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Investigation & Fraud News – Week ending 27 August 2021
15 stories this week:
Been bombarded by spam texts and ghost phone calls? You’re not alone – 22 August 2021
Garbled text messages and ghost calls are targeting mobile phones and delivering malware designed to steal passwords and data. The ‘Flubot’ scam which prompts users to download an app which installs malware that could access personal data and banking details is really dangerous, with targets loosing thousands of dollars. The ACCC estimates Australians lost more than $850million to scammers last year.
(Access to digital version of SMH required to read article.)
How a now-defunct site on the dark web led police to the biggest cryptocurrency seizure in Australia – 20 August 2021
Data from the 2013 investigation of Silk Rd (Online black market hosted on the dark web and used predominantly to buy and sell illegal drugs) was shared with police across the world, and authorities have continued to make arrests related to the now-defunct site. New information from the FBI, has led to the largest ever cryptocurrency seizure by law enforcement in Australia. A record $8.49 million in cryptocurrency, understood to be Bitcoin, was seized during raids carried out at properties across metro and regional Victoria, part of an estimated $13.1 million worth of assets restrained by police.
Home Affairs worker unlawfully obtained almost $10,000 through visa scheme – 20 August 2021
A corruption investigation has found that a former visa processing officer who was an employee of the Department of Immigration and Border Protection, used their role to receive ‘substantial’ sums of money and engaged in ‘dishonest and deceitful’ conduct.
‘A lot of people are sleepwalking into it’: the expert raising concerns over AI – 20 August 2021
Kate Crawford, one of the world’s pre-eminent scholars on the social and political implications of artificial intelligence, explains the risk and threats to human rights of facial recognition technology, biometric technology and surveillance.
Stripped bishop a ‘failed property tycoon,’ says flock – 21 August 2021
Bishop Daniel, the head of the NSW Coptic Orthodox Church, is the subject of a police investigation following allegations of serious fraud within the church. calculated to exceed $35 million. They relate, in part, to the buying and selling of property owned by the Coptic Church. and appointing himself as the sole trustee of the church’s property trust.
Locked-down Australians warned of COVID-19 disaster payment scams – 23 August 2021
The Australian government has warned of scams targeting people relying on COVID-19 disaster payments. Some of the reported scams involved criminals purporting to be from the government and asking for a victim’s financial details.
http://www.xinhuanet.com/english/asiapacific/2021-08/23/c_1310142908.htm
ClubsNSW tells court it’s facing ‘oppressive’ campaign from pokies whistleblower Troy Stolz – 23 August 2021
ClubsNSW is seeking a federal court order to stop Stolz making public statements, to media outlets, about its motives or conduct while it sues him for allegedly breaching its confidence. Lawyers for the industry body tell judge that former employee Stolz is obstructing justice and would continue to do so ‘unless’ restrained.
Ex ABF officer ordered to repay stolen $94,000 – 24 August 2021
Former Australian Border Force (ABF) officer Pablo Olivares has been sentenced to more than two years’ imprisonment and ordered to repay $93,898.75 after pleading guilty to forgery and theft. The investigation, found Olivares made134 unauthorised corporate credit card cash withdrawals, hotel bookings and car rental bookings. He also used falsified medical certifications and statutory declarations.
Drysdale fraudsters’ case adjourned – 24 August 2021
A Drysdale couple are facing jail for an $80k fraud scheme. The court heard the pair worked to systematically defraud the company out of income from customers, creating false invoices and suggesting clients would get a better rate if they paid cash.
https://www.bay939.com.au/news/local-news/128748-drysdale-fraudsters-remanded-until-september
Australians duped by JB Hi-Fi, Myer and Woolworths gift card scams – 24 August 2021
Aussies are being warned about a new scam where payments are being demanded via retail gifts cards from Woolworths, JB Hi-Fi and Myer or cash paid to couriers, with one man losing $50,000.
Poly Network says it has recovered all $610 million it lost in cryptocurrency heist – 24 August 2021
Poly Network, a decentralized finance platform that saw a hacker named “Mr. White Hat” exploit a vulnerability in its code to steal $610 million in Ethereum, Shiba Inu and other cryptocurrencies, says it has recovered all the money it lost in the theft.
https://au.finance.yahoo.com/news/poly-network-161726337.html
Fresh wave of concern for crypto scams as bitcoin’s value skyrockets – 24 August 2021
A new release from the Australian Competition & Consumer Commission (ACCC) revealed that Australians have lost more than $70 million to investment scams this year so far, with projected losses set to reach $140 million by the end of the year. More than half of the $70 million in losses were to cryptocurrency, especially through bitcoin, and cryptocurrency scams were also the most commonly reported type of investment scam.
https://www.savings.com.au/news/prevalence-scams-bitcoin-takes-off
AFP issues warning about fake arrest warrant email scam – 25 August 2021
Hundreds of Australians have been contacted by scammers falsely identifying themselves as Federal Agents. The scammers often work by telling victims they have identified suspicious activity linked to their bank accounts, then request personal details including a Medicare number, address and bank details. They target people via email and social media with fake arrest warrants, then call their victims and demand payments – ordering them to deposit money into a nominated bank account or purchase online vouchers.
Woman jailed for Centrelink, Medicare scam – 25 August 2021
Tammy Theresa Power, a Queensland woman has admitted scamming the government to obtain more than $50,000 in social security and Medicare payments while on parole for similar fraud. Power made changes to the bank details of 68 people who were registered with Centrelink, redirecting their social security payments into accounts she controlled.
https://7news.com.au/news/crime/woman-jailed-for-centrelink-medicare-scam-c-3777467
Investment scams in Australia: What is the true cost? – 25 August 2021
Investment scams reported to the ACCC-run Scamwatch have cost Australians over $70 million in the first half of 2021, and projected losses are set to reach $140 million by the end of the year. The article highlights some of the main investment scams impacting Australians, and warning signs to look out for.
https://www.lexology.com/library/detail.aspx?g=80ad7954-f74b-4627-91c4-b7fcc0d3e34d
Investigation & Fraud News – Week ending 20 August 2021
7 stories this week:
How can Australian businesses protect themselves from invoice fraud – 13 August 2021
According to the ACCC’s latest Targeting Scams Report, businesses lost over $A128m to business email compromise scams – that’s nearly $A2.5m a week. Scammers are exploiting the pandemic and are scamming businesses out of their much needed cash, with total invoice fraud losses jumping by 180%. Detail of invoice scams and how to avoid them are detailed in this article.
https://idm.net.au/article/0013560-how-can-australian-businesses-protect-themselves-invoice-fraud
An anonymous hacker stole $813 million in cryptocurrency, then gave it back – 14 August 2021
An anonymous hacker who stole more than US$600 million ($813m) from the decentralised finance platform, Poly Network, has returned virtually all of the money – and apparently turned down a half-million-dollar reward offered by the company for exposing its security vulnerability.
The Dark Side of bitcoin that no one knows – 14 August 2021
Article details the scams and fraudulent activities associated with bitcoin. The risks are due to the anonymous nature of bitcoin, the associated virus and malware attacks and the lack of protection against hackers who steal the private keys of users through phishing attacks.
https://www.techguide.com.au/news/cryptocurrency/the-dark-side-of-bitcoin-that-no-one-knows
Police explain Oxford ‘money mule’s’ links to Australian fraud – 15 August 2021
Sydney mum Mary Ann Abellanoza, an accountant at Silversea cruises, siphoned off $3.7m over five years. In 2019, she was jailed for eight years. Police described Mackenzie as part of an ‘international ring of money launderers’ responsible for moving the proceeds of the fraud.
https://www.oxfordmail.co.uk/news/19513953.police-explain-oxford-money-mules-links-australian-fraud/
Continuous disclosure reforms, the new mental element for civil penalty actions, and shareholder class actions – 16 August 2021
Article by Clayton Utz, details some of the considerations that are likely to arise in shareholder or securities class actions in relation to amended Australia’s continuous disclosure laws.
https://www.lexology.com/library/detail.aspx?g=0ba9a767-570d-42c9-a954-f50160b75c0d
A third of financial institutions have increased AI and ML in response to money laundering – 17 August 2021
A third of financial institutions are accelerating their AI and machine learning (ML) adoption for anti-money laundering (AML) technology in response to COVID-19, according to a new AML technology study by software company SAS, accounting organisation KPMG, and the Association of Certified Anti-Money Laundering Specialists (Acams).
Check your bank account for mysterious $8.19 charge – 17 August 2021
The Commonwealth Bank has issued a warning to thousands of Australian customers to watch out for a rogue outgoing payment of around $8. This indicates that your bank account may have been compromised with scammers using horror movie streaming platform Shudder.
Investigation & Fraud News – Week ending 13 August 2021
10 stories this week:
Manhunt for alleged Bitcoin scammer who conned 400,000 people – 6 August 2021
A worldwide manhunt has been launched for a bitcoin scammer, Faruk Fatih Ozer (Founder of Thodex), who allegedly went on the run with $US2 billion. The alleged scam is thought to be the largest con in Turkish history, having scammed approx. 400,000 people – 6 August 2021
Further fraud charges laid against Canberra ECEC director – 6 August 2021
The former director of a Canberra based early childhood education and care (ECEC) service has received a further 80 fraud charges as the case, which sees her accused of defrauding the business of more than $375,000 unfolds. The director allegedly made payments from the service bank account into her own.https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
Forum Group creditors claim to be owed $580M – 6 August 2021
Administrators appointed to the embattled Forum Group have revealed a lengthy list of at least 112 creditors that together claim to be owed more than $580 million by the company.
ttps://www.arnnet.com.au/article/690327/forum-group-creditors-claim-owed-580m/
Advisers banned over corporate breaches – 9 August 2021
ASIC has announced that Gold Coast-based advisers? Trent Allan and Fabrizio Urrutia? have? each? received a five-year ban for breaching financial services? laws. The duo are said to not be adequately trained or competent to provide financial services, including life insurance advice and did not comply with financial services laws.
https://www.insurancenews.com.au/life-insurance/advisers-banned-over-corporate-breaches
Ex-Tigers intern behind years-long fraud – 9 August 2021
Adam David Jones collected nearly $900,000 from an Illegal scam targeting retirement funds and businesses transactions. He infiltrated business records and anticipated when large transactions were to occur. He later targeted large sums stored in superannuation accounts.
https://7news.com.au/news/crime/ex-tigers-intern-behind-years-long-fraud-c-3636305
Pair deny $135k Tasmanian council fraud – 10 August 2021
A couple have faced court accused of defrauding a Tasmanian council to the tune of $135,000. Casey Maree Bryant, is facing more than a hundred charges in total, including counts of fraud, dishonestly acquiring a financial advantage and inserting false information as data.
https://thewest.com.au/news/crime/pair-deny-135k-tasmanian-council-fraud-c-3646612
Millions paid to directors: New details of Westpac’s Forum fraud emerge – 11 August 2021
Westpac has accused Bill Papas’ Forum Finance of forging signatures of staff at French giant Veolia’s New Zealand offices on faked contracts that extracted an additional $44 million from the bank. It is also alleged that Mazcon (Greek company), allegedly received $16 million as part of the allegedly fraudulent scheme and that Vince Tesoriero (Papa’s business partner), received $28 million in cash.
Internal controls lag in the face of transformation: KPMG – 11 August 2021
A new poll conducted by KPMG that surveyed nearly 300 respondents from across 100 organisations – financial risk managers, accountants, internal auditors and compliance managers among them – found that nearly half had yet to automate internal controls.
Aussies warned of fake Bitcoin trading websites as cryptocurrency scams increase – 12 August 2021
Aussies looking to invest in boom cryptocurrency Bitcoin are being warned to carefully check the credentials of their trading platform, after a spike in scams was detected. Consumers need to remember Bitcoin is unregulated.
Poly Network cryptocurrency hack sees hundreds of millions of dollars worth of Ethereum, other coins stolen – 12 August 2021
Hackers behind one of the biggest ever cryptocurrency heists, have returned more than a third of the $832 million in digital coins they stole, according to the company Poly Network, at the centre of the hack.
https://www.abc.net.au/news/2021-08-12/cryptocurrency-heist-hack-poly-network-ethereum/100372374
Investigation & Fraud News – Week ending 6 August 2021
13 stories this week:
Nudie co-founder tax fraud claims near $250m – 29 July 2021
Australian liquidator John Sheahan has launched new legal action in Israel against members of the Binetter family, which if successful would lift the total he has realised from tax fraud claims to nearly a quarter of a billion dollars. The pursuit of the Binetters is a 15-year saga that began in July 2006 when the Tax Office began auditing companies set up by Emil and Erwin Binetter, who had built a property group as well as co-founding the Nudie Juice business.
https://www.afr.com/policy/tax-and-super/nudie-co-founder-tax-fraud-claims-near-250m-20210728-p58dvd
ASIC sues AMP for corporate super rip off – 30 July 2021
ASIC has started civil proceedings in the Federal Court against six AMP companies that charged fees on corporate superannuation accounts, where no services were provided. The regulator estimates more than 1500 customers were charged more than $600,000 in fees for financial advice even though those customers were told they were no longer able to access the service.
Mining magnate accused of hiding assets overseas in order to avoid $38.5m in income tax – 30 July 2021
Bob Johnson, the founder of leading mining technology provider Maptek, faced the Adelaide Magistrates Court, after being charged last week in relation to an alleged taxation fraud, spanning 15 years and totalling more than $38.5 million. He is accused of hiding assets overseas.
US man pleads guilty over attempted $430m COVID fraud on NSW – 30 July 2021
A man in Texas has pleaded guilty to attempting to swindle $430 million from the NSW government by offering to sell 50 million COVID-19 protective masks he did not have. Arael Doolittle, could face up to five years in jail.
(Access to digital version of SMH required.)
Risk compliance for business critical as security industry evolves – 2 August 2021
Following recent high profile cyber-attacks, cyber security has become a top-of-mind issue for many CEOs and COOs. The nation’s $6 billion security industry is expected to grow 3 per cent a year over the next five years. The growth is part of shifts in the industry towards a more tailored, integrated and risk-based approach, where human capital is combined with the latest technology to provide more effective and compliant security solutions.
Immense Support Shown for Whistleblowers at Historic Three-Day Event – 2 August 2021
National Whistleblower Day 2021 was the largest gathering of whistleblower supporters in history, and stretched across three days. Day one focused on global whistleblowers and the urgent need for countries to adopt effective whistleblower laws and protections. Panels included experts from Australia and the United Kingdom, as well as industry whistleblowers.
https://www.natlawreview.com/article/immense-support-shown-whistleblowers-historic-three-day-event
Former Weston Creek Children’s Centre director Emma Morton now facing 80 fraud charges – 2 August 2021
Emma Morton is accused of stealing money from the Weston Creek Children’s Centre. Ms Morton allegedly made payments from the centre’s bank account into her own.
It is the second time more charges have been laid against Ms Morton, who is now accused of 80 counts of fraud.
The sophisticated scam that cost Julia $100k – 3 August 2021
There have been about 7,000 reports of remote access scams this year, according to the ACCC’s Scamwatch, with more than $8 million lost. This is Julia’s story and how she lost 100k.
https://www.abc.net.au/everyday/losing-to-remote-access-scam/100334824
Directors Under Pressure – New Australian Standard In Play – 3 August 2021
Standards Australia published their new guide to “Fraud and Corruption Control” (Australian Standard AS8001:2021) in June, their first significant update in the area since 2008. The Standard is intended to apply to all organisations operating in Australia, both for-profit and not-for-profit.
In recognition of the new cloud-based infrastructure, organisations must now plan to prevent, detect, and respond to external attacks, particularly cyber attacks. The act also provides new guidance on the accountabilities of boards and senior management in controlling organisational fraud and corruption risk.
https://which-50.com/directors-under-pressure-new-australian-standard-in-play/
Nephew allegedly distributed $1.3 million in fraud proceeds for Michael Ibrahim – 3 August 2021
A nephew (Abraham Sayour) of drug kingpin Michael Ibrahim, has been charged for his handling of $1.37 million in an alleged fraud and money laundering scheme, led by construction boss George Alex. It is alleged that Mr Sayour used two bank accounts to receive and distribute funds, from a scheme using labour hire and payroll companies, to siphon money that should have gone to the Australian Taxation Office.
Michael Gunner confirms investigations underway into alleged misconduct within territory’s ICAC – 3 August 2021
Multiple investigations are underway into allegations of misconduct within the Northern Territory’s anti-corruption watchdog. The investigations follow a series of exclusive Sky News stories, that detail complaints about the handling of conflicts of interest in the Office of the Independent Commissioner Against Corruption, and other allegations about the leaking of confidential information.
Bill Papas suffering from ‘extreme anxiety’ after getting sued by Westpac – 4 July 2021
Article provides an update on Bill Papas and the alleged long running and calculated and elaborate fraud against several banks in excess of 400 billion.
https://www.abc.net.au/news/2021-08-05/bill-papas-westpac-extreme-anxiety-assets-fraud/100327992
Number of investment scams soars during COVID pandemic – 4 August 2021
ASIC has revealed that the number of investment scams reported during the COVID-19 pandemic has “increased dramatically” since pre-pandemic. It is believed the increase in scams is due to more people spending time online during lockdowns, while over 75 per cent of reports were related to crypto-asset scams.
