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Investigation & Fraud News – Week ending 11 November 2022
11 stories this week:
Full disclosure: The shake-up about to hit corporate Australia – 5 November 2022
This month, the federal government will release guidelines for companies on the use of controversial non-disclosure agreements in workplaces, following the expected legislation in federal parliament of the Respect at Work bill.
Access to digital version of SMH required to read article
Scammers are turning our most vulnerable into drug mules. Here’s how – 6 November 2022
18 alleged drug mules have been arrested, with some telling the Australian Federal Police (AFP) “they had been coerced into the role after they became victims of online financial scams.” The alleged drug mules are part of a larger trend in which international crime syndicates coerce scam victims into carrying drugs across border to recoup their debts.
California Man Extradited From Australia To Face Charges For Investment Scheme – 7 November 2022
It is alleged that Guzman, executed a scheme to defraud investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead it is alleged, he used the money to fund his personal lifestyle and to prevent his victims from redeeming their investments and complaining to authorities, the indictment alleges that Guzman lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements. He has been Extradited from Australia to face charges.
Automatic speaker recognition technology outperforms human listeners in courtroom – 8 November 2022
Article discusses research reviewing whether the services of real experts: specialist forensic scientists who employ empirically validated and demonstrably reliable forensic-voice-comparison systems are more reliable than human listeners.
https://www.miragenews.com/automatic-speaker-recognition-technology-890422/
Who Is Extorting Australian Health Insurer Medibank? – 8 November 2022
Medibank publicly said it wouldn’t pay a ransom to attackers who it says took sensitive data of 9.7 million current and former customers. Some cybercrime researchers have dubbed the extorntion group “BlogXX”. BlogXX’s website contains links to the infamous REvil ransomware gang, which attacked the software developer Kaseya in July 2021 and JBS Foods in May 2021. Both incidents had big knock-on effects within Australia.
https://www.bankinfosecurity.com/blogs/who-extorting-australian-health-insurer-medibank-p-3310
‘Putin’s chef’ and Wagner group mercenary boss Yevgeny Prigozhin admits meddling in US elections – 8 November 2022
Kremlin-connected entrepreneur Yevgeny Prigozhin has admitted that he has interfered in US elections and would continue to do so, confirming for the first time the accusations he has rejected for years. Mr Prigozhin has been sanctioned by the United States, the UK and the European Union.
ASIC Warns Against Fake IPO Investment Frauds – 9 November 2022
ASIC issued a warning regarding the increased number of fake initial public offering (IPO) investment scams targeting consumers and individual investors. Scammers are impersonating licensed Australian firms and promoting fake offerings. Recently, investors were offered the opportunity to invest in Porsche’s IPO. The fake offers overlapped with the actual listings and led to a loss of funds. ASIC stated that after transferring money to scammers, it is no longer able to help consumers.
https://www.financemagnates.com/forex/asic-warns-against-fake-ipo-investment-frauds/
Scam losses could hit $4b this year. Should banks wear the cost – 9 November 2022
Australians lost an estimated $2 billion to scams last year, and the government says losses could well double to $4 billion this year. One idea that’s been raised is whether banks should shoulder more of the cost of reimbursing scam victims, thereby giving banks an incentive to improve their defences against scam.
Greek Australian Family robbed out of $40,0000 following massive telecoms hack – 9 November 2022
A Greek Australian family appears to have fallen victim to identity theft following the recent Optus telecoms hack which saw thousands of customer data breached, resulting in them losing some $40,000. Jimmy Marinis and Mary-Jane Daffy said they believed identity thieves “piggy backed” off the Optus hack and gained access to their bank accounts, emptying out their credit cards along the way.
https://greekcitytimes.com/2022/11/08/greek-australian-family-robbed/
Gold Coast Pensioner’s big bank win after scam fallout – 5 November 2022
A mistake of paying $5 for a supposed unpaid toll in after receiving a scam text message, resulted in Queenslanders loosing $10000 in the Linkt phishing scam.
Worker surveillance tech is outpacing outdated NSW laws – 10 November 2022
The newly published second and final report of the Select Committee on the Impact of Technological and Other Change on the Future of Work and Workers in NSW, which was briefed in March 2020 and published its first report in April, made 13 recommendations to overhaul workplace surveillance and automation legislation that was originally published in 2005. The changes are desperately required due the development of smartphones, high-speed wireless networking, connected security cameras, AI-driven employee monitoring, and other technologies.
https://ia.acs.org.au/article/2022/worker-surveillance-tech-is-outpacing-outdated-nsw-laws.html
Man arrested for $130,000 Centrelink fraud: ‘Scumbag – 10 November 2022
A Taiwanese national was arrested in Sydney after allegedly stealing more than $130,000 in COVID-19 support payments from Centrelink. The fraudsters are believed to have posed as an accounting agency on a messaging app and offered to submit claims on behalf of people who needed to access the payments, in exchange for their details and a fee. The man is also alleged to have stolen several identities and claimed payments in their names.
Investigation & Fraud News – Week ending 4 November 2022
11 stories this week:
Pathology lab, ACL, criticised for five-month delay in reporting patient data hack – 28 October 2022
Australian Clinical Labs (ACL) has been criticised for waiting five months to inform patients their data had been stolen and leaked onto the dark web. This meant criminals could have accessed the stolen data to commit acts like identity theft, financial scams via impersonation for months.
How Facebook scammers hijacked the Herald brand – 31 October 2022
The Sydney Morning Herald’s website layout and branding have been replicated by criminals to spread fake articles on Facebook and dupe people into investing in fraudulent financial schemes.
Trump Organization’s criminal tax fraud trial begins in New York – 1 November 2022
The criminal trial for the Trump Organisation has begun in New York with the prosecution and defence giving their opening statements. Donald Trump’s company was charged with tax fraud in July 2021, over allegations it helped executives cheat their own taxes.
Former Olympian Neil Brooks and wife ‘very confident’ fraud charges against them will be dropped – 2 November 2022
It is alleged that in 2008 Mr and Ms Brooks made dishonest representations about the success of their sports merchandise business, in order to induce two investors to purchase a 50 per cent stake in the company. They believe they will be cleared of these charges in court.
https://www.abc.net.au/news/2022-11-02/neil-brooks-linda-wife-fraud-charges-court/101607786
Corruption claims fly in NAB fraud trial – 2 November 2022
A court has heard that 1.2 million dollars of corrupt payments and altered invoices between 2013 and 2017, were all part of an Helen Mary Rosamond’s plan to reward a NAB senior staffer and lock in extended business contracts with the bank.
https://au.news.yahoo.com/corruption-claims-fly-nab-fraud-025047935.html
Financial watchdog launches investigation into Sportsbet and Bet365 over money laundering suspicions – 3 November 2022
Austrac has launched an investigation into gambling companies Sportsbet and Bet365, on suspicions they have failed to comply with anti-money laundering laws. External auditors will be appointed to investigate the suspected non-compliance.
Queensland couple make horror $860,000 mistake – 3 November 2022
A family has lost $860,000 after being strung along for months by an elaborate syndicate of scammers. Coins Markets, or Coinsmarkets.io, taught them how to buy stocks and trade. The company had a sophisticated website complete with a complex login portal and multiple positive ratings across different review sites. Everything appeared to be legitimate until they were asked to place aggressive trades.
Millions forfeited after investigation into fraudulent scheme – 3 November 2022
New Zealand Police has successfully petitioned the High Court for the forfeiture of more than $2 million under the Criminal Proceeds (Recovery) Act, following an investigation into funds held in New Zealand by a Malaysian national. An investigation determined it to be related to a fraudulent scheme run in Malaysia – the VenusFX scheme.
https://www.miragenews.com/millions-forfeited-after-investigation-into-887768/
Dreyfus faces international pressure over whistleblowers – 4 November 2022
International transparency groups are pushing Attorney-General Mark Dreyfus to drop two high-profile whistleblower prosecutions (former Tax Office employee Richard Boyle and former military lawyer David McBride), and have called for better protections for people speaking up against wrongdoing.
Company directors scrambling to get ID or face $13,000 fine in bid to stop ‘dummy directors’ – 4 November 2022
It will be mandatory for all company directors covered by the Corporations Act to have a unique ID number by end of November. The Directors Identification Numbers are being introduced in a bid to crack down on so-called “dummy directors” and company “phoenixing” by allowing authorities to track activities through various government databases.
Cybercrime reports jump as criminal gangs target families and businesses, cybersecurity agency says – 4 November 2022
The Australian Cyber Security Centre (ACSC) has launched its third annual threat report, revealing that it received over 76,000 cybercrime reports last financial year – a 13 per cent increase from the year before. Criminal gangs are weaponising sensitive stolen data at a greater scale.
https://www.abc.net.au/news/2022-11-04/cyber-crime-reports-jump-acsc/101612978
Investigation & Fraud News – Week ending 28 October 2022
14 stories this week:
Central Queensland woman refused bail after facing court over alleged Luke Combs ticket scam – 18 October 2022
A Central Queensland woman has been charged after allegedly scamming more than a dozen country music fans up to $3,500 each. She was arrested and charged with 16 counts of fraud.
https://www.abc.net.au/news/2022-10-19/woman-denied-bail-allegedly-scams-luke-combs-fans/101550520
Credit Suisse Set to Settle Criminal Tax Case in France – 21 October 2022
Credit Suisse Group AG will aim to settle a tax fraud and money laundering case in France, that saw coordinated raids in five countries from Australia to the UK. The Swiss lender is in the final stretch of negotiations with prosecutors at the Parquet National Financier, to reach a settlement that would include a fine but no admission of guilt.
https://au.finance.yahoo.com/news/credit-suisse-set-settle-criminal-080922810.html
NSW Govt backs AI inquiry
The NSW Government has agreed to back an inquiry into the use of artificial intelligent technology and whether NSW’s legislative framework is “fit-for-purpose”. The proposed inquiry will explore areas such as transport, health and cyber security, alongside technology including facial recognition, biometric surveillance, and algorithmic programming. – 21 October 2022
https://www.arnnet.com.au/article/702595/nsw-govt-backs-ai-inquiry/
Yevgeny Prigozhin, known as Vladimir Putin’s chef, revealed as Wagner Group mercenary boss – 23 October 2022
Over the years, Yevgeny Prigozhin has been at Vladimir Putin’s side, often serving him lavish meals. Recently however, he confirmed that he is the owner of the Wagner Mercenary Group and his guns for hire have played a critical role in keeping Putin’s war going. Now, the man who used to quietly stand behind Putin’s shoulder has revealed himself to be one of his most influential figures inside the Kremlin. This article outlines his humble beginnings and criminal past.
Corporate misincentives – 22 October 2022
Paper outlines how the provision of so many of our essential services – such as telecommunications, power, aged care, disability care and childcare and training services – are tainted by bad corporate behaviour. It seems that all that is required is lots of government money and a set of rules and regulations that can be interpreted subjectively for systems to be rorted. The regulatory framework needs to include clear and significant penalties for bad corporate behaviour.
https://www.thesaturdaypaper.com.au/opinion/topic/2022/10/22/corporate-misincentives#mtr
Australia flags new corporate penalties for privacy breaches – 22 October 2022
After two major cybersecurity breaches left millions vulnerable to criminals, Australia has proposed tougher penalties for companies that fail to protect customers’ personal data. The penalties for serious breaches of the Privacy Act would increase from 2.2 million Australian dollars ($1.4 million) now to AU$50 million ($32 million) under amendments to be introduced to Parliament. A company could also be fined the value of 30% of its revenues over a defined period if that amount exceeded AU$50 million ($32 million).
‘Dracula in the blood bank’: Years of inappropriate billing for spine surgery revealed – 22 October 2022
A 2018 review, conducted by spine surgeon Dr Roy Carey has revealed that doctors spent years inappropriately billing Medicare and private health insurers for expensive and questionable spinal surgery.
Access to digital version of WA today required to read article.
Growth in cybersecurity attacks against Australia outpacing global average – 24 October 2022
Imperva threat research has found that cyberattacks against Australia in 2022 has grown in both frequency and severity at a rate that outpaces the global average. The data suggests that cybercriminals see Australia and its citizens as lucrative targets. Between July 2021 and June 2022 there was an 81% increase in attacks, with the most heavily targeted industries being financial, retail, and business services.
Queensland lawyer Michael Bosscher charged over alleged involvement in $4.5m money laundering syndicate – 25 October 2022
Queensland lawyer Michael Bosscher has been charged over his alleged involvement in a $4.5 million money laundering operation. He is alleged to have opened fraudulent bank accounts in the name of clients at his consultancy business without their knowledge and has been charged with conspiring to deal in the proceeds of general crime worth $1 million or more.
Customers in limbo as Medibank data breach shapes up as far worse than the Optus hack – 26 October 2022
Australia’s Data Breach Debacle Expands
Privacy fears for children caught up in Medibank data breach
The private health provider revealed the cyber attack on its customers’ data could impact about 4 million current customers along with an unknown number of former customers too. Cyber Security Minister Clare O’Neil described latest development in the Medicare data breach as deeply concerning.
https://www.bankinfosecurity.com/blogs/australias-data-breach-debacle-expands-p-3297
National DNA Program partners with Othram to use forensic genetic genealogy for unsolved Australian case solved Australian cases – 26 October 2022
The AFP will have access to specialised forensic DNA testing, not currently available in Australia, to identify human remains and develop new leads for unsolved crimes, by partnering with a world-leading forensic genomics laboratory Othram.
ASIC faces new Senate inquiry over ‘inaction’ – 27 October 2022
ASIC will be hauled before a fresh Senate inquiry for allegedly failing to enforce the law, after the opposition and crossbench MPs joined forces to act on what they said was widespread community concern that ASIC “was not very responsive”.
https://www.afr.com/politics/federal/new-senate-probe-into-asic-moral-hazard-20221027-p5bthe
Man allegedly scammed ‘vulnerable victims’ out of $9 million then fled the country – 26 October 2022
A man accused of scamming people out of $9 million while posing as a financial planner in Melbourne, has been arrested after landing back in the country. Police are alleging the man worked as a financial planner around Brighton and was unlicensed. Investigators have identified at least 34 alleged victims they believe to be linked to the man from 2014 to 2018.
Sydney man charged over COVID-19 payment fraud – 27 October 2022
A Sydney man has been charged making allegedly fraudulent claims of more than $130,000 in COVID-19 Disaster Payments and Pandemic Leave Disaster Payments as part of criminal syndicate. Police allege the syndicate was using stolen identities, claiming payments in their names and directing the funds to bank accounts controlled by the syndicate.
https://www.afp.gov.au/news-media/media-releases/sydney-man-charged-over-covid-19-payment-fraud
Investigation & Fraud News – Week ending 21 October 2022
15 stories this week:
Identity – 13 October 2022
A 30-year-old Queensland man charged with hundreds of identity fraud offences, allegedly also threatened to murder some of his victims when they tried to get their online accounts back.
The messages were uncovered on electronic devices found when a search warrant was executed at a Pallara home last December.
Australia becoming hotbed for cyber attacks – 14 October 2022
Research shows an 81% increase in cyber security incidents in Australia between July 2021 and June 2022. The top three most common risks faced by Australian organisations were automated threats and remote code execution (RCE) or remote file inclusion (RFI).
https://www.computerweekly.com/news/252526094/Australia-becoming-hotbed-for-cyber-attacks
On trial for bravely telling the truth – 14 October 2022
The trial of a whistleblower who spoke up about government wrongdoing has begun in Adelaide. The article looks at why its come to this, considering Richard Boyle told the truth. He spoke up because the Australian Taxation Office, an immensely powerful government agency, was abusing its power. It was ruining the lives of small business owners and Boyle, a tax office employee in its debt recovery division, wanted to do the right thing.
https://www.smh.com.au/national/on-trial-for-bravely-telling-the-truth-20220724-p5b41w.html
Access to digital version SMH required to read the article.
Australian Insurer Back Online After Cyberattack – 14 October 2022
Medibank, a private health insurance company serving nearly 4 million Australians has restored access to its policy writing systems, after taking them offline following a cyber incident. Medibank Chief Executive Officer David Koczkar acknowledged the cyber incident to his customers and also requested the Australian Securities Exchange to impose a “trading halt.”
https://www.bankinfosecurity.com/australian-insurer-back-online-after-cyberattack-a-20274
2.2 million Woolworths MyDeal customers exposed in data breach – 15 October 2022
Woolworths has confirmed MyDeal customers have had their data exposed after a “compromised user credential” was used to hack into the system. Woolworths said MyDeal was in the process of contacting around 2.2 million Aussies by email who have been impacted.
https://au.news.yahoo.com/woolworths-my-deal-customers-exposed-in-data-breach-224405234.html
The lucrative business of romance scams – 15 October 2022
Internet romance scams cost Australians an estimated $142 million last year, but the law can do little to protect people from emotional exploitation. It is possible, that some of this conduct could be captured by coercive control laws, that are soon to be introduced in Queensland and New South Wales. The difficulty is trying to establish how far the law should, or indeed can, go to protect people from the intangible – but real – harms of emotional exploitation.
https://www.thesaturdaypaper.com.au/life/2022/10/15/the-lucrative-business-romance-scams#mtr
Scams, the Optus data breach and keeping your personal data secure – here are the top tips to help you avoid falling victim – 15 October 2022
Great article that shares some top tips on keeping your data secure and answers questions such as “How does the ACCC identify new and changing scams? Have there been many cases of data breaches being used for coercive control?
Federal government describes reports of Medicare fraud as ‘troubling’, AMA condemns ‘unjustified slur’ on doctors – 18 October 2022
A joint investigation by the ABC and Nine newspapers has found doctors are abusing the $28 billion system, at times putting patients at risk and even billing dead Australians to boost profits. Treasurer Jim Chalmers says the government will seek to get to the bottom of allegations of Medicare rorting.
Federal ICAC whistleblowers ‘will remain silent’ without stronger protections: lawyer – 18 October 2022
Whistleblower protections put forward in the federal government’s national anti-corruption watchdog do not go far enough and could deter people from coming forward with possible misconduct, a human rights lawyer has warned.
How financial services businesses can avoid fraud – 18 October 2022
As the financial system becomes increasingly decentralised, online criminals are becoming more sophisticated in the ways they breach security protocols. This article looks at why financial fraud is on the rise and discusses how businesses in the financial sector can protect themselves, with thorough due diligence tools, including an examination of their existing and potential clients’ credit history and criminal risk.
The threat keeping Australian CEOs up at night – 18 October 2022
The Optus hack is officially a nightmare for corporate Australia and the chief executive of National Australia Bank, Ross McEwan, says the telco’s travails should galvanise every company in the country into action.
Anti-corruption proposal a missed opportunity for whistleblower protection – 18 October 2022
The Human Rights Law Centre has told a parliamentary inquiry that the draft legislation to establish the National Anti-Corruption Commission (NACC) is a missed opportunity for whistleblower protections and should be strengthened.
Australians losing superannuation savings to sophisticated new scam – 19 October 2022
A sophisticated new scam has been uncovered, that targets the retirement nest eggs of Australians. The scam used the names Invest Fast or Invest Quick and pretended to be a financial advice firm based in Melbourne. At least 45 SMSFs were created for potential victims. Investigator Ken Gamble believes there is evidence to link the Invest Quick scam to the Metro Manila call centre.
Collapsed cryptocurrency exchange used customer funds for business loan – 19 October 2022
An Australian cryptocurrency exchange, Blockchain Global that collapsed last year trapping more than $20 million of customer money, dipped into customer funds to provide a loan to support another part of its business instead of keeping the funds on reserve.
Access to digital version of SMH required to read article
Private contractor use in APS was a major corruption risk, NACC whistleblower protections inadequate, inquiry told – 20 October 2022
An explosion in the use of third-party contractors for public service work under the Coalition posed a serious corruption risk, a parliamentary inquiry has heard.
Access to digital version of Canberra times required to read article
