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Investigation & Fraud News – Week ending 7 October 2022
14 stories this week:
Facebook Marketplace scammer falsified bank transfers, Tasmania Police allege – 3 October 2022
Police allege that a Tasmanian man dishonestly obtained $200,000 worth of property from people who were attempting to sell items on Facebook Marketplace, after presenting a falsified bank transfer receipt.
Illegal phoenix activity – 5 October 2022
Illegal phoenix activity occurs when a new company continues the business of a liquidated company to avoid paying its debts by selling assets, creating dummy directors etc. Article explores what Illegal phoenix is, what you can do to avoid it, and how you can legally resurrect an insolvent or near-insolvent company.
Fraudster targeted Australian super accounts in $3 million scam – 5 October 2022
Vella-Arpaci pleaded guilty to two charges of conspiracy to defraud over separate superannuation and share trading frauds, and to conspiring to deal in proceeds of crime. Police found she held numerous passports, driver’s licences, debit cards and Medicare cards.
Those details were used to withdraw funds from accounts and arrange shares to be sold, with proceeds deposited in newly opened bank accounts and laundered through the purchase of diamonds.
Banks ‘cyber mature’ but remain top target for scammers – 5 October 2022
Criminals exploiting snippets of personal information to trick customers and employees into opening themselves and their firms to fraud remains the top way Australian financial services businesses are initially breached. These social engineering attacks were the main way hackers and scammers initially get into financial services companies, using it as a Trojan horse for phishing, fraud and false billing.
SMSF scam investigation sees call centre raided – 5 October 2022
A scam call centre in Manila set up to steal retirement funds by posing as an Australian company was raided by Cybercrime investigation company IFW Global and the Philippines National Police this month. The scam orchestrators aimed to gather critical information from victims by pretending to be Australian Securities Administration Limited (ASAL), a legitimate and licensed company.
https://www.accountantsdaily.com.au/regulation/17637-smsf-scam-investigation-sees-call-centre-raided
Richard spoke up about inappropriate behaviour at his work. Now he’s facing prison – 5 October 2022
Article is a good summary of how it all started for Richard Boyle and whats happening next. In 2017 Mr Boyle, made a public interest disclosure about maladministration at the Adelaide debt collection centre of the ATO. He was subsequently charged with 66 offences after having his house raided. The Public Interest Disclosure Act 2013 (PID) is supposed to protect Commonwealth employees who speak up on wrongdoing but these protections have never been tested in court. If the District Court or higher courts reject Mr Boyle’s claim for immunity, he will face a criminal trial in October 2023.
https://www.sbs.com.au/news/article/richard-boyle-whistleblower-case-explained/iqljz7577
Economist alleges corporate watchdog ASIC is only investigating tiny proportion of complaints – 6 October 2022
An economist alleges ASIC is doing fewer investigations compared to the number of complaints it is receiving. Alleging that fewer than 1 per cent of complaints are going on to be investigated. ASIC has responded saying that 35 per cent of complaints were referred for action, resolved or beyond its jurisdiction. A table is included with an extract of ASIC’s annual report that notes what percentage of complaints it investigates.
Banks get temporary access to Optus customer data to watch for fraud – 6 October 2022
Banks will have to comply with strict requirements to receive customer identification details from Optus to guard against fraud, including making written assurances to regulators, proving they can securely store information and pledging to destroy it when it is no longer required. New regulations unveiled by the Albanese government in response to the Optus cyberattack will allow telecommunications companies to temporarily share customers’ government identification details including driver’s licence, Medicare and passport numbers with banks. Names, addresses and birth dates will not be shared.
Customers lose as banks, telcos pass buck on scam – 6 October 2022
National Australia Bank says it is not responsible for refunding customers duped into transferring their money to criminals who impersonate the bank’s telephone number, but says the banks are now working more closely with telco operators to close gaps that allow these scams to occur.
One in 10 young people willing to become money mules in return for cash – 6 October 2022
In the last 12 months there has been a surge in Money Mule cases amongst older age groups, with a 26% increase in those aged 31 to 39, and a 29% increase in those aged over 40. If a person is caught moving stolen funds, money mules will be left with no bank account, a damaged credit score and the inability to apply for a loan or even a phone contract in the future. They could also end up with a 14-year prison sentence for the crime.
https://au.news.yahoo.com/young-people-become-money-mules-for-cash-230137276.html
NZ police need better training in privacy and human rights law – here is what should happem – 6 October 2022
The New Zealand Police were recently found to have been routinely and illegally photographing young people and adults in public. There are rules governing the collection of information, with protecting privacy a key requirement. A report revealed that the police did not follow relevant privacy rules.
https://au.news.yahoo.com/nz-police-better-training-privacy-190222868.html
Teenager arrested for alleged scam on Optus victims as government lets telco share data – 6 October 2022
Federal police have arrested a 19-year-old Sydney man for allegedly sending $2000 blackmail scam texts to 93 people whose data was separately published by the Optus hacker.
West Australian farmer scammed out of $16,000 after trying to purchase cattle on Facebook – 7 October 2022
Scammers are getting better at appearing as legitimate sellers. Police are warning of scammers purporting to sell livestock on Facebook. A farmer in Western Australia’s South West has lost $16,500.
https://www.abc.net.au/news/2022-10-07/wa-farmer-fraud-purchase-cattle-on-facebook/101508134
Sydney news: The King’s School under investigation over use of public money – 7 October 2022
The King’s School in NSW, is under investigation by the NSW Department of Education. There are allegations of possible misuse of taxpayers’ funds over building and other plans. The King’s School in Sydney reportedly planned to install a plunge pool at the headteacher’s residence and sent the school’s senior staff to attend a British rowing event.
https://www.abc.net.au/news/2022-10-07/nsw-am-briefing-october-7-2022/101509178
Investigation & Fraud News – Week ending 30 September 2022
11 stories this week:
Optus data breach: who is affected, what has been taken and what should you do? – 22 September 2022
Optus customers’ private information may be compromised after a cyber-attack. It is believed the attackers were working for a criminal or state-sponsored organisation. For some customers identity document numbers such as driver’s licence or passport numbers could be in the hands of criminals.
Federal ICAC a ‘great step’ but whistleblowers still at risk without a protection agency: David McBride – 22 September 2022
It is expected the federal government will introduce its much-anticipated national anti-corruption commission bill this week, as crossbenchers demand the proposed legislation include stronger whistleblower protections.
Two arrests over business email compromise (BEC) scam – 26 September 2022
A Tasmanian victim was arranging the purchase of a house through a conveyancer. The email correspondence from the conveyancer to the victim was compromised by a third party who altered the attached account payment information. As a result, the victim unwittingly transferred over $1.2 million to the scammers.
Australian crypto exchange appoints administrators – 27 September 2022
‘Mine Digital’, a digital asset exchange and brokerage has collapsed and control handed to external administrators, amid a dispute where it is being sued for allegedly not doing enough to weed out scammers from its platform. In July, Scammers used the crypto exchange to facilitate the movement of money from investors they tricked using a sham company called 500 Investments.
https://www.afr.com/technology/australian-crypto-exchange-falls-into-administration-20220921-p5bjqj
Avoiding a surveillance society: how better rules can rein in facial recognition tech – 27 September 2022
Our laws have not kept pace with the extraordinary rise of facial recognition technology and has left our community vulnerable to harmful uses of facial recognition. To fill the legal gap, it is proposed a “model law”: an outline of legislation that governments around Australia could adopt or adapt to regulate risky uses of facial recognition while allowing safe ones.
https://au.news.yahoo.com/avoiding-surveillance-society-better-rules-200224964.html
‘Whistleblower’ letter triggered NAB probe, trial of alleged fraudster told – 27 September 2022
A sydney court as part of the Helen Rosamond trial, has recently heard that an anonymous letter exposing an alleged fraud at the NAB came as a shock to a senior bank investigator in the days before Christmas 2017.
To read full article – digital version of SMH required.
Hundred who stole $350 million from their Australian employers – 27 September 2022
New Australian research has been conducted detailing detailed over one hundred cases where employees ripped off their bosses for at least $1 million. Findings are summarised in this article.
https://www.miragenews.com/hundred-who-stole-350-million-from-their-862060/
Laws for a federal anti-corruption body have been unveiled. Here’s what you need to know – 28 September 2022
Attorney-General Mark Dreyfus introduced legislation to the lower house on Wednesday to set up the National Anti-Corruption Commission. This body would operate independently of the government and have powers to investigate serious or systemic corrupt conduct across the commonwealth public sector. Protections for whistleblowers and journalists as well as safeguards to protect reputations are also included in the proposal.
PNG minister, police hit out at Australia over extradition request for alleged fraudster and Cairns resident Samson Jubi – 28 September 2022
A Papua New Guinea government minister and top justice officials say they are “extremely frustrated” with Australia for harbouring Samson Jubi., a Cairns resident wanted for a mulit-million dollar fraud. He is wanted over the alleged misappropriation of 268 million kina, ($117 million) from impoverished communities in the country’s Western Province.
What does the Optus data breach reveal about corporate governance problems around cyber security? – 29 September 2022
The Optus data breach has exposed wider corporate governance issues in Australian companies around cyber security. Deputy Prime Minister Richard Marles said that “What has occurred over the last week has been a wakeup call for corporate Australia and we need to be doing everything we can, to make sure that protections are in place”. Article also contains a link to the Department of Home Affairs discussion paper, that highlighted weaknesses in Australian cyber security regulations and incentives. https://www.abc.net.au/news/2022-09-29/optus-data-breach-exposes-corporate-governance-gaps-around-cyber/101483874
Anthony Koletti denies delaying his police report so Melissa Caddick could disappear, court hears – 29 September 2022
The husband of accused Sydney fraudster Melissa Caddick has flatly denied assisting her in disappearing, delaying a police report to buy her time and withholding information. Mr Koletti waited 30 hours after his wife disappeared to report her missing.
Investigation & Fraud News – Week ending 23 September 2022
9 stories this week:
Elie Douna: Illawarra property developer sentenced for $15m loan scam – 21 September 2022
A disgraced Illawarra property developer has been sentenced for orchestrating a failed $14.7 million loan scam. Douna made up fake potential buyers in an effort to obtain a nearly $15 million loan.
Donald Trump and adult children sued by New York attorney-general for fraud – 22 September 2022
Former US president Donald Trump and his company have been sued by New York’s Attorney-General for fraud, allegedly padding his net worth by billions of dollars by manipulating the value of assets when preparing his company’s annual financial statements from 2011-2021. His children Donald Trump Jr and Ivanka Trump have also been accused of aiding the alleged fraud.
Former first lady of Honduras Rosa Bonilla jailed after spending more than $756,000 on credit cards and school fees – 22 September 2022
The former first lady of Honduras, has been sentenced to 14 years in prison on charges of fraud and misappropriation of funds destined for social programs. She spent $756,609
meant for low-income children on personal credit card payments, her children’s school fees and real estate construction.
Former Cancer Council ambassador Amanda Power charged with fraud – 23 September 2022
A former Cancer Council ambassador has been charged with nine counts of fraud, after she allegedly faked a cancer diagnosis, to secure thousands of dollars from the community.
https://www.abc.net.au/news/2022-09-22/cancer-fraud-amanda-power-charged/101465424
Warning over ‘spike’ in puppy scams causing $4.2m nightmare for Australians – 23 September 2022
Thousands of Australians have been hit by puppy scams, losing thousands in the process, with warnings there has been another spike in recent weeks. The (ACCC) revealed losses from pet scams have jumped more than 1000 per cent over the last two years.
ClubsNSW accuses terminally ill whistleblower of ‘blatant self-interest’ – 23 September 2022
Troy Stolz, who worked at ClubsNSW from 2011 to 2019, is being sued by his former employer for breaching the confidentiality clause of his contract, after he released an internal report that found 95 per cent of registered clubs were not compliant with money laundering laws. ClubsNSW is also prosecuting him for contempt, alleging that he intimidated, harassed or otherwise brought improper pressure on the organisation in his public comments.
Access to digital version of SMH required to read article
Secrecy Is Lifted, But the Government Continues Its Punitive Prosecution of Richard Boyle – 23 September 2022
ATO whistleblower Richard Boyle is set to go before the Adelaide District Court to continue his public interest disclosure (PID) defence proceedings. And despite the Commonwealth, yet again, attempting to hide evidence of corruption, an applied suppression order has been lifted.
1 in 5 Aussies prepared to lie for loans – 23 September 2022
A damning new report has shone a light on the growing issue of multifaceted and complex loan-seeker fraud in the domestic mortgage market. One in five (19 per cent) Australians believe it’s okay to tell a “white lie” and report having less debt than they actually have in a financial service or loan application.
https://www.mortgagebusiness.com.au/lender/17222-1-in-5-aussies-prepared-to-lie-for-loans
Older Aussies are exposed by shift to online banking – 23 September 2022
ACCC’s Scamwatch reports Australians over 65 have lost more money to phishing scams this year than all other age groups combined – totalling over $6.5 million in the first eight months of the year. A drive by banks to get people banking online combined with an increase of seniors using smartphones, and tablets, makes creates a perfect storm for phishing scammers.
Investigation & Fraud News – Week ending 16 September 2022
10 stories this week:
A 96yo has almost $500k taken by son, daughter-in-law, documents filed in Mackay court allege – 12 September 2022
A 96-year-old woman has allegedly lost almost $500,000 to the people who were supposed to be caring for her. Court documents allege the 96-year-old was asked to sign blank cheques by her son Maxwell Finlay Turner and his wife Debbie Maree Turner over several years.
UAE rejects Danish court’s extradition of Sanjay Shah in billion dollar tax fraud charges – 12 September 2022
Sanjay Shah is under investigation for one of Denmark’s largest-ever fraud cases. He is suspected of masterminding a US$1.7 billion ($2.47 billion) tax scheme and cannot be extradited to Denmark to face charges.
AUSTRAC launches investigation into betting giant and Ladbrokes owner Entain – 12 September 2022
The corporate betting giant Entain Group Pty Ltd, that owns the bookie firm Ladbrokes, is being investigated by Australian federal agents over a possible violation of an anti-money laundering and terrorism financing law.
Cryptocurrency scam losses hit new high in Queensland as cost of living bites – 12 September 2022
Queenslanders have lost $40 million dollars so far this year in cryptocurrency and investment scams – the highest loss ever recorded in the state. Scammers are using sophisticated strategies to lure their victims in, including posing as celebrities and even as Queensland police officers on social media. Nationally, $263 million has been lost this year, almost double the losses in 2021.
https://www.abc.net.au/news/2022-09-12/cryptocurrency-investment-scam-record-losses/101405194
Jason Bran Lees convicted over ‘sophisticated’ computer hacking scheme has sentence reduced – 13 September 2022
Jason Bran Lees who has been convicted of diverting $1.15 million from small businesses and charities in a “sophisticated” computer hacking scheme, has had his 8 years sentence reduced. The elaborate computer hacking scheme targeted the payroll systems of at least 23 organisations, including a charity for disadvantaged Indigenous Australians.
https://www.abc.net.au/news/2022-09-13/sentence-reduced-for-man-behind-hacking-of-business/101433462
How financial services businesses can avoid fraud – 13 September 2022
Article looks at why financial fraud is on the rise and discusses how businesses in the financial sector can protect themselves with due diligence tools, including an examination of their existing and potential clients’ credit history and criminal risk.
https://www.investordaily.com.au/discover/52051-how-financial-services-businesses-can-avoid-fraud
Alleged Thai ‘love scammer’ denied bail in Australia – 13 September 2022
Siriluck Fatima Chimmalee is accused of stealing from men she met online through a dating app. She is facing trial for over 100 charges of fraud.
Police say she allegedly pretended to be a registered remitter and charged customers steep inflation rates, to exchange large sums of money from Australia to other countries – charges to which she has so far pleaded not guilty.
https://thethaiger.com/hot-news/crime/alleged-thai-love-scammer-denied-bail-in-australia
Twitter misleading the public, whistleblower says – 14 September 2022
Twitter’s former head of security, Peiter Zatko, has told US lawmakers the firm is “misleading the public” about how secure the platform really is. Mr Zatko was giving evidence following an 84-page long whistleblowing complaint he made about security practices inside the social network. He was fired by the firm in January.
https://au.news.yahoo.com/twitter-misleading-public-whistleblower-says-150702770.html
Fraudsters use CBA brand to lure investors into fake bonds – 15 September 2022
Criminals are using the brands of CBA and London-headquartered funds asset manager Aviva Investors in attempts to defraud potential investors with fake, high-yield bond offerings. Investors searching for stable income amid a crash in technology stocks and as the easy money of low interest rates disappears, are coming up against a range of internet scams.
Melissa Caddick inquest hears request by fraudster’s mother and brother to give evidence – 15 September 2022
An inquest is examining when and where Ms Caddick died. The investigation contain reference to a proposed experiment where by several pig carcasses were cast into the ocean, after being fitted with tracking devices and running shoes. One of the aims was to ascertain the behaviour of sharks, the inquest was told. The court has heard an autopsy was unable to determine if the foot was separated as a result of blunt force, sharp force, or decomposition. The inquest, continues.
