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Investigation & Fraud News – Week ending 18 May 2023
11 stories this week:
Serial fraudster jailed for $8.7m luxury car scam using stolen IDs – 12 May 2023
A serial fraudster has been jailed for five-and-a-half years after he ran over a police officer to avoid capture, for stealing more than $8.7m in a swindle involving luxury cars and stolen identities. Ryan O’Hara, also known as Christian Nassar, pleaded guilty to 19 fraud charges related to his staggering scam. He made 90 successful applications for fraudulent financial loans totalling more than $8.7m between 2015 and 2019 and assumed the identities of 147 “unknowing people in the community” to apply for the large motor vehicle loans.
Glamorous daughter of Sydney developer fronts court over alleged $150m fraud – 15 May 2023
Ashlyn Nassif, the lawyer daughter of embattled property developer Jean Nassif has fronted court as she faces allegations she used fraudulent contracts to get a $150m loan. She was arrested earlier this year following a police raid on four properties, including the offices of her law firm EA Legal, and charged with dishonestly obtaining financial advantage by deception and publishing false or misleading material. The 27-year-old is accused of submitting fake contracts to meet a $10.5m pre-sale condition for the Sky View apartments in Castle Hill in Sydney’s northwest.
Australian cybercrime expert Ken Gamble lands billion-dollar Malasyia bust – 15 May 2023
NSW-based investigator Ken Gamble stated that after three years, investigators had finally cracked the elaborate boiler room scam, which used high-intensity sales tactics through call centres to persuade investors to buy shares in fake companies.
National anti-scams centre set to open in July, as Australians lose billions to fraudsters – 15 May 2023
A national anti-scams centre is being established to help combat scams and online fraud, after Australians reported losing billions of dollars to fraudsters last year. The new initiative will change the way scams are dealt with by: facilitating faster responses to scam reports, establishing “fusion shells” – described as a “hit squad” of experts from industry and law enforcement to act on scam trends; and introducing a “white list” of approved phone numbers, with SMS messages will be blocked unless they’re from an authorised agency.
https://www.abc.net.au/news/2023-05-15/details-of-new-scam-centre-announced-by-government/102345782
WA department at Centre of ‘record public sector fraud’ rocked by new claims – 16 May 2023
WA’s Department of Communities is at the centre of controversy, following an investigation into alleged corruption between contractors and employees at the state body. Two men are facing corruption charges after a WA government employee allegedly awarded a contractor millions of dollars of work in exchange for cash and a luxury car.
Australian banks announce new scam-busting tool to safeguard your money – 17 May 2023
The new Fraud Reporting Exchange (FRX) platform is set to be a total game changer for combating scams and protecting customer finances. The Australian Banking Association (ABA) announced the new platform which will allow the “reporting of scam payments in close to real-time, boosting the likelihood that funds can be frozen and returned to customers.”
Westpac bans transfers to world’s largest crypto exchange Binance – 18 May 2023
Westpac, one of Australia’s ‘Big Four’ banks, is launching its first trial of scam protection measures designed to combat fraudulent activities related to cryptocurrencies. The protection measures aim to mitigate losses from scams and reduce potential risks. It has banned customers from transferring funds to the world’s largest cryptocurrency exchange Binance, in a move aimed at reducing losses from scams.
Bitumen ‘con men’ targeting regional Australia leaving victims with shoddy work, big bills – 18 May 2023
Rural and regional residents are being warned of a bitumen driveway resurfacing scam whereby con men believed to be travelling across Australia are promising cheap concrete and bitumen work and delivering a poor and incomplete product.
https://www.abc.net.au/news/2023-05-19/bitumen-con-men-targeting-regional-australia/102362840
Investigation & Fraud News – Week ending 12 May 2023
11 stories this week:
How ChatGPT Could Worsen the ‘Scam Pandemic’ – 8 May 2023
Unfortunately, scammers have seen the potential of ChatGPT and have began exploring ways to use the AI chatbot to generate malware. ChatGPT’s remarkable capacity to mimic the language style of specific organisations and institutions enable scammers to create highly detailed and realistic copies, which they could use to create scam messages or fake websites. This makes generating scam messages a low-effort, high-reward endeavor, leading to even more challenging detection and discernment of phishing and impersonation scams.
Feds get serious about scams and investment fraud – 9 May 2023
Amid ballooning digital fraud, $87 million is to be spent on a new National Anti-Scam Centre, take-down functions for investor scams and an SMS sender registry to stop fraudsters from acting as government agencies. The National Anti-Scam Centre will be based within the Australian Competition and Consumer Commission (ACCC). It will aim to improve data sharing on scams across government and the private sector, establishing “public-private sector fusion cells” to target specific scam issues.
Man who committed $105 million tax fraud cannot be sentenced due to unpaid legal fees – 9 May 2023
Adam Cranston, who siphoned $105 million from taxpayers in one of the most serious tax frauds ever prosecuted in Australia, cannot be sentenced until commonwealth and state authorities decide who will pay about $50,000 in legal fees. He was the architect of the Plutus Payroll conspiracy, which funneled money away from the tax office for years while his father, cleared of wrongdoing in 2019, was the deputy commissioner.
Police allege ‘mum-and-dad’ investors targeted by Sydney businessman in alleged $24 million fraud – 10 May 2023
Vincenzo Vocisano, a Sydney businessman has been charged with allegedly defrauding “mum-and-dad” investors of more than $24 million, which he allegedly spent on gambling platforms. Mr Vocisano was charged with one count of dishonestly oobtaining a financial advantage by deception and is yet to enter a plea.
Power Ledger-linked crypto exchange files for bankruptcy – 10 May 2023
Bittrex, a cryptocurrency trading platform that generated $ 1.9 billion revenue, filed for bankruptcy on Monday after being sued by the US Securities and Exchange Commission (SEC) for allegedly operating as an illegal stock exchange. In a lawsuit that triggered the bankruptcy filing, the SEC cited Bittrex’s decision to allow customers to trade in crypto tokens issued by Perth-based Power Ledger as evidence that it deliberately avoided regulation.
Growing Trends in Whistleblowing Compliance Landscape – 10 May 2023
Great article outlining that whistleblower protection programs have evolved rapidly in the last five to six years and this trend is likely to continue as more countries propose to introduce regulatory requirements, actively pursue enforcement and also, enhance the rewards offered to whistleblowers. Disscusion on use of AI and how company leadership sets the tone for how any compliance program is received by its employees.
https://www.lexology.com/library/detail.aspx?g=cdf0e0b0-5564-4597-bec2-ce46438a07fa
Banks say ‘consent fatigue’ among risks in privacy reform – 10 May 2023
The federal government’s privacy law reforms will create “consent fatigue” as customers are bombarded with messages from lenders seeking permission for things such as making basic payments, while also making it harder to develop new products and tackle fraud, the banks say. The new laws will create a historic shift in privacy rules in favour of citizens following high-profile misuse of data by big tech platforms, various data breaches and concerns about data collection practices from business and government.
Briton pleads guilty in US to 2020 Twitter hack – 10 May 2023
Joseph James O’Connor, a British national extradited to the US last month has pleaded guilty in New York to a role in one of the biggest hacks in social media history. The July 2020 Twitter hack affected over 130 accounts including those of Barack Obama and Joe Biden.
https://au.news.yahoo.com/briton-pleads-guilty-us-2020-230621138.html
Republican George Santos decries federal charges as ‘witch hunt’ amid claims of theft, fraud – 11 May 2023
US Republican George Santos, infamous for fabricating his life story, has pleaded not guilty to charges he duped donors, stole from his campaign and lied to Congress about being a millionaire, all while cheating to collect unemployment benefits he didn’t deserve. He said he’s been cooperating with the investigation and vowed to fight the prosecution, which he labelled a “witch hunt”.
White-Collar Crime: Definition, Categories, Evolution and Notable Cases – 11 May 2023
This article endeavours to define what is regarded as white collar crime and explores a portion of the multitude of white-collar crimes through the ages including those by government. It will also discuss the aspect of how it is no longer regarded as a crime without violence and will list examples of historical cases, after first discussing the origin of this criminal act and other colours of collared crime.
Damien Luscombe Charged For Allegedly Ripping Off Music Clients – 12 May 2023
Damien Luscombe, a music industry accountant has been charged with a range of offences including obtaining financial advantage by deception and using false documents. In total, he has been charged with 22 offences relating to the alleged embezzlement of $2.2 million. His high profile clients include Amy Shark, Peking Duck and Julia Stone.
https://themusicnetwork.com/damien-luscombe-arrest/
Investigation & Fraud News – Week ending 6 May 2023
12 stories this week:
Employee Fraud and unexpected tax implications – 28 April 2023
Employee Fraud can have far-reaching negative consequences for victim businesses, including on finances, reputation and staff morale. What many clients don’t often consider is the taxation implications. The article covers common questions relating to Employee Fraud and discusses the serious tax implications these incidents can have on your business.
PNG climate change officials accused of skimming $2 million in public funds – 28 April 2023
Senior staff at the government body responsible for carrying out Papua New Guinea’s climate change response, are facing major criminal proceedings, after the alleged misappropriation of more than $2 million. Finance manager Ivan Aipi faces 35 charges, including illegally executing cheques for the benefit of his boss and associates.
Helping to win the battle to curb SMS and voice fraud – 2 May 2023
Australians lost over $2 Billion to scams in 2021, according to the ACCC. In 50% of those cases nationwide, the initial contact with the victim was made by phone, with text messages as the second most prevalent contact method (23%). This article looks at what Service Provider industries and businesses are doing to combat the scourge of phone and text-based scams and slow down or stop the fraud activity before it can start.
https://itbrief.com.au/story/helping-to-win-the-battle-to-curb-sms-and-voice-fraud
Man charged after allegedly used stolen identities to defraud $47K in Covid grants: police – 2 May 2023
A man will face court after allegedly fraudulently claiming more than $47k worth of Covid-19 grants by using stolen identities. He was charged with more than 118 charges including 70 counts of possessing identify information to commit an indictable offence.
Fake ‘Australian Bankers’ call centre scam busted in India – 3 May 2023
Mumbai Police recently said that they have busted a fake call centre, arresting around 50 people. Police Authorities commenced a forensic examination of the computers and revealed that young employees were trained to receive calls from unsuspecting bank customers from Australia. Employees allegedly extracted sensitive personal details and security information.
https://www.theaustraliatoday.com.au/fake-australian-bankers-call-centre-scam-busted-in-india/
Disturbing dashcam shows woman jump in front of car in suspected ‘insurance fraud’ incident – 3 May 2023
Disturbing dashcam footage has captured the moment a woman appears to leap in front of a car south of Brisbane before the driver speeds away, suspecting an “insurance fraud incident” – or worse. Police attended the location but were unable to locate those involved. No formal complaint has been made, however investigations are ongoing into the circumstances surrounding the incident.
Hundreds of charges dropped over WA’s biggest ever public fraud – 5 May 2023
Public prosecutors have dropped 542 charges against a Perth physiotherapist, which had followed one of the state’s biggest ever public corruption scandals.
Jacob Anthonisz, 45, had been charged over allegations he helped former Department of Communities bureaucrat Paul Whyte steal $27 million in taxpayer money. It was the Department of Public Prosecutions’ decision to discontinue the case as ‘it was not in the public interest to continue’.
IOUpay’s administration disputed after $19m fraud allegations – 5 May 2023
ASX-listed BNPL company IOUpay has entered voluntary administration after the discovery of an alleged $19 million fraud scandal involving former CFO Kenneth Kuan and Western Australian mining businessman Anthony Dunlop. Dunlop is also facing allegations made by ASIC that he used his position as director of Capital Mining, to make hundreds of thousands of dollars in dishonest payments to both himself and others.
Facebook and WhatsApp owner urged by UK bank to act on fraud as scams soar – 5 May 2023
Meta has been urged to take action to protect customers from fraud, after US bank TSB said scams via the social media company’s platforms Facebook, WhatsApp and Instagram have soared. Research shows these platforms account for 80% of cases within three largest fraud categories: impersonation, purchase and investment.
https://www.theguardian.com/uk-news/2023/may/05/facebook-whatsapp-instagram-fraud-scams-tsb-meta
Patrick Willmott jailed over his role in $105 million Plutus Payroll tax fraud scheme – 5 May 2023
A man who pocketed nearly half a million dollars through the Plutus Payroll tax fraud has been sentenced to a maximum of nine years in prison. More than $31 million that should have gone to the tax office was instead diverted to the co-conspirators, and his own direct financial benefit was $498,272.Five people have been found guilty over the fraud which cost the ATO $105 million
Investigation & Fraud News – Week ending 28 April 2023
12 stories this week:
Scammers steal millions from Australians each year, but victims have little recourse – 21 April 2023
A woman who lost thousands to a scam said NAB treated her poorly, while the other bank blocked the scammers. ASIC says, the banking industry has no consistent approach for helping scam victims. Advocates want to make banks liable for scam losses, but the industry has rejected this.
Alexander Maconochie Centre detainees under investigation over alleged fraudulent transactions – 21 April 2023
Police are investigating allegations detainees at Canberra’s jail were able to defraud a man of thousands of dollars while incarcerated. ACT Corrective Services told the victim, it’s a “known issue” within Canberra’s jail.
https://www.abc.net.au/news/2023-04-21/canberra-jail-detainees-invetigated-over-fraud/102251854
Heidi Barrat avoids jail after pleading guilty to mouse plague relief rebate fraud – 24 April 2023
A woman who fraudulently claimed $60,000 in mouse plague relief funds to fuel her gambling addiction has avoided jail time. She applied for the fund 120 times, using different bank accounts and email addresses for each claim. She has been sentenced to a two-year intensive corrections order, 300 hours of community service and must repay the funds.
https://www.abc.net.au/news/2023-04-24/heidi-barrat-mouse-plague-fraud-sentencing/102259914
Unsuspecting unis caught up in foreign research ‘fraud’ – 26 April 2023
Identity theft, plagiarism, fake journals, pseudo editors: the academic publishing world is rife with misbehavior. An activist in the research misconduct and fraud space for many years says that misbehaviour in academic publishing was being driven by predatory publishers, that made money from academics paying to have their paper included in journals, and the fact that promotions are usually based on, among other things, the number of papers an academic has had published.
IOUpay goes broke after $19m suspected Malaysian fraud – 26 April 2023
Payments minnow IOUpay has been placed into administration after a $19 million suspected fraud involving a Malaysian executive and a persistent legal battle drained its finances. Former chief financial officer Kenneth Kuan Choon Hsuing allegedly used the IOUpay treasury to make about $7 million of loans to businesses connected to himself, his wife and other former employees.
https://www.afr.com/technology/ioupay-goes-broke-after-19m-suspected-malaysian-fraud-20230426-p5d3cr
Gold Coast couple never legally owned home they purchased at auction, court ruling finds – 27 April 2023
In March 2018, a couple purchased a house at a mortgagee auction for $1.265 million and have been living in it. What they didn’t know when they bought the property, was that the owner had alleged the house had been unlawfully mortgaged as security for a loan by a relative, who later defaulted. A handwriting expert gave evidence during the trial that the owners signature had been forged on the loan documents. The court found the couple did not have a legal interest in the home, because they were not able to register the title but were entitled to recover $2,751,666.32 from the mortgagees who sold the house for breach of contract.
Crown Casino’s bank cheque practice likely ‘resulted in criminal infiltration’, gambling watchdog finds – 27 April 2023
Crown Casino has been fined $30 million by Victoria’s gambling watchdog for allowing punters to cash bank cheques made out to themselves, exacerbating gambling harm and likely aiding “criminal infiltration by money launderers”. The commission estimates more than $1.5 billion worth of cheques could have been involved in the practice between 1994 and 2021.
Steve Bannon associate sentenced to jail for fraud over Donald Trump’s border wall – 28 April 2023
US Air Force veteran Brian Kolfage, an ex-associate of Donald Trump’s former adviser Steve Bannon, has been sentenced to more than four years in prison, after admitting to conspiring to defraud donors to a campaign to build a wall along the US-Mexican border promised by the former president. The court heard Kolfage took more than $530,000 and spent it on boat payments, jewellery and cosmetic surgery.
New funding to crack down on NDIS fraud syndicates – 28 April 2023
Syndicates ripping off the National Disability Insurance Scheme will be targeted in a fraud crackdown. Some of the syndicates have targeted people with false information on how the NDIS operates, some using the promise of cash or vouchers. The 50 million in funding will ensure the agency has the capability to address fraud and non-compliance.
https://www.portnews.com.au/story/8173843/new-funding-to-crack-down-on-ndis-fraud-syndicates/
