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Investigation & Fraud News – Week ending 22 March 2024
IT contractor sentenced for cybercrime and fraud offences after swindling more than $60k – 18 March 2024
A Sydney man has been sentenced to two years and six months imprisonment for swindling more than $66,000 from a dozen victims after abusing his role as an IT contractor with a third-party provider to the Australian National Maritime Museum (ANMM). The man used illegally changed his bank account details to his own.
Evergrande Accused of China’s Largest Financial Fraud – 18 March 2024
Chinese developer Evergrande has been slapped with a $580 million fine in the country’s largest financial fraud case. The latest penalty is another setback for the embattled property firm.
https://www.firstpost.com/vantage/evergrande-accused-of-chinas-largest-financial-fraud-vd7085/
https://www.afr.com/world/asia/china-accuses-evergrande-of-shocking-78b-fraud-20240319-p5fdnz
Death sentence sought for Truong My Lan, the woman allegedly behind Vietnam’s largest-known financial fraud – 20 March 2024
Vietnamese prosecutors have called for the death penalty to be handed to Truong My Lan. She is accused of netting $18.8 billion in a financial scam. Truong My Lan is also accused of bribing officials to hide her embezzlement.
Andrew Donald Steele pleads guilty to persistent sexual abuse of child overseas – 20 March 2024
Andrew Donald Steele pleaded guilty to multiple child sex offences committed outside of Australia. A court document states he used an instant messaging app to produce and distribute child abuse material while in Indonesia. The maximum penalty for persistent sexual abuse of a child is 30 years’ imprisonment, and Steele will be sentenced at a later date.
WA Corruption and Crime Commission officer hid intimate relationship with informant, report finds – 21 March 2024
An officer with WA’s Corruption and Crime Commission has been dismissed after having “an extensive and intimate relationship” with an informant. She passed on sensitive information to her lover during the secret relationship, including the identity and location of another CCC informant. The CCC has commissioned an independent review of the failures that allowed “the officer’s deception”.
https://www.abc.net.au/news/2024-03-21/wa-ccc-officer-dismissed-for-misuse-of-position/103615164
Melbourne man on trial for exit trafficking after allegedly leaving wife stranded overseas without passport – 21 March 2024
Mohamed Ahmed Omer was charged with exit trafficking after he allegedly left his wife stranded overseas without a passport. Its alleged Mr Omer secretly withdrew his sponsorship for his wife’s partner visa before booking the trip and flying home without her. Mr Omer has pleaded not guilty to the charge.
Why strict non-disclosure agreements in sexual harassment cases shouldn’t be the only option – 21 March 2024
These days, NDAs are widely used in Australian workplaces, but questions are increasingly being raised about who they benefit the most. Wil Stracke, Assistant Secretary of the Victorian Trades Hall Council, says these agreements allow toxic workplace cultures to continue and they are “incredibly harmful for those who sign them”.
https://www.abc.net.au/news/2024-03-21/ndas-for-the-law-report/103580610
Strata firm Netstrata apologises, managing director steps aside from peak body after being found to be charging excessive fees to home owners – 21 March 2024
The Strata Community Association NSW confirmed it has launched an investigation after the ABC revealed a decade-long history of self-dealing and conflicts of interest at Netstrata. The ABC reported Netstrata has been using its wholly owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate. The company was also exposed for having taken kickbacks from contractors and suppliers it hires using the strata funds of more than 1,000 buildings, and 35,000 apartments, across NSW.
Australian Bureau of Statistics reveal details of ‘sizeable’ increase in card fraud as Australians lose $2.2 billion in 2023 – 21 March 2024
There has been a “sizeable” increase in the number of Australians affected by card fraud in 2023, compared to the previous year. An Australian Bureau of Statistics report says an estimated gross amount of $2.2 billion was lost to card fraud. The ABS and ACCC say Australians are becoming “more and more aware” of personal fraud and scams.
https://www.abc.net.au/news/2024-03-20/abs-card-fraud-scam-data/103609822
PwC chairman refuses to share tax leaks scandal investigation with Australian parliament – 21 March 2024
PwC’s global chairman, Bob Moritz, has refused to comply with a request from the Australian parliament to share a copy of an investigation used to contain the tax leaks scandal to Australia. The decision will likely set up another showdown with Australian politicians who have strongly criticised the firm for not sharing the report, and frustrate government departments that have believe it should be shared.
Consumer group calls for action on super scams – 21 March 2024
Advocacy group Super Consumers Australia is urging the Federal Government to introduce a superannuation industry anti-scam code. Heather Gray, the lead ombudsman for superannuation at the Australian Financial Complaints Authority (AFCA), told Super Consumers that superannuation funds have fallen behind the banks in their ability to detect and prevent scams and fraud.
https://nationalseniors.com.au/news/finance/consumer-group-calls-for-action-on-super-scams
Ethics committee for Formula 1 clears FIA president Mohammed Ben Sulayem of wrongdoing in whistleblower complaint – 21 March 2024
FIA president Mohammed Ben Sulayem was accused of interfering in two races during last year’s F1 season. An independent ethics committee cleared Ben Sulayem of wrongdoing after a 30-day investigation.
The F1 returns to Australia this weekend, with the main race set to start on Sunday at 3pm (AEDT).
Investigation & Fraud News – Week ending 14 March 2024
Spanish police uncover Banksy fakes workshop, four arrested in alleged syndicate – 6 March 2024
Four people have been arrested in Spain accused of running a syndicate selling counterfeit Banksy artworks. The ring is suspected to have sold at least 25 works around the world at prices up to 1,500 euros ($2,480) a piece. Police are continuing to investigate and have not ruled out further arrests.
https://www.abc.net.au/news/2024-03-08/spanish-police-smash-banksy-fakes-syndicate/103564140
INTERPOL Financial Fraud assessment: A global threat boosted by technology – 11 March 2024
A new INTERPOL assessment on global financial fraud highlights how the increased use of technology is enabling organised crime groups to better target victims around the world. The use of Artificial Intelligence (AI), large language models and cryptocurrencies combined with phishing- and ransomware-as-a-service business models have resulted in more sophisticated and professional fraud campaigns without the need for advanced technical skills, and at relatively little cost. Analysis behind the INTERPOL Global Financial Fraud Assessment also points to the global expansion of human trafficking for the purpose of forced criminality in call centres, particularly to carry out ‘pig-butchering’ scams – a hybrid scheme combining romance and investment frauds, using cryptocurrencies.
How to protect your personal data from China’s mass surveillance regime, according to top cyber experts – 12 March 2024
Top Canberra insiders and cybersecurity specialists reveal how China is weaponising artificial intelligence and social media like TikTok to undermine Australian democracy. “We are facing an authoritarian regime that can reach right into our bedrooms, into our kids’ room, into our lounge room, and we don’t know how to handle that,” intelligence expert Professor John Blaxland, whose research confirms that China has penetrated Western countries with a multitude of advanced AI-led surveillance and cyber espionage capabilities.
Toormina man sentenced in Coffs Harbour after financially scamming Sydney law firms – 12 March 2024
Toormina man Anthony Gerard Kent has been sentenced at Coffs Harbour Local Court after scamming more than $700,000 from Sydney law firms and charities. The court heard he was not the “mastermind” behind the operation, but used emails and fake bank accounts. He will serve a 15-month intensive corrections order in the community.
https://www.abc.net.au/news/2024-03-12/law-firm-email-scammer-anthony-gerard-kent/103493452
Experts concerned over ASIC’s lack of phoenixing prosecutions – 12 March 2024
Experts say little has changed in illegal phoenixing since the $105 million Plutus tax fraud, as the building industry deals with a wave of claims about multi-million dollar tax-dodging schemes operating over decades. University of Sydney Business School Professor Clinton Free, found in a recently published analysis that despite the former Morrison government introducing laws to combat illegal phoenixing in 2020, the corporate watchdog had not yet used the new powers to bring criminal or civil prosecutions.
Access to digital version of AFR required to read article.
‘Nobody gets a free pass’ Australian Government delegate tells Facebook at Global Fraud Summit – 13 March 2024
Federal assistant treasurer Stephen Jones called for social media giants to ‘do better’ when it comes to fraud and scams while attending the Global Fraud Summit. Member nations of the summit, including Britain, Canada, Germany, Italy, France, Japan, Korea, Singapore, New Zealand and the US, resoundingly backed Jones’s call for Facebook (NASDAQ:META) parent company Meta, in particular, to up its game in the fight against fraud and scams. The summit heard that some states had seen a threefold-plus increase in complaints to their attorneys-general in the last year from consumers who had social media accounts hacked.
New ACCC figures show sharp rise in older people being fleeced in social media scams – 13 March 2024
Australians lost a total of $477 million to scams last year, according to new ACCC figures. The Scamwatch report also showed year-on-year losses dropping by $92 million, especially for investment scams. The government has plans to introduce mandatory codes for banks, telcos and social media companies which it says will impose tough new standards.
Fatal Ballarat mine collapse under investigation – 14 March 2024
Victoria’s workplace safety regulator has launched an investigation into a mine collapse at Ballarat that killed one miner and badly injured another.
Former Fiji prime minister Frank Bainimarama found guilty of interfering in police investigation – 14 March 2024
A court has found former Fiji prime minister Frank Bainimarama guilty of attempting to pervert the course of justice. State prosecutors had appealed a decision by a lower court to acquit Bainimarama, after it found there was insufficient evidence to convict him of interfering in a police investigation. Bainimarama will face sentencing back in the magistrates court on March 28.
NT ICAC commissioner says investigations ‘thwarted’ by denial of access to cabinet documents, inadequate funding – 14 March 2024
The NT ICAC says on four occasions since July 2022, the NT government has refused to hand over cabinet documents that could assist its investigations. Commissioner Michael Riches has also raised concerns around his office’s budget and staffing levels, and government transparency. The concerns have been aired in a report tabled in NT Parliament this week, in which Mr Riches said his office currently had 15 active investigations.
https://www.abc.net.au/news/2024-03-14/nt-icac-report-says-government-refusing-cabinet-document-access/103582196
NSW government doubles penalties for environmental crimes to ‘make polluters pay’ after asbestos-contaminated mulch fiasco – 14 March 2024
The NSW government has given stronger powers to the Environment Protection Authority (EPA) to penalise environmental fines. The move was spurred by a criminal investigation into 78 sites testing positive with asbestos-containing mulch, and include a $4 million penalty for related offences for companies.
Whistleblowers allege they were targeted by Queensland Health after exposing problems with tuberculosis patient care – 14 March 2024
The frontline unit established to combat tuberculosis (TB) in Queensland is alleged to have lost key medical files, employed systems that potentially compromised patient care and persecuted two of its most senior staff, forcing them to seek whistleblower status. The allegations emerged after two of the unit’s most senior medicos – infectious diseases expert Doctor Emma McBryde and the unit’s former head nurse – made complaints to the state’s Crime and Corruption Commission seeking protection as official whistleblowers.
Boeing death a stark reminder of the need for a Whistleblower Authority – 14 March 2024
The reported suicide of Boeing whistleblower John Barnett in Charleston, South Carolina (US), is a reminder of the need for reform in Australia. Following the PwC tax leaks scandal, the Government has introduced a Bill to extend whistleblower protections to cover disclosures made to the Tax Practitioner board. A comprehensive review of Australia’s tax and corporate whistleblower laws will commence in July. Proposals for strengthening whistleblower protections will include extending its breadth – who and what is covered, at what stage, and on what basis.
https://michaelwest.com.au/lendlease-whistleblower-calls-for-whistleblower-authority/
How AI-powered technologies can eventually eradicate retail crime – 14 March 2024
Retailers are hoping AI-powered surveillance and other technologies can eventually make theft a thing of the past.
Video surveillance systems, locked cases that can be operated by smartphones, and AI-powered heat maps are just a few of the anti-theft advancements on the market. The live heat map pulls in real-time data from a variety of sources, including retailers, law enforcement, and fire rescue agencies. The map aims to track and prevent theft – or, at a minimum, alert other retailers on the app if a crime occurs nearby.
Australia introduces Scam Safe Accord to combat AUD $3.1bn scam crisis – 14 March 2024
Australia’s efforts to combat an alarming tide of scams have culminated in the launch of the Scam Safe Accord, a consolidated and innovative response conceived by the country’s financial institutions. According to sources, Australians lost a staggering AUD $3.1 billion to scams in 2022 alone, marking a 253% surge over two years. The Scam Safe Accord, brought to fruition by the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), aims to staunch this bleeding of resources and protect Australians from further financial exploitation.
Investigation & Fraud News – Week ending 8 March 2024
As David McBride braces himself for a prison sentence, what will it take for the public to care about whistleblowers? – 4 March 2024
McBride pleaded guilty in November to leaking sensitive classified military information to the ABC because he said the law as it stood for whistleblowers left him with no other choice. The documents were used to expose war crimes by special forces in Afghanistan in a series known as the Afghan Files. The sentencing of David McBride will be a clarifying moment for whistleblowing protections in this country and raises the question, as to whether the public, is doing enough to support whistleblowers.
https://www.abc.net.au/news/2024-03-04/david-mcbride-sentencing-whistleblower-protection/103539646
ASIC takes down 3,500 scam websites in six months – 5 March 2024
The federal government’s new scam website takedown service is removing nearly 20 websites every day since it was launched midway through last year. According to new statistics released by ASIC, this new service took down 3,490 investment scam and phishing websites from 1 July to 31 December last year, the first six months of its operation. ASIC has also launched an investor list to help consumers inform themselves if an entity they are considering investing in may be fraudulent, unlicensed or a scam.
https://ia.acs.org.au/article/2024/asic-takes-down-3-500-scam-websites-in-six-months.html
Terry Irving was imprisoned for a crime he didn’t commit. Now the justice system will be asked to answer the ultimate question: What’s the cost of loss of liberty? – 5 March 2024
Terry Irving spent years in jail for a crime he didn’t commit. Terry and his legal team continue to seek justice and compensation, their fight underscores the broader impacts of such cases on public faith in the legal system and the urgent need for reforms to address racial biases and ensure fairness and transparency in judicial proceedings. Terry Irving’s story is a sobering reminder of the cost of freedom and the price paid by those wrongfully deprived of it.
Former Thai prime minister Yingluck Shinawatra acquitted of mishandling government funds – 5 March 2024
Thailand’s former prime minister Yingluck Shinawatra has been acquitted of mishandling funds for a government project in 2013. Currently in exile, to return to Thailand without facing prison, Ms Yingluck would also need a pardon from King Maha Vajiralongkorn or another form of clemency.
Combating financial crime with AI – 6 March 2024
While the public sector is moving quickly to address fraud with regulations like the Commonwealth Fraud Control Framework, fighting AI-driven fraud is increasingly resource-intensive for many in the private sector. Investigators are spending more time diving into countless records and behavioural indicators to identify fraud. And just as one fraud trend is countered, criminals employ a different attack method. Article looks at how financial institutions can better fight fraud in the face of high-cost pressures, while adhering to tightening compliance regulations.
Damning report into former Sydney prison guard who sexually assaulted inmates highlights culture, management problems – 6 March 2024
A report into the sexual offences committed by former prison guard Wayne Gregory Astill has been released publicly. It found Astill should have never been hired by Corrective Services NSW after concerns during his time as a police officer. A taskforce will be set up to fix the culture and procedures in Corrective Services.
Former Julalikari CEO Sam Ashton sacked after $1.2m in financial irregularities found, document reveals – 6 March 2024
The former CEO of a large Northern Territory Aboriginal corporation was sacked after an investigation uncovered $1.2 million of financial irregularities. The irregularities impacted several of Julalikari’s businesses, including a fund for Indigenous people who cannot afford a funeral service.
A member of the organisation hopes Julalikari can return to its former glory with “a lot of hard work”.
Spanish prosecutors accuse Real Madrid coach Carlo Ancelotti of $1.7 million tax fraud – 6 March 2024
Real Madrid coach Carlo Ancelotti has been accused of committing tax fraud worth 1 million euros ($1.7 million) by Spanish state prosecutors. The Italian, who is one of soccer’s most successful coaches, is alleged to have used shell companies to hide parts of his income in 2014 and 2015. Prosecutors say Ancelotti could face up to four years and nine months in prison.
Cryptocurrency fraud is now the riskiest scam for consumers, according to BBB – 6 March 2024
Cryptocurrency is an unregulated investment space that federal regulators and consumer advocates have long said makes it ripe for fraud. The Better Business Bureau has stated that these scams are now the riskiest type of cons in the U.S., with about 80% of Americans targeted in crypto and investment scams last year losing money.
https://www.cbsnews.com/news/crypto-scam-risk-bbb-report/
This is food fraud: The growing problem in Australia that ‘can fool anyone’ – 7 March 2024
There are different types of food fraud, including tampering, mislabelling, counterfeit products, and dilution. A 2021 report by AgriFutures found food fraud was costing producers globally around $40 to 50 billion a year, and $2 to 3 billion in Australia alone, without accounting for the vast scale of undetected fraud.
https://www.sbs.com.au/news/article/food-fraud-is-on-the-rise-and-can-fool-anyone/aikgyxlzg
Australian HSBC customers demand action over $6.3m ‘spoofing’ scam – 8 March 2024
Australians continue to lose huge amounts of money to a long-running text message scam targeting customers of HSBC. The ABC has obtained a recording of a scammer speaking to a victim. Whilst consumer advocates are calling for urgent action to shut the scam down and investigate “weak spots” in scam prevention networks.
https://www.abc.net.au/news/2024-03-08/hsbc-customers-demand-spoof-scam-action/103549516
Investigation & Fraud News – Week ending 1 March 2024
12 stories this week:
Class action filed as Apple and Google are accused of breaching legislation – 22 Feburary 2024
Millions of Australians are unknowingly taking on Apple and Google in a massive class action beginning next month. The tech giants are accused of breaching Australian Consumer Law, by forcing app developers to use their payment systems, in turn leading to higher prices for apps by consumers.
https://www.youtube.com/watch?v=fCNmLh8Fok0
‘Uncontrollable’: We’re facing a scams ‘epidemic’, and this is what’s driving it – 22 Feburary 2024
Artificial intelligence is fuelling an epidemic of online financial scams, cyber security experts warn. In 2022, Australians lost more than $3 billion to scams – $377 million involving fraudulent investment schemes. The warning comes alongside an AAP FactCheck investigation into cryptocurrency scams targeting the Pacific Islands.
The AFP could learn a lesson from Oregon about engaging the public on surveillance technologies – 22 Feburary 2024
The investigation of the Australian Federal Police (AFP) and its misuse of Auror, a digital surveillance platform collecting and flagging data about criminal suspects, reveals a disturbing pattern of privacy violations. Article explains how in Portland, Oregon they embraced public engagement, getting those impacted involved, and rebuilt trust as a solution.
GST registration to become “slower and potentially more difficult” after $2 billion fraud – 22 Feburary 2024
The wave of fake ABN and GST registrations resulted in $2 million worth of brazen fraud. ATO has consequently changed its approach to ABN and GST signups, to the detriment of small businesses doing the right thing. The ATO has also identified nine current contractors and three current employees as participants in the fraud.
Coles, Woolworths Profit from High-Tech Surveillance Control – 23 Feburary 2024
Australian Council of Trade Unions and the ACCC have found that Coles and Woolworths have engaged in unfair pricing practices. An ongoing Senate inquiry into food prices is now looking at how these practices are linked to inflation; and the ACCC has just begun a government-directed inquiry into potentially anti-competitive behaviour in Australia’s supermarkets. Furthermore, Coles and Woolworths are both implementing technologies that treat the supermarket as a “problem space” in which workers are controlled, customers are tracked and profits are boosted.
https://www.miragenews.com/coles-woolworths-profit-from-high-tech-1179723/
Australia: Australian Corporate Crime And Investigations Outlook 2024 – 27 Feburary 2024
This article explores new corporate crime and investigations issues to watch in 2024. Environmental, social and governance is highlighted and we can expect to continue to see companies exposed to regulatory and enforcement scrutiny, where there has been an inadequate appreciation of corporate crime expectations, within the risk environment.
https://www.mondaq.com/australia/corporate-crime/1429572/australian-corporate-crime-and-investigations-outlook-2024
Crypto king’s passport seized over $50m collapse – 28 Feburary 2024
The Chinese director of Blockchain Global has been banned from leaving Australia, while a criminal investigation looks into the $50m collapse of the firm.
Access to digital version of the Australian required to read article
AI deepfake scams surge with celebrity voice cloning on social media – 28 Feburary 2024
Advanced AI technology has increased the frequency of celebrity deepfake scams, particularly audio scams on popular social media platforms such as Facebook. These scams use voice cloning technology to replicate the tone and speech patterns of notable celebrities, including Oprah, Jennifer Aniston, Elon Musk, and YouTube star Mr. Beast.
Police bust alleged Gold Coast-based ‘boiler room’ investment fraud ring – 29 Feburary 2024
Police have charged five people allegedly behind an investment fraud operation, which claimed $3 million from at least 300 victims. A 60-year-old woman has been charged with money laundering, fraud, and personation in general – falsely represent, while two men, have been charged with one count each of money laundering and fraud.
Unnamed ‘traitor’ politician cultivated by spies puts loyalty of all politicians in question, says former treasurer – 29 Feburary 2024
Australian intelligence has revealed a retired politician was recruited by an international spy ring, and in one plot attempted to introduce a prime minister’s family to their foreign handlers. Former treasurer Joe Hockey says every politician will be questioned as a traitor, until the politician recruited by spies is named.
Facebook Marketplace has become the home of scammers. The problem may be getting worse – 1 March 2024
Facebook Marketplace dominates reports of online buying scams and the problem appears to be getting worse. NAB reports of “buying and selling” scams increased 78 per cent in the final quarter of 2023, with most of these reports involving social media or an online marketplace. The Australian government is preparing a mandatory code that would require digital platforms to do more to block scammers and scam listings.
Fraud-accused arrested for allegedly claiming $16,000 in River Murray flood recovery funding – 1 March 2024
A 47-year-old woman allegedly submitted false applications involving two flood relief grants in December 2022 and March 2023. She was arrested in Encounter Bay last month and charged with fraud offences. Police and government authorities will assess other applications for potential fraudulence.
