The following are articles relevant to the Professional Investigator. Click on the title to make a comment or join the conversation.
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.
Investigation & Fraud News – Week ending 8 July 2022
9 stories this week:
New ID check anti-scam rules apply from today – 30 June 2022
New rules to protect consumers from scams that target customer interactions with telcos came into force on 30 June 2022. The rules introduced by the Australian Communications and Media Authority (ACMA) are designed to prevent unauthorised access by scammers to people’s telco services and personal information.
https://www.nationaltribune.com.au/new-id-check-anti-scam-rules-apply-from-today/
Woman loses $35k to scammer using Westpac’s phone number – 1 July 2022
Article explains how Jess Ridley was scammed by a third-party imitating Westpac telephone numbers. The TV presenter was conned out of $35,000. According to the Australian Communications and Media Authority, call line identification over-stamping, where the person calling you displays a different number from the one they are calling from, is legal unless it is being done for unlawful or malicious purposes. This is called caller ID spoofing.
CBA wants cross-industry code to reduce scam risk – 4 July 2022
CBA wants a new scam code being developed by Treasury to include banks, digital platforms, telcos, crypto exchanges and other payments providers to make sure the costs of growing levels of fraud are shared equitably. The bank has also introduced stricter transaction authentication processes in its banking app.
Digital access to AFR required to read this article
Scammers stole over $2 billion from Australians last year – more than double 2020’s total: ACCC – 4 July 2022
Australians lost more than $2 billion to scammers in 2021, the ACCC estimates. This is more than double the amount lost the previous year. The increase was driven by a rise in crypto investment scams and pyramid schemes.
https://www.itnews.com.au/news/australian-businesses-lose-227-million-to-scams-582162
‘Placate her anger’: investigation dismisses allegations of domestic violence against Queensland police officer – 5 July 2022
A Queensland police whistleblower said the police chose not to pursue credible domestic violence allegations against a serving officer, after dismissing his wife as having “mental health issues” and needing to be “calmed down”. The whistleblower, a former senior sergeant, has made an unpublished submission to a Queensland inquiry into police culture and the handling of domestic violence cases.
Prosecution of whistleblower lawyer Bernard Collaery dropped after decision by attorney general – 7 July 2022
The Attorney General, Mark Dreyfus, has dropped the prosecution against Witness K’s lawyer, Bernard Collaery, for allegedly revealing spying on Timor-Leste. Collaery was charged with unlawfully disclosing information about an Australian Secret Intelligence Service mission to bug the government offices of Timor-Leste.
Canberra men found guilty of conspiring to manipulate recruitment processes for IT staff in the Department of Finance – 7 July 2022
Abdul ‘Alex’ El-Debel and Raminder Kahlon who were accused of conspiring to manipulate the recruitment processes for IT staff in the federal Department of Finance have now been found guilty by a jury in the ACT Supreme Court.
Early detection crucial in stopping BEC scams – 7 July 2022
Research by Cofense Intelligence has revealed that Business Email Compromise (BEC) scams attempt to establish trust with targeted employees over multiple emails. Great article that describes key signs on how to spot fraudulent emails.
Former Theranos president Sunny Balwani found guilty of fraud, conspiracy – 8 July 2022
A US jury has convicted former Theranos president Ramesh “Sunny” Balwani of defrauding investors and patients about the blood testing startup that was once valued at $9 billion. Elizabeth Holmes and Theranos were accused of lying to investors about their machines’ ability to run a broad range of tests from a few drops of blood.
Investigation & Fraud News – Week ending 2 July 2022
9 stories this week:
Cabinet backs new money laundering laws to target organised crime – 23 June 2022
The NSW government will introduce laws to confiscate unexplained wealth from criminal gangs and ban the use of encrypted devices as part of long-waited reforms to combat money laundering and organised crime. The new measures are designed to cripple the finances of crime networks, stopping criminals from profiting from their actions and incapacitating them financially.
Access to digital version of SMH required to read article
Man sentenced in Batemans Bay court for dealing with proceeds of online puppy scam – 27 June 2022
Steven Rootsey, from NSW has been fined $6,000 and sentenced to a two-year community corrections order for dealing with nearly $50,000 in swindled funds related to an online puppy scam. He was asked to convert money to cryptocurrency by an unknown person via Snapchat and was promised 10 per cent of the funds in return.
Queensland IT guru found guilty of $73,000 insurance fraud – 28 June 2022
Anthony Onyeka Okeke tricked Allianz Insurance and QBE Insurance into paying insurance claims, for four vehicles after he staged or fabricated a series of crashes. He was found guilty of defrauding insurance companies of more than $40,000 and trying to dishonestly get more than $30,000.
Government hunts down fake businesses with intensified fraud crackdown – 28 June 2022
The Australian Taxation Office (ATO) and the Australian Federal Police (AFP) executed raids across the country to crack down on individuals suspected of defrauding by inventing fake businesses and ABNs to claim false refunds.
Zhenya Tsvetnenko handed eight-year jail term in US for multi-million-dollar text message scam – 29 June 2022
Perth man Zhenya Tsvetnenko has been sentenced to eight years in a federal US prison, for his role in a multi-million-dollar text messaging scam. Tsvetnenko and his co-conspirators defrauded hundreds of thousands of mobile telephone consumers in the United States by placing unauthorised charges on their mobile phone bills. The practice – known as “auto-subscribing”.
‘Cryptoqueen’ accused of $US4 billion OneCoin fraud added to FBI’s most-wanted list – 1 July 2022
Ruja Ignatova is the 11th woman in history to be added to the FBI ten most wanted fugitive list. Dr Ignatova launched OneCoin in 2014 with Sebastian Greenwood, who is currently in prison awaiting trial. The catch with OneCon was that there was no blockchain, a piece of information which keeps a record of transactions made by cryptocurrencies. This meant the coin had no value.
Adelaide’s SkyCity casino faces independent review as casino industry probe widens – 1 July 2022
South Australian authorities have launched an independent review of Adelaide’s SkyCity casino, in light of similar inquiries into casinos interstate. AUSTRAC’s has had concerns with ”ongoing customer due diligence” and adopting, maintaining, and complying with an anti-money-laundering and counter-terrorism financing program.
https://www.abc.net.au/news/2022-07-01/sa-independent-review-into-adelaide-skycity-casino/101202426
Australia to review carbon offsets following ‘fraud’ allegations – 1 July 2022
Australia’s new Labor government has appointed a top scientist to lead a six-month review of the country’s carbon credits, following allegations of fraud e.g projects earning credits for growing trees that were already in place and getting credits for growing forests on land that cannot sustain forests.
https://www.nasdaq.com/articles/australia-to-review-carbon-offsets-following-fraud-allegations
Jail a possibility for Guy Sebastian’s former manager, as singer says guilty verdict is ‘a lot to absorb’ – 1 July 2022
Guy Sebastian’s former manager Titus Day has avoided jail, for now, as he awaits to be sentenced for embezzling more than $600,000 from the singer. The 49-year-old will be sentenced on September 16.
Investigation & Fraud News – Week ending 24 June 2022
10 stories this week:
Corporate adviser Anthony Torre charged with ripping almost $2 million from client – 17 June 2022
Mr Anthony Paul Torre appeared at the Perth Magistrates Court charged with eight counts of fraud and five counts of stealing pursuant to sections 409 and 378 of the Criminal Code (WA). It is alleged that Mr Torre stole, or with intent to defraud obtained, approximately $1.882 million from his clients and used the funds from his clients’ accounts for his own benefit.
https://regulatory.news/anthony-torre-charged-with-stealing-and-fraud/
Tax office and federal police conduct raids over billion-dollar tax scam spread on TikTok and Facebook – 17 June 2022
Tax officers and federal police have raided a dozen locations across Australia in the past three days, as part of an investigation into a billion-dollar tax scam that has gone viral on social media. The number of people involved now is about 70,000, with the ATO investigating $850m in payments to 40,000 people.
Transport company fined $89,000 for breaching fatigue management laws – 17 June 2022
JSS Logistics Pty Ltd, a transport service company has been fined a total of $89,000 after being convicted on 24 charges under the State’s workplace fatigue management laws. The audit found the company’s drivers did not have the rest breaks and non-work time required by the regulations, and that the required records were not kept to the standard required by law.
https://www.miragenews.com/transport-company-fined-89000-for-breaching-802950/
One word saves Perth man’s $6m fortune from being stolen by hackers – 17 June 2022
Business email compromises, have “exploded” over the last two years against the backdrop of the Covid-19 pandemic. A Perth businessman nearly lost $6 million to hackers but one misspelt word saved his fortune from falling into the wrong hands and disappearing forever.
Corporate culture, not ‘bad apples’ to blame at Star, inquiry told – 17 June 2022
An inquiry into the ability of the Star Sydney to hold a casino licence, has revealed that it has failed to realise the effect of its terrible corporate culture. The NSW gaming regulator is hearing submissions from lawyers on behalf of witnesses at the long-running inquiry, which has probed allegations of money laundering, organised crime, fraud and foreign interference at Star and its Sydney venue.
Access to digital version of SMH required to read article
Aussies have lost over $205 million to investment scams, says ACCC – 17 June 2022
The ACC says that since the start of the year, Australians have lost over $205 million to investment scams. That’s a 116% increase on the same period last year. In 2021, Australians lost over $320 million in scams in total, with the majority of the monetary loss coming from investment scams-about $177 million-and dating scams-about $56 million. Article also lists how to spot a scam.
https://mozo.com.au/family-finances/aussies-have-lost-over-205-million-to-investment-scams-says-accc
50 businesses under investigation by FWO – 22 June 2022
Fair Work Ombudsman Sandra Parker has announced the regulator’s strategic priorities for the year ahead, include investigating large corporate underpayments. Currently 50 large corporates have self-reported non-compliance and since mid-2021, they have commenced court actions against Woolworths Group, Commonwealth Bank and Coles. http://www.ragtrader.com.au/news/50-businesses-under-investigation-by-fwo
https://www.nationaltribune.com.au/uni-wage-theft-investigation-welcome-sign/
Paul Whyte corruption hearing told he started charging for fake services two days after being hired – 22 June 2022
Paul Ronald Whyte, a senior public servant who perpetrated one of the biggest rorts of taxpayer funds in recent Australian history, invoiced a company for work never provided on his corporate credit card. The commission is examining how a person in such a senior position as Whyte, was able to systematically defraud the state to such an extent and whether the governance of the department had contributed to or enabled it.
https://www.abc.net.au/news/2022-06-22/graham-searle-testifies-at-paul-whyte-ccc-hearing/101172634
NT ICAC failed to offer procedural fairness to Darwin Turf Club board member in investigation into $12 million grandstand grant, court finds – 23 June 2022
The Northern Territory’s anti-corruption watchdog failed to offer procedural fairness to board member Damien Moriarty, before making findings of improper conduct in a major corruption investigation. Findings were over the handling of a $12 million government grant for the new facility at Darwin’s Fannie Bay racecourse.
Mining companies accused of corporate failure in shocking WA FIFO sexual harassment report – 23 June 2022
A West Australian parliamentary committee has urged the state’s resources sector to consider a register for perpetrators of serious sexual harassment on fly-in, fly-out sites similar to a working with children check. It was one of 24 recommendations made by the parliamentary inquiry into sexual harassment against women in the mining industry, triggered after a spate of alleged sexual assaults on WA FIFO workers.
Access to digital version of SMH required to read article
