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Investigation & Fraud News – Week ending 14 January 2022
11 stories this week:
Aussie crypto ‘fraud’ diverted ICO funds to African gold miners – 7 January 2022
Australian cryptocurrency entrepreneur Craig Sproule has been charged by the US corporate watchdog for defrauding investors by diverting millions from a digital coin offering to South African gold mining investments. Mr Sproule and two companies he founded – Crowd Machine Inc and Metavine Inc – have been charged with making materially false and misleading statements when selling digital asset securities
Record Amount Stolen By Crypto Scams in 2021 – 7 January 2022
Crypto-correlated crime reached a distressing new record in 2021. With an increase of around 80% from the previous year, scammers managed to abscond with a record $14 billion in cryptocurrency last year. Record Amount Stolen By Crypto Scams in 2021 (ibtimes.com.au)
https://www.ibtimes.com.au/record-amount-stolen-crypto-scams-2021-1782039
https://www.techradar.com/au/news/cryptocurrency-crime-hit-an-all-time-high-in-2021
Bill Papas’ cousin defends $720,000 in payments from alleged fraudster – 7 January 2022
The cousin of alleged fraudster Bill Papas has defended receiving $720,000 from the colourful soccer identity’s share trading account in breach of freezing orders, saying the transfers were to pay legal fees and loan repayments.
(Access to digital version of AFR required to read article.)
Know How Identity Theft Protection Services Industry May Double Its Market Size in Years to Come – 8 January 2022
The global Identity Theft Protection Services market report is a comprehensive study that encompasses top manufacturers, prospective market share, revenue, purchaser volume with respect to explaining the volume and global segmentation of the Identity Theft Protection Services industry. Access the report and find out more via this link.
Ousted James Hardie boss ‘blindsided’ by sacking – 10 January 2022
Ousted James Hardie chief executive Jack Truong states he was “blindsided” by his sacking last week following an investigation into claims of bullying, allegations he says he “unequivocally” rejects.
(Access to digital version of AFR required to read article.)
The ‘rug pull’: crypto investors lose $4b in new scam – 11 January 2022
Cryptocurrency investors lost almost $US3 billion ($4.2 billion) last year in an emerging scam known as the “rug pull”, where fraudsters lure investors into dodgy digital coins and run off with the proceeds.
(Access to digital version of AFR required to read article.)
After being convicted of fraud and conspiracy, Paul Manafort signs a deal for a book called “political prisoner.” – 10 January 2022
Paul Manafort the former chairman of Donald Trump’s campaign, was convicted of tax fraud and conspiracy charges and sentenced to seven years in prison. He is now writing a new memoir in which he calls himself a “political prisoner”.
Fresh development in alleged bitcoin conman Peter Foster’s case – 11 January 2022
Mr Foster is charged with multiple counts of fraud relating to an alleged multimillion dollar bitcoin scam. It is alleged he induced a man known as Konstantinos Stylianopolous to deliver digital currency and US currency bank credits, to a company known as Sports Predictions Trading. He has been charged with five counts of fraud, two counts of obtaining and dealing with identification information and one count of using a false record.
Australian Woman’s Fight to Prove Singapore Fraud – 12 January 2022
For six years, an Australian woman named Julie O’Connor has made many efforts to raise claims of fraud and what she calls a cover-up by powerful people over the acquisition of the Singapore and Vietnam assets of an Australia-based firm, Strategic Marine Pty Ltd. O’Connor says she has been vilified on social media and that her photographs have been doctored into news articles, which falsely showed her family members as being convicted paedophiles.
https://www.asiasentinel.com/p/australian-woman-fight-prove-singapore-fraud
Telstra Teams up With Aussie Banks To Block SIM Swaps and Porting Fraud – 13 January 2022
SIM swaps and porting fraud are on the rise, so, to counter this trend, Telstra is teaming up with Australian banks to try and block this precursor to identity theft and serious financial crime.
https://www.gizmodo.com.au/2022/01/telstra-sim-swap-porting-fraud/
John Hempton vows to target Australian frauds – 13 January 2022
John Hempton (co-owner and CIO of Bronte Capital Management Pty Ltd) believes Australia’s defamation laws – paired with an increase in investing activity by retail punters cashed-up with superannuation, and the Australian Securities and Investments Commission’s new habit of intimidating “completely honest short-sellers” – has resulted in an easy environment for “scammers” to sell “garbage” to mum and dad investors.
(Access to digital version of AFR required to read article.)
Investigation & Fraud News – Week ending 7 January 2022
9 stories this week:
South Australian family ‘devastated’ by terrifying phone hack – 31 December 2021
A South Australian couple has issued a stark warning after nearly losing their entire life savings in a terrifying phone “SIM swap” hack. A scammer had remotely gained control of their SIM cards by applying for an eSIM card and was able to steal their phone numbers. The hacker had impersonated them, accessed identifying documents, started a new bank account and increased the maximum spend on their buy now pay later services.
‘Quite disempowering’: Crypto’s curious case of stolen identity – 31 December 2021
A former JP Morgan executive has fake Twitter, Facebook and Instagram accounts set up in her name. Hackers will contact her staff posing as her in an attempt to authorise the transfer of vast sums of money. Friends and family have been duped into sharing personal information with people that claim to be her.
(Access to digital version of SMH required to read article)
ACT Policing’s new forensic imaging technology prevents hours of traffic disruption after road crashes – 2 January 2022
Using a forensic imaging system, police can create a three-dimensional model of a crash scene in incredible detail. Investigators can then analyse this digital reconstruction – examining factors like speed or road conditions – to work out what caused the crash and prroduce a 30-second video clip of what the collision looked like from any angle.
https://www.abc.net.au/news/2022-01-02/act-forensic-crash-reconstruction-technology/100734460
How to use WHOIS to analyse scams – 3 January 2022
Fake versions of real websites, phishing sites are one of the key tactics scammers use to get you to hand over real details. However a little bit of research and education can save you. Most web domain registration companies offer access to a tool called “WHOIS”, which checks on the registration details of a website name. WHOIS can tell you who has registered the site you’re looking up, and then you can compare it to the actual site.
https://www.pickr.com.au/how-to/2022/how-to-use-whois-to-analyse-scams/
PwC targeted ‘unambitious’ migrant staff for grunt work: whistleblower – 3 January 2022
A whistleblower from global auditing giant PwC has told a Senate inquiry into job security that the firm targeted “unambitious” migrant workers to work 80 to 120 hour weeks from an unbranded Sydney office with lower salaries.
How Theranos founder Elizabeth Holmes went from the cover of Forbes to being found guilty on charges of fraud – 4 January 2022
Elizabeth Holmes apparently invented a way to run 30 lab tests on only one drop of blood using the Theranos Minilab. However it didn’t work. Her company tried to fake it until they made it but then criminal charges were filed say they defrauded investors by making false claims. It is also alleged the company knew about the problems and lied repeatedly to cover them up. The jury found Holmes guilty of four counts of fraud.
https://www.abc.net.au/news/2022-01-04/elizabeth-holmes-theranos-trial-verdict-guilty/100645818
Product fraud could be costing Australia $3bn a year – 4 January 2022
Fibre fraudulence involving the ‘high risk’ commodities of veal, wine, fish and mollusks fell between $700 million to $1.3 billion. According to reports the cost of fraud in the sheep meat, wool, wheat, horticulture and dairy products sectors is believed to cost the industry up to another $700 million annually.
https://www.retailnews.asia/product-fraud-could-be-costing-australia-3bn-a-year/
AUSTRAC battles crypto crime ‘blind spots’ – 4 January 2022
The head of the financial intelligence agency says it is battling regulatory “blind spots” to police the $US2 trillion ($2.7 trillion) crypto asset sector, as criminals anonymously use digital currencies to conduct their affairs on the dark web. Also 400 local digital currency exchanges – registered for anti-money-laundering and counter-terrorism financing obligations – had not been endorsed by AUSTRAC as safe for retail investors.
https://www.afr.com/politics/federal/austrac-battles-crypto-crime-blind-spots-20211209-p59gaq
Family sues CBA over money-laundering scam – 5 January 2022
A makeup artist studying in Australia and her family are suing Commonwealth Bank after losing millions of dollars in an international money-laundering scam and are victims of “cuckoo smurfing”. AUSTRAC had accused CBA of systemic failures to report suspicious deposits, transfers and account transactions, according to The Australian.
https://www.mpamag.com/au/news/general/family-sues-cba-over-money-laundering-scam/320970
Investigation & Fraud News – Week ending 31 December 2021
12 stories this week:
Revenue from crypto scams spike 81% to a near-record $7.7 billion in 2021, says Chainalysis – 16 December 2021
Crypto scammers raked in a near-record $US7.7 ($AU11) billion in revenue in 2021. The 81% revenue surge was paced by a relatively new type of scam called “rug pulls.” A rug pull is when developers unexpectedly abandon their cryptocurrency projects and take users’ funds with them.
https://www.businessinsider.com.au/crypto-scams-7-billion-2021-bitcoin-ethereum-defi-tokens-chainalysis-2021-12
Police raids over Parliament House ‘revenge porn’ probe – 18 December 2021
Pornographic images of a Liberal staffer masturbating at Parliament House have been seized in dramatic police raids as part of an investigation into revenge porn allegations. State police are investigating whether a former Canberra man, distributed the lewd images without consent, between November 2020 and March 2021 in contravention of Crimes Act 1900 (ACT) s 72C.
https://www.news.com.au/national/nsw-act/police-raid-over-parliament-house-revenge-porn-probe/news-story/12d6326adf606a278405363cd4857d2d
Apple faces investigation after worker safety allegations – 19 December 2021
The US Department of Labor has launched an investigation into Apple, in response to a whistleblower’s concerns about the tech giant. The cases are of alleged retaliation by employers against workers who raise concerns about issues such as employee safety.
https://www.hcamag.com/au/specialisation/corporate-wellness/apple-faces-investigation-after-worker-safety-allegations/320391
The rise and fall of the NT Legal system – 19 December 2021
There has been a decline in the Northern Territory’s legal system. Darwin barrister John Lawrence explains that the major victims are Aboriginal Australians, and women and children, who are subject to domestic violence.
https://ntindependent.com.au/opinion-the-decline-and-fall-of-the-nt-legal-system/
AFP to adopt radical new DNA technology – 19 December 2021
The Australian Federal Police announced they will be using a next-generation technology called ‘massive parallel sequencing’, which has the potential to reveal a person’s physical appearance, biological sex and ancestry. Questions have been raised about the ethical, privacy and racial implications of revealing highly sensitive information about our genetics.
https://www.abc.net.au/radionational/programs/sundayextra/afp-to-adopt-radical-new-dna-technology/13681974
Hacker steals Sydney man’s life savings after simjacking – 20 December 2021
A hacker was permitted to use private details and activate an eSIM using just the Optus online message system, without having to verify their identity face-to-face in an Optus store, which then allowed them to steal his phone number. They then had access to bank accounts.
https://www.9news.com.au/national/optus-sim-swap-hack-robs-sydney-man-of-life-savings/4e1dcac8-a6e7-4030-a4a0-b18c87bbb019
Scamwatch: Don’t fall for a fake parcel delivery scams this Christmas – 22 December 2021
Australian Community Media has compiled a list of current scams identified on sites such as scamwatch.gov.au, www.cyber.gov.au and the Australian Competition and Consumer Commission’s website dedicated to informing people about fraudulent and dishonest activities. Investment scams are the highest with 149 million lost.
https://www.manningrivertimes.com.au/story/7556865/dont-be-fooled-by-parcel-delivery-scam-texts/
https://www.miragenews.com/public-urged-to-protect-themselves-from-online-700767/
US Secret Service says $US100 billion stolen from COVID-19 relief funds – 23 December 2021
The US Secret Service says around $US100 billion ($139 billion) at minimum has been stolen from COVID-19 relief programs set up to help businesses and people who lost their jobs due to the pandemic. The agency says it has more than 900 active criminal investigations, into pandemic fraud.
https://www.abc.net.au/news/2021-12-23/us-secret-service-say-100-billion-stolen-from-covid-relief-funds/100721604
Fraud syndicate accused of targeting Telstra and big banks – 24 December 2021
Telstra and some of the nation’s biggest banks have been targeted by an alleged fraud syndicate, which has been accused of conspiring to defraud almost $2 million along with hundreds of mobile phones.
https://www.theage.com.au/national/victoria/fraud-syndicate-accused-of-targeting-telstra-and-big-banks-20211223-p59jq1.html
‘He needs to back it up’: Leaked cricket drug complaint sparks security warning – 26 December 2021
A confidential phone call between a whistleblower and Cricket Australia’s ex-integrity chief discussing a then-player’s alleged cocaine use and sexual activities has been leaked, exposing serious security flaws in the organisation’s anti-corruption unit.
https://www.smh.com.au/sport/cricket/he-needs-to-back-it-up-leaked-cricket-drug-complaint-sparks-security-warning-20211221-p59j9p.html
The hacker-for-hire industry is now too big to fail – 28 December 2021
While the scrutiny of firms that provide hackers for hire has grown, the global demand for offensive cyber capabilities has escalated too. In the 21st century, a government’s highest-value targets are online more than ever-and hacking is usually the most effective way to get to them. The result is a growing crowd of countries willing to spend large sums to develop sophisticated hacking operations.
https://techexec.com.au/?p=5936
Controversies, collapses and vindication: Corporate Australia’s hits and misses of 2021 – 28 December 2021
There was rarely a dull moment in the world of business in 2021. Not only were companies dealing with the morass of issues caused by the pandemic, there were also more “traditional” business problems – new chiefs, old chiefs, corporate collapses, serious business injuries, boardroom spats and a bit of vindication along the way. From those who scored hits to those who missed the mark, (and those in between), here are the people who helped make headlines in 2021.
https://www.smh.com.au/business/companies/controversies-collapses-and-vindication-corporate-australia-s-hits-and-misses-of-2021-20211227-p59ka8.html
Investigation & Fraud News – Week ending 17 December 2021
19 stories this week:
ANZ dragged to court after cleaners and real estate agents helped write $18.5b in home loans – 26 November 2021
ASIC is suing ANZ in relation to 74 loans that may have breached the National Credit Act. The loans were referred to the bank by “introducers” – third-parties who were paid commissions for sending customers ANZ’s way. The banking royal commission heard evidence that some large-scale introducers were tailors or gym owners. ANZ dragged to court after cleaners and real estate agents helped write $18.5b in home loans – Bing
Federal government announces regulatory changes to combat scam text messages – 29 November 2021
Australians have lost $87 million to scams this year. Telecommunications companies will soon be able to block scam text messages from being sent in the first place, thanks to regulatory changes by the government.
New DNA testing technology helps AFP predict criminal profiles – 5 December 2021
A new technology that opens a new world of forensic DNA testing for criminal investigation is being used by the Australian Federal Police (AFP). It is known as Massively Parallel Sequencing (MPS) and can provide predictions for visual traits of criminals from the DNA they leave at a crime scene, allowing investigators to predict gender, biogeographical ancestry, eye colour and, in coming months, hair colour.
https://canberraweekly.com.au/new-dna-testing-technology-allows-afp-to-predict-criminal-profiles/
‘Stolen laptop’: Liquidators of collapsed Melbourne crypto company pursue bitcoin millions – 5 December 2021
Administrators of the failed cryptocurrency company “Blockchain Global Limited”, which is based in Melbourne are pursuing millions in missing bitcoin claimed to be sitting on a stolen laptop overseas. The case has highlighted the challenge of tracking down money tucked away in the murky financial world of cryptocurrency, particularly when companies go under and creditors want their money back.
Tax Office could be given phone bugging powers – 6 December 2021
The Australian Taxation Office and AUSTRAC could be handed sweeping new surveillance powers, including the right to bug people’s phones and online communications, as part of an overhaul of telecommunications intercept laws.
https://www.afr.com/politics/federal/tax-office-could-be-given-phone-bugging-powers-20211206-p59f83
(Access to digital version of AFR required to read article.)
Australia moves to sanction human rights abusers and cyber criminals – 6 December 2021
Legislation to establish ‘Magnitsky-style’ laws passed through parliament on the last sitting day of the year will have the effect of blocking human rights abusers and cyber criminals from travelling to Australia, along with other sanctions powers. The reforms have been introduced to prevent Australia from becoming an ‘isolated, attractive safe haven’ for criminals and their associated businesses for illegal gains.
Serial conman Peter Foster arrested in Victoria after failing to appear at Sydney court hearing six months earlier – 7 December 2021
Serial conman Peter Foster was arrested in the Macedon Ranges six months after failing to appear before a court in Sydney on multiple fraud charges. He was given fugitive status in May this year and is now expected to be extradited to Queensland.
https://www.abc.net.au/news/2021-12-07/serial-conman-peter-foster-arrested-in-victoria/100679978
Aussies charged in global laundering sting – 7 December 2021
Eighteen Australians are facing criminal charges after a global money-laundering sting, stopped $2.6 million in “dirty cash” flowing through the nation’s financial institutions. The Australian Federal Police operation identified 27 alleged money mules. More than 1800 people were arrested globally.
https://www.northernbeachesreview.com.au/story/7541273/aussies-charged-in-global-laundering-sting/
New Electronic Surveillance Framework To Govern How Data Can Be Accessed in Australia – 7 December 2021
A new ‘modernised and streamlined electronic surveillance legislative framework’ is set to be in place by 2023. The objective is to develop a new single Act that: better protects individuals’ information and data, including by reflecting what it means to communicate in the 21st century.
https://www.gizmodo.com.au/2021/12/electronic-surveillance-framework-australia/
Collaery prosecution to enter fourth year – 8 December 2021
The prosecution of whistleblower Bernard Collaery has been pushed back to February 2022, ensuring the case enters its fourth year with no trial date set. Mr Collaery is accused of unlawfully sharing classified information about the alleged bugging operation of the East Timor prime minister by Australian officials in 2004. Once again case highlights the need for whistleblower reforms instead of prosecution of whistleblowers.
https://www.northernbeachesreview.com.au/story/7543068/collaery-prosecution-to-enter-fourth-year/
Cryptocurrency scams targeting Australians as scammers bank more than $100 million – 9 December 2021
Australian Federal Police say cryptocurrency scams have “exploded” during the pandemic, with new figures from the Australian consumer watchdog showing a 172 per cent increase in losses between January and November this year, totalling $109 million. The article tells the story of three victims of cryptocurrency scams. Cryptocurrency scams targeting Australians as scammers bank more than $100 million – ABC News
ACCC whistleblower vindicated, goes public – but remains persona non grata – 9 December 2021
Three years ago an anonymous Australian Competition and Consumer Commission (ACCC) official was marched out of his office – and later threatened with criminal action – after internal emails became public via a television exposé on the Takata airbag scandal. Article questions what to do when we punish a whistleblower who turns out to be right?
https://www.crikey.com.au/2021/12/09/accc-whistleblower-vindicated-steps-out-of-shadows/
Woman who stole $940,000 from vet to gamble online jailed for six years – 9 December 2021
Rachel Naomi Perri stole $940,000 from her employer and used the money for online gambling. The court heard that her crimes were only discovered after a restructure led to her position as practice manager at Tasmanian Veterinary Hospital, became redundant.
AUSTRAC and Services Australia partner up to target emergency and disaster payments fraud – 9 December 2021
A new financial crime guide will help financial services businesses detect and report suspicious transactions, indicative of fraud and misuse of emergency and disaster payments administered through Services Australia.
https://www.miragenews.com/austrac-and-services-australia-partner-up-to-690130/
NatWest Fined $348.5M for AML Breach After Calling Out Crypto Fraud – 14 December 2021
NatWest has been fined $348.5 million over a case of fraud where a business customer deposited large sums of money without checks. This is the first time that the U.K.’s Financial Conduct Authority has conducted a criminal prosecution against a financial institution in the U.K.
https://beincrypto.com/natwest-fined-348-5m-for-aml-breach-after-calling-out-crypto-fraud/
Australian Deputy Prime Minister Questions Assange Extradition Ruling – 14 December 2021
Barnaby Joyce believes there are no reasons for WikiLeaks founder Julian Assange’s extradition, since the whistleblower, an Australian national, did not breach any Australian laws and was not in the US when leaked data was published, Australia’s Deputy Prime Minister.
https://www.abc.net.au/news/2021-12-14/barnaby-joyce-opposes-extradition-of-julian-assange/100697630
Fraud arrest, Brisbane – 15 December 2021
A man is being charged with four counts of fraud following investigations into alleged fraudulent activity relating to election funding. Police will allege the man, a financial administrator for a political party, submitted fraudulent documentation relating to a 2020 election funding application for $24,000.
https://beincrypto.com/natwest-fined-348-5m-for-aml-breach-after-calling-out-crypto-fraud/
NSW man accused of trying defraud COVID-19 business relief scheme of more than half a million dollars – 17 December 2021
Strike Force Sainsbery was set up in November to investigate fraudulent applications made against the micro-business grant program. A Warialda Rail man has been charged with 51 offences, including obtaining financial advantage by deception and is accused of making fraudulent applications worth $530,000.
https://www.abc.net.au/news/2021-12-17/man-charged-over-covid-19-finacial-relief-fraud/100707812
Online credit card fraud on the rise leading up to holiday season – 17 December 2021
Research indicates a significant increase in credit card fraud leading up to the holidays. The new data from AusPayNet shows a 9.2% rise in fraud on payment card transactions in the 12 months to 30 June 2021 (FY21) alongside increased online spending during COVID-19 lockdowns. Overall, the total spending on cards rose 5.4% to $847.3 billion during this same period, with the fraud rate being 57.8 cents per AUD$1,000 spent.
https://securitybrief.com.au/story/online-credit-card-fraud-on-the-rise-leading-up-to-holiday-season
