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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.
Access to digital AFR required
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.
Investigation & Fraud News – Week ending 10 May 2024
‘Gaming the process’: Probe finds $1 million of pandemic grants were claimed fraudulently – 3 May 2024
A South Australian corruption investigation has found more than $1 million of cash grants meant to help businesses stay afloat during the COVID-19 pandemic were claimed fraudulently.
The Independent Commission Against Corruption (ICAC) unearthed flaws in the grant system, where officials were left unable to access the Australian Tax Office files to verify claims made by businesses.
Two integrity investigations into Tasmanian MPs have been going for almost two years, but little information has been made public – 3 May 2024
Tasmania’s Integrity Commission recently urged politicians not to speculate about investigations into members of parliament. One investigation, codenamed Loyetea, has been running for two years, while another, Olegas, started being assessed 22 months ago. The Centre for Public Integrity says the commission is “encouraging” the political speculation by failing to resolve the investigations quick enough.
Sydney Man Expected To Be Charged With Blackmail After Major Data Breach Investigation – 4 May 2024
A man in Sydney has been arrested by the police under suspicion of blackmail in connection to a significant data breach investigation. The breach has resulted in the exposure of personal details belonging to potentially up to one million residents of New South Wales and the Australian Capital Territory (ACT), which were shared online.
Warren Buffett says AI may be better for scammers than society – 5 May 2024
Warren Buffett cautioned the tens of thousands of shareholders who packed an arena for his annual meeting that artificial intelligence scams could become “the growth industry of all time”. Someone made a fake video of Mr Buffett, apparently convincing enough that the so-called Oracle of Omaha himself said he could imagine it tricking him into sending money overseas.
Access to digitial version of AFR required to read article
Australians have had a gutful of corruption, but will the latest promises of whistleblower reform be enough? – 6 May 2024
The cases of ex-military lawyer David McBride and ATO whistleblower Richard Boyle have prompted a growing public interest in whistleblower protections. Both men have spent years waiting for judgment. Submissions reveal that our whistleblowing protection laws are not fit for purpose and need updating. Some call for a separate independent agency to help fill the gaps and encourage more whistleblowing.
Embattled plane maker Boeing faces new investigation – 8 May 2024
It’s been a tough week for US plane maker Boeing, which suffered a rocket glitch forced the delay of its first-ever astronaut launch, just two hours before lift-off. It comes as the US Federal Aviation Administration opened a new investigation after the company reported that workers had falsified inspection records on certain 787 Dreamliner planes.
The time to assess your company’s exposure to bribery and corruption risk is now – 8 May 2024
In the wake of the new ‘failure to prevent’ offence, the Commonwealth Attorney-General is required to publish guidance on the steps that can be taken to prevent an associate from bribing foreign public officials, to assist companies to implement appropriate measures to stop bribery. In this paper, they discuss the new draft adequate procedures guidance1 and explain what you need to do to prepare for the foreign bribery reforms taking effect in early September 2024.
Greyhound industry reforms to be overseen by former racing integrity commissioner Sal Perna – 8 May 2024
Note: Sal has been an AIPI member for several years. Sal Perna, who was Victoria’s racing integrity commissioner, will oversee administrative and animal welfare reforms in the SA greyhound industry. Mr Perna’s appointment comes after the ABC revealed animal abuse Mr Perna will regularly report to SA Racing Minister Katrine Hildyard.
NDIS provider accused of excessive use of force against people with disabilities – 9 May 2024
An ABC investigation has uncovered a series of allegations by former workers blowing the whistle on mistreatment, neglect and excessive use of force against people with disabilities being cared for by NDIS provider Evolution Support Services. https://www.abc.net.au/news/2024-05-09/ndis-provider-evoloution-support-services-under-scrutiny/103814678
https://www.abc.net.au/news/2024-05-09/ndis-provider-accused-of-excessive-use-of-force/103828586
Fiji’s former prime minister Frank Bainimarama sentenced to one year in jail after interfering in police investigation – 9 May 2024
Fiji’s former coup leader and former prime minister Frank Bainimarama has received a one year jail sentence after being convicted of perverting the course of justice. The conviction related to his role in influencing a police investigation into funding of the Pacific region’s biggest university in 2019. Bainimarama faces a series of charges after he lost office in Fiji’s December 2022 election.
https://www.abc.net.au/news/2024-05-09/frank-bainimarama-sentenced-to-jail-fiji-court/103791144
