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Investigation & Fraud News – Week ending 16 August 2024
Canberra gambler avoids jail for stealing over $70,000 from Master Builders Association while employed by organisation – 13 August 2024
A man who stole over $70,000 from the Master Builders Association while working as its event organiser has been convicted of fraud in the ACT Supreme Court. The court heard Luke Lowes did not intend to keep the ticket funds funnelled into his accounts, but hoped to have a gambling win large enough to pay it back.
Australian retailers hit by surge in fraud amid cost crisis – 14 August 2024
A significant rise in returns fraud is being reported, with consumers increasingly exploiting retailers’ return policies. A recent report by Loop, a return management platform, indicates that 60% of Australian retailers have encountered returns fraud or policy abuse in the past 12 months. This figure is somewhat lower compared to the global rate, which stands at 99%.
https://securitybrief.com.au/story/australian-retailers-hit-by-surge-in-fraud-amid-cost-crisis
Broken dreams – More than 20 investors allege they have lost their life savings to Mr Amit Miglani – 14 August 2024
More than 20 investors allege they have lost their life savings to Mr Amit Miglani and those in his orbit, claiming the investment opportunities offered by his ex-wife and staff members were nothing but a scam. The ABC understands the allegations are now under investigation by (ASIC), and have also been passed onto Consumer Affairs Victoria, which is expected to formally refer the allegations to Victoria Police.
CBA bribery scheme involved ‘corruption at highest levels’ – 14 August 2024
The Crown alleged the principal shareholder of ServiceMesh, Eric Pulier, paid more than $US2 million to Waldron and an IT executive manager at CBA in 2014 as a reward for helping ServiceMesh strike two software deals with the bank, in 2013 and 2014. Pulier has denied wrongdoing.
Digital version of SMH required to read article
Rolex, Cartier jewellery, Tesla among goods seized after alleged $10 million fraud – 15 August 2024
Two people have been charged and luxury items have been seized after an investigation into an alleged $10 million fraud plot in Sydney. Investigators allege that a criminal syndicate was using the allegedly stolen personal information of more than 33 people to apply for loans for luxury cars that did not exist.
Bank impersonation scam gets around two-factor authentication process – 15 August 2024
Danielle Maddock says she thought her experience as a police officer would have given her an edge at picking up a scammer. The key components of bank impersonation scams is offering snippets of information about the customer to build trust, fused with a sense of urgency to make them less likely to question the scammer wanting their their two-factor authentication codes.
ACCC finds half of crypto ads on Facebook are scams or violate Meta’s policies – 15 August 2024
The Australian Competition and Consumer Commission began court proceedings against Meta in 2022 over celebrity scam ads, alleging the company had engaged in false, misleading or deceptive conduct in publishing the ads.
Operation Blot: Fraud Offences, Warwick – 16 August 2024
A 26-year-old Warwick man has been charged with numerous fraud offences after police shut down what they allege is a “cash for demerit points” scheme involving hundreds of falsely nominated tickets. Police will allege the man advertised on social media that he would take fines and demerit points for people in exchange for money. He would then allegedly sign the ticket over to an unsuspecting third party who was the victim of identity theft.
https://mypolice.qld.gov.au/news/2024/08/16/operation-blot-fraud-offences-warwick/
Queensland Opposition Leader David Crisafulli paid $200,000 settling claims from liquidators over Southern Edge Training – 16 August 2024
Queensland Opposition Leader David Crisafulli paid $200,000 in settling claims from liquidators who alleged a training company he was a director of, may have been trading while insolvent. The department did not provide settlement details, but the ABC obtained company accounts – filed with the corporate regulator – which list three “receipts from” David Crisafulli in the “settlement of other liquidators’ actions”.
Foreign diplomat ordered to pay more than $500,000 to a former domestic worker in wage exploitation case – 16 August 2024
Ms Danaratna was employed as a domestic worker in the home of the then-deputy high commissioner of Sri Lanka, Himalee Subhashini de Silya Arunatilaka, between 2015 and 2018. Over the course of those three years, she was only paid $11,212 which equates to 65 cents an hour. Her employment was in breach of Australian employment laws under the Fair Work. In addition to $374, 000 in unpaid wages, the court ordered Ms Arunatilaka to pay more than $169,000 in interest, bringing the total owing to more than $543,000.
Investigation & Fraud News – Week ending 9 August 2024
PwC wrongfully claimed legal privilege over documents to frustrate Tax Office, inquiry told – 2 August 2024
Consulting giant PwC systematically frustrated the Tax Office by wrongfully claiming legal privilege over thousands of documents, according to the evidence of the former general counsel and chief executive in their first statements since they resigned following the tax leaks scandal.
Access to digital version of SM required to read full article
AFP discovers 2000 compromised Australian cryptocurrency wallets – 4 August 2024
The Australian Federal Police has found more than 2000 Australian-owned cryptocurrency wallets were compromised by offshore scammers, poised to steal millions of dollars in digital assets. The trove was discovered as part of a multi-nation effort dubbed Operation Spincaster, the local arm of which was run out of the AFP-led Joint Policing Cybercrime Co-ordination Centre, also known as the JPC3.
Australia: An increasingly global approach to criminal investigations – 5 August 2024
This article considers the major Australian government investigative, law enforcement and regulatory agencies (as well as the tools and techniques utilised by these agencies) to address domestic and transnational investigations, with a particular focus on their increasing need to adopt a global approach to adequately protect Australians from criminal threats, both local and internationally.
ANZ boss may have to hand back millions – 5 August 2024
ANZ chief executive Shayne Elliott is facing a potential multimillion-dollar hit to his pay and the prospect of handing back bonuses as he grapples with a major bond trading scandal.
Access to digital version of The Australian required to read article.
Westpac shuts down RAMS Financial amid regulatory probe – 6 August 2024
Westpac will shut down its troubled RAMS Financial business, which it has unsuccessfully tried to sell and which is currently under investigation by the corporate watchdog, ending the brand’s 33-year run in Australia. RAMS was once the largest non-bank originator, funder and servicer of home loans in Australia.
Facebook whistleblower Frances Haugen says Australia has a ‘once-in-a-decade chance’ to fix its social media law – 7 August 2024
Australia is at risk of fumbling a “once-in-a-decade opportunity” to regulate social media, according to Facebook whistleblower Frances Haugen. Three years ago, Ms Haugen smuggled tens of thousands of documents out of the world’s largest social media company, revealing that its executives knew the risks Facebook and Instagram posed to billions of users — in particular, children. The Australian government is now poised to update its key social media law the Online Safety Act, amid rising public anxiety about predatory algorithms.
Australia:Cyber incidents return as biggest worry for businesses in 2024 Allianz Risk Barometer – 7 August 2024
Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies in Australia, according to the Allianz Risk Barometer 2024, the 13th edition to date. Cyber risk dislodges natural catastrophe risks as the topmost risk in the country. The proportion of businesses that ranked this risk increases to 52% in this year’s report compared to the 2023 Barometer. Cyber was ranked joint No. 1 risk with business interruption in 2022.
CFMEU, health union probed over alleged millions spent on ‘ghost printing’ – 7 August 2024
Two of Australia’s most prominent trade union figures, ex-CFMEU boss John Setka and the Victorian head of the Health Services Union, Diana Asmar, are facing a multi-agency investigation into allegations that more than $3 million of union money was paid to printing firms for non-existent or “ghost” services. Ms Asmar, is now also separately facing questions over almost $200,000 of members’ funds she allegedly spent on work expenses, including Gold Class movie tickets, alcohol, meals and items from IKEA.
Australians don’t want to be monitored at work, in shops – 7 August 2024
Australians overwhelmingly believe police should be able to use facial recognition technology (FRT) to identify suspects from photos and CCTV footage – but a new survey has found near universal agreement that using FRT in workplaces and public spaces is a bridge too far.
https://ia.acs.org.au/article/2024/australians-don-t-want-to-be-monitored-at-work–in-shops.html
Why my face keeps appearing on crypto scams – 7 August 2024
Posing as someone else, scammers use phoney profiles to interact with potential victims, attempting to win their trust by using bogus credentials. The Australian Government is saying enough is enough, announcing a code of conduct for banks, telcos, and social media platforms. The code will fine companies and hold them liable for victim compensation if they do not meet their obligations to detect, prevent, and disrupt scam activity.
https://www.moneymag.com.au/ben-rose-binance-face-keeps-appearing-on-crypto-scams
Former bank staffer ‘destroyed’ after being charged with 120 fraud offences – 8 August 2024
A former bank employee’s life has been “destroyed” by allegations she defrauded multiple banks out of tens of thousands of dollars. Prosecutors allege she siphoned money into the fake accounts and used the ill-gotten gains to fund a lavish lifestyle
Queensland government announces investigation into Brisbane’s Wolston Park – 8 August 2024
The Queensland government will launch an investigation into a Brisbane mental health institution following reporting by the ABC into historical allegations of abuse at the facility. As part of an ABC investigation, former patients spoke for the first time about the alleged abuse they experienced, sharing medical files ordinarily sealed for 100 years.
https://www.abc.net.au/news/2024-08-08/queensland-government-to-investigate-wolston-park/104200482
Ombud publishes myGov fraud investigation – 9 August 2024
The findings of a Commonwealth investigation into Services Australia’s response to myGov fraud have been released to the public following complaints made to the ombud’s office. Services Australia has accepted the report’s four recommendations, which broadly call for improvements to security controls for unauthorised linking and high-risk transactions; how Services Australia and individual member services manage shared risks within the myGov ecosystem; and the way three member services respond to customer reports of fraud and breaches to individual records
https://www.themandarin.com.au/252185-ombud-publishes-mygov-fraud-investigation/
Investigation & Fraud News – Week ending 2 August 2024
Former NSW premier Gladys Berejiklian fails to overturn ICAC’s serious corruption conduct finding – 26 July 2024
Former NSW premier Gladys Berejiklian has failed to overturn the finding that she engaged in serious corrupt conduct.Last year, the Independent Commission Against Corruption found Ms Berejiklian breached public trust, while serving as state premier, during her secret relationship with former NSW MP Daryl Maguire.Ms Berejiklian has long insisted she always acted in the public interest, beginning legal action shortly after the corruption watchdog released its report.
Anti-corruption principles unveiled for public sector watchdogs – 31 July 2024
A framework for legislation and policy governing anti-corruption and integrity commissions overseeing the public sector has been released by the NACC, two years after a collaborative review into best practice principles. The 12 principles were announced by ten independent agencies at the Australian Public Sector Anti-Corruption Conference in Darwinand are listed in this article.
CFMEU-busting law being prepared, new minister says – 31 July 2024
The CFMEU’s construction wing will be steamrolled with new laws if it resists being put into administration, the new workplace relations minister said. The Fair Work Commission said it not yet made a court application for an administrator for the embattled division after allegations of organised crime links, but the federal government has warned the union not to fight the move.
Former AFL players agent Ricky Nixon to fight memorabilia fraud case – 31 July 2024
Former AFL powerbroker Ricky Nixon has revealed he will fight allegations he knowingly sold counterfeit memorabilia with forged signatures. He was charged in November last year with 10 counts of obtaining financial advantage by deception and later with nine counts of make or use false documents related to the alleged fraud. The false document charges relate to certificates of authenticity sent alongside the footballs to buyers.
Scammers are targeting myGov accounts during tax time. How can users protect their ATO refunds? – 1 August 2024
Criminals are changing phone and email details to prevent users from receiving myGov notifications – before altering tax returns and bank account details. The ATO says more than $557m was paid to scammers engaging in identity fraud between July 2021 and February 2023.
https://www.theguardian.com/australia-news/article/2024/aug/01/ato-mygov-tax-return-refund-scam
Access to digital version of the guardian required to read article
Public sector whistleblowers should be ‘immune’ from reprisals: anti-corruption chiefs – 1 August 2024
The heads of Australia’s anti-corruption agencies have called for fundamental protections for public service whistleblowers and witnesses in a new set of principles.
Access to digitial version of Canberra times required to read article
Billionaire former Glencore oil trader charged with corruption in West Africa – 2 August 2024
The UK’s Serious Fraud Office has charged Glencore’s billionaire former head of oil trading with conspiring to make corrupt payments to benefit the commodities company’s oil operations in West Africa. Alex Beard, who ran Glencore’s oil division from 2007 until his retirement in 2019, will face charges alongside former Glencore executives Andrew Gibson, Paul Hopkirk, Ramon Labiaga and Martin Wakefield after a long-running investigation into allegations of bribery at the company.
Arrest over alleged fraud – 2 August 2024
A man’s been arrested over suspected fraudulent activity at Gen-U in Geelong.. allegedly involving millions of dollars. The activity is alleged to have occurred over about five years and involves several million dollars. “Detectives have obtained financial and business records from the organisation and these continue to be forensically assessed.
https://www.bay939.com.au/local-news/charges-over-alleged-fraud/
Big name towing director defrauds insurers of $32k – 2 August 2024
A Ballarat towing business director engaged in “double-dipping”, invoicing twice 50 towing jobs and taking more than $32,000 from insurers.
Access to digitial verison of Herald Sun required to read article
Microsoft down: Outage was caused by cyber attack, company says – 2 August 2024
Microsoft said initial problems on its Azure cloud platform had been triggered by a distributed denial-of-service (DDoS) attack, where bad actors try and knock a platform offline by flooding it with traffic until it can no longer cope. The company confirmed its initial investigations had found that an error in the rollout of its own defences to prevent the attack “amplified the impact of the attack rather than mitigating it”. The incident came less than two weeks after a major IT outage knocked global infrastructure including transport and healthcare services offline because a flawed software update from cybersecurity firm CrowdStrike affected Microsoft devices.
https://www.independent.co.uk/tech/microsoft-down-outage-not-working-cyber-attack-hack-b2589042.html
Founder of collapsed social media site charged with fraud – 2 August 2024
Authorities in the US have charged the founder of the former social media company, IRL, with a $170m fraud. The Securities and Exchange Commission (SEC) accuses Abraham Shafi of defrauding investors by making misleading statements about the company’s growth. IRL – which was once considered a potential rival to Facebook – took its name from its intention to get its online users to meet up in real life.
https://www.bbc.com/news/articles/cgxqw505pq4o
Investigation & Fraud News – Week ending 26 July 2024
Geraldton financial advisor Thomas ‘Graham’ Greenaway jailed for $2.9m Aboriginal trust theft after retrial – 19 July 2024
Thomas “Graham” Greenaway was found guilty of 33 stealing charges relating to taking $2.9 million from the Yugunga-Nya people’s trust while he was trustee. Greenaway was imprisoned, won an appeal in 2022, and in a retrial in May a jury again found him guilty. Greenaway was sentenced to a total of five years and nine months’ imprisonment, backdated to July 2023.
How criminals are exploiting digital technology like video games to launder money – 21 July 2024
New digital technologies have offered more sophisticated — and surprising — ways of making dirty money clean. Article details the three steps of money laundering which are placement, layering and integration.
https://www.abc.net.au/news/2024-07-21/digital-technology-and-money-laundering/104081836
Sydney man, 43, charged with allegedly trafficking 17-year-old girl from Indonesia to work in brothel in major AFP investigation – 23 July 2024
The Australian Federal Police (AFP) has charged a south Sydney man with trafficking a child from Indonesia to work in a brothel after seven potential victims were removed from sexual exploitation. AFP Commander Kate Ferry said human trafficking is an under reported crime, with issues such as distrust of authorities or language barriers hindering the reporting of it.
ASIC hits ASX pump-and-dump crew with criminal charges – 23 July 2024
The corporate watchdog has filed criminal charges against four alleged ring leaders of a penny-stock pump-and-dump scheme, run through the Telegram messaging app, during the pandemic lockdown market mania. Each faces fines of more than $1 million and up to 15 years in prison, if found guilty of conspiracy to commit market rigging and false trading, in a market co-ordinated manipulation scheme.
Banks Stole Money From Dead People. Why Weren’t They Put Into Administration? – 23 July 2024
Australia has one set of rules for white collar crime, and a whole other set of rules (and sanctions and penalties and public floggings) for blue collar crimes… particularly when a union is involved. Lawyer Alana Heffernan weighs in on the obvious hypocrisy.
ASIC launches investigation into cold callers offering superannuation reviews – 25 July 2024
ASIC has launched an investigation into cold callers offering superannuation reviews. Three people say they were sent on to a financial adviser and then pressured to switch funds. Advocates want ASIC to move quickly and have urged people to be careful before changing super funds without additional financial advice.
Australian National University underpaid casual staff $2 million over 11 years due to timesheet error – 25 July 2024
The Australian National University has self-reported to the Fair Work Ombudsman, an error that saw 2,290 former and current casual staff, miss payments totalling about $2 million during the past 11 years. The National Tertiary Education Union says with wage theft “rampant across higher education” the announcement was “disappointing but not surprising”.
Australia’s ANZ fires staff amid multiple dealing room investigation – 25 July 2024
Australian bank ANZ said it has fired or suspended traders from its markets business, over allegations of inappropriate behaviour and warned an investigation into the unit, may have consequences on staff all the way up to the CEO. Media reports have said the corporate regulator was investigating suspected misreporting of trades in government bonds by the bank’s staff.
https://finance.yahoo.com/news/anzs-prelim-analysis-bond-trading-232916622.html
Instagram and Facebook remove 63,000 sextortion accounts after shocking deaths – 25 July 2024
Instagram and Facebook’s parent company Meta says it has finally taken down about 63,000 Nigerian Instagram accounts running sextortion scams. According to research by cyber intelligence analyst Paul Raffile, a group of West African cybercriminals known as “Yahoo Boys” are largely responsible for the 18,000 per cent surge in sextortion targeting children that has caused at least 39 deaths in the past two years.
