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Investigation & Fraud News – Week ending 5 August 2022
12 stories this week:
With fake photographs of fully-furnished homes, scammers target renters who are desperate to secure housing – 30 July 2022
There has been an increase in real estate scams reported to the ACCC. One family relocating to Adelaide recently lost $3,200 to a scam. The advertised, ‘fully furnished home’ was actually a building site.
https://www.abc.net.au/news/2022-07-30/sa-rental-scam/101285338
Murrumbidgee Mill project caught up in fraud case involving former company directors – 31 July 2022
BCEG International (Australia) Pty Ltd, a company linked to Wagga’s multimillion-dollar Murrumbidgee Mill development, has sued its former directors over the fraudulent transfer of cash to a personal project via false invoices and sham sub-contracts.
Australian police charge man with developing spyware used by more than 14,500 people – 1 August 2022
An Australian man, faces up to 20 years in prison for allegedly creating and distributing spyware, that became the subject of a global law enforcement operation. He is accused of creating the Imminent Monitor remote access Trojan (RAT), which was sold to more than 14,500 individuals across 128 countries.
‘I’m a 29-year-old private investigator. Here’s what my life looks like – 1 August 2022
Sydney private investigator Amy Elliott reveal why some Aussies disappear without a trace:
This article is about Amy Elliot, a NSW Private investigator who provides some great examples of the trials and tribulations and the benefits of being a female PI.
Second article outlines why people disappear and how to find them.
https://www.mamamia.com.au/woman-private-investigator/
Victoria Police given power to seize cryptocurrency wallets under new organised crime laws – 2 August 2022
New laws are being introduced into parliament under the Major Crime and Community Safety Legislation Amendment Bill 2022. They changes are designed to give police greater ability to investigate organised crime, seize proceeds of crime and disrupt organised crime on the black market.
Corporations’ use of facial recognition technology paused after CHOICE investigation – 2 August 2022
An investigation by consumer advocacy group ‘Choice’, found that Kmart and Bunnings were using FRT (Facial Recognition Technology) to ostensibly protect customers and staff while reducing theft in select stores. Choice also found that the chain, The Good Guys uses technology that stores the unique biometric information of its customers. All three giants are now pausing FRT use until the Office of the Australian Information Commissioner (OAIC) provides guidance.
‘Sophisticated’ money launderer granted bail after police seize more than $10 million in goods – 2 August 2022
Australia’s Criminal Assets Confiscation Taskforce (CACT) has confiscated more than AUD$10M in assets as part of a major international money laundering probe across the ACT. Officers seized more than eight properties, four high-end vehicles, luxury goods, cash and crypto as part of the raid. A 35-year-old man has been charged.
SEC Says 11 People Fooled Users Out of $AU425 Million in Crypto Pyramid Scheme – 2 August 2022
The Securities and Exchange commission has alleged that 11 people that had helped found and operate the company Forsage were actually operating a crypto pyramid or ponzi scheme, raking in over $AU426 million from worldwide investors. The SEC said the promoters were engaged in the unregistered offer and sale of securities in Forsage and and are now facing civil penalties.
The alleged fraud in Alzheimer’s research and what it means for patients – 2 August 2022
There have been recent allegations that research underpinning widely held understandings of what causes Alzheimer’s may be fraudulent. A potential fabrication of research images and the allegations, now question whether the governing bodies of research and drug approvals are truly effective.
https://www.abc.net.au/news/2022-08-02/allegations-of-scientific-fraud-alzheimers-research/101289780
Aussies have been scammed out of more than $20 million in fake bond investment schemes this year – 3 August 2022
The number of Australians scammed by fake bond investment schemes almost tripled in the first half of this year, with losses topping $20 million. The “alarming” spike comes amid rising interest rates, as consumers considering investing in bonds are exposed to the sophisticated frauds.
https://www.smartcompany.com.au/finance/aussies-scammed-fake-bond-investment-schemes/
Four men charged in relation to roofing scam which collected more than $640,000 from Melbourne residents – 3 August 2022
Victoria Police have arrested and charged four people, who are accused of posing as workers from a legitimate roofing company and then collecting more than $640,000, after telling home owners their roofs needed urgent repairs.
https://www.abc.net.au/news/2022-08-03/melbourne-roofing-scam-arrests/101298398
Fraudster lands in jail after stealing identity to escape South Australian authorities – 5 August 2022
Travis Whyte stole the identity of a man in South Australia and $25,000 that belonged to him. He was attempting to escape authorities and flee to the Northern Territory. He pleaded guilty to eight offences, including five charges of obtaining benefit by deception.
https://www.abc.net.au/news/2022-08-04/nt-best-fraud-of-his-life/101299980
Investigation & Fraud News – Week ending 29 July 2022
13 stories this week:
Australian regulators team up to combat digital assets scam sites – 25 July 2022
Two Australian market regulators-the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC)-have partnered to combat digital assets scams. They have jointly deployed countermeasures services which automatically take down websites hosting phishing and other scams on a trial basis.
https://coingeek.com/australian-regulators-team-up-to-combat-digital-assets-scam-sites/
Artificial intelligence can monitor workplaces for safety breaches. Experts say privacy laws are laggin – 25 July 2022
The emergence of artificial intelligence that uses cameras to check for health and safety breaches in the workplace, has raised concerns about a creeping culture of workplace surveillance. Experts say Australian law is not up-to-date, to sufficiently regulate the rising use of AI in the workplace
https://www.abc.net.au/news/2022-07-25/ai-workplace-surveillance-tech-raises-concerns/101263028
Bond scammers impersonate Barrenjoey to lure investors – 25 July 2022
Investment bank Barrenjoey, is the latest big name financial institution, to find its brand is being used by imposters posing as representatives of real firms to scam victims seeking high-yield investments.
Access to digital version of AFR required to read article
Australian Corporate Conduct Regulator Releases Guidance On Greenwashing Risks – 25 July 2022
ASIC has released guidance to superannuation and managed funds as to how to avoid the risk of greenwashing when promoting sustainability-related products. e.g., funds and other financial products where investments are made based on environmental or social criteria, amongst other factors.
Urgent warning on supermarket scam spreading on social medi – 26 July 2022
Job seekers around Australia, are being urged to be wary of a new supermarket scam. Letters, which promise applicants a range of ALDI positions and salaries, appear to contain an official ALDI Australia letterhead and watermark and contain instructions which the applicant must follow as part of the recruitment process, which are suspected to enable fraudsters to gain money and or personal details from their victims.
Bunnings, Kmart stop using facial recognition – 26 July 2022
Australia’s creeping surveillance state: Big Brother is on the march
Kmart and Bunnings have temporarily halted their use of facial recognition in stores pending an investigation from the Office of the Australian Information Commissioner (OAIC). Public backlash is said to “send a clear message to all retailers” that Australians don’t want invasive surveillance technology, as part of their shopping experience.
https://ia.acs.org.au/article/2022/bunnings–kmart-stop-using-facial-recognition.html
https://michaelwest.com.au/sleepwalkers-wake-australians-must-face-up-to-our-surveillance-state/
Former Darwin resident who defrauded former employers of nearly $90,000 sentenced to two years in prison – 26 July 2022
Kristy Gall, a Darwin resident has been sentenced to two years in prison after defrauding her former employers, Jakes Steel and Welding, for nearly $90,000 over a four-year period. She made 201 unauthorised transactions using a company credit card and paid herself recreational leave she wasn’t entitled to.
End prosecution of ATO whistleblower, Dreyfus urged – 26 July 2022
Legal groups and former senator Rex Patrick have renewed calls for Attorney-General Mark Dreyfus to stop the prosecution of Tax Office whistleblower Richard Boyle. Mr Boyle, spoke publicly in 2018 about aggressive practices by the ATO, including hardline use of so-called garnishee notices, used to claw back tax debts from individuals and business.
Access to digital version of AFR required to read article
Buy Now Pay Later: Risks And Fraud Prevention – 26 July 2022
The buy now, pay later method (BNPL) has started to gain popularity in recent years so fraudsters and cybercriminals have found a way to exploit it for their own gain. Article details the most common types of BNPL fraud and how to prevent it.
https://globeecho.com/business/buy-now-pay-later-risks-and-fraud-prevention/
Former Melbourne High School business manager pleads guilty to stealing more than $350,000 – 27 July 2022
A 65 year old woman will plead guilty to stealing more than $350,000 from one of Melbourne’s most prestigious schools. She is facing 17 charges dating back to 2012 for modifying invoices.
https://www.abc.net.au/news/2022-07-27/melbourne-high-school-business-manager-theft/101274386
Australians lose $300 million to scams in first half of 2022 – 27 July 2022
Australians have lost $295 million to scams in the first half of 2022, according to newly released data from the Australian Competition and Consumer Commission’s (ACCC) Scamwatch. Investment scams were the most financially damaging during the first half of 2022, causing more than $219 million in losses compared to $177 million lost throughout the entirety of 2021. This was followed by dating and romance scams which have cost Australians $16 million in the first half of 2022
https://itbrief.com.au/story/australians-lose-300-million-to-scams-in-first-half-of-2022
Married Hawaii couple charged with conspiring against US government after allegedly using names of dead children as fake identities – 28 July 2022
A married couple who allegedly lived for decades using the names of two dead children have been charged with identity theft and conspiring against the government. The pair have both been charged with conspiracy to commit an offence against the US, false statement in passport application and aggravated identity theft.
The real reason behind hundreds of customers queueing outside a Bank of China in Sydney’s CBD as five institutions have their entire fortunes FROZEN amid fraud allegations – 28 July 2022
Dozens of people have flocked to the Bank of China in Sydney after the Communist government froze transactions at five banks over illegal practices. Chinese authorities confirmed Henan New Fortune, had illegally manipulated its banks into holding its customer’s money in an attempt to defraud investors. A three-month investigation uncovered the abuse, with the Chinese government promising to pay back their money.
Investigation & Fraud News – Week ending 22 July 2022
12 stories this week:
Five face possible tax fraud charges and 40,000 under investigation – 14 July 2022
The Australian Taxation Office has executed more raids this week as part of a “zero tolerance” crackdown on GST tax fraud. Five suspected Sydney fraudsters could now face charges, and another 40,000 individuals are under investigation, suspected of inventing fake businesses to claim false refunds.
Crime commission says NSW poker machine laws may increase money laundering risks – 14 July 2022
A proposal from the NSW Crime Commission has indicated that some of the state’s gambling laws have increased the risk of money laundering through poker machines, as well as lowering club credit limits “significantly.”
Preventing Financial Fraud in Accounts Payable – 15 July 2022
Cybercriminals have realised humans are the weakest link in security and are using social engineering techniques, to trick accounts payable teams into assisting in fraud, without even knowing it. An excellent article providing links to Commonwealth Fraud Prevention Centre’s guide and tips and processes that companies should implement in their Accounts Payable department.
https://australiancybersecuritymagazine.com.au/preventing-financial-fraud-in-accounts-payable/
Private drone use needs federal safety, privacy laws – 15 July 2022
Private drone use is not covered by specific regulations and there is no consistency in laws across states. Use of drones are open to privacy issues, nuisance claims, and surveillance and stalking. Article says Legal framework should include third party liability, owner registration & mandatory flight log.
https://www.miragenews.com/private-drone-use-needs-federal-safety-privacy-819710/
Australia a honeypot for Indian student visa fraudsters – 18 July 2022
After the government removed limitations on students’ work hours in any industry early in 2022 to help businesses crippled by skills, there was an increase in visa fraud and falling education standards.
COVID-19 lockdowns see rise in bank and credit-card fraud as more people work and shop from home – 18 July 2022
Australian Banking Association chief executive Anna Bligh, says card fraud remains a serious problem in Australia. Almost 7 per cent of the adult population or 1.4 million Australians experienced card fraud in 2020-21. Fraud on bank and credit-card transactions also rose 9.2pc to $490 million over the 2020-21 financial year.
Former investment scheme operator faces 50 fraud charges – 20 July 2022
Perth businessman Chris Marco, has been criminally charged after being accused by the corporate regulator, of a large-scale fraud that led to investors losing millions, in an unlicensed managed investor scheme.
Victorian Premier Daniel Andrews apologises after IBAC investigation finds ‘extensive misconduct’ by Labor MPs – 20 July 2022
Operation Watts was a joint probe between the Victorian Ombudsman and the state’s anti-corruption watchdog. The investigation was prompted by 2020 reports detailing allegations of branch stacking – a process used to recruit party members by paying for their membership. The report has 21 recommendations to address ongoing corruption risks.
Regulator’s three-pronged plan for tackling national scam threat – 20 July 2022
ACCC boss Gina Cass-Gottlieb has outlined her favoured approach for reducing the cost that scammers put upon Australians, with a focus on better collaboration between government, consumer groups and the private sector. She also believes the true figure for scam losses incurred in 2021 was $2 billion.
The growing WhatsApp scam that has cost Aussies $2.3m in 2022 – 21 July 2022
Mother loses $4,500 in a sophisticated text message scam from someone pretending to be her daughter: ‘Everyone’s just got to be so careful’
https://au.news.yahoo.com/mum-and-dad-whatsapp-scam-costs-aussies-2m-231650289.html
What do TikTok, Bunnings, eBay and Netflix have in common? They’re all hyper-collectors using mass surveillance – 21 July 2022
An electronic scan of your face is taken and stored by many Australian retail chains. This new phenomenon – “hyper-collection” – represents a growing trend by large companies to collect, sort, analyse and use more information than they need, usually in covert or passive ways. In many cases, hyper-collection is not supported by a truly legitimate commercial or legal purpose. https://www.abc.net.au/news/2022-07-21/faceprint-mass-surveillance-data-collection-privacy/101254838
https://www.afr.com/politics/federal/privacy-test-case-for-biometrics-20220719-p5b2mi
https://www.macrobusiness.com.au/2022/07/australia-honeypot-student-indian-visa-fraudsters/
Mustang in bank’s sights as Tesoriero’s gift to girlfriend queried – 21 July 2022
Westpac’s lawyers have been reviewing assets and income disclosed by business partners of Bill Papas, who allegedly orchestrated the $500 million fraud. The disclosures of Vincenzo “Vince” Tesoriero, who the bank alleges was in on the scheme or ought to have known about the $500 million fraud, have become increasingly important. https://www.watoday.com.au/national/mustang-in-bank-s-sights-as-tesoriero-s-gift-to-girlfriend-queried-20220720-p5b38i.html
Access to WA/SMH today required to read article.
Investigation & Fraud News – Week ending 15 July 2022
13 stories this week:
An elaborate LinkedIn scam led to one of the largest heists in crypto history – 8 July 2022
An elaborate LinkedIn scam was the source of one of the world’s largest crypto heists. An employee at Sky Mavis, the developer of the Axie Infinity Game was approached via LinkedIn with a fake job offer. The scammers then abused the trust they had developed to infect the individual’s device with malware. The hack saw 173,600 ether and 25.5 million USD Coin stolen, totalling $625 million in value.
Police charge man after more than $170,000 stolen during BEC scam – 8 July 2022
Detectives have charged a man over his alleged involvement in a business email compromise scam, against a Sydney telecommunications business. The business deposited $177,000 into a fraudulent account upon receiving an altered invoice for payment.
https://www.miragenews.com/police-charge-man-after-more-than-170000-stolen-815871/
Five big trends in how Australians are getting scammed – 8 July 2022
According to the ACCC, Australians lost an estimated $2 billion to fraudsters, more than double that of 2022. Top of the list are investment scams, dating and romance scams, false billing, remote access scams and threats or blackmail. Article details the five scam types that have grown most in value from 2020.
https://www.themandarin.com.au/194202-five-big-trends-in-how-australians-are-getting-scammed/
Crypto could lead to royal commission within a decade: McGrathNicol – 11 July 2022
A lack of regulation around the spruiking of cryptocurrency assets and services is leaving consumers at risk of poor advice and fraud, with the avenues of recourse unclear, restructuring and advisory firm McGrathNicol warns.
Access to Digital version of AFR required to read article
South Australian man pleads guilty to falsifying payslips to help Vietnamese migrants secure home loans – 11 July 2022
Lam Duc Vu, who was a Justice of the Peace, provided false payslips to banks, in a bid to help Vietnamese migrants buy properties, that they otherwise could not have secured. He pleaded guilty to at least 10 counts of dishonest dealings with documents between 2016 and 2017.
https://www.abc.net.au/news/2022-07-11/sa-man-falsifies-payslips-for-home-loans/101227966
Kristi Anne Barden, 46, sentenced to four years in prison after pleading guilty to one theft charge and 47 fraud charges – 11 July 2022
A mother-of-two was sentenced to four years in prison for stealing more than $178,000 from her bosses. Perth’s Kristi Anne Barden billed her employer – an environmental advisory group called Strategen – for luxury vacations and a rental car, and kept a company laptop even after she was laid off.
Indian police bust fake cricket league streamed for Russian punters – 12 July 2022
Police in India have shut down an elaborate hoax cricket league that saw labourers masquerading as professional cricket players, allegedly to dupe gamblers in Russia. The organisers broadcasted at least five matches on YouTube, before the police intervened. Gamblers bet almost $6,000 on the results and four people have been arrested in relation to the fake match.
ACCC calls for banks to name check transfers to cut fraud – 12 July 2022
Banks are being pressured to ensure money transferred online, arrives in the correct account, by confirming the name of the intended recipient. A move the Australian Competition and Consumer Commission says will reduce the $420 million worth of frauds that occur each year.
Access to digital version of AFR required to read article
‘Whack-a-mole’: Scam text crackdown to force telcos into action – 12 July 2022
Australians frustrated with scam text messages will be protected under new rules that force Telcos to track and block fraud, but experts warn the efforts won’t stop worsening financial crime.
https://thenewdaily.com.au/finance/finance-news/2022/07/12/text-scam-acma/
Chinese bank scam victims to be repaid after protests turn violent – 12 July 2022
Approx. 10 million people are calling on the authorities to return tens of billions of yuan of deposits in a suspected financial scam. It has prompted the banking watchdog to speed up drafting a plan to resolve risks even as a police investigation is still ongoing.
Kmart, Bunnings investigated for facial recognition us – 13 July 2022
Kmart and Bunnings will be called before the Information Commissioner, to explain exactly how their use of facial recognition to monitor customers in their stores, is in line with Australian privacy laws, following last month’s revelations that retailers had quietly begun using the controversial surveillance technology.
https://ia.acs.org.au/article/2022/kmart–bunnings-investigated-for-facial-recognition-use.html
Josh’s tax file number was stolen. Now his personal data is at risk – and his money – 14 July 2022
An ABC Radio presenter in Brisbane, was shocked when his accountant informed him his TFN had been blocked by the ATO because it had been “compromised”, and he could not file his tax return. A stolen TFN could mean that refunds and documents could be obtained without your knowledge or permission. A good reminder to check your MyGov and superannuation accounts.
https://www.abc.net.au/news/2022-07-14/tax-file-number-theft-warning-tax-return-time/101235304
ASIC investigation uncovers ‘concerning consumer losses from trading in CFDs’ – 14 July 2022
Following an ASIC investigation, Sirius Financial was found engaging an offshore call centre, to source clients to trade in high-risk contracts-for-difference (CFDs) and margin foreign exchange contracts products. It was found that the call centre representatives used “pressure selling tactics” and provided clients with personal advice without the licence to do so.
