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Investigation & Fraud News – Week ending 30 September 2022
11 stories this week:
Optus data breach: who is affected, what has been taken and what should you do? – 22 September 2022
Optus customers’ private information may be compromised after a cyber-attack. It is believed the attackers were working for a criminal or state-sponsored organisation. For some customers identity document numbers such as driver’s licence or passport numbers could be in the hands of criminals.
Federal ICAC a ‘great step’ but whistleblowers still at risk without a protection agency: David McBride – 22 September 2022
It is expected the federal government will introduce its much-anticipated national anti-corruption commission bill this week, as crossbenchers demand the proposed legislation include stronger whistleblower protections.
Two arrests over business email compromise (BEC) scam – 26 September 2022
A Tasmanian victim was arranging the purchase of a house through a conveyancer. The email correspondence from the conveyancer to the victim was compromised by a third party who altered the attached account payment information. As a result, the victim unwittingly transferred over $1.2 million to the scammers.
Australian crypto exchange appoints administrators – 27 September 2022
‘Mine Digital’, a digital asset exchange and brokerage has collapsed and control handed to external administrators, amid a dispute where it is being sued for allegedly not doing enough to weed out scammers from its platform. In July, Scammers used the crypto exchange to facilitate the movement of money from investors they tricked using a sham company called 500 Investments.
https://www.afr.com/technology/australian-crypto-exchange-falls-into-administration-20220921-p5bjqj
Avoiding a surveillance society: how better rules can rein in facial recognition tech – 27 September 2022
Our laws have not kept pace with the extraordinary rise of facial recognition technology and has left our community vulnerable to harmful uses of facial recognition. To fill the legal gap, it is proposed a “model law”: an outline of legislation that governments around Australia could adopt or adapt to regulate risky uses of facial recognition while allowing safe ones.
https://au.news.yahoo.com/avoiding-surveillance-society-better-rules-200224964.html
‘Whistleblower’ letter triggered NAB probe, trial of alleged fraudster told – 27 September 2022
A sydney court as part of the Helen Rosamond trial, has recently heard that an anonymous letter exposing an alleged fraud at the NAB came as a shock to a senior bank investigator in the days before Christmas 2017.
To read full article – digital version of SMH required.
Hundred who stole $350 million from their Australian employers – 27 September 2022
New Australian research has been conducted detailing detailed over one hundred cases where employees ripped off their bosses for at least $1 million. Findings are summarised in this article.
https://www.miragenews.com/hundred-who-stole-350-million-from-their-862060/
Laws for a federal anti-corruption body have been unveiled. Here’s what you need to know – 28 September 2022
Attorney-General Mark Dreyfus introduced legislation to the lower house on Wednesday to set up the National Anti-Corruption Commission. This body would operate independently of the government and have powers to investigate serious or systemic corrupt conduct across the commonwealth public sector. Protections for whistleblowers and journalists as well as safeguards to protect reputations are also included in the proposal.
PNG minister, police hit out at Australia over extradition request for alleged fraudster and Cairns resident Samson Jubi – 28 September 2022
A Papua New Guinea government minister and top justice officials say they are “extremely frustrated” with Australia for harbouring Samson Jubi., a Cairns resident wanted for a mulit-million dollar fraud. He is wanted over the alleged misappropriation of 268 million kina, ($117 million) from impoverished communities in the country’s Western Province.
What does the Optus data breach reveal about corporate governance problems around cyber security? – 29 September 2022
The Optus data breach has exposed wider corporate governance issues in Australian companies around cyber security. Deputy Prime Minister Richard Marles said that “What has occurred over the last week has been a wakeup call for corporate Australia and we need to be doing everything we can, to make sure that protections are in place”. Article also contains a link to the Department of Home Affairs discussion paper, that highlighted weaknesses in Australian cyber security regulations and incentives. https://www.abc.net.au/news/2022-09-29/optus-data-breach-exposes-corporate-governance-gaps-around-cyber/101483874
Anthony Koletti denies delaying his police report so Melissa Caddick could disappear, court hears – 29 September 2022
The husband of accused Sydney fraudster Melissa Caddick has flatly denied assisting her in disappearing, delaying a police report to buy her time and withholding information. Mr Koletti waited 30 hours after his wife disappeared to report her missing.
Investigation & Fraud News – Week ending 23 September 2022
9 stories this week:
Elie Douna: Illawarra property developer sentenced for $15m loan scam – 21 September 2022
A disgraced Illawarra property developer has been sentenced for orchestrating a failed $14.7 million loan scam. Douna made up fake potential buyers in an effort to obtain a nearly $15 million loan.
Donald Trump and adult children sued by New York attorney-general for fraud – 22 September 2022
Former US president Donald Trump and his company have been sued by New York’s Attorney-General for fraud, allegedly padding his net worth by billions of dollars by manipulating the value of assets when preparing his company’s annual financial statements from 2011-2021. His children Donald Trump Jr and Ivanka Trump have also been accused of aiding the alleged fraud.
Former first lady of Honduras Rosa Bonilla jailed after spending more than $756,000 on credit cards and school fees – 22 September 2022
The former first lady of Honduras, has been sentenced to 14 years in prison on charges of fraud and misappropriation of funds destined for social programs. She spent $756,609
meant for low-income children on personal credit card payments, her children’s school fees and real estate construction.
Former Cancer Council ambassador Amanda Power charged with fraud – 23 September 2022
A former Cancer Council ambassador has been charged with nine counts of fraud, after she allegedly faked a cancer diagnosis, to secure thousands of dollars from the community.
https://www.abc.net.au/news/2022-09-22/cancer-fraud-amanda-power-charged/101465424
Warning over ‘spike’ in puppy scams causing $4.2m nightmare for Australians – 23 September 2022
Thousands of Australians have been hit by puppy scams, losing thousands in the process, with warnings there has been another spike in recent weeks. The (ACCC) revealed losses from pet scams have jumped more than 1000 per cent over the last two years.
ClubsNSW accuses terminally ill whistleblower of ‘blatant self-interest’ – 23 September 2022
Troy Stolz, who worked at ClubsNSW from 2011 to 2019, is being sued by his former employer for breaching the confidentiality clause of his contract, after he released an internal report that found 95 per cent of registered clubs were not compliant with money laundering laws. ClubsNSW is also prosecuting him for contempt, alleging that he intimidated, harassed or otherwise brought improper pressure on the organisation in his public comments.
Access to digital version of SMH required to read article
Secrecy Is Lifted, But the Government Continues Its Punitive Prosecution of Richard Boyle – 23 September 2022
ATO whistleblower Richard Boyle is set to go before the Adelaide District Court to continue his public interest disclosure (PID) defence proceedings. And despite the Commonwealth, yet again, attempting to hide evidence of corruption, an applied suppression order has been lifted.
1 in 5 Aussies prepared to lie for loans – 23 September 2022
A damning new report has shone a light on the growing issue of multifaceted and complex loan-seeker fraud in the domestic mortgage market. One in five (19 per cent) Australians believe it’s okay to tell a “white lie” and report having less debt than they actually have in a financial service or loan application.
https://www.mortgagebusiness.com.au/lender/17222-1-in-5-aussies-prepared-to-lie-for-loans
Older Aussies are exposed by shift to online banking – 23 September 2022
ACCC’s Scamwatch reports Australians over 65 have lost more money to phishing scams this year than all other age groups combined – totalling over $6.5 million in the first eight months of the year. A drive by banks to get people banking online combined with an increase of seniors using smartphones, and tablets, makes creates a perfect storm for phishing scammers.
Investigation & Fraud News – Week ending 16 September 2022
10 stories this week:
A 96yo has almost $500k taken by son, daughter-in-law, documents filed in Mackay court allege – 12 September 2022
A 96-year-old woman has allegedly lost almost $500,000 to the people who were supposed to be caring for her. Court documents allege the 96-year-old was asked to sign blank cheques by her son Maxwell Finlay Turner and his wife Debbie Maree Turner over several years.
UAE rejects Danish court’s extradition of Sanjay Shah in billion dollar tax fraud charges – 12 September 2022
Sanjay Shah is under investigation for one of Denmark’s largest-ever fraud cases. He is suspected of masterminding a US$1.7 billion ($2.47 billion) tax scheme and cannot be extradited to Denmark to face charges.
AUSTRAC launches investigation into betting giant and Ladbrokes owner Entain – 12 September 2022
The corporate betting giant Entain Group Pty Ltd, that owns the bookie firm Ladbrokes, is being investigated by Australian federal agents over a possible violation of an anti-money laundering and terrorism financing law.
Cryptocurrency scam losses hit new high in Queensland as cost of living bites – 12 September 2022
Queenslanders have lost $40 million dollars so far this year in cryptocurrency and investment scams – the highest loss ever recorded in the state. Scammers are using sophisticated strategies to lure their victims in, including posing as celebrities and even as Queensland police officers on social media. Nationally, $263 million has been lost this year, almost double the losses in 2021.
https://www.abc.net.au/news/2022-09-12/cryptocurrency-investment-scam-record-losses/101405194
Jason Bran Lees convicted over ‘sophisticated’ computer hacking scheme has sentence reduced – 13 September 2022
Jason Bran Lees who has been convicted of diverting $1.15 million from small businesses and charities in a “sophisticated” computer hacking scheme, has had his 8 years sentence reduced. The elaborate computer hacking scheme targeted the payroll systems of at least 23 organisations, including a charity for disadvantaged Indigenous Australians.
https://www.abc.net.au/news/2022-09-13/sentence-reduced-for-man-behind-hacking-of-business/101433462
How financial services businesses can avoid fraud – 13 September 2022
Article looks at why financial fraud is on the rise and discusses how businesses in the financial sector can protect themselves with due diligence tools, including an examination of their existing and potential clients’ credit history and criminal risk.
https://www.investordaily.com.au/discover/52051-how-financial-services-businesses-can-avoid-fraud
Alleged Thai ‘love scammer’ denied bail in Australia – 13 September 2022
Siriluck Fatima Chimmalee is accused of stealing from men she met online through a dating app. She is facing trial for over 100 charges of fraud.
Police say she allegedly pretended to be a registered remitter and charged customers steep inflation rates, to exchange large sums of money from Australia to other countries – charges to which she has so far pleaded not guilty.
https://thethaiger.com/hot-news/crime/alleged-thai-love-scammer-denied-bail-in-australia
Twitter misleading the public, whistleblower says – 14 September 2022
Twitter’s former head of security, Peiter Zatko, has told US lawmakers the firm is “misleading the public” about how secure the platform really is. Mr Zatko was giving evidence following an 84-page long whistleblowing complaint he made about security practices inside the social network. He was fired by the firm in January.
https://au.news.yahoo.com/twitter-misleading-public-whistleblower-says-150702770.html
Fraudsters use CBA brand to lure investors into fake bonds – 15 September 2022
Criminals are using the brands of CBA and London-headquartered funds asset manager Aviva Investors in attempts to defraud potential investors with fake, high-yield bond offerings. Investors searching for stable income amid a crash in technology stocks and as the easy money of low interest rates disappears, are coming up against a range of internet scams.
Melissa Caddick inquest hears request by fraudster’s mother and brother to give evidence – 15 September 2022
An inquest is examining when and where Ms Caddick died. The investigation contain reference to a proposed experiment where by several pig carcasses were cast into the ocean, after being fitted with tracking devices and running shoes. One of the aims was to ascertain the behaviour of sharks, the inquest was told. The court has heard an autopsy was unable to determine if the foot was separated as a result of blunt force, sharp force, or decomposition. The inquest, continues.
Investigation & Fraud News – Week ending 2 September 2022
11 stories this week:
World-first database set to help WA Police combat threat of 3D-printed guns – 26 August 2022
A world-first database which could help law enforcement agencies investigate criminals who are caught with 3D-printed firearms, has been developed in WA by a forensic expert who fears the technology will be used in crimes in the near future.
What will Australian regulation mean for cryptocurrency? – 26 August 2022
Australia is set to be the first country to do a virtual stocktake of the cryptocurrency sector, in a move that has global commentators buzzing. The initial focus for the government will be ‘token mapping’, which refers to grouping types of crypto assets based on their technological features and underlying code.
https://newsroom.unsw.edu.au/news/business-law/what-will-australian-regulation-mean-cryptocurrency
Expert says if it’s ‘too good to be true,’ then it’s likely a scam – 26 August 2022
Businesses and consumers should become wary as losses to imposter bond investment scams almost tripled in the first half of 2022, with consumers losing more than $20mil. The imposter bond scams often impersonate legit financial companies or banks and claim that they advance government/treasury bonds or fixed-term deposits.
Bill Shorten issues NDIS fraud crackdown warning as woman jailed, another charged – 27 August 2022
A 47-year-old has been charged for allegedly defrauding the NDIS of more than $300,000 after lodging fraudulent claims for people from across the country, including in Far North Queensland and Victoria.
https://www.abc.net.au/news/2022-08-27/ndis-fraud-crackdown/101376076
Julian Assange files latest appeal against extradition to US – 27 August 2022
WikiLeaks founder Julian Assange has lodged an appeal in a UK court against his extradition to the US, where he faces 175 years in jail. Assange has been indicted on 17 espionage charges in the US and one charge of computer misuse over WikiLeaks’ publication of thousands of military and diplomatic documents leaked by whistleblower Chelsea Manning. The charges carry a maximum sentence of 175 years in prison.
Australia’s ASIC lays out roadmap for safeguarding consumers from digital assets scams – 27 August 2022
The Australian Securities and Investment Commission (ASIC) is looking to focus more on protecting consumers from digital assets and cyber crimes, as part of its “Corporate Plan” for 2022-2026.
Scammers shift their sights from card payments to crypto – 28 August 2022
Despite a surge in online card payments, card fraud has reduced because most scammers now ask for payment in cyptocurrencies. Anonymity makes it much more difficult to identify the perpetrators, or recover lost money.
Storage scams look to burn your wallet with fake space – 29 August 2022
It’s not just email or phone scams you need to worry about, but also scams dealing with fake hardware. It’s a scam selling cheap external solid state storage device advertising 30TB, but turning out to instead be two 512MB microSD drives with dodgy firmware.
https://www.pickr.com.au/news/2022/storage-scams-look-to-burn-your-wallet-with-fake-space/
Corporate cop launches investigation into collapse of AI start-up Metigy – 29 August 2022
ASIC has launched an investigation into the collapse of artificial intelligence marketing start-up Metigy, whose founder (David Farifull) went on an $18 million property buying spree in the months before it went into administration. Fairfull’s private company allegedly received a $7.7 million loan from Metigy in November 2021, for which he signed as both borrower and lender, according to the administrators’ report into the company.
Financial crimes regulator probes Perth Mint – 30 August 2022
The financial crimes regulator has launched an investigation into Perth Mint, Australia’s biggest gold and silver refiner, over what it has described as compliance concerns, and ordered the appointment of an external auditor under the Anti-Money Laundering and Counter-Terrorism Financing Act.
https://www.afr.com/companies/mining/financial-crimes-regulator-probes-perth-mint-20220830-p5be17
Warrant out for Thai dance Youtuber ‘Nutty’ after hundreds report losing thousands to Forex scam – 31 August 2022
Natthamon aka ”Nutty”, who was a popular YouTuber in Thailand cheated thousands of followers out of nearly $80 million. 6,000 people gave Natthamon money to invest after being promised to see returns of up to 35 percent if they wired through cash.
