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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.
Investigation & Fraud News – Week ending 2 September 2022
11 stories this week:
World-first database set to help WA Police combat threat of 3D-printed guns – 26 August 2022
A world-first database which could help law enforcement agencies investigate criminals who are caught with 3D-printed firearms, has been developed in WA by a forensic expert who fears the technology will be used in crimes in the near future.
What will Australian regulation mean for cryptocurrency? – 26 August 2022
Australia is set to be the first country to do a virtual stocktake of the cryptocurrency sector, in a move that has global commentators buzzing. The initial focus for the government will be ‘token mapping’, which refers to grouping types of crypto assets based on their technological features and underlying code.
https://newsroom.unsw.edu.au/news/business-law/what-will-australian-regulation-mean-cryptocurrency
Expert says if it’s ‘too good to be true,’ then it’s likely a scam – 26 August 2022
Businesses and consumers should become wary as losses to imposter bond investment scams almost tripled in the first half of 2022, with consumers losing more than $20mil. The imposter bond scams often impersonate legit financial companies or banks and claim that they advance government/treasury bonds or fixed-term deposits.
Bill Shorten issues NDIS fraud crackdown warning as woman jailed, another charged – 27 August 2022
A 47-year-old has been charged for allegedly defrauding the NDIS of more than $300,000 after lodging fraudulent claims for people from across the country, including in Far North Queensland and Victoria.
https://www.abc.net.au/news/2022-08-27/ndis-fraud-crackdown/101376076
Julian Assange files latest appeal against extradition to US – 27 August 2022
WikiLeaks founder Julian Assange has lodged an appeal in a UK court against his extradition to the US, where he faces 175 years in jail. Assange has been indicted on 17 espionage charges in the US and one charge of computer misuse over WikiLeaks’ publication of thousands of military and diplomatic documents leaked by whistleblower Chelsea Manning. The charges carry a maximum sentence of 175 years in prison.
Australia’s ASIC lays out roadmap for safeguarding consumers from digital assets scams – 27 August 2022
The Australian Securities and Investment Commission (ASIC) is looking to focus more on protecting consumers from digital assets and cyber crimes, as part of its “Corporate Plan” for 2022-2026.
Scammers shift their sights from card payments to crypto – 28 August 2022
Despite a surge in online card payments, card fraud has reduced because most scammers now ask for payment in cyptocurrencies. Anonymity makes it much more difficult to identify the perpetrators, or recover lost money.
Storage scams look to burn your wallet with fake space – 29 August 2022
It’s not just email or phone scams you need to worry about, but also scams dealing with fake hardware. It’s a scam selling cheap external solid state storage device advertising 30TB, but turning out to instead be two 512MB microSD drives with dodgy firmware.
https://www.pickr.com.au/news/2022/storage-scams-look-to-burn-your-wallet-with-fake-space/
Corporate cop launches investigation into collapse of AI start-up Metigy – 29 August 2022
ASIC has launched an investigation into the collapse of artificial intelligence marketing start-up Metigy, whose founder (David Farifull) went on an $18 million property buying spree in the months before it went into administration. Fairfull’s private company allegedly received a $7.7 million loan from Metigy in November 2021, for which he signed as both borrower and lender, according to the administrators’ report into the company.
Financial crimes regulator probes Perth Mint – 30 August 2022
The financial crimes regulator has launched an investigation into Perth Mint, Australia’s biggest gold and silver refiner, over what it has described as compliance concerns, and ordered the appointment of an external auditor under the Anti-Money Laundering and Counter-Terrorism Financing Act.
https://www.afr.com/companies/mining/financial-crimes-regulator-probes-perth-mint-20220830-p5be17
Warrant out for Thai dance Youtuber ‘Nutty’ after hundreds report losing thousands to Forex scam – 31 August 2022
Natthamon aka ”Nutty”, who was a popular YouTuber in Thailand cheated thousands of followers out of nearly $80 million. 6,000 people gave Natthamon money to invest after being promised to see returns of up to 35 percent if they wired through cash.
Investigation & Fraud News – Week ending 26 August 2022
14 stories this week:
The online scammer targeting you could be trapped in a South-East Asian fraud factory – 21 August 2022
All across South-East Asia, heavily guarded, online scam compounds have sprung up to house industrial-scale scam operations – and to trap people forced to work for them in terrifying conditions. People are forced to come in, they’re being trafficked in and are forced to meet targets.
Access to digital version of WA today required to read full article
‘Hostile’: Victoria Police crackdown on alleged financial fraud scheme – 21 August 2022
Police have arrested six people across Melbourne as part of a crackdown on an alleged nationwide financial fraud scheme, with links to gang members and their associates. They were involved with a number of large-scale deceptions against government agencies, where they provided false details in order to receive fraudulent payments.
ASX-listed company investigated by ASIC for greenwashing – 22 August 2022
The corporate watchdog is conducting at least two investigations into “greenwashing”, including a publicly listed company, as it warns businesses and fund managers to avoid overhyping their climate change credentials.
Ex-F1 boss Ecclestone in court for fraud – 22 August 2022
Former Formula One boss Bernie Ecclestone, has denied fraud over an alleged failure to declare 400 million pounds of overseas assets, to the British government.
https://thewest.com.au/news/crime/ex-f1-boss-ecclestone-in-court-for-fraud-c-7967124
Fertile grounds for fraud post COVID – 23 August 2022
Major economic disruption increases the need and opportunity for financial fraud. The article explains why people commit fraud and how certified fraud examiners detect fraudsters who “fudge the figures”.
https://www.mondaq.com/Article/1223682
‘Not my job to be a crypto cheerleader’: ASIC boss warns on risky, volatile cryptocurrency investments – 23 August 2022
One of the regulator’s key priorities was to warn consumers about the risks involved with the crypto investment space. The industry has been calling on the government to introduce legislation to reduce the risk for investors and turn crypto into an established, safer asset class. The former Liberal government developed draft reforms last year which regulators and Treasury are assessing and implementing.
Hackers reportedly deepfaked a Binance exec to carry out listing scams – 24 August 2022
Criminals impersonating executives with the help of technology has become common practice. Binance’s chief communications officer, Patrick Hillman says hackers used a deepfake of his image in Zoom calls to scam cryptocurrency executives. He claims the hackers successfully duped crypto project representatives into thinking he would help their tokens get listed on Binance’s exchange.
https://au.finance.yahoo.com/news/binance-executive-deepfake-listing-scam-154729114.html
Queensland Star casino concerns referred to regulator that approved shareholder with alleged crime links – 24 August 2022
ABC Investigations revealed the business empire behind Chow Tai Fook Enterprises, a key backer of the multi-billion-dollar Queen’s Wharf casino, had criminal associations, including through recent business ties. The ABC’s report has been referred to the Office of Liquor and Gaming Regulation.
https://www.abc.net.au/news/2022-08-24/qld-star-inquiry-to-examine-alleged-crime-links/101363478
Market regulator of Australia protects public from crypto damage – 24 August 2022
The financial regulator ASIC stated in its recently issued “Corporate Plan” that as “developing technology and products disrupt our financial ecosystem,” it will be focused on “digitally enabled misconducts” as part of its four-year strategic plan that extends to 2026. https://www.thecoinrepublic.com/2022/08/24/market-regulator-of-australia-protects-public-from-crypto-damage/
https://www.itnews.com.au/news/asic-tackles-technology-risks-in-latest-corporate-plan-584264
Fraudsters are getting smarter so get to know the red flags, says BDO – 24 August 2022
Fraud and cyber-attacks are on the rise and the red flags are getting harder to spot. The article describes what you can do to help keep yourself and your business safe and recommends organisations take a proactive approach to fraud and cyber risks.
Twitter whistleblower to testify about company’s ‘widespread security failures’ at Senate hearing – 25 August 2022
Twitter’s former security chief Peiter “Mudge” Zatko, will testify at a Senate hearing about the company’s security practices. If Mr. Zatko’s allegations claims are accurate, they may show dangerous data privacy and security risks for Twitter users around the world.
ASIC statement on publication of FRAA report – 25 August 2022
The Financial Regulator Assessment Authority’s (FRAA) report has been released on the review of the Effectiveness and Capability of ASIC. It found that ASIC is effective and capable in the areas reviewed and made four recommendations around enhancing ASIC’s use of data and technology, strengthening its engagement with stakeholders, enhancing its ability to measure effectiveness and capability, and continuing to broaden its mix of skill sets.
https://www.nationaltribune.com.au/asic-statement-on-publication-of-fraa-report/
Gold Coast couple lose deposit for family home in $39,000 email scam – 25 August 2022
Home buyers are a potentially lucrative target for sophisticated cybercriminals. A Gold coast couple have now potentially lost $39,000 due to transferring the money to a scammer instead of their real estate agent.
https://au.news.yahoo.com/gold-coast-couple-lose-home-deposit-39000-email-scam-235921769.html
Sneaky scam robbing hundreds of millions from Aussies – 26 August 2022
Investment scams have cost Australians over $242 million dollars already this year – a massive rise on last year’s total of $177 million for the entire year. Only 13 per cent of Australians report their losses to Scamwatch so these figures could be much higher.
Investigation & Fraud News – Week ending 19 August 2022
10 stories this week:
Phishing fraudsters used SIM box to fleece hundreds of victims, police allege – 11 August 2022
An alleged fraud syndicate operating out of homes in Sydney’s northern suburbs used a SIM box to send hundreds of thousands of automated text messages, containing links to fake banking and telecommunication websites, where victims were prompted to enter their details. Police have worked with CBA, NAB and Telstra to identify victims.
INTERPOL launches global awareness campaign to highlight the use of money mules; Executive Director warns moving money for someone else is ‘risky business’ – 11 August 2022
Interpol has launched a new awareness campaign that aims to urge individuals not to become money mules. The campaign reminds people that they are responsible for keeping their own bank accounts safe and that moving money on behalf of others could land them in trouble. It also covers how the industry works, the risks associated and how to avoid becoming a money mule.
Whistleblower protection overhaul needed in Queensland to prevent next Fitzgerald inquiry, experts say – 12 August 2022
Premier Annastacia Palaszczuk has agreed to the recommendations of three high-profile inquiries that have called for a review of whistleblower protections. But the premier is yet to provide any details about who will lead it and what, specifically, they will be tasked with examining. https://www.theguardian.com/australia-news/2022/aug/12/whistleblower-protection-overhaul-needed-in-queensland-to-prevent-next-fitzgerald-inquiry-experts-say
Whistleblower lawsuit alleges financial misconduct and dubious expenditures inside Hillsong Church – 12 August 2022
Natalie Moses is suing Hillsong for contravening the Fair Work Act, claiming it breached its own whistleblower policy, by preventing her from raising serious complaints about the church’s financial operations.
New legislation targeting the use of cryptocurrency and digital assets in organised crime introduced in Parliament – 12 August 2022
The Major Crime and Community Safety Legislation Amendment Bill 2022 (Bill) was introduced in the lower house of the Victorian Parliament earlier this month. Some of these reforms are specifically targeted towards the gathering of evidence relating to, and seizure of, digital assets, such as cryptocurrency, used in the commission of offences. The Bill will amend and insert new provisions into the Confiscation Act 1997 (Vic) (Confiscation Act) to strengthen police powers.
SDA seeks $250m compensation from McDonald’s operators who allegedly denied paid breaks to Australian worker – 12 August 2022
The Shop, Distributive and Allied Employees’ Association (SDA) is seeking compensation on behalf of more than 250,000 current and former McDonald’s workers across Australia. McDonald’s workers have alleged that they were denied 10-minute breaks that they were entitled to.
NDIS taskforce to hunt down organised crime groups ‘robbing’ billions from disability clients – 15 August 2022
A police taskforce to hunt down organised crime groups exploiting the National Disability Insurance Scheme will be established by the government in coming weeks. NDIS anti-fraud teams have recovered a small portion of the alleged billions that have been defrauded from the scheme, charging 18 people since 2020 with a total of about $14 million in alleged fraud.
Drivers warned about toll road text scam as Aussies lose record amount – 17 August 2022
An SMS phishing scam targeting drivers who have toll accounts, has lead to a Gold Coast woman being scammed out of $4,000.
https://www.abc.net.au/news/2022-08-17/drivers-warned-over-toll-road-scam-posing-as-linkt/101322568
Melbourne mum scammed out of $200,000 after $210 deposit appeared on bank account – 17 August 2022
According to the Australian Competition and Consumer Commission (ACCC), more than $2 billion was robbed from people last year through scams. This mum had a curious deposit in her account and after receiving a phone call and returning the money, large deposits were withdrawn from her account.
Trump Organization executive Allen Weisselberg pleads guilty to tax evasion – 19 August 2022
Donald Trump’s long time lieutenant has pleaded guilty to tax evasion but due to a deal with prosecutors, he is unlikely to serve more than 100 days in prison. He pleaded guilty to 15 counts, including tax fraud and larceny.
https://www.abc.net.au/news/2022-08-19/allen-weisselberg-pleads-guilty/101349680
