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Investigation & Fraud News – Week ending 12 December 2024
Australians turned into money mules chasing crypto cash – 5 December 2024
Middle-aged Australians are being turned into “money mules” to convert cash raised by organised criminals into cryptocurrency, so it can be moved out of the country via a record number of specialist ATMs springing up around the nation. These Australians were often being persuaded by scammers to deposit cash into the machines, inadvertently becoming part of organised criminal networks that were using cryptocurrencies to launder profits. In some cases, they are losing their life savings.
NSW trio’s failed bank fraud ‘like trying to win lotto’ – 5 December 2024
A trio’s bungled attempts to scam $20 million from NAB through various schemes were said to be unsophisticated and ultimately doomed to fail. Monika Singh, 42, Davendar Deo, 68, and Srinivas Naidu Chamakuri, 51, were convicted of a myriad of fraud-related offences between 2018 and 2020 following a lengthy trial in the NSW District Court. They attempted to use internal bank vouchers to withdraw almost $16.9 million in cash.
MS One-Time Passwords no longer enough to fight Australia’s AI-driven fraud, says Visa – 8 December 2024
Visa, a world leader in digital payments, today announced it will require Australian financial institutions to move away from SMS One-Time Passwords (OTPs) as the sole factor for payment authentication to address the threat of AI-driven fraud and scams. In Australia last year, scam losses reached $2.7 billion with over 601,000 scam reports, and attacks.
Vietnamese property tycoon Truong My Lan must come up with $14 billion to avoid death penalty – 8 December 2024
Truong My Lan, a Vietnamese property tycoon is in a race for her life to come up with $US9 billion (A$14 billion) to escape the death penalty for masterminding the world’s biggest bank fraud. She was convicted earlier this year of swindling money from Saigon Commercial Bank (SCB) — the country’s fifth biggest lender — and sentenced to death for embezzling $US12.5 billion
AUSTRAC initiates crypto ATM crackdown – 9 December 2024
Australia’s financial intelligence and crimes investigation agency AUSTRAC has launched a targeted crackdown on cryptocurrency ATMs (CATMs). ATMs, or crypto kiosks, which are growing in number across Australia, enable individuals to purchase a variety of cryptocurrencies, including Bitcoin or Dogecoin, in cash, credit/debit cards or via their digital wallets.
https://financialnewswire.com.au/investment/austrac-initiates-crypto-atm-crackdown/
Apple’s all-seeing eye’: Worker alleges illegal surveillance of employees – 10 December 2024
‘Apple has been accused of the “systematic invasion of employee privacy” and the monetisation of the personal data of its workers in a lawsuit launched by an employee of the tech giant. It is alleged that the tech company is breaching the state’s laws by snooping on the personal and work devices of its workers.
$10m tax scandal lands 6 fraudsters with combined 43-year sentence – 10 December 2024
A 43-year combined prison sentence was served to six people in Operation Bordelon which uncovered a tax and money laundering scandal worth up to $10 million. It was found the syndicate siphoned off the money allocated for the pay-as-you-go withholding tax component instead of remitting it to the ATO. The syndicate members then moved the defrauded funds to companies they directed, relatives, associates and offshore accounts.
Police Officer Sent to Prison for Falsifying Evidence – 11 December 2024
A police officer has been sentenced to imprisonment for fabricating evidence against a woman during an investigation into drug offences. Former police detective Jye Symes pleaded guilty to one count of misconduct in public office after falsely claiming, DNA linked to a tenant suspected of being linked to the supply of prohibited drugs secreted in children’s toys and sent by post, was found on a pair of gloves at the property.
ASIC briefed government about Rex investigation before $80m lifeline – 11 December 2024
The corporate regulator warned the Albanese government it was investigating Regional Express for serious governance failures before the Commonwealth controversially committed $80 million into bailing out the collapsed airline. ASIC is taking Rex Airline and directors Sharp, Lim Kim Hai, Lincoln Pan and Siddharth Khotkar to the NSW Supreme Court over “serious governance failures”, alleging they misled the market in February 2023 about the health of the company’s finances.
Investigation & Fraud News – Week ending 6 December 2024
Framlingham community reacts to jailing of former leader Geoff Clark – 30 November 2024
Geoff Clark has been sentenced to six years and two months in prison for the fraudulent use of almost $1 million from the Framlingham Aboriginal Trust.
People from the Indigenous township of Framlingham have spoken following the verdict which brings an end to a decades-long saga. The whistleblower who helped uncover the corruption says he hopes the verdict will bring renewal to the township in south-west Victoria.
Comanchero Brisbane vice president charged over Australia’s largest ever cocaine seizure- 2 December 2024C
A transnational organised crime syndicate with links to the Comancheros is alleged to have attempted to bring 2.34 tonnes of cocaine into Australia. Several arrests were made including the vice president of the Comancheros Brisbane chapter, and a patched member. Authorities allege the group attempted to import the drugs into Queensland by sea.
Vietnam Property Tycoon Loses Appeal Against Death Penalty In $12.5 Billion Fraud Case- 2 December 2024
The High People’s Court in Ho Chi Minh City rejected Lan’s appeal for a reduced sentence. The 68-year-old real estate mogul is convicted of embezzlement for her role in the country’s largest fraud case, amounting to around $12.5 billion. Aside from the death penalty, Lan has been handed two 20-year prison sentences for engaging in bribery and violation of lending regulations and she has been ordered to pay $27 million to compensate the bank impacted by the fraud.
Deloitte Hacked – Brain Cipher Ransomware Group Allegedly Stolen 1 TB of Data – 4 December 2024
Notorious ransomware group Brain Cipher has claimed to have breached Deloitte UK, allegedly exfiltrating over 1 terabyte of sensitive data from the professional services giant. Brain Cipher has announced plans to release detailed information about the breach, including: Evidence of alleged security protocol violations; analysis of contractual agreements between Deloitte and its clients; Details about the firm’s monitoring systems and security tools; and Examples of compromised data.
https://news.az/news/deloitte-uk-reportedly-hacked-over-1tb-of-data-stolen
Principal accused of defrauding $1.4m from the education department – 4 December 2024
A Western Sydney school principal was among two arrested in dramatic raids, accused of defrauding $1.4 million from the education department through fake invoices.
Global investigation dismantles alleged billion-dollar money laundering scheme linked to rich Russians and cybercriminals – 5 December 2024
A global investigation led by the United Kingdom’s National Crime Agency has uncovered an alleged billion-dollar money laundering network used by Russians. “Operation Destabilise” involved law enforcement agencies from the US, Ireland, France and the UAE. Authorities have said about 84 suspects have been arrested, and almost $40 million in cash and cryptocurrency has been seized.
Five Eyes nations sound unprecedented alarm on ‘shocking’ teenage terror threat – 6 December 2024
The Five Eyes multinational intelligence sharing network has sounded an unprecedented alarm about the threat of young people being radicalised by extremist online content, as authorities warn Australian children as young as 12 are at risk of becoming terrorists. In a first-of-its-kind intervention, security and law enforcement authorities from Australia, the United States, Canada, the United Kingdom and New Zealand said in a joint paper that they were battling to combat an alarming rise in young people who support extremist causes or plan terrorist attacks.
https://cybersecuritynews.com/deloitte-hacked/
Construction boss George Alex jailed for conspiring to defraud ATO of more than $10 million – 6 December 2024
George Alex has been jailed for nine years and three months over a $10 million ATO fraud. The Sydney construction boss was found guilty of conspiring to defraud the tax office along with four others. Alex will serve a minimum six years and two months, with his non-parole period due to expire in October 2030.
https://www.abc.net.au/news/2024-12-04/principal-accused-of-defrauding-1-4-million-/104686356
Alleged phishing scammers used Apple Pay to spend $350k stolen from bank customers using fake text messages – 6 December 2024
Four men who allegedly scammed bank customers out of more than $350,000 after obtaining their account details in an elaborate phishing scam have been arrested by WA Police. It is alleged members of the syndicate operating in WA sent messages to multiple victims pretending to be their bank to steal online logins, credit card details and passwords.
Investigation & Fraud News – Week ending 29 November 2024
Corrupt Victoria Police officer jailed after falsifying evidence in drug squad investigation – 19 November 2024
A former police officer has been jailed after he was caught faking evidence in a drug trafficking case.
The sentencing judge said Jye Symes’s actions had undermined public confidence in the police force.
Symes will have to serve at least 18 months behind bars before being eligible for parole.
Bunnings releases brutal CCTV amid privacy debacle – 20 November 2024
The Office of the Australian Commissioner (OAIC) declared home improvement retailer Bunnings “breached Australians’ privacy” by collecting personal, sensitive information through a facial recognition technology system. The system – which was incorporated into CCTV – captured the faces of “likely hundreds of thousands of individuals” across 63 Bunnings store.
https://ia.acs.org.au/article/2024/bunnings-releases-brutal-cctv-amid-privacy-debacle.html
Financial adviser faces 26 dishonesty charges – 21 November 2024
ASIC has reported that Kristofer Ridgway faces 26 charges of dishonest conduct and allegations of misleading clients about commissions,. The charges stem from allegations that he failed to disclose substantial commission payments while facilitating investments for clients.
Filipino police raid romance scam centre – 26 November 2024
Police in the Philippines have arrested 250 romance scammers in a raid on a criminal call centre, after an investigation involving intelligence from the Australian Federal Police. It’s believed the dodgy centre has scammed thousands of Australians, alongside many more victims from other countries.
https://www.abc.net.au/news/2024-11-26/naus_manilascamspm_2611/104650392
Alleged exploitation of migrant workers investigated in Lockyer Valley – 28 November 2024
Farmers and labour hire providers in the Gatton region, west of Brisbane, are being investigated over worker exploitation allegations. Federal government officers visited seven locations, including farms that produce broccoli, onions, pumpkins and shallots, to check for compliance. Officials will review any evidence collected and decide if legal action or education is required.
For the sake of our democracy, Australia urgently needs a whistleblower protection authority – 28 November 2024
It’s become clearer that a dedicated agency to enforce the nation’s various whistleblower protection laws will be an important priority for the 48th parliament, after the next election. The body would support employees who speak up about wrongdoing. It would also help employers and regulators resolve claims of detrimental action and it would help make legal protections real, by shouldering the huge costs of securing compensation for impacts suffered by those doing the right thing.
Scam Risk Management – 29 November 2024
Scams are a persistent issue in Australia and globally, affecting individuals and businesses alike. Reports of scams have surged over the years, with Australians losing billions annually. This paper looks at the difference between fraud and scams, who is most vulnerable and the shift towards regulated scam risk management in Australia. It also explores how global banks are preventing and detecting scam payments, highlighting common gaps and a bank ‘wish list’ to improve scam management.
https://www.fticonsulting.com/insights/articles/scam-risk-management-strategies-protect-organisation
Shoppings sites pretending to be Australian businesses – 28 November 2024
An ABC NEWS investigation has identified 57 online shopping websites engaging in deceptive and misleading conduct – pretending to be Australian businesses when they are instead international import operations. The websites advertise heavily on Facebook and Instagram. Consumer group, Choice and the ACCC are calling on social media giants to do more to check the identities of their advertisers and crack down on dishonest behavior.
Former ATSIC head Geoff Clark jailed for defrauding Framlingham Indigenous community – 29 November 2024
Former ATSIC head Geoff Clark, has been found guilty on 25 charges, spanning roughly two decades of offending. Clark has been sentenced to six years and two months in jail. The 72-year-old will be eligible for parole in three years and nine months, with 78 days already served behind bars.
Chinese military official Miao Hua under investigation amid ongoing corruption crackdown in China’s army ranks – 29 November 2024
One of China’s top military officials, Miao Hua, has been suspended amid a probe into his conduct. He is more powerful than China’s defence minister and was hand-picked for the role by Chinese President Xi Jinping. Experts say it’s a sign of a growing corruption scandal at the top of China’s army.
NDIS property developer’s luxury car and property portfolio revealed amid ASIC probe – 29 November 2024
An ASIC investigation found Mr McWilliams spent close to $40 million of investors’ money at a Gold Coast casino. While no charges have been laid, he is being investigated for allegedly providing financial services without a licence, misleading or deceptive conduct, breaching a director’s duties, misappropriating funds and engaging in fraud.
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.
