
UK tech tycoon Mike Lynch was found not guilty of criminal charges that he pulled off Silicon Valley’s biggest-ever fraud 13 years ago by duping Hewlett Packard into buying his software start-up for 16.5 billion. His victory is stunning after he lost a civil trial in the UK in 2022 over allegations that he and Autonomy’s former finance chief used accounting tricks to inflate the company’s revenue ahead of its 2011 sale.
Study finds ‘pervasive’ culture of sexual harassment of Australian retail workers and few places to turn for support – 7 June 2024
Sexual harassment in the retail industry is ‘pervasive’, according to a University of Sydney study. A combination of customer-first culture and a lack of support means many workers are forced to deal with sexual harassment on their own. The researchers and peak body for the retail sector say better training and support resources are needed in retail workplaces.
Travis Paul Barnard jailed for stealing girlfriend’s superannuation savings after unexpected death – 7 June 2024
Travis Paul Barnard accessed his partner’s superannuation account in the hours after her sudden death. He changed her non-binding beneficiary to himself using her phone, gaining access to more than $300,000. He has been sentenced to 4 years jail.
https://www.abc.net.au/news/2024-06-07/travis-paul-barnard-girlfriend-superannuation-theft/103951514
Adelaide’s SkyCity casino ordered to pay $67m fine over money laundering case – 7 June 2024
The Federal Court has ordered the operator of Adelaide’s casino to pay a $67 million fine in a money laundering case brought on by AUSTRAC. Allegations in court documents revealed the casino had customers with links to organised crime, loan sharking human trafficking and sex slavery. SkyCity already had set aside more than $70 million to cover the penalty.
Investigation & Fraud News – Week ending 31 May 2024
‘Heartbreaking’: Google search which led to $500,000 scam – 24 May 2024
Jo O’Brien was left “heartbroken” when she learnt her half-a-million dollar divorce settlement had been stolen after she transferred her money into what she thought was a safe investment account. Taking matters into her own hands, Ms O’Brien managed to track down the Melbourne address linked to the company whose bank account her money went into and fearlessly drove to the property to confront those behind the scheme. Ms O’Brien wants to see the laws to change and ASIC do more to hold “business accountable”.
Ex-DanFX director jailed for fraud – 28 May 2024
Daniel Farook Ali, former director of DanFX Trade, has been sentenced to seven years and three months imprisonment for fraud by the Brisbane District Court. The sentencing follows an ASIC investigation that revealed Mr. Ali misappropriated $771,303 of investor funds for personal use.
https://www.brokernews.com.au/news/breaking-news/exdanfx-director-jailed-for-fraud-284795.aspx
Australians have lost millions to scams in the year so far. These are the worst offenders – 25 May 2024
Australians have lost at least $73 million to scams this year, and while the consumer watchdog says the financial impact caused by them is falling, we’ve been warned to remain vigilant. Data shows investment scams continued to cause most financial losses between January and March, accounting for $47.1 million of losses.
Queensland Women Convicted for Covid Scheme Fraud – 28 May 2024
Three Queensland women who illegally attempted to access superannuation payments under a Federal Government COVID-19 scheme have been sentenced to imprisonment. The AFP anti-fraud Taskforce Iris, charged the women in August 2020 after an investigation revealed the group submitted several fraudulent applications to attempt to access the early release of superannuation payments totalling $103,500.
https://www.miragenews.com/queensland-women-convicted-for-covid-scheme-1243941/
Watchdog refers army history of Townsville Mayor Troy Thompson to Crime and Corruption Commission – 28 May 2024
During his months-long campaign, Cr Thompson said he spent about five years with the Royal Australian Corps of Signals and the Special Air Service (SAS) Regiment. This service history was however challenged by a newspaper in April and the matter has been examined by the Office of the Independent Assessor, which investigated the councillors conduct.
The key takeaways from the review into Queensland’s Crime and Corruption Commission – 29 May 2024
Queensland’s Crime and Corruption Commission (CCC) will have the ability to publish its reports on public officials retrospectively, even if the person is found not guilty, but questions remain over what the changes will mean for high profile cases. https://www.abc.net.au/news/2024-05-29/queensland-crime-corruption-commission-review-recommendations/103905820
https://www.sheppnews.com.au/national/corruption-reports-might-be-brought-to-light-by-reforms/
Financial Crimes Squad charge three over fraudulent e-tag scheme worth $2.2m – Strike Force Aratula – 29 May 2024
Financial Crimes Squad detectives have charged three men and conducted a compliance operation at Sydney Airport as part of an investigation into a fraudulent e-tag scheme worth over $2.2 million. The network allegedly sold e-tags linked to falsified payment methods, such as fraudulent credit cards, obtained on the dark web. Police identified the scheme had been in operation for up to five years, with 800 tags in circulation – the majority having been sold to taxi drivers.
Home Affairs Department confirms cyber incident impacting Ticketmaster customers – 29 May 2024
The Department of Home Affairs has confirmed it is working with Ticketmaster to understand a cybersecurity incident. CyberDaily is reporting that notorious hacker group ShinyHunters has stolen personal information on customers. Up to 560 million Ticketmaster customers globally could be impacted by the data breach
Australians duped hundreds of thousands in travel agency scam – 29 May 2024
Nicole Vris used Travel World Sydney to book a 160,000 holiday to Greece for 35 members of her family. After receiving what appeared to be flight reservations for the group, Ms Vris soon realised the documentation was fake. NSW Police confirmed that a strike force investigation had been launched into the fraud.
Investigation & Fraud News – Week ending 25 May 2024
Fourth A-League player expected to be charged over alleged corruption upon return to NSW – 18 May 2024
A fourth A-League player who featured prominently in police interviews with the three men charged over the alleged betting corruption scandal that rocked the Australian sporting world is expected to be charged when he returns to New South Wales. Macarthur FC players Ulises Davila, Kearyn Baccus, and Clayton Lewis were picked up by organised crime detectives, suspected of deliberately conceding yellow cards to manipulate offshore betting markets.
Australians getting better at recognising scams but false billing on the rise – 21 May 2024
Australia’s banks, have made a commitment to implement a suite of measures to combat cyber criminals in a Scam-Safe Accord. One of the measures is to cross-check account names, which has had positive results in other countries. In a statement, the Australian Banking Association said the Scam-Safe Accord “sets an even higher standard of protection by banks to shield consumers from scammers”.
Are we finally winning the war against scams? – 21 May 2024
According to the National Anti-Scam Centre quarterly update for January to March 2023, all three of the government’s key scam reporting agencies reported quarter-to-quarter declines in the financial losses suffered by the people reporting the crimes to them – including the Australian Financial Crimes Exchange. It is believed this is partly due to the success of the cyber ‘A-team’ – a ‘fusion cell’ that joined the ACCC, ASIC and 43 other organisations.
https://ia.acs.org.au/article/2024/are-we-finally-winning-the-war-against-scams-.html
‘I lost my 95-year-old mother’s $1.6m life savings to scammers’ – 21 May 2024
A great-grandmother has lost $1.6 million – her life savings – in a sophisticated scam by criminals who impersonated bank staff. Elaine Spring’s stolen savings were the proceeds from the sale of the family home and were going to be used by her children to help pay for her health care and old-age accommodation.
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James Raptis resigns after ABC investigation reveals his links to plagiarism websites – 22 May 2024
James Raptis, the media lawyer identified by an ABC investigation as being linked to an AI plagiarism operation, has left his position at Australian Community Media (ACM). The network of websites that were publishing plagiarised articles from Australian and international news sites were- called F1 Initiative, League Initiative, Surf Initiative and AliaVera.
Corruption probe finds serious risk of misconduct in $2.8m WA ports tender – 22 May 2024
A report by Western Australia’s corruption watchdog has identified ‘serious misconduct risks’ in relation to a tender awarded by the Mid West Ports Authority (MWPA) to a company owned by a former Mayor.
Dozens of Tasmanian public servants under internal investigation due to adverse findings of child sexual abuse inquiry – 23 May 2024
Tasmania’s Commission of Inquiry (COI) identified 22 public servants who had allegedly committed child sexual abuse, and 42 who failed to take proper steps to prevent abuse or act on allegations. More than six months after the COI report was handed down, 28 are still employed and under internal investigation, while 20 left before an investigation could be finished. The government says it’s asked for investigations to be finished more quickly, and is set to implement 44 of 48 phase one recommendations by the July deadline.
Police “failing” on cybercrime with Ken Gamble – 24 May 2024
A parliamentary inquiry has heard claims Australian law enforcement lack the resources and expertise to properly investigate and prosecute cases of online crime. An international cybercrime investigation firm claims failures in policing have made Australians a favoured target for overseas criminal syndicates. Cybercrime experts say the rapid rise of online scams warrants an urgent improvement of cyber-crime policing.
https://www.abc.net.au/listen/programs/am/police-failing-on-cybercrime/103887478
Australian Privacy Law to be “Much More like GDPR” – 23 May 2024
The Attorney-General’s proposed changes to Australian privacy law and the Government’s recent response will re-shape the approach of business privacy in Australia. The paper “highlights” the agreed changes likely to have the most immediate impact on business. It also details what to expect from the “agreed in principle” proposed changes.
https://www.clydeco.com/en/insights/2024/05/australian-privacy-law-to-be-much-more-like-gdpr
Court freezes claimant’s funds over fraud allegation – 24 May 2024
A statutory benefits claimant has had her bank funds frozen amid allegations of a “brazen fraud” involving forged invoices for medical care she never received. Haneen Asfour is facing civil action by NRMA Insurance, which sought the freeze order ahead of its bid to recover $380,594 allegedly “obtained by the defendant, on the basis of misleading or deceptive statements or conduct in making her claim”.
https://www.insurancenews.com.au/daily/court-freezes-claimant-s-funds-over-fraud-allegation
Fraudster faked NDIS-approved properties to obtain $38m – 25 May 2024
Disgraced former company director Demetrios “James” Charisiou has been sentenced to 12 years’ jail for fleecing overseas investors of more than $38m. The court heard that he was a greedy former company director with an “inflated ego” ripped off South Korean investors of more than $38m using fake NDIS-approved properties.
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Investigation & Fraud News – Week ending 17 May 2024
ACT Integrity Commission investigating suspected corrupt conduct of Walter Sofronoff, who chaired an inquiry into Bruce Lehrmann’s prosecution – 13 May 2024
The ACT Integrity Commission has announced an investigation into the conduct of Walter Sofronoff KC during an inquiry into the prosecution of Bruce Lehrmann.
The commissioner says he suspects “on reasonable grounds” that Mr Sofronoff’s conduct may constitute corruption. The allegations stem from Mr Sofronoff’s release of his final report to two journalists before its release to the public.
AAT Confirms Permanent Ban for Ex-NSW Adviser
The Administrative Appeals Tribunal (AAT) has upheld ASIC’s decision to permanently ban Sean John Sweeney from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business. Financial advisers must act with honesty and integrity in their dealings with clients.
https://www.miragenews.com/aat-confirms-permanent-ban-for-ex-nsw-adviser-1234026/
ATO’s Serious Financial Crime Taskforce receives training to combat crypto crime – 13 May 2024
More than 50 members of Australia’s Serious Financial Crime Taskforce (SFCT) have received crypto asset investigation training from specialists across five leading jurisdictions of global tax enforcement.
The ATO brought together its partners under the Joint Chiefs of Global Tax Enforcement (J5) to give its SFCT an opportunity to explore real-world case studies and emerging technologies to support the identification, investigation and prosecution of cyber targets related to tax crime and money laundering.
Mortgage lender Firstmac suffers cyberattack, customer data including driver’s license numbers and banking details leaked – 14 May 2024
Mortgage lender Firstmac has been subject to a cyber attack where customer data, including banking details and driver’s license numbers, were exposed. The company said it had conducted a “comprehensive review of impacted files” and was notifying affected customers directly.
https://www.abc.net.au/news/2024-05-14/firstmac-cyber-attack-customer-data-breach/103809170
Australia: Whistleblower jailed for nearly six years for media leaks – 16 May 2024
The Australian Capital Territory (ACT) Supreme Court has delivered a 68-month sentence to former military lawyer and whistleblower David McBride for his leaking of classified military information to the ABC. The International Federation of Journalists (IFJ) joins its Australian affiliate, the Media, Entertainment and Arts Alliance (MEAA), in condemning McBride’s sentencing and its alarming impact on public interest journalism, highlighting the urgent need for whistleblower protection reform.
How South-East Asia’s pig butchering scammers are using artificial intelligence technology – 16 May 2024
Real-time deepfake face-swapping systems are reportedly being employed by South-East Asian crime syndicates in so-called “pig butchering” cyberscam operations. Experts say the technology and other new artificial intelligence (AI) tools – such as generative AI chatbots – are increasing the effectiveness of the scams and broadening their reach to new victims.
AI ‘explosion’ will see up to $34.7BN spent on AML this year – 16 May 2024
A Financial crime and compliance expert has told how the “explosion” of AI will see $34.7bn potentially spent on Anti Money Laundering this year that this will increase by 5.7% by 2028, to $43.7BN. AI has caused an “even bigger impact” on financial crime compliance, than in society at large, Ms Simmons told the European Anti-Financial Crime Summit.
https://www.amlintelligence.com/2024/05/symphonyai-financial-crime-expert-states-ai-explosion/
NSW police allege Ulises Dávila, Kearyn Baccus and Clayton Lewis were involved in a scheme ‘for yellow cards to occur during certain games’ in late 2023 – 17 May 2024
Three A-League players have been charged and a fourth could be extradited following a NSW Police investigation into alleged “yellow card manipulation” in matches this season. A six-month investigation found a senior player was allegedly instructed by a man believed to be in South America to “organise for yellow cards to occur during certain games in exchange for profit”.It is alleged the players manipulated the number of yellow cards during games on November 24 and December 9.
Australian College of Nursing executives sacked after investigation finds alleged ‘financial irregularities’ – 17 May 2024
The CEO and an executive of the Australian College of Nursing have been sacked following an investigation into alleged “financial irregularities” at the organisation. The ACN’s board says it will work to reinforce a “culture of accountability and transparency” at the college.
