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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.
Investigation & Fraud News – Week ending 10 September 2021
12 stories this week:
Charges laid after nearly $180,000 obtained through email scam – Cybercrime Squad – 3 September 2021
Cybercrime Squad detectives have charged a woman after nearly $180,000 was allegedly netted through a business email compromise scam.
ASIC enforcers dish out warning to banks – 3 September 2021
Australian Securities and Investments Commission (ASIC) deputy chairman Sarah Court said speedier investigations and enforceable undertakings would also be a priority as the regulator pressed the reset button on its “why not litigate” strategy.
Westpac warns about ‘sophisticated’ scams impacting under 30s – 4 September 2021
New research reveals that more than 1.2 million Australians have been scammed in the past 12 months, with people under 30 twice as likely to have been targeted during Covid-19. The most common scams are investment scams (180 per cent increase), while remote access scams are up by 370 per cent on what they were in 2020.
Sports Flick founder under NSW Police investigation – 6 September 2021
Dylan Azzopardi, a Western Sydney man behind a now-defunct sports streaming start-up that offered $US60 million for the UEFA Champions League, is under investigation by NSW Police over allegations of fraud. It is alleged that Mr Azzopardi used $2.5 million provided to him for personal use, rather than to pay the company handling the international rights for the Rugby League World Cup.
(Access to digital version of SMH required to read article.)
Mortgage brokers warned about financial crime as AUSTRAC ups risk level to ‘high’ – 6 September 2021
AUSTRAC, has urged brokers to be on guard as it rates the nation’s risk level as ‘high’ in its latest report. Their report specifically mentioned the role of mortgage brokers in fraud, and cited hundreds of loans placed with major banks and lenders, that they had identified as being fraudulent and involved with money laundering. https://www.brokernews.com.au/news/breaking-news/mortgage-brokers-warned-about-financial-crime-as-austrac-ups-risk-level-to-high-278622.aspx
https://www.theadviser.com.au/breaking-news/41988-austrac-flags-broker-fraud-among-banking-risks
Federal court says BitConnect promoter guilty of fraud charges – 6 September 2021
Glenn Arcaro, the former director, and promoter of crypto exchange Bitconnect has been found guilty by the federal court of fraud and for funnelling more than $2 billion from investors.
https://micky.com.au/federal-court-says-bitconnect-promoter-guilty-of-fraud-charges/
Cybercrime on the Rise and a Booming Housing Market – 6 September 2021
An informative article on Cybercrime that provides detail on the most common forms of cybercrime and who they should be reported to. The cost to the Australian community is measured conservatory at over $ 3.5 billion dollars a year, according to a report commissioned by the Australian Institute of Criminology.
https://www.lexology.com/library/detail.aspx?g=b6a50da5-4a81-4f90-b9ab-8a1ab8dbbf93
Flubot scammers warn ‘last chance’ for fake parcel delivery – 7 September 2021
Australia’s scam watchdog has warned that the malicious “Flubot” scam has updated its fake text messages, in a bid to get access to your personal phone information. Flubot is a form of software known as malware that has the potential to immediately access a user’s passwords and financial information.
New Australian surveillance laws give police powers to alter Facebook and Twitter posts – 7 September 2021
A new law gives Australian police unprecedented powers for online surveillance, data interception and altering data. These powers, outlined in the Surveillance Legislation Amendment (Identify and Disrupt) Bill, raise concerns over potential misuse, privacy and security.
Scamwatch: Vaccine passport scams – what to look out for – 8 September 2021
The Australian Community Media has provided a comprehensive 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.
Bitcoin trader kicked out of 90 banks over cryptocurrency concerns – 8 September 2021
A bitcoin trader says she is running out of options after being booted from 90 banks across Australia. Buying and selling cryptocurrencies such as bitcoin could see you have your bank account shut down, a parliament inquiry has heard. The situation was causing the company to move to offshore banking due to being ‘debanked’.
Police Issue Warning Over Fake AFP Phone Scam – 9 September 2021
The Australian Federal Police (AFP) is warning community members about a scam involving fake police representatives, attempting to con money from the public. They tell victims they have identified suspicious activity linked to their bank accounts and request personal details.
https://www.newsofthearea.com.au/police-issue-warning-over-fake-afp-phone-scam-77908
