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Investigation & Fraud News – Week ending 8 November 2024
‘Devastating’: The scams to watch out for as Australians complain in record numbers – 31 October 2024
The number of scams in Australia has hit a record high, according to a new annual report from the (AFCA). The complaints rose by a whopping 81 per cent in 2023-24. That means almost 11,000 Australian have made complaints about being scammed. The report found phishing, spoofing and remote access scams were widespread, while there had also been a “significant” increase in bank impersonation scams.
Ex-bank worker avoids jail over FB Marketplace scams – 31 October 2024
A former bank worker who scammed Facebook Marketplace users out of thousands of dollars, has avoided jail, with a judge describing some of his offending as “hopeless”. Daniele Biglietto pleaded guilty to 37 counts of financial fraud, which he claimed resulted from addictions to cocaine and gambling.
https://www.northweststar.com.au/story/8807883/ex-bank-worker-avoids-jail-over-fb-marketplace-scams/
Victoria Police Seize $142,679 in Crypto Under New Legal Framework – 1 November 2024
Victoria Police have been hard at work over the past 12 months, raking in nearly $150k worth of crypto from the wallet of criminals. This is a new ability for the Australian law enforcement agency, with legislation now allowing VicPol to seize digital assets with a search warrant.
ASIC expands probe into ANZ’s alleged bond market manipulation – 1 November 2024
The chairman of the Australian Securities and Investments Commission, told a parliamentary joint committee in Sydney that the high-profile investigation into ANZ’s role in a $14 billion government bond sale had been expanded to include misreporting of data. He also stated that the potential for the alleged conduct to impact the interest payments of the Commonwealth on the bonds issue will effect Australian taxpayers.
Ex-CEO of cryptocurrency exchange platform charged with stealing over 2 million AUD from a customer – 4 November 2024
The former chief executive officer (CEO) of crypto exchange Mine Digital is facing a fraud charge for allegedly withholding 2.2 million AUD a customer paid for Bitcoin (BTC) in July 2022. The Australian Securities and Investments Commission (ASIC) has officially charged Grant Colthup, the chief of the now-defunct exchange platform.
AFP raids PwC offices as tax leaks investigation further unfolds – 4 November 2024
The Australian Federal Police raided PwC Sydney offices recently in the most recent development in the tax leaks scandal. The investigation was dubbed Operation Alesia and has been in action since May last year. The original tax scandal emerged from former PwC partner Peter Collins sharing confidential information about tax law changes with other partners. Those partners used that information to win new clients and develop new structures that sidestepped the laws the firm was helping to design.
https://www.accountingtimes.com.au/tax/pwc-scandal-persists-with-afp-office-raid
Construction insiders fear speaking out against CFMEU without whistleblower protections – 4 November 2024
Due to fear, coupled with the absence of whistleblower protections for contractors wanting to disclose their experiences with the CFMEU, insiders say the CFMEU administration process will only scratch the surface of what has been happening in the sector.
The law firms trawling through corporate scandals – 7 November 2024
Major firms have grown their teams and boutique competitors have emerged, as solicitors increasingly choose to steer investigations themselves – from the evidence-gathering all the way to the reporting stage – rather than engage outside counsel.
ATO whistleblower Richard Boyle to face trial after high court refuses attempt to appeal – 7 November 2024
A South Australian court’s decision that federal whistleblower protections do not grant immunity for criminal acts committed while gathering evidence will stand, after the high court refused Richard Boyle’s attempt to appeal it. He will soon face a criminal trial in Adelaide for 24 offences, including the alleged use of his mobile phone to take photographs of taxpayer information and to covertly record conversations with colleagues.
Albanese Government introduces landmark Scams Prevention Framework – 7 November 2024
Landmark legislation establishing the Scams Prevention Framework will be introduced into Parliament on 7 Nov. The Australian Competition and Consumer Commission (ACCC) will have new powers to direct businesses to take specific steps to keep their customers safe from scammers and the Australian Financial Complaints Authority (AFCA) will be empowered to resolve consumer claims over scams in these sectors. The Scam Prevention Framework will include fines of up to $50 million for non compliance.
Investigation & Fraud News – Week ending 1 November 2024
As corporate scandals unfold, are company boards doing enough to stamp out bad executive behaviour? – 27 October 2024
Australian billionaire Richard White and co-founder of logistics software company WiseTech Global this week announced he will step down from his role as chief executive following allegations of inappropriate behaviour. The allegations have reignited questions about the roles and responsibilities of company directors, and whether they provide enough scrutiny and scepticism of their CEOs.
MinRes expands probe into alleged tax dodge to address ‘inconsistencies’ – 29 October 2024
Mineral Resources says an independent investigation into an alleged tax dodge by its billionaire founder and managing director, has been broadened to examine new information against Chris Ellison that contradicts the company’s understanding of the facts. The board of the West Australian iron ore and lithium miner said it was working to resolve these “inconsistencies” via an external investigation.
Canberra unveils major $14.7m scam compensation pathway – 29 October 2024
The government will direct $14.7 million in funding to the Australian Financial Complaints Authority to establish a “single door” for scam victims to hold social media platforms, banks and telcos liable. The pathway would be available to all victims who have exhausted internal dispute resolution channels, even if the complaint was against multiple regulated industries. Assistant Treasurer Stephen Jones hailed the funding as “a major uplift in consumer protections for scam activity.
Does tracking employees make them more productive – 28 October 2024
Companies have powerful new tools to track employees and monitor their productivity in detail, raising obvious concerns. RMIT University senior lecturer Melissa Wheeler questions whether technologies used to track employees actually work.
Grubby Mildura granny unmasked in $200k taxpayer scam – 29 October 2024
A Mildura mother-of-two faces jail after admitting to defrauding taxpayers and attempting to obtain an additional $400,000, with the money funding luxury purchases and her gambling habit.
Access to digital version of Herald sun required to read article
Crown pays over $500,000 following regulator’s investigation into long service leave underpayment – 29 October 2024
Over $500,000 has been paid to Victorian workers, and Crown Melbourne and Crown Resorts (Crown) have received formal warnings, after a Wage Inspectorate Victoria investigation uncovered hundreds of staff were underpaid their long service leave entitlements.
Corruption chief ‘engaged in misconduct’ on stopping robo-debt probe – 30 October 2024
National Anti-Corruption Commissioner Justice Paul Brereton has been found to have engaged in misconduct, when he involved himself in proceedings that rejected further investigation into the senior public servant in the robo-debt scandal, who was an army reserve colleague. The embarrassing finding came after the NACC’s independent inspector Gail Furness found Mr Brereton should have excluded himself completely from the decision not to investigate referrals from the robo-debt royal commission.
Access to digital version of AFR required to read article
Massive data breach exposes 800,000 insurance customers’ personal information – 30 October 2024
The insurance administrative services company Landmark Admin, has warned that a data breach from a May cyberattack impacted over 800,000 individuals due to their partnership with some of the largest insurance carriers in the U.S. Through these partnerships, millions of policyholders and their sensitive information, such as names, Social Security numbers, driver’s license numbers and passport numbers, could be at risk of exposure, further amplifying the potential impact of this breach.
Three people sentenced over roles in $5.8m fraud against NDIS and ATO, ordered to pay back over $575k – 31 October 2024
Three people have been sentenced to multiple years imprisonment for their roles in a scheme that defrauded $5.8 million from the NDIS and ATO. The trio were among six people arrested in 2021 over a suspected syndicate making false claims to both the NDIS and ATO. The trio have been sentenced to multiple years imprisonment, and have been ordered to repay the Commonwealth more than $575,700.
https://www.abc.net.au/news/2024-10-31/three-people-sentence-fraud-ndis-ato/104546856
Investigation & Fraud News – Week ending 25 October 2024
Corporations and officers can now be held responsible for predatory business models – 22 October 2024
Australian courts have long faced difficulties due to an inability to successfully pinpoint which individuals within a corporation were to blame for the conduct. The High courts have now decided that if a corporation has adopted a predatory business model, which is only profitable by taking advantage of a certain class of vulnerable customers, then it is assumed that the corporation acted knowingly and with intent. As such, the corporation can be held directly responsible and penalised. Furthermore, if a corporation is found to have acted unconscionably, any of its executives who had knowledge of the corporation’s systems can be also found to have acted unconscionably.
https://www.lexology.com/library/detail.aspx?g=64b5fb7e-ef78-43c4-9399-85c77f642374
Scammers pose as fake loan schemes, charities to target vulnerable Australians – 22 October 2024
The National Anti-Scam Centre is warning that criminals are targeting people in financial hardship by impersonating trusted organizations and offering fake programs like no-interest loan schemes, rental assistance, and emergency relief services. These scams often mimic legitimate services provided by well-known charities, such as Good Shepherd and the Salvation Army, which are intended to support low-income earners and those facing unexpected financial difficulties.
Secrecy is not security – 23 October 2024
A discussion on whistleblower protections, improving the National Anti-Corruption Commission, and why Australia may be the world’s most secretive democracy.
https://australiainstitute.org.au/post/secrecy-is-not-security/
Does Australia need a surveillance tech regulator? – 23 October 2024
The Australian Council of Trade Unions is calling for an artificial intelligence regulator to protect employees from exploitation and privacy breaches due to virtual workplace monitoring.
Insurance giant QBE taken to court by ASIC over allegedly misleading customers with false discounts – 23 October 2024
QBE has been sued by the corporate regulator over claims it misled customers about discounts. ASIC will take the insurer to court and accuse it of promising discounts for home, contents and car insurance which weren’t delivered. The discounts were offered to customers for their loyalty over a five-year period between July 2017 and September 2022, according to ASIC.
Former Abercrombie CEO out on $10m bond amid sex-trafficking investigation – 23 October 2024
The former Abercrombie & Fitch CEO Mike Jeffries was arrested on Tuesday as part of a criminal sex trafficking investigation by federal prosecutors. Authorities allege that Jeffries, his British partner Matthew Smith and a third man, Jim Jacobson, ran an “international sex trafficking organisation” that coerced “dozens and dozens” of men into sexual acts, often for the promise of a modeling career with the clothing retailer.
https://www.theguardian.com/business/2024/oct/22/former-abercrombie-ceo-arrested-sex-trafficking
Aussie crypto CEO charged with fraud – 24 October 2024
The former CEO of collapsed Australian cryptocurrency exchange Mine Digital, Grant Colthup, has been charged with fraud after an investigation by the corporate regulator found a customer did not receive millions of dollars’ worth of Bitcoin they had paid for.
https://ia.acs.org.au/article/2024/aussie-crypto-ceo-charged-with-fraud.html
‘Posting and boasting’ about crimes on social media now an offence in the NT, following similar laws in QLD, NSW – 25 October 2024
The Northern Territory last week became the third Australian jurisdiction after Queensland and New South Wales to make posting about certain crimes on social media an offence. But experts are warning that the measures only target the “symptoms” of crime and won’t be effective. The federal parliament is considering a private members bill from Coalition MP David Coleman to introduce post and boast laws nationally.
‘Years of unblemished service’: Manager claims unfair dismissal, no proper investigation – 25 October 2024
The Fair Work Commission (FWC) recently dealt with an unfair dismissal claim where a manager argued she was terminated without proper investigation after four years of unblemished service. The manager maintained she had never received any prior complaints about her management style, and that her dismissal came suddenly during her personal leave. The case examined what constitutes reasonable grounds for summary dismissal under the Small Business Fair Dismissal Code, particularly when dealing with workplace conduct complaints.
Jailed Malaysian leader Najib Razak apologises for 1MDB embezzlement scandal – 25 October 2024
A Malaysian sovereign wealth fund co-founded in 2009 by then-leader Najib Razak has faced corruption probes in at least six countries. A court is set to determine on October 30 whether to acquit Najib or ask him to enter his defence on money laundering and corruption charges in a 1MDB-related case
Illegal cannabis crop worth more than $26 million seized by police in Leongatha South – 25 October 2024
Victoria Police have seized and destroyed more than $26 million worth of illegal cannabis plants in regional Victoria.Four men and one women were arrested at the scene and have been charged with cultivating and trafficking a commercial quantity of cannabis.
Investigation & Fraud News – Week ending 18 October 2024
Westpac wins fight against ‘audacious’ Forum fraud – 11 October 2024
A court has found four key figures linked to a former Sydney equipment financing business, engaged in Australia’s largest ever bank fraud, writing more than $500m in fake leases.
Access to Digital version of Herald Sun required to read article.
Juror misconduct leads to mistrials, fines and huge emotional cost, so how are courts dealing with it? – 12 October 2024
The ACT government has passed changes to its jury laws following the mistrial of Bruce Lehrmann in the ACT Supreme Court. Under the changes, jurors who seek independent information about the trial will face criminal penalties and majority verdicts will be allowed.
https://www.abc.net.au/news/2024-04-10/act-jury-laws-bruce-lehrmann-prosecution/103691924
Studying, renting, under financial stress: The women most likely to experience stalking – 16 October 2024
One in five women and one in 15 men in Australia — an estimated 2.7 million adults — have experienced stalking since the age of 15. Article discusses stalking in Australia including types of victims and perpetrators.
AI and cyber security: friends or frenemies? – 16 October 2024
Chief Information Security Officers (CISOs) must face the tough job of enabling their business to embrace AI securely, protecting the organisation while also keeping pace with the evolving threat landscape and emergence of new, sophisticated AI driven threats. This paper explores how an organisation can remain proactive and resilient into the future by remaining vigilant and having the right guardrails and threat response strategies in place. It also looks into emerging opportunities for generative AI to be used to strengthen cyber security.
https://kpmg.com/au/en/home/insights/2024/10/ai-and-cyber-security-friends-or-frenemies.html
ASIC investigating Super Retail over whistleblower dispute – 16 October 2024
The corporate regulator is investigating the owner of retail chains Supercheap Auto, Rebel and BCF over its courtroom battle with two former executives turned whistleblowers, which has developed into a court room battle costing millions. They have alleged the Super Retailer was a highly dysfunctional workplace and claimed that chief executive Anthony Heraghty was having a secret affair with the former head of human resources, Jane Kelly. The women, Rebecca Farrell and Amelia Berczelly, have also made accusations of bullying and victimisation, which Super Retail denies.
Real estate agent used client’s money for own property purchase – 16 October 2024
The director of a southwest Sydney real estate agency says he is “deeply sorry” after he was busted breaching industry standards, including by borrowing $78,000 from a trust fund to pay for a property purchase in his own name.
Global efforts against financial crime need better co-operation between AML and data regulators, FATF chief de Anda tells IAFCS2024 – 14 October 2024
Data privacy and Anti Money laundering regulatory bodies have to work together to harmonise rules for more effectives regulation, the president of the FATF Financial action Task Force) has said. Elisa de Anda Madrazo, the newly-appointed president of the Financial Action Task Force, said that there is often ‘friction’ between different watchdogs
Victorian woman jailed over $600,000 in GST refunds for “fake” cleaning business – 17 October 2024
Tahra Wyntjes, a Victorian woman has been sentenced to four years behind bars after claiming almost $600,000 in dodgy GST refunds, and attempting to pocket a further $260,000 before being caught by the Australian Taxation Office (ATO).
https://www.smartcompany.com.au/finance/tax/victoria-gst-refund-fraud-sentencing-operation-protego/
Identity theft affects 13% of Australians, says Norton – 17 October 2024
The threat of identity theft continues to be a significant concern for Australians, with recent data highlighting its profound impact on both financial stability and mental health. Norton, a consumer Cyber Safety brand of Gen, has reported that 13% of Australian consumers have experienced identity theft. This statistic underscores the urgent need for greater awareness and robust identity protection measures. According to a survey by the Australian Institute of Criminology, 31% of respondents reported experiencing some form of identity crime in their lifetime, with 20% encountering it within the past year.
https://securitybrief.com.au/story/identity-theft-affects-13-of-australians-says-norton
‘Nobody is immune’: Businesses fall victim to deepfake scams – 17 October 2024
The global payment processor says 20 per cent of all businesses have been targeted by deepfake scams in the past year as a broader economic slowdown leaves many companies vulnerable due to an inability to invest in cyber security protection.
Subscription to The Australian required to read article
The Australian Taxation Office is looking for a weapon in its war against tax cheats and criminals – 18 October 2024
The Australian Taxation Office says it’s looking for a new high tech way for its agents to go undercover on social media and trawl for “persons of interest”. Experts say the ATO is looking for a “turn-key system” that will allow it to automate some of the processes its investigators already do. The ATO says it’s hoping to have the new tool up and running by November.
https://www.abc.net.au/news/2024-10-18/ato-looks-for-new-tool-to-use-against-criminals/104481048
