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Investigation & Fraud News – Week ending 26 August 2022
14 stories this week:
The online scammer targeting you could be trapped in a South-East Asian fraud factory – 21 August 2022
All across South-East Asia, heavily guarded, online scam compounds have sprung up to house industrial-scale scam operations – and to trap people forced to work for them in terrifying conditions. People are forced to come in, they’re being trafficked in and are forced to meet targets.
Access to digital version of WA today required to read full article
‘Hostile’: Victoria Police crackdown on alleged financial fraud scheme – 21 August 2022
Police have arrested six people across Melbourne as part of a crackdown on an alleged nationwide financial fraud scheme, with links to gang members and their associates. They were involved with a number of large-scale deceptions against government agencies, where they provided false details in order to receive fraudulent payments.
ASX-listed company investigated by ASIC for greenwashing – 22 August 2022
The corporate watchdog is conducting at least two investigations into “greenwashing”, including a publicly listed company, as it warns businesses and fund managers to avoid overhyping their climate change credentials.
Ex-F1 boss Ecclestone in court for fraud – 22 August 2022
Former Formula One boss Bernie Ecclestone, has denied fraud over an alleged failure to declare 400 million pounds of overseas assets, to the British government.
https://thewest.com.au/news/crime/ex-f1-boss-ecclestone-in-court-for-fraud-c-7967124
Fertile grounds for fraud post COVID – 23 August 2022
Major economic disruption increases the need and opportunity for financial fraud. The article explains why people commit fraud and how certified fraud examiners detect fraudsters who “fudge the figures”.
https://www.mondaq.com/Article/1223682
‘Not my job to be a crypto cheerleader’: ASIC boss warns on risky, volatile cryptocurrency investments – 23 August 2022
One of the regulator’s key priorities was to warn consumers about the risks involved with the crypto investment space. The industry has been calling on the government to introduce legislation to reduce the risk for investors and turn crypto into an established, safer asset class. The former Liberal government developed draft reforms last year which regulators and Treasury are assessing and implementing.
Hackers reportedly deepfaked a Binance exec to carry out listing scams – 24 August 2022
Criminals impersonating executives with the help of technology has become common practice. Binance’s chief communications officer, Patrick Hillman says hackers used a deepfake of his image in Zoom calls to scam cryptocurrency executives. He claims the hackers successfully duped crypto project representatives into thinking he would help their tokens get listed on Binance’s exchange.
https://au.finance.yahoo.com/news/binance-executive-deepfake-listing-scam-154729114.html
Queensland Star casino concerns referred to regulator that approved shareholder with alleged crime links – 24 August 2022
ABC Investigations revealed the business empire behind Chow Tai Fook Enterprises, a key backer of the multi-billion-dollar Queen’s Wharf casino, had criminal associations, including through recent business ties. The ABC’s report has been referred to the Office of Liquor and Gaming Regulation.
https://www.abc.net.au/news/2022-08-24/qld-star-inquiry-to-examine-alleged-crime-links/101363478
Market regulator of Australia protects public from crypto damage – 24 August 2022
The financial regulator ASIC stated in its recently issued “Corporate Plan” that as “developing technology and products disrupt our financial ecosystem,” it will be focused on “digitally enabled misconducts” as part of its four-year strategic plan that extends to 2026. https://www.thecoinrepublic.com/2022/08/24/market-regulator-of-australia-protects-public-from-crypto-damage/
https://www.itnews.com.au/news/asic-tackles-technology-risks-in-latest-corporate-plan-584264
Fraudsters are getting smarter so get to know the red flags, says BDO – 24 August 2022
Fraud and cyber-attacks are on the rise and the red flags are getting harder to spot. The article describes what you can do to help keep yourself and your business safe and recommends organisations take a proactive approach to fraud and cyber risks.
Twitter whistleblower to testify about company’s ‘widespread security failures’ at Senate hearing – 25 August 2022
Twitter’s former security chief Peiter “Mudge” Zatko, will testify at a Senate hearing about the company’s security practices. If Mr. Zatko’s allegations claims are accurate, they may show dangerous data privacy and security risks for Twitter users around the world.
ASIC statement on publication of FRAA report – 25 August 2022
The Financial Regulator Assessment Authority’s (FRAA) report has been released on the review of the Effectiveness and Capability of ASIC. It found that ASIC is effective and capable in the areas reviewed and made four recommendations around enhancing ASIC’s use of data and technology, strengthening its engagement with stakeholders, enhancing its ability to measure effectiveness and capability, and continuing to broaden its mix of skill sets.
https://www.nationaltribune.com.au/asic-statement-on-publication-of-fraa-report/
Gold Coast couple lose deposit for family home in $39,000 email scam – 25 August 2022
Home buyers are a potentially lucrative target for sophisticated cybercriminals. A Gold coast couple have now potentially lost $39,000 due to transferring the money to a scammer instead of their real estate agent.
https://au.news.yahoo.com/gold-coast-couple-lose-home-deposit-39000-email-scam-235921769.html
Sneaky scam robbing hundreds of millions from Aussies – 26 August 2022
Investment scams have cost Australians over $242 million dollars already this year – a massive rise on last year’s total of $177 million for the entire year. Only 13 per cent of Australians report their losses to Scamwatch so these figures could be much higher.
Investigation & Fraud News – Week ending 19 August 2022
10 stories this week:
Phishing fraudsters used SIM box to fleece hundreds of victims, police allege – 11 August 2022
An alleged fraud syndicate operating out of homes in Sydney’s northern suburbs used a SIM box to send hundreds of thousands of automated text messages, containing links to fake banking and telecommunication websites, where victims were prompted to enter their details. Police have worked with CBA, NAB and Telstra to identify victims.
INTERPOL launches global awareness campaign to highlight the use of money mules; Executive Director warns moving money for someone else is ‘risky business’ – 11 August 2022
Interpol has launched a new awareness campaign that aims to urge individuals not to become money mules. The campaign reminds people that they are responsible for keeping their own bank accounts safe and that moving money on behalf of others could land them in trouble. It also covers how the industry works, the risks associated and how to avoid becoming a money mule.
Whistleblower protection overhaul needed in Queensland to prevent next Fitzgerald inquiry, experts say – 12 August 2022
Premier Annastacia Palaszczuk has agreed to the recommendations of three high-profile inquiries that have called for a review of whistleblower protections. But the premier is yet to provide any details about who will lead it and what, specifically, they will be tasked with examining. https://www.theguardian.com/australia-news/2022/aug/12/whistleblower-protection-overhaul-needed-in-queensland-to-prevent-next-fitzgerald-inquiry-experts-say
Whistleblower lawsuit alleges financial misconduct and dubious expenditures inside Hillsong Church – 12 August 2022
Natalie Moses is suing Hillsong for contravening the Fair Work Act, claiming it breached its own whistleblower policy, by preventing her from raising serious complaints about the church’s financial operations.
New legislation targeting the use of cryptocurrency and digital assets in organised crime introduced in Parliament – 12 August 2022
The Major Crime and Community Safety Legislation Amendment Bill 2022 (Bill) was introduced in the lower house of the Victorian Parliament earlier this month. Some of these reforms are specifically targeted towards the gathering of evidence relating to, and seizure of, digital assets, such as cryptocurrency, used in the commission of offences. The Bill will amend and insert new provisions into the Confiscation Act 1997 (Vic) (Confiscation Act) to strengthen police powers.
SDA seeks $250m compensation from McDonald’s operators who allegedly denied paid breaks to Australian worker – 12 August 2022
The Shop, Distributive and Allied Employees’ Association (SDA) is seeking compensation on behalf of more than 250,000 current and former McDonald’s workers across Australia. McDonald’s workers have alleged that they were denied 10-minute breaks that they were entitled to.
NDIS taskforce to hunt down organised crime groups ‘robbing’ billions from disability clients – 15 August 2022
A police taskforce to hunt down organised crime groups exploiting the National Disability Insurance Scheme will be established by the government in coming weeks. NDIS anti-fraud teams have recovered a small portion of the alleged billions that have been defrauded from the scheme, charging 18 people since 2020 with a total of about $14 million in alleged fraud.
Drivers warned about toll road text scam as Aussies lose record amount – 17 August 2022
An SMS phishing scam targeting drivers who have toll accounts, has lead to a Gold Coast woman being scammed out of $4,000.
https://www.abc.net.au/news/2022-08-17/drivers-warned-over-toll-road-scam-posing-as-linkt/101322568
Melbourne mum scammed out of $200,000 after $210 deposit appeared on bank account – 17 August 2022
According to the Australian Competition and Consumer Commission (ACCC), more than $2 billion was robbed from people last year through scams. This mum had a curious deposit in her account and after receiving a phone call and returning the money, large deposits were withdrawn from her account.
Trump Organization executive Allen Weisselberg pleads guilty to tax evasion – 19 August 2022
Donald Trump’s long time lieutenant has pleaded guilty to tax evasion but due to a deal with prosecutors, he is unlikely to serve more than 100 days in prison. He pleaded guilty to 15 counts, including tax fraud and larceny.
https://www.abc.net.au/news/2022-08-19/allen-weisselberg-pleads-guilty/101349680
Investigation & Fraud News – Week ending 12 August 2022
9 stories this week:
Missing Persons Week prompts calls for information on human remains found in South Australia – 4 August 2022
Police have renewed calls for public assistance during National Missing Persons Week, as there are 147 missing persons in South Australia. Detectives say Forensic technology is more advanced than ever.
Syndicate dismantled following investigation into identity theft and bank fraud – 5 August 2022
Financial Crimes Squad detectives have charged four people and dismantled a criminal syndicate, allegedly involved in multiple identity and banking frauds totalling more than $1 million. Police will allege in court the syndicate created a number of shell companies to assist with obtaining cheque books, EFTPOS terminals, and the creation of banking profiles which were then used to procure fraudulent funds.
Prosecutors seek suppression orders in case against tax office whistleblower Richard Boyle – 5 August 2022
Boyle is attempting to use Australia’s whistleblower protections to shield himself from prosecution. The case, being heard in the South Australian district court, is the first major test of the Public Interest Disclosure Act (PID Act). It will be crucial in assessing the strength and practical effectiveness of the nation’s whistleblower protections, which the new attorney general, Mark Dreyfus, is contemplating reforming.
NSW casinos to face AUD$100M fines for misconduct under new reforms – 5 August 2022
Australian Casinos in New South Wales could face fines of up to AUD$100M for misconduct under new reforms announced this week. The NSW Independent Casino Commission (NICC) announced it will have powers to fine operators up to AUD$100M and hold individual board members and execs accountable for “serious wrongdoing.”
https://www.amlintelligence.com/2022/08/latest-nsw-casinos-to-face-aud100m-fine-for-misconduct/
UK Plans To Use Smartwatches & Facial Recognition To Surveil Convicted Migrants – 6 August 2022
Migrants convicted of a crime in the U.K. may soon have to submit five daily facial recognition scans, via a smartwatch as part of sweeping new surveillance practices under consideration by the country’s Home Office and Ministry of Justice. Privacy advocates say the always-on surveillance wearable is cruel, unnecessary, and based on technology plagued by inaccuracy and bias.
Are Australians sleep-walking their way into mass surveillance? – 8 August 2022
Australia is failing to take our digital privacy seriously, warns former human rights commissioner Ed Santow. We don’t get a lot of choice about consenting to digital companies’ privacy policies and how they collect our information, so we actually need to read terms and conditions before agreeing.
https://psnews.com.au/2022/08/08/are-australians-sleep-walking-their-way-into-mass-surveillance/
Investors advised to watch for scams – 9 August 2022
ACCC Deputy chair has stated ‘that financial losses to imposter bond investment scams has nearly tripled in the first half of this year, with more than $20 million lost by consumers to the sophisticated scams’. These scams impersonate real financial companies or banks and claim to offer Government/Treasury bonds or fixed term deposit.
https://psnews.com.au/2022/08/09/investors-advised-to-watch-for-scams/
Telco Circles.Life Fined $200,000 For Fraud Rule Breach – 9 August 2022
Circles.Life, a Singapore-based telco, is facing a fine of $200,000 for breaching fraud regulations. The budget telco that makes use of the Optus network, was called out by the Australian Communications and Media Authority (ACMA), who found that the company failed to conduct proper identity checks. This in turn, resulted in 42 consumers falling victim to fraud with compromised emails and bank accounts.
https://www.channelnews.com.au/fraud-rule-breach-costs-telco-circles-life-200000/
Pubs are buying facial recognition technology to track and record you – 10 August 2022
The Australasian Gaming Expo in Sydney this week had exhibitions from multiple companies selling facial recognition technology. They can identify patrons, track their movements and even record their emotions. The Australian Human Rights Commission called for a moratorium on facial recognition technology in “high-risk” decision-making until it was further regulated. Former commissioner and now UTS Professor Edward Santow is part of a group drafting model regulation that is set to be released later this year.
https://www.crikey.com.au/2022/08/10/pubs-facial-recognition-surveillance/
Investigation & Fraud News – Week ending 5 August 2022
12 stories this week:
With fake photographs of fully-furnished homes, scammers target renters who are desperate to secure housing – 30 July 2022
There has been an increase in real estate scams reported to the ACCC. One family relocating to Adelaide recently lost $3,200 to a scam. The advertised, ‘fully furnished home’ was actually a building site.
https://www.abc.net.au/news/2022-07-30/sa-rental-scam/101285338
Murrumbidgee Mill project caught up in fraud case involving former company directors – 31 July 2022
BCEG International (Australia) Pty Ltd, a company linked to Wagga’s multimillion-dollar Murrumbidgee Mill development, has sued its former directors over the fraudulent transfer of cash to a personal project via false invoices and sham sub-contracts.
Australian police charge man with developing spyware used by more than 14,500 people – 1 August 2022
An Australian man, faces up to 20 years in prison for allegedly creating and distributing spyware, that became the subject of a global law enforcement operation. He is accused of creating the Imminent Monitor remote access Trojan (RAT), which was sold to more than 14,500 individuals across 128 countries.
‘I’m a 29-year-old private investigator. Here’s what my life looks like – 1 August 2022
Sydney private investigator Amy Elliott reveal why some Aussies disappear without a trace:
This article is about Amy Elliot, a NSW Private investigator who provides some great examples of the trials and tribulations and the benefits of being a female PI.
Second article outlines why people disappear and how to find them.
https://www.mamamia.com.au/woman-private-investigator/
Victoria Police given power to seize cryptocurrency wallets under new organised crime laws – 2 August 2022
New laws are being introduced into parliament under the Major Crime and Community Safety Legislation Amendment Bill 2022. They changes are designed to give police greater ability to investigate organised crime, seize proceeds of crime and disrupt organised crime on the black market.
Corporations’ use of facial recognition technology paused after CHOICE investigation – 2 August 2022
An investigation by consumer advocacy group ‘Choice’, found that Kmart and Bunnings were using FRT (Facial Recognition Technology) to ostensibly protect customers and staff while reducing theft in select stores. Choice also found that the chain, The Good Guys uses technology that stores the unique biometric information of its customers. All three giants are now pausing FRT use until the Office of the Australian Information Commissioner (OAIC) provides guidance.
‘Sophisticated’ money launderer granted bail after police seize more than $10 million in goods – 2 August 2022
Australia’s Criminal Assets Confiscation Taskforce (CACT) has confiscated more than AUD$10M in assets as part of a major international money laundering probe across the ACT. Officers seized more than eight properties, four high-end vehicles, luxury goods, cash and crypto as part of the raid. A 35-year-old man has been charged.
SEC Says 11 People Fooled Users Out of $AU425 Million in Crypto Pyramid Scheme – 2 August 2022
The Securities and Exchange commission has alleged that 11 people that had helped found and operate the company Forsage were actually operating a crypto pyramid or ponzi scheme, raking in over $AU426 million from worldwide investors. The SEC said the promoters were engaged in the unregistered offer and sale of securities in Forsage and and are now facing civil penalties.
The alleged fraud in Alzheimer’s research and what it means for patients – 2 August 2022
There have been recent allegations that research underpinning widely held understandings of what causes Alzheimer’s may be fraudulent. A potential fabrication of research images and the allegations, now question whether the governing bodies of research and drug approvals are truly effective.
https://www.abc.net.au/news/2022-08-02/allegations-of-scientific-fraud-alzheimers-research/101289780
Aussies have been scammed out of more than $20 million in fake bond investment schemes this year – 3 August 2022
The number of Australians scammed by fake bond investment schemes almost tripled in the first half of this year, with losses topping $20 million. The “alarming” spike comes amid rising interest rates, as consumers considering investing in bonds are exposed to the sophisticated frauds.
https://www.smartcompany.com.au/finance/aussies-scammed-fake-bond-investment-schemes/
Four men charged in relation to roofing scam which collected more than $640,000 from Melbourne residents – 3 August 2022
Victoria Police have arrested and charged four people, who are accused of posing as workers from a legitimate roofing company and then collecting more than $640,000, after telling home owners their roofs needed urgent repairs.
https://www.abc.net.au/news/2022-08-03/melbourne-roofing-scam-arrests/101298398
Fraudster lands in jail after stealing identity to escape South Australian authorities – 5 August 2022
Travis Whyte stole the identity of a man in South Australia and $25,000 that belonged to him. He was attempting to escape authorities and flee to the Northern Territory. He pleaded guilty to eight offences, including five charges of obtaining benefit by deception.
https://www.abc.net.au/news/2022-08-04/nt-best-fraud-of-his-life/101299980
