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Investigation & Fraud News – Week ending 28 October 2022
14 stories this week:
Central Queensland woman refused bail after facing court over alleged Luke Combs ticket scam – 18 October 2022
A Central Queensland woman has been charged after allegedly scamming more than a dozen country music fans up to $3,500 each. She was arrested and charged with 16 counts of fraud.
https://www.abc.net.au/news/2022-10-19/woman-denied-bail-allegedly-scams-luke-combs-fans/101550520
Credit Suisse Set to Settle Criminal Tax Case in France – 21 October 2022
Credit Suisse Group AG will aim to settle a tax fraud and money laundering case in France, that saw coordinated raids in five countries from Australia to the UK. The Swiss lender is in the final stretch of negotiations with prosecutors at the Parquet National Financier, to reach a settlement that would include a fine but no admission of guilt.
https://au.finance.yahoo.com/news/credit-suisse-set-settle-criminal-080922810.html
NSW Govt backs AI inquiry
The NSW Government has agreed to back an inquiry into the use of artificial intelligent technology and whether NSW’s legislative framework is “fit-for-purpose”. The proposed inquiry will explore areas such as transport, health and cyber security, alongside technology including facial recognition, biometric surveillance, and algorithmic programming. – 21 October 2022
https://www.arnnet.com.au/article/702595/nsw-govt-backs-ai-inquiry/
Yevgeny Prigozhin, known as Vladimir Putin’s chef, revealed as Wagner Group mercenary boss – 23 October 2022
Over the years, Yevgeny Prigozhin has been at Vladimir Putin’s side, often serving him lavish meals. Recently however, he confirmed that he is the owner of the Wagner Mercenary Group and his guns for hire have played a critical role in keeping Putin’s war going. Now, the man who used to quietly stand behind Putin’s shoulder has revealed himself to be one of his most influential figures inside the Kremlin. This article outlines his humble beginnings and criminal past.
Corporate misincentives – 22 October 2022
Paper outlines how the provision of so many of our essential services – such as telecommunications, power, aged care, disability care and childcare and training services – are tainted by bad corporate behaviour. It seems that all that is required is lots of government money and a set of rules and regulations that can be interpreted subjectively for systems to be rorted. The regulatory framework needs to include clear and significant penalties for bad corporate behaviour.
https://www.thesaturdaypaper.com.au/opinion/topic/2022/10/22/corporate-misincentives#mtr
Australia flags new corporate penalties for privacy breaches – 22 October 2022
After two major cybersecurity breaches left millions vulnerable to criminals, Australia has proposed tougher penalties for companies that fail to protect customers’ personal data. The penalties for serious breaches of the Privacy Act would increase from 2.2 million Australian dollars ($1.4 million) now to AU$50 million ($32 million) under amendments to be introduced to Parliament. A company could also be fined the value of 30% of its revenues over a defined period if that amount exceeded AU$50 million ($32 million).
‘Dracula in the blood bank’: Years of inappropriate billing for spine surgery revealed – 22 October 2022
A 2018 review, conducted by spine surgeon Dr Roy Carey has revealed that doctors spent years inappropriately billing Medicare and private health insurers for expensive and questionable spinal surgery.
Access to digital version of WA today required to read article.
Growth in cybersecurity attacks against Australia outpacing global average – 24 October 2022
Imperva threat research has found that cyberattacks against Australia in 2022 has grown in both frequency and severity at a rate that outpaces the global average. The data suggests that cybercriminals see Australia and its citizens as lucrative targets. Between July 2021 and June 2022 there was an 81% increase in attacks, with the most heavily targeted industries being financial, retail, and business services.
Queensland lawyer Michael Bosscher charged over alleged involvement in $4.5m money laundering syndicate – 25 October 2022
Queensland lawyer Michael Bosscher has been charged over his alleged involvement in a $4.5 million money laundering operation. He is alleged to have opened fraudulent bank accounts in the name of clients at his consultancy business without their knowledge and has been charged with conspiring to deal in the proceeds of general crime worth $1 million or more.
Customers in limbo as Medibank data breach shapes up as far worse than the Optus hack – 26 October 2022
Australia’s Data Breach Debacle Expands
Privacy fears for children caught up in Medibank data breach
The private health provider revealed the cyber attack on its customers’ data could impact about 4 million current customers along with an unknown number of former customers too. Cyber Security Minister Clare O’Neil described latest development in the Medicare data breach as deeply concerning.
https://www.bankinfosecurity.com/blogs/australias-data-breach-debacle-expands-p-3297
National DNA Program partners with Othram to use forensic genetic genealogy for unsolved Australian case solved Australian cases – 26 October 2022
The AFP will have access to specialised forensic DNA testing, not currently available in Australia, to identify human remains and develop new leads for unsolved crimes, by partnering with a world-leading forensic genomics laboratory Othram.
ASIC faces new Senate inquiry over ‘inaction’ – 27 October 2022
ASIC will be hauled before a fresh Senate inquiry for allegedly failing to enforce the law, after the opposition and crossbench MPs joined forces to act on what they said was widespread community concern that ASIC “was not very responsive”.
https://www.afr.com/politics/federal/new-senate-probe-into-asic-moral-hazard-20221027-p5bthe
Man allegedly scammed ‘vulnerable victims’ out of $9 million then fled the country – 26 October 2022
A man accused of scamming people out of $9 million while posing as a financial planner in Melbourne, has been arrested after landing back in the country. Police are alleging the man worked as a financial planner around Brighton and was unlicensed. Investigators have identified at least 34 alleged victims they believe to be linked to the man from 2014 to 2018.
Sydney man charged over COVID-19 payment fraud – 27 October 2022
A Sydney man has been charged making allegedly fraudulent claims of more than $130,000 in COVID-19 Disaster Payments and Pandemic Leave Disaster Payments as part of criminal syndicate. Police allege the syndicate was using stolen identities, claiming payments in their names and directing the funds to bank accounts controlled by the syndicate.
https://www.afp.gov.au/news-media/media-releases/sydney-man-charged-over-covid-19-payment-fraud
Investigation & Fraud News – Week ending 21 October 2022
15 stories this week:
Identity – 13 October 2022
A 30-year-old Queensland man charged with hundreds of identity fraud offences, allegedly also threatened to murder some of his victims when they tried to get their online accounts back.
The messages were uncovered on electronic devices found when a search warrant was executed at a Pallara home last December.
Australia becoming hotbed for cyber attacks – 14 October 2022
Research shows an 81% increase in cyber security incidents in Australia between July 2021 and June 2022. The top three most common risks faced by Australian organisations were automated threats and remote code execution (RCE) or remote file inclusion (RFI).
https://www.computerweekly.com/news/252526094/Australia-becoming-hotbed-for-cyber-attacks
On trial for bravely telling the truth – 14 October 2022
The trial of a whistleblower who spoke up about government wrongdoing has begun in Adelaide. The article looks at why its come to this, considering Richard Boyle told the truth. He spoke up because the Australian Taxation Office, an immensely powerful government agency, was abusing its power. It was ruining the lives of small business owners and Boyle, a tax office employee in its debt recovery division, wanted to do the right thing.
https://www.smh.com.au/national/on-trial-for-bravely-telling-the-truth-20220724-p5b41w.html
Access to digital version SMH required to read the article.
Australian Insurer Back Online After Cyberattack – 14 October 2022
Medibank, a private health insurance company serving nearly 4 million Australians has restored access to its policy writing systems, after taking them offline following a cyber incident. Medibank Chief Executive Officer David Koczkar acknowledged the cyber incident to his customers and also requested the Australian Securities Exchange to impose a “trading halt.”
https://www.bankinfosecurity.com/australian-insurer-back-online-after-cyberattack-a-20274
2.2 million Woolworths MyDeal customers exposed in data breach – 15 October 2022
Woolworths has confirmed MyDeal customers have had their data exposed after a “compromised user credential” was used to hack into the system. Woolworths said MyDeal was in the process of contacting around 2.2 million Aussies by email who have been impacted.
https://au.news.yahoo.com/woolworths-my-deal-customers-exposed-in-data-breach-224405234.html
The lucrative business of romance scams – 15 October 2022
Internet romance scams cost Australians an estimated $142 million last year, but the law can do little to protect people from emotional exploitation. It is possible, that some of this conduct could be captured by coercive control laws, that are soon to be introduced in Queensland and New South Wales. The difficulty is trying to establish how far the law should, or indeed can, go to protect people from the intangible – but real – harms of emotional exploitation.
https://www.thesaturdaypaper.com.au/life/2022/10/15/the-lucrative-business-romance-scams#mtr
Scams, the Optus data breach and keeping your personal data secure – here are the top tips to help you avoid falling victim – 15 October 2022
Great article that shares some top tips on keeping your data secure and answers questions such as “How does the ACCC identify new and changing scams? Have there been many cases of data breaches being used for coercive control?
Federal government describes reports of Medicare fraud as ‘troubling’, AMA condemns ‘unjustified slur’ on doctors – 18 October 2022
A joint investigation by the ABC and Nine newspapers has found doctors are abusing the $28 billion system, at times putting patients at risk and even billing dead Australians to boost profits. Treasurer Jim Chalmers says the government will seek to get to the bottom of allegations of Medicare rorting.
Federal ICAC whistleblowers ‘will remain silent’ without stronger protections: lawyer – 18 October 2022
Whistleblower protections put forward in the federal government’s national anti-corruption watchdog do not go far enough and could deter people from coming forward with possible misconduct, a human rights lawyer has warned.
How financial services businesses can avoid fraud – 18 October 2022
As the financial system becomes increasingly decentralised, online criminals are becoming more sophisticated in the ways they breach security protocols. This article looks at why financial fraud is on the rise and discusses how businesses in the financial sector can protect themselves, with thorough due diligence tools, including an examination of their existing and potential clients’ credit history and criminal risk.
The threat keeping Australian CEOs up at night – 18 October 2022
The Optus hack is officially a nightmare for corporate Australia and the chief executive of National Australia Bank, Ross McEwan, says the telco’s travails should galvanise every company in the country into action.
Anti-corruption proposal a missed opportunity for whistleblower protection – 18 October 2022
The Human Rights Law Centre has told a parliamentary inquiry that the draft legislation to establish the National Anti-Corruption Commission (NACC) is a missed opportunity for whistleblower protections and should be strengthened.
Australians losing superannuation savings to sophisticated new scam – 19 October 2022
A sophisticated new scam has been uncovered, that targets the retirement nest eggs of Australians. The scam used the names Invest Fast or Invest Quick and pretended to be a financial advice firm based in Melbourne. At least 45 SMSFs were created for potential victims. Investigator Ken Gamble believes there is evidence to link the Invest Quick scam to the Metro Manila call centre.
Collapsed cryptocurrency exchange used customer funds for business loan – 19 October 2022
An Australian cryptocurrency exchange, Blockchain Global that collapsed last year trapping more than $20 million of customer money, dipped into customer funds to provide a loan to support another part of its business instead of keeping the funds on reserve.
Access to digital version of SMH required to read article
Private contractor use in APS was a major corruption risk, NACC whistleblower protections inadequate, inquiry told – 20 October 2022
An explosion in the use of third-party contractors for public service work under the Coalition posed a serious corruption risk, a parliamentary inquiry has heard.
Access to digital version of Canberra times required to read article
Investigation & Fraud News – Week ending 14 October 2022
11 stories this week:
Elaborate scam allegedly used leading finance app to trick victims out of superannuation – 4 October 2022
Australian victims of a sophisticated superannuation scam have raised concerns about how they were given access to a leading finance app, which they claim gave them false confidence their money was safe. ASIC is investigating a “third party” in relation to the scam.
Banks ‘cyber mature’ but remain top target for scammers – 5 October 2022
Criminals exploiting snippets of personal information to trick customers and employees into opening themselves and their firms to fraud remains the top way Australian financial services businesses are initially breached. Social engineering attacks are also the main way hackers and scammers initially got into financial services companies, using it as a Trojan horse for phishing, fraud and false billing.
Access to digital version of AFR required to read article.
Australian Firm Costa Group Suffers Phishing Attack – 8 October 2022
Australian fruit and vegetable supplier Costa Group says it was subjected to a malicious and sophisticated phishing attack in August, that resulted in unauthorized access to its servers. Sensitive information stolen may include workers’ passport details, bank details, superannuation details and tax file numbers.
https://www.bankinfosecurity.com/australian-firm-costa-group-suffers-phishing-attack-a-20231
‘Large-scale’ GST fraud sees ATO allegedly scammed out of more than $1.8 million – 8 October 2022
The ATO was defrauded of more than $1.8 million through falsified Business Activity Statements. The offenders are accused of inventing fake businesses and submitting fictitious Business Activity Statements, in an attempt to gain a false GST refund.
Former Ipswich council figures charged ratepayers $30,000 for exclusive Brisbane Club dining and memberships – 13 October 2022
More than $30,000 worth of boozy dinners, family perks and ongoing memberships by former senior Ipswich council figures were spent at an exclusive Brisbane Club. Mayor Teresa Harding has labelled the spending “utterly disgusting” and is calling for a forensic audit.
ACCC issues warning as farmers hit by online scammers taking advantage of supply shortages – 13 October 2022
Almost 300 reports of fraudulent sales of tractors and other farm machinery have been made to the ACCC’s Scamwatch between January and August this year, a 21 per cent increase in reports made for the same period in 2021. The ACCC says the sale of fake tractors and heavy machinery alone resulted in losses of $1 million.
https://www.abc.net.au/news/rural/2022-10-13/accc-warn-farmers-of-tractor-scams/101526024
Police charge man with hundreds of identity fraud offences, South Brisbane – 13 October 2022
A 30-year-old man was arrested by detectives and charged with more than 300 offences, predominantly relating to identity fraud offences, spanning at least two years. The charges relate not only to the alleged possession of the identification information belonging to more than 160 people, but also to alleged threats made to victims of the frauds, who attempted to take back their online identities, which had been hacked by the man.
https://www.miragenews.com/police-charge-man-with-hundreds-of-identity-873590/
China’s mysterious police presence in Sydney – 13 October 2022
It has been revealed this week that a web of police “service stations” have been set up around the world by the People’s Republic of China, ostensibly to help Chinese nationals renew their government-issued identification and drivers’ licenses. But according to a human rights group, the stations have been used to spy on the Chinese diaspora for the Chinese Communist Party. The report accuses stations overseas of involvement in forcibly “returning” more than 200,000 overseas nationals to China.
Optus data breach exposes surveillance capitalism – 13 October 2022
The Optus data breach in late September involved the data of about 10 million customers. It has raised important privacy concerns and led to questions about how personal data is managed by private and public entities. A 2-year review of the Privacy Act, which ended in January, had not yet released information. The Australian Information Industry Association is now calling on the federal government to release an exposure draft before the end of the year.
https://www.greenleft.org.au/content/optus-data-breach-exposes-surveillance-capitalism
Hillsong whistleblower allegedly stood down for giving information to charities regulator, court told – 13 October 2022
Natalie Moses, a Hillsong whistleblower alleges she was unlawfully disciplined for providing information to the charities regulator, during an investigation into the global church’s accounts.
A deep dive into a corporate espionage operation – 12 October 2022
There has been a dramatic shift in the level of sophistication of cyberattacks. The article explores data exfiltration and the threat of industrial espionage and explains why these attacks are on the rise.
https://securitybrief.com.au/story/a-deep-dive-into-a-corporate-espionage-operation
Investigation & Fraud News – Week ending 7 October 2022
14 stories this week:
Facebook Marketplace scammer falsified bank transfers, Tasmania Police allege – 3 October 2022
Police allege that a Tasmanian man dishonestly obtained $200,000 worth of property from people who were attempting to sell items on Facebook Marketplace, after presenting a falsified bank transfer receipt.
Illegal phoenix activity – 5 October 2022
Illegal phoenix activity occurs when a new company continues the business of a liquidated company to avoid paying its debts by selling assets, creating dummy directors etc. Article explores what Illegal phoenix is, what you can do to avoid it, and how you can legally resurrect an insolvent or near-insolvent company.
Fraudster targeted Australian super accounts in $3 million scam – 5 October 2022
Vella-Arpaci pleaded guilty to two charges of conspiracy to defraud over separate superannuation and share trading frauds, and to conspiring to deal in proceeds of crime. Police found she held numerous passports, driver’s licences, debit cards and Medicare cards.
Those details were used to withdraw funds from accounts and arrange shares to be sold, with proceeds deposited in newly opened bank accounts and laundered through the purchase of diamonds.
Banks ‘cyber mature’ but remain top target for scammers – 5 October 2022
Criminals exploiting snippets of personal information to trick customers and employees into opening themselves and their firms to fraud remains the top way Australian financial services businesses are initially breached. These social engineering attacks were the main way hackers and scammers initially get into financial services companies, using it as a Trojan horse for phishing, fraud and false billing.
SMSF scam investigation sees call centre raided – 5 October 2022
A scam call centre in Manila set up to steal retirement funds by posing as an Australian company was raided by Cybercrime investigation company IFW Global and the Philippines National Police this month. The scam orchestrators aimed to gather critical information from victims by pretending to be Australian Securities Administration Limited (ASAL), a legitimate and licensed company.
https://www.accountantsdaily.com.au/regulation/17637-smsf-scam-investigation-sees-call-centre-raided
Richard spoke up about inappropriate behaviour at his work. Now he’s facing prison – 5 October 2022
Article is a good summary of how it all started for Richard Boyle and whats happening next. In 2017 Mr Boyle, made a public interest disclosure about maladministration at the Adelaide debt collection centre of the ATO. He was subsequently charged with 66 offences after having his house raided. The Public Interest Disclosure Act 2013 (PID) is supposed to protect Commonwealth employees who speak up on wrongdoing but these protections have never been tested in court. If the District Court or higher courts reject Mr Boyle’s claim for immunity, he will face a criminal trial in October 2023.
https://www.sbs.com.au/news/article/richard-boyle-whistleblower-case-explained/iqljz7577
Economist alleges corporate watchdog ASIC is only investigating tiny proportion of complaints – 6 October 2022
An economist alleges ASIC is doing fewer investigations compared to the number of complaints it is receiving. Alleging that fewer than 1 per cent of complaints are going on to be investigated. ASIC has responded saying that 35 per cent of complaints were referred for action, resolved or beyond its jurisdiction. A table is included with an extract of ASIC’s annual report that notes what percentage of complaints it investigates.
Banks get temporary access to Optus customer data to watch for fraud – 6 October 2022
Banks will have to comply with strict requirements to receive customer identification details from Optus to guard against fraud, including making written assurances to regulators, proving they can securely store information and pledging to destroy it when it is no longer required. New regulations unveiled by the Albanese government in response to the Optus cyberattack will allow telecommunications companies to temporarily share customers’ government identification details including driver’s licence, Medicare and passport numbers with banks. Names, addresses and birth dates will not be shared.
Customers lose as banks, telcos pass buck on scam – 6 October 2022
National Australia Bank says it is not responsible for refunding customers duped into transferring their money to criminals who impersonate the bank’s telephone number, but says the banks are now working more closely with telco operators to close gaps that allow these scams to occur.
One in 10 young people willing to become money mules in return for cash – 6 October 2022
In the last 12 months there has been a surge in Money Mule cases amongst older age groups, with a 26% increase in those aged 31 to 39, and a 29% increase in those aged over 40. If a person is caught moving stolen funds, money mules will be left with no bank account, a damaged credit score and the inability to apply for a loan or even a phone contract in the future. They could also end up with a 14-year prison sentence for the crime.
https://au.news.yahoo.com/young-people-become-money-mules-for-cash-230137276.html
NZ police need better training in privacy and human rights law – here is what should happem – 6 October 2022
The New Zealand Police were recently found to have been routinely and illegally photographing young people and adults in public. There are rules governing the collection of information, with protecting privacy a key requirement. A report revealed that the police did not follow relevant privacy rules.
https://au.news.yahoo.com/nz-police-better-training-privacy-190222868.html
Teenager arrested for alleged scam on Optus victims as government lets telco share data – 6 October 2022
Federal police have arrested a 19-year-old Sydney man for allegedly sending $2000 blackmail scam texts to 93 people whose data was separately published by the Optus hacker.
West Australian farmer scammed out of $16,000 after trying to purchase cattle on Facebook – 7 October 2022
Scammers are getting better at appearing as legitimate sellers. Police are warning of scammers purporting to sell livestock on Facebook. A farmer in Western Australia’s South West has lost $16,500.
https://www.abc.net.au/news/2022-10-07/wa-farmer-fraud-purchase-cattle-on-facebook/101508134
Sydney news: The King’s School under investigation over use of public money – 7 October 2022
The King’s School in NSW, is under investigation by the NSW Department of Education. There are allegations of possible misuse of taxpayers’ funds over building and other plans. The King’s School in Sydney reportedly planned to install a plunge pool at the headteacher’s residence and sent the school’s senior staff to attend a British rowing event.
https://www.abc.net.au/news/2022-10-07/nsw-am-briefing-october-7-2022/101509178
