15 stories this week:
New data reveals AFCA received a whopping 70,000 complaints in the last year generating millions of dollars worth of refunds to Aussies – 8 July 2021
The Australian Financial Complaints Authority (AFCA), a non-government ombudsman, received 70,000 complaints over the 2021 financial year and secured more than $240 million in compensation and refunds. The most complained about products were: Credit cards (14%) Home loans (9%) and Personal transaction accounts (8%)
https://www.finder.com.au/240m-afca-refunds-approvedaction-investigation/
Long-running, calculated and elaborate fraud’: Firm at the centre of Westpac scandal to be wound up – 9 July 2021
The Federal Court has ordered the company “Forum Finance” at the centre of an alleged $250 million fraud against banking giant Westpac be placed into liquidation, while the exact whereabouts of its football personality (Bill Papas) the director remain unknown.
Major crypto scammer sentenced to 15 years in prison – 9 July 2021
The mastermind behind what the government says is one of the largest cryptocurrency Ponzi schemes prosecuted in the US has been sentenced to 15 years in prison. Roger Nils-Jonas Karlsson, defrauded thousands of victims and stole tens of millions of dollars over 10 years.
https://au.finance.yahoo.com/news/crypto-ponzi-scam-roger-nils-jonas-karlsson-doj-071142854.html
MAFS star to face trial over fraud scam – 9 July 2021
It is alleged that Daniel Webb who was a reality television contestant, was involved with a multi-million dollar “boiler room” telemarketing scam. The prosecution argues the scam raked in about $24 million from hundreds of victims in 2013 and 2014.
https://thewest.com.au/news/crime/mafs-star-to-face-trial-over-fraud-scam-c-3355449
Queensland director hit with ASIC penalty – 9 July 2021
A Queensland director has been disqualified from managing corporations for three years following an investigation by ASIC. He “failed to exercise his powers and discharge as a director with care and diligence, good faith and in the best interest of the companies; failed to take reasonable steps to ensure that the companies complied with their obligations to keep accurate written financial records; and failed to assist the liquidators by not delivering the companies’ books and records”.
https://www.mybusiness.com.au/human-resources/8269-queensland-director-hit-with-asic-penalty
Shred Away Identity Theft – 10 July 2021
The Labor Government is reminding people to dispose of confidential documents securely, while working from home to protect themselves from identity theft. This is often done by scammers physically stealing personal information through mailboxes or discarded documents or fake emails.
https://www.miragenews.com/shred-away-identity-theft-593580/
Australians lost $7.2 million in home computer scam – 12 July 2021
ACCC’s Scamwatch said scammers have stolen more than $7.2 million from Australians by gaining access to home computers so far this year. Scammers take advantage of the ability to remotely access people’s computers or smart phones.
https://infotechlead.com/security/australians-lost-7-2-million-in-home-computer-scam-67466
‘Real and present danger’: Government considers making company directors personally liable for cyber attacks – 13 July 2021
Company directors could be held personally responsible for cyber attacks, under new standards being discussed with industry.
Corporate watchdog takes SmileDirectClub to court, alleging thousands misled by teeth straightening insurance claims – 13 July 2021
Tens of thousands of Australians ordered clear teeth aligners and underwent treatment after allegedly being incorrectly told, their health insurance would cover part of it. ASIC has alleged this was false and misleading.
Australians losing billions of dollars to cyber crime: Report – 13 July 2021
A report published by the Australian Institute of Criminology (AIC) said citizens were losing billions of dollars every year to cyber crime. It found that Australians spend A$1.4 billion on preventing cyber crime every year and A$597 million on dealing with the consequences of cyber attacks.
British police seize record $545m haul of cryptocurrency – 14 July 2021
British police have seized record hauls of cryptocurrency totalling A$545 million as part of an investigation into money laundering, after organised crime groups moved into cyptocurrencies to wash their dirty money.
https://www.itnews.com.au/news/british-police-seize-record-545m-haul-of-cryptocurrency-567311
Japan bank reveals $100 million Forum Finance exposure – 14 July 2021
Sumitomo Mitsui Banking of Japan has become the latest major bank trapped by an alleged fraud carried out by Sydney-based firm Forum Finance, with an exposure of nearly $100 million.
Finfluencers are on the rise, so are they friend or foe? It can be murky territory – 14 July 2021
The laws around providing unlicensed financial advice are murky. Recently there have been calls for more regulation and oversight with the influx of finfluencers. https://www.abc.net.au/news/2021-07-14/finfluencer-tik-tok-instagram-social-media-financial-advice/100289102
Cyber criminals increasingly target builders – 14 July 2021
Cyber criminals are increasingly targeting the construction industry and, as large builders improve their guard and systems, hackers are training their sights on smaller companies such as consultants, contractors and suppliers.
https://www.afr.com/property/commercial/cyber-criminals-increasingly-target-builders-20210713-p589ez
Fraudsters discover the easiest way to rob a bank – 15 July 2021
A good article summarising how invoice financing fraud has occurred with the Forum Finance and Westpac situation and why these incidents continue to occur. Forum Finance, sold products (ie case waste management devices) – to large reputable customers that paid using a Westpac loan. Westpac, however, paid the money directly to the vendor business and relied on that business to pass on the lease payments that were being made by the customer. The invoices presented to the bank showing what the reputable customer owed facilitated the transfer, while the assets were the collateral that could be taken if the customer never paid. The problem is that the products allegedly didn’t exist: the invoices appear to be fabricated, while the lease payments weren’t made by the customer but by the business to keep up appearances. The whereabouts of the balance is now a mystery.
