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Investigation & Fraud News – Week ending 3 September 2021
13 stories this week:
Fake Australian Federal Police money scam targeting West Australians – 26 August 2021
The Australian Federal Police issued the alert of scammers falsely identifying themselves as Federal Agents and telling victims, they had identified suspicious activity linked to their bank accounts. They then requested personal details including a Medicare number, address and bank details.
https://thewest.com.au/news/crime/fake-australian-federal-police-money-scam-targeting-west-australians-ng-b881981027z
https://www.dailymail.co.uk/news/article-9928203/Australians-flooded-fraudulent-phone-calls-fake-AFP-officers-demanding-payment.html
Pyramid scheme-style ‘investment app’ scamming most vulnerable during COVID pandemic – 26 August 2021
Investment Apps are the modern version of pyramid schemes to scam people. The first people to sign up make money, so they encourage others to join. They are often run by overseas groups making recovery of the money difficult.
Most common scam calls and how to prevent them – 27 August 2021
Thanks to COVID, lockdowns and working from home, increased virtual presence has created fertile ground for online fraudsters and identity thieves. There have been 214 million scam calls blocked since rules requiring telcos to detect, trace and block the nuisance calls were introduced in December last year.
$25 million crypto scam hits Australians – 27 August 2021
In the first six months this year, Australians have lost A$70million ($50.5 million) from fraudulent investments, of which half was from crypto scams. Scammers lure investors is by using fake trading platforms with celebrity endorsements and the attractive bait of “high earnings.”
https://micky.com.au/25-million-crypto-scam-hits-australians/
https://www.businessinsider.com.au/arisecoin-fraud-scheme-jared-rice-sentenced-4-million-doj-crypto-2021-8
Pump and dump ‘manipulation’ plagues cryptocurrency markets – 30 August 2021
Free brokerage, lockdown boredom, and social trading had increased the success of pump-and-dump schemes on the stock market. A pump-and-dump scam, typically involves inside groups of manipulators, taking positions in an altcoin or digital token, prior to a pump signal to buy the asset, in a coordinated manner for social media users. The dump involves a pre-planned crash – colloquially known as a “rugging” or rug pull.
Fixing Freedom Foods cost $28m, with more to come – 30 August 2021
Freedom Foods remains under investigation by the corporate regulator over allegations that it breached continuous disclosure and financial reporting obligations. The company expects legal costs to continue; it is facing US arbitration from key supplier Blue Diamond Growers over a licensing agreement, which could end in more large costs. Freedom Foods is also facing two investor class action claims, and is being sued by its former group general counsel and company secretary.
Victorian woman fleeced $10,000 from ‘harrowing’ phone scam – 31 August 2021
A Victorian woman has been fleeced of $10,000 following an elaborate mobile phone scam. The retired university lecturer was tricked into believing she was part of a $2 million sting, being threatened with a fake warrant and ordered to drive to her local bank to withdraw cash and go to the post office.
Adelaide Brighton Cement accounts manager found guilty of multi-million-dollar deception – 30 August 2021
A former Adelaide Brighton Cement manager has been found guilty of deceiving the company out of millions of dollars to benefit one of its customers. Ms Burgess hid Concrete Supply’s debts from her own employer, increased their credit limits and had created several large manual entries benefiting the customer ‘Concrete Supply’.
ASIC new enforcement approach more targeted and proportionate – 31 August 2021
Last week, ASIC published its corporate plan which said it would continue as an active litigator against misconduct, but that litigation would be reserved for cases involving the most substantial harm to market integrity, investors and consumers. Hill and Wilcox lawyers said this new approach will allow for more balance in responding to technical or inadvertent contraventions, where the entity concerned had promptly remediated any persons impacted.
Backlash as new iPhone update will cause devices to ‘spy’ on owners – 31 August 2021
Apple is launching a new surveillance system on more than one billion active iPhones, iPads and Macs. Under the new design, your phone will now perform these searches on Apple’s behalf before your photos have even reached their iCloud servers, and … if enough ‘forbidden content’ is discovered, law-enforcement will be notified.
Govt: it’s time to regulate cryptocurrency – 31 August 2021
Cryptocurrency could benefit the Australian economy “to the tens of billions”. The government is looking closely at regulations affecting cryptocurrency as it considers how to handle digital assets and encourage innovation in the broader blockchain ecosystem.
https://ia.acs.org.au/article/2021/govt–it-s-time-to-regulate-cryptocurrency.html
‘AntiVaxMomma’ accused of selling fake vaccination cards – 1 September 2021
A New Jersey woman has sold several hundred fake COVID-19 vaccination cards at $US200 ($273) each. For an extra $US250, a second scammer would then enter a bogus card buyer’s name into a New York state vaccination database, which feeds systems used to verify vaccine status at places they’re required, such as concerts and sporting events.
Australian policymakers demand answers from Lex Greensill – 1 September 2021
Lex Greensill from Greensill Capital has been sent a list of questions from a parliamentary committee seeking more information on supply chain finance schemes. Committee members want to know more about what products he marketed to the Australian government and whether any Australian entities were involved in his “future receivables” financing programs.
Investigation & Fraud News – Week ending 27 August 2021
15 stories this week:
Been bombarded by spam texts and ghost phone calls? You’re not alone – 22 August 2021
Garbled text messages and ghost calls are targeting mobile phones and delivering malware designed to steal passwords and data. The ‘Flubot’ scam which prompts users to download an app which installs malware that could access personal data and banking details is really dangerous, with targets loosing thousands of dollars. The ACCC estimates Australians lost more than $850million to scammers last year.
(Access to digital version of SMH required to read article.)
How a now-defunct site on the dark web led police to the biggest cryptocurrency seizure in Australia – 20 August 2021
Data from the 2013 investigation of Silk Rd (Online black market hosted on the dark web and used predominantly to buy and sell illegal drugs) was shared with police across the world, and authorities have continued to make arrests related to the now-defunct site. New information from the FBI, has led to the largest ever cryptocurrency seizure by law enforcement in Australia. A record $8.49 million in cryptocurrency, understood to be Bitcoin, was seized during raids carried out at properties across metro and regional Victoria, part of an estimated $13.1 million worth of assets restrained by police.
Home Affairs worker unlawfully obtained almost $10,000 through visa scheme – 20 August 2021
A corruption investigation has found that a former visa processing officer who was an employee of the Department of Immigration and Border Protection, used their role to receive ‘substantial’ sums of money and engaged in ‘dishonest and deceitful’ conduct.
‘A lot of people are sleepwalking into it’: the expert raising concerns over AI – 20 August 2021
Kate Crawford, one of the world’s pre-eminent scholars on the social and political implications of artificial intelligence, explains the risk and threats to human rights of facial recognition technology, biometric technology and surveillance.
Stripped bishop a ‘failed property tycoon,’ says flock – 21 August 2021
Bishop Daniel, the head of the NSW Coptic Orthodox Church, is the subject of a police investigation following allegations of serious fraud within the church. calculated to exceed $35 million. They relate, in part, to the buying and selling of property owned by the Coptic Church. and appointing himself as the sole trustee of the church’s property trust.
Locked-down Australians warned of COVID-19 disaster payment scams – 23 August 2021
The Australian government has warned of scams targeting people relying on COVID-19 disaster payments. Some of the reported scams involved criminals purporting to be from the government and asking for a victim’s financial details.
http://www.xinhuanet.com/english/asiapacific/2021-08/23/c_1310142908.htm
ClubsNSW tells court it’s facing ‘oppressive’ campaign from pokies whistleblower Troy Stolz – 23 August 2021
ClubsNSW is seeking a federal court order to stop Stolz making public statements, to media outlets, about its motives or conduct while it sues him for allegedly breaching its confidence. Lawyers for the industry body tell judge that former employee Stolz is obstructing justice and would continue to do so ‘unless’ restrained.
Ex ABF officer ordered to repay stolen $94,000 – 24 August 2021
Former Australian Border Force (ABF) officer Pablo Olivares has been sentenced to more than two years’ imprisonment and ordered to repay $93,898.75 after pleading guilty to forgery and theft. The investigation, found Olivares made134 unauthorised corporate credit card cash withdrawals, hotel bookings and car rental bookings. He also used falsified medical certifications and statutory declarations.
Drysdale fraudsters’ case adjourned – 24 August 2021
A Drysdale couple are facing jail for an $80k fraud scheme. The court heard the pair worked to systematically defraud the company out of income from customers, creating false invoices and suggesting clients would get a better rate if they paid cash.
https://www.bay939.com.au/news/local-news/128748-drysdale-fraudsters-remanded-until-september
Australians duped by JB Hi-Fi, Myer and Woolworths gift card scams – 24 August 2021
Aussies are being warned about a new scam where payments are being demanded via retail gifts cards from Woolworths, JB Hi-Fi and Myer or cash paid to couriers, with one man losing $50,000.
Poly Network says it has recovered all $610 million it lost in cryptocurrency heist – 24 August 2021
Poly Network, a decentralized finance platform that saw a hacker named “Mr. White Hat” exploit a vulnerability in its code to steal $610 million in Ethereum, Shiba Inu and other cryptocurrencies, says it has recovered all the money it lost in the theft.
https://au.finance.yahoo.com/news/poly-network-161726337.html
Fresh wave of concern for crypto scams as bitcoin’s value skyrockets – 24 August 2021
A new release from the Australian Competition & Consumer Commission (ACCC) revealed that Australians have lost more than $70 million to investment scams this year so far, with projected losses set to reach $140 million by the end of the year. More than half of the $70 million in losses were to cryptocurrency, especially through bitcoin, and cryptocurrency scams were also the most commonly reported type of investment scam.
https://www.savings.com.au/news/prevalence-scams-bitcoin-takes-off
AFP issues warning about fake arrest warrant email scam – 25 August 2021
Hundreds of Australians have been contacted by scammers falsely identifying themselves as Federal Agents. The scammers often work by telling victims they have identified suspicious activity linked to their bank accounts, then request personal details including a Medicare number, address and bank details. They target people via email and social media with fake arrest warrants, then call their victims and demand payments – ordering them to deposit money into a nominated bank account or purchase online vouchers.
Woman jailed for Centrelink, Medicare scam – 25 August 2021
Tammy Theresa Power, a Queensland woman has admitted scamming the government to obtain more than $50,000 in social security and Medicare payments while on parole for similar fraud. Power made changes to the bank details of 68 people who were registered with Centrelink, redirecting their social security payments into accounts she controlled.
https://7news.com.au/news/crime/woman-jailed-for-centrelink-medicare-scam-c-3777467
Investment scams in Australia: What is the true cost? – 25 August 2021
Investment scams reported to the ACCC-run Scamwatch have cost Australians over $70 million in the first half of 2021, and projected losses are set to reach $140 million by the end of the year. The article highlights some of the main investment scams impacting Australians, and warning signs to look out for.
https://www.lexology.com/library/detail.aspx?g=80ad7954-f74b-4627-91c4-b7fcc0d3e34d
Investigation & Fraud News – Week ending 20 August 2021
7 stories this week:
How can Australian businesses protect themselves from invoice fraud – 13 August 2021
According to the ACCC’s latest Targeting Scams Report, businesses lost over $A128m to business email compromise scams – that’s nearly $A2.5m a week. Scammers are exploiting the pandemic and are scamming businesses out of their much needed cash, with total invoice fraud losses jumping by 180%. Detail of invoice scams and how to avoid them are detailed in this article.
https://idm.net.au/article/0013560-how-can-australian-businesses-protect-themselves-invoice-fraud
An anonymous hacker stole $813 million in cryptocurrency, then gave it back – 14 August 2021
An anonymous hacker who stole more than US$600 million ($813m) from the decentralised finance platform, Poly Network, has returned virtually all of the money – and apparently turned down a half-million-dollar reward offered by the company for exposing its security vulnerability.
The Dark Side of bitcoin that no one knows – 14 August 2021
Article details the scams and fraudulent activities associated with bitcoin. The risks are due to the anonymous nature of bitcoin, the associated virus and malware attacks and the lack of protection against hackers who steal the private keys of users through phishing attacks.
https://www.techguide.com.au/news/cryptocurrency/the-dark-side-of-bitcoin-that-no-one-knows
Police explain Oxford ‘money mule’s’ links to Australian fraud – 15 August 2021
Sydney mum Mary Ann Abellanoza, an accountant at Silversea cruises, siphoned off $3.7m over five years. In 2019, she was jailed for eight years. Police described Mackenzie as part of an ‘international ring of money launderers’ responsible for moving the proceeds of the fraud.
https://www.oxfordmail.co.uk/news/19513953.police-explain-oxford-money-mules-links-australian-fraud/
Continuous disclosure reforms, the new mental element for civil penalty actions, and shareholder class actions – 16 August 2021
Article by Clayton Utz, details some of the considerations that are likely to arise in shareholder or securities class actions in relation to amended Australia’s continuous disclosure laws.
https://www.lexology.com/library/detail.aspx?g=0ba9a767-570d-42c9-a954-f50160b75c0d
A third of financial institutions have increased AI and ML in response to money laundering – 17 August 2021
A third of financial institutions are accelerating their AI and machine learning (ML) adoption for anti-money laundering (AML) technology in response to COVID-19, according to a new AML technology study by software company SAS, accounting organisation KPMG, and the Association of Certified Anti-Money Laundering Specialists (Acams).
Check your bank account for mysterious $8.19 charge – 17 August 2021
The Commonwealth Bank has issued a warning to thousands of Australian customers to watch out for a rogue outgoing payment of around $8. This indicates that your bank account may have been compromised with scammers using horror movie streaming platform Shudder.
Investigation & Fraud News – Week ending 13 August 2021
10 stories this week:
Manhunt for alleged Bitcoin scammer who conned 400,000 people – 6 August 2021
A worldwide manhunt has been launched for a bitcoin scammer, Faruk Fatih Ozer (Founder of Thodex), who allegedly went on the run with $US2 billion. The alleged scam is thought to be the largest con in Turkish history, having scammed approx. 400,000 people – 6 August 2021
Further fraud charges laid against Canberra ECEC director – 6 August 2021
The former director of a Canberra based early childhood education and care (ECEC) service has received a further 80 fraud charges as the case, which sees her accused of defrauding the business of more than $375,000 unfolds. The director allegedly made payments from the service bank account into her own.https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
Forum Group creditors claim to be owed $580M – 6 August 2021
Administrators appointed to the embattled Forum Group have revealed a lengthy list of at least 112 creditors that together claim to be owed more than $580 million by the company.
ttps://www.arnnet.com.au/article/690327/forum-group-creditors-claim-owed-580m/
Advisers banned over corporate breaches – 9 August 2021
ASIC has announced that Gold Coast-based advisers? Trent Allan and Fabrizio Urrutia? have? each? received a five-year ban for breaching financial services? laws. The duo are said to not be adequately trained or competent to provide financial services, including life insurance advice and did not comply with financial services laws.
https://www.insurancenews.com.au/life-insurance/advisers-banned-over-corporate-breaches
Ex-Tigers intern behind years-long fraud – 9 August 2021
Adam David Jones collected nearly $900,000 from an Illegal scam targeting retirement funds and businesses transactions. He infiltrated business records and anticipated when large transactions were to occur. He later targeted large sums stored in superannuation accounts.
https://7news.com.au/news/crime/ex-tigers-intern-behind-years-long-fraud-c-3636305
Pair deny $135k Tasmanian council fraud – 10 August 2021
A couple have faced court accused of defrauding a Tasmanian council to the tune of $135,000. Casey Maree Bryant, is facing more than a hundred charges in total, including counts of fraud, dishonestly acquiring a financial advantage and inserting false information as data.
https://thewest.com.au/news/crime/pair-deny-135k-tasmanian-council-fraud-c-3646612
Millions paid to directors: New details of Westpac’s Forum fraud emerge – 11 August 2021
Westpac has accused Bill Papas’ Forum Finance of forging signatures of staff at French giant Veolia’s New Zealand offices on faked contracts that extracted an additional $44 million from the bank. It is also alleged that Mazcon (Greek company), allegedly received $16 million as part of the allegedly fraudulent scheme and that Vince Tesoriero (Papa’s business partner), received $28 million in cash.
Internal controls lag in the face of transformation: KPMG – 11 August 2021
A new poll conducted by KPMG that surveyed nearly 300 respondents from across 100 organisations – financial risk managers, accountants, internal auditors and compliance managers among them – found that nearly half had yet to automate internal controls.
Aussies warned of fake Bitcoin trading websites as cryptocurrency scams increase – 12 August 2021
Aussies looking to invest in boom cryptocurrency Bitcoin are being warned to carefully check the credentials of their trading platform, after a spike in scams was detected. Consumers need to remember Bitcoin is unregulated.
Poly Network cryptocurrency hack sees hundreds of millions of dollars worth of Ethereum, other coins stolen – 12 August 2021
Hackers behind one of the biggest ever cryptocurrency heists, have returned more than a third of the $832 million in digital coins they stole, according to the company Poly Network, at the centre of the hack.
https://www.abc.net.au/news/2021-08-12/cryptocurrency-heist-hack-poly-network-ethereum/100372374
