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Investigation & Fraud News – Week ending 8 October 2021
12 stories this week:
Tech firms asked to clarify fraud and scam prevention controls – 1 October 2021
The UK’s Treasury department is questioning tech giants such as Google (GOOGL), eBay (EBAY), Facebook (FB), and Amazon (AMZN) on what they are doing to fight economic crime, prevent fraud, and protect consumers on their platforms.
FCC proposes new rules to combat SIM swapping scams – 1 October 2021
SIM swapping scams have been on the rise these past couple of years, and since most online services these days are tied to people’s phone numbers, the technique has the potential to ruin victims’ lives. The Federal Communications Commission is seeking to create new rules that would help prevent SIM swapping scams and port-out fraud, both of which are techniques designed to hijack people’s phone numbers and identities.
https://au.finance.yahoo.com/news/fcc-proposes-new-rules-sim-swapping-scams-093840753.html
Business woman embezzled $1m from family company – 2 October 2021
A former North Queensland lawyer and Ingham business owner has faced court after embezzling more than a million dollars from the company, she owned with her two brothers.
https://townsvilleonlinenews.com.au/nq-businesswoman-embezzled-1m-from-family-company/
(Digital Access required to read article.)
Australian financial institutions want AML loopholes solved – 4 October 2021
Australian banks and fintechs have raised concerns to the senate over major loopholes in the country’s anti-money laundering legislation. Organisations have outlined support for ‘Tranche 2’ legislation that would have Designated Non-financial Business and Professions (DNFBPs) such as law firms, accountants, and real estate agents coming under similar laws to banks, emitters, and wagering companies in relation to anti-money laundering and counter-terrorism financing regime (AML/CTF).
Scamwatch issues warning over new photo text Flubot malware – 4 October 2021
The notorious Flubot scammers have rolled out a sneaky new tactic designed to catch Aussies unawares, after their two other ploys were widely reported on. Now Australians are being duped into thinking their photos have been shared online.
‘Tearing our societies apart’: Facebook whistleblower’s revelations fuel concern in Australia – 4 October 2021
Facebook has been accused of “paying for its profits with our safety” and “causing ethnic violence around the world”. Former employee turned whistleblower Frances Haugen said the internal documents she leaked to the Wall Street Journal, demonstrate Facebook had embraced algorithms that amplified hate speech in pursuit of profits, claims the company has strongly disputed.
Clock is ticking: the walls are closing in on the $2.8tr crypto market – 4 October 2021
The cryptocurrency market is under a lot of regulatory and governmental pressure. In the US, Securities and Exchange Commission wants the power to regulate crypto assets as securities, arguing that the sector is rife with fraud, scams and abuses.
White House plans 30-country meeting on cybercrime and ransomware – 5 October 2021
Top US national security advisers will gather officials from 30 countries this month with plans to combat the growing threat of ransomware and other cyber crime. They are looking at improving law enforcement collaboration on issues like the illicit use of cryptocurrency.
Pandora Papers show mystery foreign investors making it harder for Australians to buy property – 5 October 2021
Pandora Papers show Rio Tinto continued to trade with Chinese billionaire Du Shuanghua after bribery scandal
Almost 12 million leaked documents – known as the Pandora Papers – have shed light on how complicated, offshore business structures are being used in Australia to shroud corporate ownership in secrecy. Since around 2016, there have been calls for a register of beneficial ownership, to force details of ultimate company owners into public view. https://www.abc.net.au/news/2021-10-05/pandora-papers-show-impact-of-mystery-foreign-property-investors/100515630
Home buyer caught in $100,000 bank scam hits out at ‘dismissive’ NAB – 5 October 2021
Complying with anti-money laundering laws and protecting customers against scams are two costly and mounting tasks for the major banks. NAB is working on a mammoth internal project, called Apollo, that involves examining millions of customer accounts to ensure identification details are up-to-date.
Investment scam losses reported to ACCC set to double in 2021 – 5 October 2021
Australians lost more than $851 million to scams in 2020 – the worst year on record – and it looks like 2021 will be another banner year for scammers. People aged 65 and older were the group that had lost the most to investment scams as of August this year and people aged 18 to 24 had reported $1.7 million in losses to the ACCC as of August – a 259% jump on all of 2020.
Investigation & Fraud News – Week ending 1 October 2021
13 stories this week:
Aussie crypto kid gets over seven years in US jail for Ponzi scheme – 16 September 2021
Stefan Qin, a 24-year-old Brisbane man, used investor’s money on a lavish lifestyle, including a $US23,000-a-month Manhattan penthouse apartment. Federal prosecutors said Qin defrauded more than 100 people out of about AUD $123 million. Investors thought they’d found a sure thing — a hedge fund that was generating 500 per cent returns by exploiting the price gaps between cryptocurrencies on 40 exchanges throughout the world.
ANZ reports a 73% year-on-year increase in scams for the first eight months of 2021 – 23 September 2021
ANZ had seen a 73% increase in scams being detected or reported by customers, compared to the same time last year. The most prevalent and successful scam involves criminals gaining remote access to consumer customer computers and the devices. ANZ chief executive Shayne Elliot, has encouraged the Standing Committee of Economics, to prioritise the need to raise further awareness and address the rising number of scams.
Bitcoin trader takes banks to court over cryptocurrency ‘discrimination’ – 24 September 2021
The ACT Civil and & Administration Tribunal, will hear a case between Canberra man Allan Flynn and two of the nation’s biggest banks, over their decision to stop doing business with him, because he operated a cryptocurrency trading platform. If successful this could have enormous ramifications for the bitcoin-shy Australian banking sector.
Bitcoin.org website offline after being hacked – 25 September 2021
Bitcoin.org suffered a breach Thursday that has already cost unsuspecting bitcoin users lots of money. Visitors to the site were greeted with an invitation to send bitcoin to the “Bitcoin Foundation” with hackers promising they would double funds sent to the address.
https://micky.com.au/bitcoin-org-website-offline-after-being-hacked/
Australia: An Increasingly Global Approach – 27 September 2021
This article considers the major Australian government investigative, law enforcement, and regulatory agencies involved in domestic and transnational investigations, with a particular focus on their increasing need to adopt a global approach to adequately protect Australians from criminal threats, both local and international.
Foreign ownership investigation of A-League soccer teams reveals human rights concerns, match-fixing links – 27 September 2021
An investigation into foreign ownership of Australian soccer clubs, has uncovered links to an Indonesian executive, jailed over a major match-fixing scandal and accusations of “sportswashing”, by one of the wealthiest Arab states.
https://www.abc.net.au/news/2021-09-27/football-foreign-ownership-a-league-investigation/100476618
Papas executive accused of failing to act on 2018 whistleblower report – 27 September 2021
A senior executive at Bill Papas’ business has repeatedly claimed he only learned about the $400 million fraud in June this year, despite being warned of potential contract irregularities in 2018 by an internal “whistleblower”.
Anthony James Hill pleads guilty to fraud-related charges after stealing $28,000 from New Norfolk Golf Club – 27 September 2021
Anthony James Hill pleaded guilty to 37 fraud-related charges after stealing more than $28,000 from the New Norfolk Golf Club, while acting as Treasurer and being entrenched in a decade long romance scam.
Phone scams are ‘exploding’ and costing vulnerable Australians millions, new data shows – 28 September 2021
Australians have lost $63.6 million to scams involving unsolicited calls or text messages so far this year, according to the ACCC’s Scamwatch program. Indigenous Australians in particular, are seeing increasing financial losses from phone-based scams. Experts are calling for vigilance and for people to report potential fraud.
https://www.itnews.com.au/news/australians-lose-211-million-to-scammers-570381
PwC opens investigation into racist misconduct at staff event – 29 September 2021
Professional services firm PwC is facing accusations of racist misconduct among its staff at a company-run event, with one diversity and inclusion leader said to have mocked Chinese accents.
Sydney inner west man charged over $20m payroll fraud – 29 September 2021
It is alleged that an Earlwood man received and possessed $456,150 that was proceeds of an illegal scheme to siphon off money that should have been remitted to the ATO, and that he was reckless as to the fact that the money was the proceeds of crime.
Financial firms brace for ‘pitiless’ month of new laws – 30 September 2021
Banks, fund managers and insurers will from October become subject to a raft of new regulations flowing from the Hayne royal commission, including a controversial rule forcing them to “dob in” themselves and their business partners for suspected breaches of the law.
(Access to digital version of AFR required to read article.)
China bans cryptocurrency transactions – 1 October 2021
China has declared the use of digital currencies illegal, saying they disrupt the financial system and are used in money-laundering and other crimes.
Investigation & Fraud News – Week ending 24 September 2021
12 stories this week:
Eudunda Farmers Limited accused of wage theft of more than $1 million in regional SA as union launches legal action – 14 September 2021
SA’s shop workers union claims Eudunda Farmers Limited owes more than $1 million in unpaid wages. Claims are that 64 current and former employees were underpaid and misclassified.
https://www.abc.net.au/news/2021-09-14/wage-theft-allegations-in-regional-sa-supermarkets/100459190
Fears alleged fraudster Papas ploughed Westpac millions into shares – 16 September 2021
Westpac ‘not holding breath’ on alleged fraudster’s return to Australia, court hears. Bill Papas is suspected of depositing at least $2 million of money he allegedly defrauded from Westpac into building a sizeable share portfolio held on an online trading platform, MacroVue.
(Access to digital version of SMH required to article.)
Scamwatch: Don’t fall for scammers pretending to be Federal Police – 17 September 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.
https://www.ratecity.com.au/credit-cards/news/scams-rise-protect-money
Accounting body in go-slow on KPMG cheating scandal – 17 September 2021
The main professional body for accountants has yet to investigate or take any disciplinary action against KPMG Australia partners or staff, over systemic exam cheating by its partners and staff, despite being first told about the matter 18 months ago.
(Access to digital version of AFR required to article.)
China ramps up hunt for illegal cryptocurrency operations – 17 September 2021
China is ramping up its search for illegal cryptocurrency miners, who are trying to disguise their operations as research institutions and data centres, according to a new report. Moving mining rigs between locations makes activity harder for authorities to trace.
16 million Aussies warned of dangerous Commonwealth Bank email scam – 18 September 2021
Australians have been warned of a new scam using Commonwealth Bank signage, which attempts to lure victims into sharing personal and financial details. Whilst the sender appears to be ‘NetBank’, the email has actually been sent from scammers.
https://au.finance.yahoo.com/news/commonwealth-bank-scam-warning-005601215.html
We need a federal watchdog with teeth – 18 September 2021
Large donations to parties or ministers are frequently bribes for access and influence. The Coalition has been promising a federal integrity commission for nearly three years. Recent High Court decisions show it would be possible to control such donations by reducing the reporting threshold, capping individual and aggregated donations. Article discusses this in detail.
Research beats regulation in avoiding bad social media influencers – 20 September 2021
ASIC is reviewing activities of Australian finance influencers to understand their business models and how the financial services law applies to these activities. This action however has come too late to protect many consumers.
https://smallcaps.com.au/research-beats-regulation-avoiding-bad-social-media-finfluencers/
Lack of regulation means some cryptocurrency start-ups are being ‘debanked’, with investors also at risk – 21 September 2021
There are 400 digital currency exchanges in Australia and around one in six people own cryptocurrency totalling $8 billion. However due to lack of regulation, banks are banning crypto start ups known as ‘debanking’. A senate inquiry looking at ways to regulate cryptocurrency and digital assets.
https://www.abc.net.au/news/2021-09-21/crypto-bitcoin-babe-senate-finance-coinjar-business/100477066
‘Woeful’: ANZ chief slams business preparedness for cyberattacks – 21 September 2021
ANZ chief executive Shayne Elliott says the majority of Australian businesses are hopelessly unprepared for cyberattacks, a mounting threat as the digitisation of society gains pace and criminals exploit vulnerabilities during COVID-19.
Financial crimes increasing even more under COVID-19 as some burglars switch to fraud – 22 September 2021
A loophole has allowed criminals to change drivers licence details online and commit identity fraud. SA Police’s Financial and Cybercrime Investigation Branch said some burglars, had switched from in-person crime to online theft during the coronavirus pandemic.
‘Put your man pants on’: Building watchdog tells ASIC to do its job – 23 September 2021
NSW Building Commissioner David Chandler has launched a blistering attack on the nation’s corporate regulator, telling it to do more to help crack down on misconduct in the construction industry and in particular the collapse of the Ralan Group.
Investigation & Fraud News – Week ending 17 September 2021
12 stories this week:
Australia appoints former Macquarie boss to oversee financial regulators – 10 September 2021
The Australian Government has appointed Nicholas Moore, to chair a new Regulatory Review Board to report on the effectiveness of the country’s banking and corporate regulators. The new agency was established in response to the recommendations of a 2018 survey of fraud in the banking, insurance and pension fund sectors criticized by regulatory agencies.
Identity theft rises a ‘staggering’ 500% in August as scams skyrocket – 10 September 2021
Australians have lost $192 million to scams in eight months of this year compared to $175 million lost last year. More than $2.2 million was lost to identity theft in August 2021 – a 500% increase on the $352,950 lost in July. This is a 700% increase compared to August 2020.
https://www.savings.com.au/news/identity-theft-rises-over-500-august
Are mortgage brokers a weak link in the fight against financial crime? – 10 September 2021
Mortgage brokers were put on notice this week about the risk of financial crime, with government agency AUSTRAC raising the general risk level to ‘high’ and citing the broker channel specifically as a potential point of access for fraudsters.
Papas suspected of transferring Forum cash to personal accounts – 10 September 2021
The alleged Westpac fraudster Bill Papas is suspected of shifting hundreds of thousands of dollars from his businesses to personal bank accounts. This means he allegedly had access to large sums of money prior to Westpac being granted asset and account freezing orders in early July.
Competition winners become victims of Facebook scams – 11 September 2021
Competitions being run by legitimate WA businesses on Facebook, are being hijacked by scammers who create a bogus page, using a similar modified name of the real business. Entrants then receive a message from the fake profile saying they have won, but they need to register their details by clicking on a link. The link goes to a fake website confirming the win, but the ‘winners’ must provide their personal and financial details first to get the prize.
https://www.haveagonews.com.au/news/competition-winners-become-victims-of-facebook-scams/
Innovation or ‘anarchy’? Bitcoin’s gains abroad underscore tensions at home – 13 September 2021
Australia’s primary financial crimes regulator has warned that the growing size of the cryptocurrency market is creating new risks of fraud. Cryptocurrency transactions may appear on a digital ledger, however the actual details of the parties involved in the transactions, are often not known.
Government issues warning over new text scam targeting people in lockdown – 13 September 2021
The government has urged Victorians to be on the lookout for a scam, following the announcement of a new round of coronavirus business grants. The scam text message asks people to click on a link and update financial information.
China uses anti-fraud app to track access to overseas financial news – 14 September 2021
Chinese police are using a new anti-fraud app installed on more than 200 million mobile phones, to identify and question people who have viewed overseas financial news sites. The app blocks suspicious phone calls and reports malware.
(Access to AFR digital required to read article.)
Former Perth finance broker sentenced on loan fraud – 15 September 2021
Former Perth finance broker Eric-John Larry Pryor has been sentenced in the Perth Magistrates’ Court after pleading guilty to two charges of fraud and one charge of giving false information. Mr Pryor obtained a $28,000 pecuniary advantage for himself and others, by fraudulently brokering two of the loans for an amount well above the purchase price of the financed vehicle.
https://www.miragenews.com/former-perth-finance-broker-sentenced-on-loan-632173/
US watchdog fines KPMG Australia over ‘widespread’ cheating on online training tests – 15 September 2021
KPMG Australia has been fined US$450,000 by the US audit watchdog over “widespread” cheating on online training tests covering professional independence, auditing and accounting.
Cyber attacks on the rise across Australia, with one attack every eight minutes – 15 September 2021
Last financial year, the Australian Cyber Security Centre received over 67,500 cybercrime reports, with self-reported losses totalling $33 billion. A quarter of the attacks were associated with critical infrastructure.
Six Melbourne men charged over major international phone scam – 16 September 2021
Six Melbourne men have been charged over a sophisticated international phone scam. Detectives allege the new phones the victims had paid for, were intercepted by thieves before they were delivered, and that they were then exported out of the country to be on-sold.
