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Investigation & Fraud News – Week ending 19 January 2024
11 stories this week:
Regulators and reforms: how Australia tackled white collar crime in 2023 and what to expect in 2024 – 10 January 2024
Regulators and enforcement authorities in Australia targeted fraud, money laundering, tax evasion, cybercrime, and corruption across multiple industries, including the financial services and consulting sectors. These enforcement efforts have been, and will continue to be bolstered by the introduction of key amendments to legislation to combat, Environment, social, and governance issues, modern slavery and privacy and data protection.
https://www.jdsupra.com/legalnews/regulators-and-reforms-how-australia-1847134/
Comprehensive law reform, whistleblower protection authority needed to better protect Australia’s whistleblowers – 11 January 2024
The Human Rights Law Centre has called for an overhaul of the Public Interest Disclosure Act (PID Act), the federal law protecting public servant whistleblowers, and a whistleblower protection authority to improve transparency and accountability in Australia’s democracy, in a submission to the Attorney-General’s Department. The submission underscores how the PID Act is failing to protect whistleblowers and the need for urgent amendments.
https://www.hrlc.org.au/news/2024/01/11/pid-act
Explainer – top six scams to watch out for in 2023 in 2024 – 12 January 2024
Article details the top six scams to watch out for in 2024 including red flags and how to protect yourself. The top six are: AI voice impersonation scams; Term deposit investment scams; Remote access scams using chat; Romance scams;
Ticket scams; and QR code phishing scams.
https://news.nab.com.au/news/explainer-top-six-scams-to-watch-out-for-in-2024/
Apple to pay customers $750 million – 12 January 2024
Apple has started paying compensations to customers after a class action lawsuit in the US found the tech giant had deliberately slowed down iPhones. The company claimed the move was designed to improve battery performance, but customers suspected planned obsolescence and that the real motive was to force users to upgrade. The case was settled in 2020, with Apple denying any wrongdoing but agreeing to pay about $750 million in compensation.
https://www.moneymag.com.au/apple-to-pay-customers-750-million
NSW man take to Federal court by Tesla over leaked whistleblower files report – 15 January 2024
A Federal Court has ordered a man from the Mid North Coast to take down from the internet leaked documents obtained from a Tesla whistleblower. The leak reportedly contained more than 100 gigabytes of confidential information, including 2400 complaints from Tesla customers claiming their vehicles “self-accelerated”, with another 1500 allegedly reporting braking malfunction.
https://www.drive.com.au/news/nsw-man-taken-to-court-by-tesla-over-leaked-files/
Australian breach victim’s two-year road to recover from identity theft – 15 January 2024
An Australian data breach victim has detailed two years of misuse of their identity, with relief achieved only by appearing before a magistrate, or registering for services using a parent’s name. Throughout 2023, 45 percent of the listings detected by IDCARE analysts which pertained to the sale or distribution of compromised Australian identity data were found on Telegram, and over 100 new threat actors were identified via the platform.
The transformational power of AI in security – 17 January 2024
AI-powered surveillance cameras have revolutionised the way we approach security, enhancing monitoring capabilities, threat detection, and response systems. This article describes AI used for Enhanced monitoring and real-time analysis, Intelligent threat detection, Facial Recognition and Biometric Analysis, Predictive analytics and crowd management and Streamlined emergency response.
https://securitybrief.com.au/story/the-transformational-power-of-ai-in-security
J.P. Morgan pays US$18m over whistleblower rule breaches – 17 January 2024
The Securities and Exchange Commission (SEC) found J.P. Morgan Securities regularly asked advisory and brokerage clients to sign confidential release agreements, requiring them to keep quiet about settlements or credits they were paid. This action breached Rule 21F-17 (a) of the Securities Exchange Act of 1934, a whistleblower protection that prohibits attempts to impede individuals communicating with the SEC about possible securities law violations. As a result, J.P. Morgan agreed to pay US$18 million ($27.3m) to settle the charges.
Sydney man Xuan Su accused of sending more than 17 million fraudulent text messages in one week fronts court – 17 January 2024
Xuan Su, a Sydney man who allegedly sent over 17 million fraudulent text messages in one week has faced court. At his home Police discovered equipment known as SIM boxes and various SIM cards. These can hold over 250 active SIM cards and typically send out up to 150,000 messages per day.
https://www.abc.net.au/news/2024-01-17/nsw-court-text-messages-scammer-fraudulent-millions/103350912
NAB appoints receivers to companies at centre of alleged Westpac fraud – 17 January 2024
National Australia Bank has appointed receivers at two companies central to Westpac’s allegation it was the victim of a scheme that falsified revenues, profits and invoices to steal $15 million between 2011 and 2020. Westpac’s claim concerns the Fresh Xpress mango and mandarin stall in Sydney’s Flemington Markets. Owned by Kathie Musumeci, the stall allegedly forged invoices to secure financing that was then passed onto farming and property interests also controlled by her and husband Andrew.
ASIC chief Joe Longo pledges swifter hammer will fall on white-collar criminals – 18 January 2024
Australian Securities and Investment Commission boss Joe Longo is to talk to the new chief Commonwealth prosecutor about speeding up the criminal investigation and charging of corporate crooks. Acknowledging criticisms of long delays in some prosecutions, Mr Longo said there is room for improvement in the “timeliness” of how ASIC investigators and Federal prosecutors handled matters warranting criminal charges.
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Investigation & Fraud News – Week ending 12 January 2024
10 stories this week:
PayID scams: How criminals are exploiting this ‘safe’ payment system – 23 January 2024
PayID is promoted as a way to avoid scams when making payments, but criminals are targeting its users to steal from people selling items online. Scammers will commonly say that your PayID needs to be “upgraded” to a “business” account. The fake emails and messages deployed as part of the scam will usually direct you to collaborate with the phoney buyer to resolve the issue – a process which will involve an extra payment
https://www.choice.com.au/shopping/online-shopping/selling-online/articles/payid-scams
Apple to settle lawsuit alleging it knowingly allowed gift card scam – 4 January 2024
Apple Inc. has reached a deal to settle a lawsuit that accused the tech giant of knowingly allowing scams that use its gift cards to steal funds from victims. The scams typically involve people asking victims to buy Apple Store or other gift cards and then share the codes that come on the back of the cards, thus giving them access to the money. However, Apple would benefit from the scams too – the scammers would typically only receive 70% of the stolen funds, while Apple kept a 30% commission.
Can My Employer Spy on Me at Work? – 5 January 2024
The proliferation of technology has contributed to a rise in unfair dismissal claims and complaints to the Fair Work Ombudsman, some of which have resulted from unlawful surveillance. Employment lawyers are therefore encouraging employers to ensure they understand the rules that apply and the rights of employees before implementing ‘big brother’ measures.
https://www.sydneycriminallawyers.com.au/blog/can-my-employer-spy-on-me-at-work/
Stall at centre of alleged $15m Westpac fraud scheme faces ASIC action – 5 January 2024
The director of a mango and mandarin stall at Sydney’s Flemington Markets that allegedly defrauded Westpac of $15 million over five years will be reported to the corporate cop by its liquidators for “investigation and possible prosecution”. The stall – Fresh Xpress – is allegedly at the centre of a scam that falsified revenues, profits and invoices to steal from Westpac, which told the NSW Supreme Court up to 90 per cent of the invoices it received from 2011 to 2020 were suspicious.
Trump should pay $370m for financial fraud, says New York attorney genera – 6 January 2024
New York’s attorney general is seeking $370 million from former president Donald Trump in a fraud case which has seen the real estate mogul accused of inflating the value of his properties. State lawyers also asked the judge overseeing Trump’s civil fraud trial to permanently ban Trump from participating in New York’s real estate industry, or from serving as a director or officer at a corporation or legal entity in the state.
https://www.theguardian.com/us-news/2024/jan/05/trump-civil-fraud-new-york-letitia-james
Countdown to 2024: Four AI-driven trends you must be ready for – 8 January 2024
In this article, Rahul Yadav, Chief Technology Officer for Milestone Systems, explores this AI-driven future where, instead of humans watching video, software does the watching, and humans make decisions. These trends are enhancing operational performance and opening new opportunities in the security sector.
https://channellife.com.au/story/countdown-to-2024-four-ai-driven-trends-you-must-be-ready-for
Scams help drive ‘unsustainable’ increase in complaints about banks, finance firms to AFCA – 9 January 2024
Australian Financial Complaints Authority (AFCA) says complaints are growing at an “unsustainable” rate and creating delays for consumers. The scheme received more than 100,000 complaints last year – the largest in its five-year history. Banks say they are investing millions in preventing scams but consumer advocates want more action.
Scammers hit Australian Toyota LandCruiser buyer, steal $100,000 – 10 January 2024
A CarExpert reader who is currently in the process of buying a Toyota LandCruiser 300 Series in New South Wales claims they were scammed of $100,000. The customer was the victim of an alleged cyber crime involving a phishing email that contained fake bank account details ie. business email compromise scam. The ACCC stated that between January 1, 2023 and September 30, 2023, Scamwatch received 981 business email compromise scam reports which totalled losses of around $13 million.
New Whistleblower Directions and Guidelines – 9 January 2024
Independent Commissioner Against Corruption (NT) has published new directions and guidelines regarding whistleblower disclosures and protecting whistleblowers from retaliation. They have been prepared in accordance with sections 96 and 106 of the Independent Commissioner Against Corruption Act 2017.
https://www.miragenews.com/new-whistleblower-directions-and-guidelines-1152990/
The Iconic denies responsibility for data breach – 11 January 2024
The Iconic has denied responsibility for a series of data breaches that saw Aussies’ bank balances drained of thousands of dollars after their accounts with the retailer were compromised. The retailer went on to explain it was “aware” there had been fraudulent access to “a number of” its customers’ accounts but said they were “not as a result of a breach of any of The Iconic’s internal systems”. They said the breach was due to a credential stuffing attack where hackers first steal personal information from compromised websites, phishing or dark web databases. Knowing customers often use the same login details for multiple websites, the hackers then try them on platforms that may not have been the source of the initial attack.
Investigation & Fraud News – Week ending 5 January 2024
19 stories this week:
Inspector-General of Taxation investigates ATO myGov scams that ‘rattle confidence’ in the tax system – 15 December 2023
The inspector-general of taxation is investigating the theft and hijacking of personal information that has allowed millions of dollars of tax fraud by professional scammers. Once inside the account, scammers redirect tax refunds to their own bank accounts, sometimes creating bogus claims and illegally claim refunds belonging to another taxpayer.
Thai police are hunting a notorious fugitive in the jungle. ‘Wealthy Pang’ is daring them to catch him – 15 December 2023
Since escaping custody in late October, Chaowalit Thongduang, has led authorities on a manhunt across multiple provinces, involving over 500 police and costing more than $500,000, all while declaring his innocence via social media and claiming he’s been treated unfairly by the Thai justice system. His widely publicised case has also raised serious questions about corruption and misconduct among police and prison officials in the country and sparked an investigation into some of Thailand’s most powerful institutions.
https://www.abc.net.au/news/2023-12-15/thailand-wealthy-pang-criminal-taunts-police/103225890
Vatican jails cardinal Angelo Becciu, who was once a papal contender, for fraud over London property deal – 17 December 2023
A Vatican court has sentenced a once-powerful Italian cardinal to five years and six months in jail for financial crimes. Angelo Becciu and nine others were on trial for financial crimes related to a London property purchase. Becciu is accused of embezzlement, abuse of office and witness tampering.
https://www.abc.net.au/news/2023-12-17/vatican-sentences-cardinal-angelo-becciu-fraud/103238616
Inside the ‘bizarre’ financial crime that connects an outback town to a Melbourne school – 17 December 2023
Mudasir Mohammed Naseeruddin was arrested and charged in late 2020 in relation to dishonest conduct against six investors with around $500,000 in self-managed super funds. It is alleged that at least 28 SMSFs were created with a total of $2.4 million. After pleading guilty, Naseer had his bail revoked pending sentencing. He now faces up to 15 years in jail.
https://www.abc.net.au/news/2023-12-17/smsf-super-fraud-investment-scams-accc-asic/103233956
Market manipulation – an evolving space to watch – 20 December 2023
A Recent ASIC investigation has led to the managing director of Eneco Refresh Ltd (Eneco), to plead guilty to one count of market manipulation and one count of creating a false or misleading appearance of active trading. Eneco is a company that produces bottled water and is listed on the ASX. ASIC’s allegations include that the managing director used the names of his family members 24 times to manipulate Eneco’s share price. Each contravention of market manipulation carries a maximum penalty of 15 years imprisonment.
ASIC’s focus in 2023 – Enforcement Priorities – 20 December 2023
ASIC’s enforcement priorities for 2023 focused on greenwashing, predatory lending, and interrupting investment scams. As we move into the new year it is important that Licensees keep in mind the 2023 enforcement priorities as ASIC is likely to continue to take enforcement action in these areas in addition to the 2024 enforcement priorities.
Airbnb Fined A$15 Million For Misleading 63,000 Australian Customers – 21 December 2023
Airbnb has been slapped with an A$15 million fine and has agreed to pay compensation after misleading nearly 63,000 Australian customers. Certain property rentals on the company’s website were in US dollars instead of the local Australian currency, a detail not initially communicated. It led to unexpected higher costs for some users for their lodgings.
Rudy Giuliani files for bankruptcy in wake of court order to pay $217m in defamation damages – 22 December 2023
Rudy Giuliani has filed for bankruptcy just days after being ordered to pay $US148 million ($217 million) to two former Georgia election workers he falsely accused of fraud following Donald Trump’s 2020 presidential election loss. Mr Giuliani also faces criminal charges in Georgia. Mr Giuliani’s bankruptcy filing will pause all of the pending civil lawsuits against him.
Scammer sentenced for defrauding vulnerable Australians – warrant issued for alleged scheme mastermind – 22 December 2023
A man was recently sentenced for his role in a scam in which perpetrators impersonated government employees – including claiming to be from the AFP – and defrauded Australians of over $153,000. The victims were told they had the option to be arrested for money laundering offences or settle the matter by providing identity information, funds and bank details to the ‘government employee’ on the phone. By choosing the latter option, victims were allegedly instructed to pay the syndicate through a variety of methods.
Sydney woman charged over alleged card skimming scheme worth $3.75 million as police warn public to be wary of Christmas scams this holiday season – 23 December 2023
A woman was arrested following an investigation into an alleged card skimming scheme worth $3.75 million. She was charged with 133 offences including participation in criminal group and dealing with property suspected of being proceeds of crime, and 131 charges of deal with identity information to commit indictable offence.
Australia’s NACC Initiates New Investigations Amid Calls for Stronger Whistleblower Protections – 26 December 2023
The National Anti-Corruption Commission (NACC) in Australia has initiated an in-depth probe into ten new cases even as it rejected a whopping 88% of the 2,327 referrals it has received to date. Independent MP Helen Haines, underscored the urgent need for robust whistleblower protections. She pointed out the glaring deficiencies in the existing system that fails to safeguard individuals of the likes of David McBride and Richard Boyle.
Hackers stole $2 billion in crypto in 2023, data shows – 27 December 2023
For yet another year, hackers stole billions of dollars in crypto. But for the first time since 2020, the trend is downwards, according to crypto security firms. This year, hackers stole around $2 billion dollars in crypto across dozens of cyberattacks and thefts. The year before, hackers stole $3.3 billion. It’s impossible to predict what will happen in 2024. But given the poor security implemented by many crypto and web3 projects and the sheer amount of monetary value they hold, , we can expect hackers to continue targeting the growing industry.
https://au.finance.yahoo.com/news/hackers-stole-2-billion-crypto-140555052.html
Workplace cultural issues continue to plague Australian Antarctic Division, leaked survey shows – 29 December 2023
A leaked internal survey shows there are still morale issues and concerns about reporting harmful behaviours at the Australian Antarctic Division (AAD). The previous review revealed multiple staff complaints about a predatory culture of sexual harassment, including everything from unwanted requests for sex to offensive displays of pornography. One expeditioner who responded to the survey said the AAD workforce was “the most monocultural” place they had worked at.
‘Pig butchering’: Scammers using slaves in Southeast Asia to rob billions from victims in cryptocurrency scam – 29 December 2023
Reporters at CNN conducted an investigation into ‘pig butchering’: where scammers pretend to be women online, building relationships with victims and influencing them to invest in fake cryptocurrency platforms before taking the money themselves. In Southeast Asia, workers from various countries have been trafficked to Myanmar. These workers are then forced by Chinese crime syndicates to conduct online pig butchering scams for them, taking billions of dollars for the owners of the organisations. According to the FBI, pig butchering scams caused losses of up to $4.2 billion throughout 2023.
Andy Cohen scammed out of ‘a lot of money’ by fraudster who got his bank account details – 2 January 2024
TV personality Andy Cohen was scammed after a fraudster duped him into handing over his personal details over the phone. The fraudsters hacked the caller ID system, so the name of Cohen’s bank appeared when they dialled him and named credits he had made – the charges – because had access to the account. The TV host said by the time he realised he was being scammed, it was too late.
US court releases list of people connected to deceased financier Jeffrey Epstein – 3 January 2024
The names of more than 150 people mentioned in a lawsuit by Virginia Giuffre, one of Epstein’s most prominent accusers, were kept under seal for years until a federal judge ruled last month that there was no legal justification to keep them private.
https://www.abc.net.au/news/2024-01-04/jeffrey-epstein-associate-names-to-be-released/103283648
The secret donors behind the millions in ‘dark money’ fuelling WA politics – 4 January 2024
Most of the millions donated to WA political parties is shrouded in secrecy with donors denying they are seeking influence over policy. But ‘cash for access’ is how some characterise it and legal loophole is protecting their identities – meaning we may never know who is paying for access to the highest levels of government.
Investigation & Fraud News – Week ending 15 December 2023
19 stories this week:
Amanda Power faces 62 new charges of fraud in court after allegedly fake cancer diagnosis – 30 November 2023
A former Cancer Council ambassador who police allege lied about a cancer diagnosis has had 62 new charges laid against her. Amanda Power, appeared in the Townsville Magistrates Court on Thursday on 71 fraud charges including dishonestly gaining benefit, obtaining property and causing detriment to others. Police allege she secured thousands of dollars from friends and the community between 2014 and 2019.
Man who swindled $180,000 from women on dating site jailed by Victorian court – 1 December 2023
Rick McLeod, 74, convinced four women he met through a dating site to invest through his so-called broker business.
Over a two-year period, the four women each sent McLeod large sums of money, which McLeod used to fund his drinking and gambling habits. McLeod will serve just under four years in jail before being eligible for parole, and has been ordered to pay one of the victims $78,000 in compensation.
https://www.abc.net.au/news/2023-12-01/dating-site-conman-jailed-scamming-women/103178116
Mother and daughter who scammed two Victorian TAFEs sentenced to jail and community corrections orders – 4 December 2023
Rebecca Taylor and Heather Snelleksz scammed more than $2 million from two Victorian TAFEs have been handed jail time and community correction orders. The women claimed training services they did not provide.
Developer facing risk of jail over fraud charge – 4 December 2023
A bankrupt former Gold Coast developer is facing risk of up to 20 years jail after being charged with 20 criminal offences including fraud. Ian Omar Chester had planned to build the first residential apartments on the ritzy Sovereign Islands before companies in his Vested group failed.
Frustrations run high for NDIS recipients following estimated $1.4 billion loss to payment errors and fraud – 5 December 2023
An estimated $1.4 billion was lost from the National Disability Insurance Scheme last financial year due to “payment errors” including fraud and over-claiming, a five-fold increase from two years ago. The NDIS minister Bill Shorten is preparing to release the NDIS review later this week, which is expected to outline measures to rein in spending.
https://www.abc.net.au/news/2023-12-05/ndis-fraud-costs-billion-dollar-loss/103184130
Byron Bay data breach victim has Adidas case dismissed in US court, NBA action looms – 5 December 2023
A Byron Bay woman who was facing nearly $2 million in damages after her data was stolen and her PayPal account breached has had a major win in a United States court. Cyber criminals gained unauthorised access to Sarah Luke’s PayPal account to trade hundreds of counterfeit items, including merchandise from Adidas and the National Basketball Association (NBA).
Tesla whistleblower raises doubts over safety of self-driving cars – 5 December 2023
A Tesla employee has raised fresh concerns over the AI used to control the firm’s self-driving vehicles, claiming the technology is not safe enough to be let out on public roads. Tesla’s assisted driving feature has been under investigation from various agencies.
https://au.news.yahoo.com/tesla-whistleblower-raises-doubts-over-103607237.html
Getting on the front foot to fight cybercrime – 6 December 2023
Despite a growing awareness of invoice fraud and other financial scams, Australian banks still only block 13 per cent of scam payments, with losses for major bank customers exceeding $550 million per year, according to the financial regulator ASIC. The key to staying safe is to ensure this segregation of duties is actually built into systems and workflow.
https://www.afr.com/technology/getting-on-the-front-foot-to-fight-cybercrime-20231127-p5en3o
Guy Sebastian’s former manager Titus Day to face retrial after embezzlement convictions quashed – 6 December 2023
Titus Day (Guy Sebastian’s former manager) was sentenced to four years’ jail after being found guilty of embezzling more than $600,000. Mr Day was released on bail in June after a court upheld one ground of his appeal.
Fraud Offences in Australia – 6 December 2023
Article provides a good summary of fraud offences across Australia, including the general categories of fraud, the ‘essential elements’ (or ingredients) of the offences, and the penalties and defences that may apply.
https://www.sydneycriminallawyers.com.au/blog/fraud-offences-in-australia/
“Who are you?” – Don’t be scammed by a stranger – 7 December 2023
Impersonation scams have stolen $92 million from Australians and made up more than 70 per cent of reports to Scamwatch from January-September this year. Imposter bond scams were the costliest to date, with $35 million stolen from unsuspecting victims.
https://www.thesenior.com.au/story/8451139/scams-awareness-week-2023-ask-who-are-you/
CommBank and Vodafone share real-time intelligence on SMS scams – 7 December 2023
Commonwealth Bank of Australia is collaborating with Vodafone to share SMS scam intelligence in near real-time, allowing the telco to identify and disrupt scammers while the bank makes proactive blocks on fraudulent payments. The pilot project comes as the latest statistics published by Australia’s National Anti-Scam Centre in November 2023 show text messages as the most popular delivery method used by fraudsters,
ChatGPT tool could be abused by scammers and hackers – 7 December 2023
A ChatGPT feature allowing users to easily build their own artificial-intelligence assistants can be used to create tools for cyber-crime. Experts say OpenAI does not have the same rigour as the public versions of ChatGPT, potentially gifting a cutting-edge AI tool to criminals.
https://au.news.yahoo.com/chatgpt-builder-helps-create-scam-000416408.html
How AI is upping scam sophistication – 7 December 2023
The latest weapon in the arsenal of scammers is artificial intelligence generated ‘deepfakes’: videos in which a subject’s face or body has been digitally altered to make them look like someone else. Scammers use celebrity deepfakes for investment scams to facilitate building trust with customer. The best weapon we have to combat scammers, is “remaining alert and having a level of healthy scepticism”.
Hunter Biden, son of President Joe Biden, accused of failing to pay $2.1m in taxes – 8 December 2023
The Department of Justice has filed new criminal charges against Hunter Biden, the son of US President Joe Biden, accusing him of failing to pay $US1.4 million ($2.1 million) in taxes while spending millions of dollars on a lavish lifestyle. Hunter Biden faces up to 17 years in prison if convicted on the charges.
https://www.abc.net.au/news/2023-12-08/hunter-biden-facing-up-to-seventeen-years-in-prison/103206462
Police raids, criminal gangs and $1 billion: Inside the gold scam that made a fortune off a GST loophole – 1 December 2023
Article tells how the gold refining sector was the target of an international GST rort involving dodgy gold traders and organised criminal syndicates that exploited loopholes in our GST laws. The ATO issued retrospective assessments for GST to most of the refining industry and most didn’t have the funds to challenge the ATO, but the Pallion Group did.
Scammers turn to QR codes as banks warn of Christmas dange – 12 December 2023
Banks and consumer groups are warning that Christmas-time scams are on the rise, but criminals are turning to a new way of stealing personal data using COVID-era QR codes whereby malicious links are hidden in QR codes.
https://www.thenewdaily.com.au/finance/consumer/2023/12/12/scam-qr-codes
Man charged over alleged SMS phishing scam responsible for sending over 17 million fraudulent text messages – 13 December 2023
Cybercrime Squad detectives have charged a man following an investigation into an SMS phishing scam, allegedly responsible for sending over 17 million fraudulent text messages pretending to be from Linkt and Aus Post. Subscriber Identity Module (SIM) boxes, which are an electronic device used to send bulk text messages across the Australian telecommunications network were allegedly used.
