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Investigation & Fraud News – Week ending 26 April 2024
Hackers scam staff member at one of Australia’s biggest law firms – 18 April 2024
One of the country’s top six law firms (MinterEllison), was the victim of an attempted scam attack, after one of its staff members was tricked into transferring a large sum of money into the account of a fraudster, impersonating a trusted business associate.
Access to digital version of SMH required to read article
Five Australians among 37 arrested over global phishing scam following international investigation – 18 April 2024
Five Australians are among 37 individuals who have been arrested in relation to an alleged global phishing scam that targeted tens of thousands of people, the Australian Federal Police (AFP). Police said the scam involved 10,000 cybercriminals from around the world who used the platform LabHost to trick victims into providing their personal information, such as online banking logins, credit card details and passwords. Among the victims were 94,000 Australians.
Tasmanian woman sentenced for fraud after Bunnings bender with council funds – 19 April 2024
A former council worker has been sentenced to 18 months home detention for defrauding her employer of more than $130,000 for household goods. The Supreme Court in Hobart heard Casey Bryant’s conduct was “planned and calculated” and her actions have taken away funds from the Central Highlands community.
Her husband, Jamie Bryant, was sentenced to six months imprisonment, wholly suspended for 18 months.
Increase in vigilance leads to spike in NDIS fraud reports – 23 April 2024
Bill Shorten, the Minister for the National Disability Insurance Scheme (NDIS) and Government Services, has highlighted the importance of public contributions to combating fraud within the NDIS framework. Recent data revealed that the NDIA experienced a 75% surge in fraud-related tip-offs in the last quarter compared to previous quarters.
Cyber fraud threat growing – 23 April 2024
Facebook and Instagram users are reporting more hackings of their accounts than ever. And the consequence for some small businesses is that they’re losing customers. Some are accusing tech giant Meta of failing to help them regain access to their computers but the Federal Government is considering a new social media Ombudsman to manage these disputes.
https://www.abc.net.au/listen/programs/am/cyber-fraud-threat-growing/103756590
How search empowers cybersecurity, fraud prevention and detection – 23 April 2024
Digitisation is almost purpose-built for fraud. Automated, anonymous, and mostly working offshore and outside jurisdictions, cybercrime has become the perfect low-risk, high-reward crime. With low barriers to entry (in many cases, a laptop and a connection are all that’s necessary), online fraud is becoming increasingly sophisticated thanks to bots, social engineering tactics, malware attacks, and deepfake technology.
Arizona indicts 18, including Rudy Giuliani, for ‘fake elector’ scheme to overturn 2020 election for Donald Trump – 25 April 2024
Donald Trump’s former lawyer Rudy Giuliani and chief of staff Mark Meadows are among 18 people indicted in Arizona for trying to overturn Trump’s loss to Joe Biden in the 2020 presidential election. Arizona is the fourth US state to bring charges against “fake electors”. The US Supreme Court will hear arguments on Trump’s bid to avoid federal prosecution over his efforts to reverse his loss.
Could Benjamin Netanyahu go to jail? – 25 April 2024
Israeli Prime Minister Benjamin Netanyahu is facing charges of bribery, fraud and breach of trust. He is doing everything he can to stay in office, because if he holds office, he can’t be thrown in jail.
WADA launches independent review of handling of Chinese swimmers’ positive doping tests before Tokyo Olympics – 26 April 2024
A Swiss prosecutor will lead an investigation into how 23 Chinese swimmers went unpunished after failing doping tests in the lead-up to the Tokyo Olympics. WADA said Eric Cottier would have access to all files and documents related to the case and would be free to consult independent experts. Cottier will begin his work in the coming days and is expected to deliver his findings within two months.
‘Fight to clear name’ at Daryl Maguire visa fraud tria – 26 April 2024
Former MP Daryl Maguire has said he will “fight to clear his name” over a charge he conspired to commit visa fraud allowing non-citizens to remain in Australia over a decade ago. The disgraced ex-NSW Liberal politician appeared at Sydney’s Downing Centre District Court on Friday where he pleaded not guilty to the single conspiracy charge. The 65-year-old was charged in 2022.
Investigation & Fraud News – Week ending 19 April 2024
Criminals used an Australian company to launder $450,000, but no charges were laid – 9 April 2024
Peter Correy thought he was buying Treasury bonds from an Australian oil company, but instead, his money was sent offshore and the company refused to give it back. Weaknesses in Australia’s regulatory system are being exploited by criminals to launder money through company bank accounts and experts want action taken to stop it. Financial crime experts say the government needs to move faster to simplify and expand Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws.
Nursing executives stood down pending investigation of ‘potential financial irregularities’ – 10 April 2024
The board of the Australian College of Nursing has hired independent legal and forensic financial experts to investigate “potential financial irregularities”. Three executives have been stood down while the investigation takes place but the industry body says “no conclusions should be drawn at this time”.The investigation will continue into next week.
Australian register of stolen data blocks more than 300,000 attempts of identity fraud – 10 April 2024
A register of stolen credentials that was created after the 2022 Optus data breach has blocked more than 300,000 attempts of identity fraud.
Attorney-General Mark Dreyfus says the register disrupts other illegal activities that rely on stolen credentials, such as scams and money laundering. He added that protections against privacy breaches would be strengthened in coming months.
Cyber criminals gather together, researchers find – 11 April 2024
An Australia-UK-French research team nominated Russia, Ukraine, China, the USA, Nigeria and Romania as key cyber crime host countries. Australia ranked 34 on the list.
The World Cybercrime Index is designed to let law enforcement and the private sector to concentrate their efforts on “key cyber crime hubs”, co-author Dr Miranda Bruce of UNSW Canberra said.
https://www.itnews.com.au/news/cyber-criminals-gather-together-researchers-find-606846
Adelaide surgeon James Ian Spark handed suspended sentence over $50k fraud – 11 April 2024
James Ian Spark pleaded guilty to multiple deception charges relating to more than $52,000 worth of fraudulent claims. During sentencing, a magistrate said the “most serious” deception related to “an entirely fictitious patient, Ms Smith”. Spark’s medical registration is “highly likely” to be suspended, the court heard.
Charges against Meta sparked by Andrew Forrest over false cryptocurrency ads on Facebook discontinued – 12 April 2024
Criminal charges against Meta for publishing scam cryptocurrency ads featuring Andrew Forrest have been discontinued in a Perth court. Mr Forrest wanted Meta to be held accountable for the ads, which he argued targeted the vulnerable. A civil court case filed in the US by Mr Forrest against Meta is ongoing in California.
Tycoon’s death penalty in $12.5 billion fraud case highlights Vietnam’s corruption crisis – 12 April 2024
The death sentence handed to a real estate tycoon in a $12.5 billion financial fraud case is the latest punishment meted out by Vietnam in the Southeast Asian country’s sweeping “blazing furnace” anti-corruption campaign. Truong My Lan, was found guilty of bribery, violating bank regulations and embezzlement, and sentenced to death, though her family has indicated she will appeal.
Russian hackers steal US government emails from Microsoft – 12 April 2024
Russian state-backed hackers have stolen email correspondence between US government agencies and Microsoft via a breach of the software giant’s systems. Microsoft has notified “several” US federal agencies that the hackers may have stolen emails that Microsoft sent to those agencies that included login information such as usernames, or passwords.
Suncorp’s bank suffers breach, customer funds stolen – 12 April 2024
Insurance and banking conglomerate Suncorp is dealing with a cyberattack in which an intruder has accessed some customers’ bank balances and withdrawn funds. But the institution says it has found the funds and returned them to affected account holders in full, which is unusual in digital breaches where stolen funds are often rapidly funnelled out of the country.
https://www.afr.com/technology/suncorp-s-bank-suffers-breach-customer-funds-stolen-20240412-p5fjfx
Roku says 576,000 user accounts hacked after second security incident – 13 April 2024
Roku said about 576,000 user accounts were accessed using a technique known as credential stuffing, where malicious hackers use usernames and passwords stolen from other data breaches and reuse the logins on other sites. Roku said in fewer than 400 account breaches, the malicious hackers made fraudulent purchases of Roku hardware and streaming subscriptions using the payment data stored in those users’ accounts.
https://techcrunch.com/2024/04/12/roku-second-user-accounts-hacked/
‘AI pimps’ and their fake influencers are mass-harvesting women’s videos to peddle porn – 14 April 2024
ABC Investigations has identified a north-east Adelaide man, Antonio Alvaro, as a member of an international network of these so-called “AI pimps” that is engaging in mass misuse of women’s images to help sell porn subscriptions. It involves creating faces with AI and then transplanting them onto videos of women’s bodies sourced from social media accounts.
https://www.abc.net.au/news/2024-04-14/how-ai-pimps-influencers-are-using-womens-videos/103658046
Digital driver’s licences are becoming common but without security standards people are vulnerable to fraud, theft – 15 April 2024
Cyber security experts are warning unless digital driver’s licence apps meet internationally recognised security standards, they could increase risks of fraud. They are calling on state governments to ensure digital licence apps are built to the “gold class” standards. Victorians will gain access to digital driver’s licences next month, as the state becomes the fourth to launch the new form of ID.
Optus customer in $10,000 fraud attack forced to leave telco altogether after second breach – 17 April 2024
Just days after Townsville man Andrew Ryder regained control of his stolen phone number, criminals accessed his Optus account again. He had recently lost $10,000 to fraudsters and was in the process of replacing cards and changing bank accounts. Optus said fraud-affected customers should change their phone numbers and passwords.
Concerning spike in celebrity endorsement scams – 18 April 2024
Recently Dr Karl is seen promoting various health products that have been published on Facebook and Instagram. Generative AI blurs the line between fact and fiction, scammers are being given a shiny new toolbox of tricks to try and lure us in. This podcast explains.
University of Sydney professor fights sacking, claims bribery and corruption – 18 April 2024
A senior brain researcher who accused a Sydney University academic of attempting to bribe and blackmail another staff member is suing the institution after he was fired for “serious misconduct”. Professor Manuel Graeber, a leading neuropathologist who was the university’s Barnet-Cropper chair of brain tumour research, says he was sacked because he made serious allegations about university management.
Investigation & Fraud News – Week ending 29 March 2024
How can we protect critical infrastructure from cyber threats? – 22 March 2024
Chris Novak, managing director of cybersecurity consulting at Verizon Business talks about data breaches, ransomware, scams and cybersecurity. He says everyone from individuals to the highest levels of the government. In particular, companies like the telcos which are critical parts of our infrastructure need to be ready for potential catastrophe.
Canberra married couple sentenced to two years in jail for staging car crash to commit insurance fraud – 22 March 2024
Canberra couple Rabea Fares and Lina Faris have been sentenced in the ACT Supreme Court for staging a car crash to commit insurance fraud. Acting Justice Peter Berman said the plan unravelled due to “bad luck, bad planning”, and a lack of understanding of how experts investigate fraud. They were both sentenced to two years jail, but the wife will serve her time on an intensive corrections order so she can stay with the couple’s children. The husband will be eligible for parole after a year in jail.
North Korea is behind cyberattacks worth $US3 billion and is stealing cryptocurrency to fund weapons programs, UN report find – 22 March 2024
The United Nations is investigating cyberattacks worth $US3 billion allegedly orchestrated by North Korea. An expert panel has found the regime is funding its nuclear and weapons programs with the stolen cryptocurrency. A number of other investigations are underway for other breaches of UN sanctions.
Australians among those allegedly scammed out of about $120,000 in fake Bali villa swindle – 23 March 2024
Two Australians claim they were victims of a villa investment scam in Bali after transferring more than $120,000 for a villa “that didn’t exist”, while people from the other side of the world were allegedly conned by a different ruse run by the same alleged con woman, who the ABC understands has just returned to NSW.
How much does it cost for a scammer to hack your email? The answer is probably less than you think – 25 March 2024
New data reveals the cost of fake or stolen documents like passports and driver’s licenses on the dark web has gone up significantly, as demand increases and the number of people being scammed decreases. According to a report from accounting firm BDO, the average cost of buying a fake or stolen passport on the dark web is now $2,372 (up from $1,399 in the previous quarter), while a driver’s license will set you back $844 (up from $465).
Student’s legs amputated in alleged $1.3 million insurance fraud ploy – 25 March 2024
A university student who had his legs amputated after claiming he suffered frostbite during a motorbike ride faces charges of insurance fraud.
https://www.abc.net.au/news/2024-03-25/student-amputates-feet-for-insurance-police-say/103631028
Chinese property developer Evergrande faces a $120 billion fraud accusation and its chairman is barred for life. Here’s what we know so far – 26 March 2024
The founder of embattled property developer Evergrande has been barred for life from China’s financial markets after the company allegedly falsified its revenue by almost $120 billion. Mr Hui, also known as Xu Jiayin, was fined 47 million yuan ($9.95 million) and banned from China’s markets for life.
https://www.abc.net.au/news/2024-03-26/evergrande-fraud-fines-explained/103621114
Fraud investigation: An overview – 26 March 2024
This paper explores the process of uncovering deceit, identifying perpetrators, and mitigating losses for organizational integrity and security. Detecting potential fraud is crucial to an organisation’s effective functioning. Organisations of all kinds and sizes can be victims of fraud. And the dangers are likely to continue and even grow.
https://legal.thomsonreuters.com/blog/what-is-fraud-investigation/
Australian companies are being used in scams and authorities are struggling to catch the culprits – 27 March 2024
Legitimately registered Australian companies are being used to allegedly shift scam victims’ money overseas and the directors are not being prosecuted.
One financial crime expert says “the vast majority” of investment scam crimes are using shell companies to create plausible deniability. Scam victim Jo O’Brien is trying to sue a company allegedly linked to the disappearance of her funds, in the hope she’ll get some money back.
Former sex industry worker sues employer over claims she was fired due to her past – 27 March 2024
A Melbourne woman claims she was fired two days into a new job after her employers learned of her history in the sex industry. She has lodged a case with Victorian Civil and Administrative Tribunal (VCAT) seeking financial compensation for her termination.
https://www.abc.net.au/news/2024-03-27/former-sex-industry-worker-sues-employer-over/103638428
Big Tech: what will the new Digital ID law mean for you? – 28 March 2024
Online fraud and scams are a growing risk, putting pressure on the government to tackle identity theft.
This week a new Digital ID law has passed which the government hopes will help keep our personal information safe. We look at how it will work and what it will mean for you.
Investigation & Fraud News – Week ending 22 March 2024
IT contractor sentenced for cybercrime and fraud offences after swindling more than $60k – 18 March 2024
A Sydney man has been sentenced to two years and six months imprisonment for swindling more than $66,000 from a dozen victims after abusing his role as an IT contractor with a third-party provider to the Australian National Maritime Museum (ANMM). The man used illegally changed his bank account details to his own.
Evergrande Accused of China’s Largest Financial Fraud – 18 March 2024
Chinese developer Evergrande has been slapped with a $580 million fine in the country’s largest financial fraud case. The latest penalty is another setback for the embattled property firm.
https://www.firstpost.com/vantage/evergrande-accused-of-chinas-largest-financial-fraud-vd7085/
https://www.afr.com/world/asia/china-accuses-evergrande-of-shocking-78b-fraud-20240319-p5fdnz
Death sentence sought for Truong My Lan, the woman allegedly behind Vietnam’s largest-known financial fraud – 20 March 2024
Vietnamese prosecutors have called for the death penalty to be handed to Truong My Lan. She is accused of netting $18.8 billion in a financial scam. Truong My Lan is also accused of bribing officials to hide her embezzlement.
Andrew Donald Steele pleads guilty to persistent sexual abuse of child overseas – 20 March 2024
Andrew Donald Steele pleaded guilty to multiple child sex offences committed outside of Australia. A court document states he used an instant messaging app to produce and distribute child abuse material while in Indonesia. The maximum penalty for persistent sexual abuse of a child is 30 years’ imprisonment, and Steele will be sentenced at a later date.
WA Corruption and Crime Commission officer hid intimate relationship with informant, report finds – 21 March 2024
An officer with WA’s Corruption and Crime Commission has been dismissed after having “an extensive and intimate relationship” with an informant. She passed on sensitive information to her lover during the secret relationship, including the identity and location of another CCC informant. The CCC has commissioned an independent review of the failures that allowed “the officer’s deception”.
https://www.abc.net.au/news/2024-03-21/wa-ccc-officer-dismissed-for-misuse-of-position/103615164
Melbourne man on trial for exit trafficking after allegedly leaving wife stranded overseas without passport – 21 March 2024
Mohamed Ahmed Omer was charged with exit trafficking after he allegedly left his wife stranded overseas without a passport. Its alleged Mr Omer secretly withdrew his sponsorship for his wife’s partner visa before booking the trip and flying home without her. Mr Omer has pleaded not guilty to the charge.
Why strict non-disclosure agreements in sexual harassment cases shouldn’t be the only option – 21 March 2024
These days, NDAs are widely used in Australian workplaces, but questions are increasingly being raised about who they benefit the most. Wil Stracke, Assistant Secretary of the Victorian Trades Hall Council, says these agreements allow toxic workplace cultures to continue and they are “incredibly harmful for those who sign them”.
https://www.abc.net.au/news/2024-03-21/ndas-for-the-law-report/103580610
Strata firm Netstrata apologises, managing director steps aside from peak body after being found to be charging excessive fees to home owners – 21 March 2024
The Strata Community Association NSW confirmed it has launched an investigation after the ABC revealed a decade-long history of self-dealing and conflicts of interest at Netstrata. The ABC reported Netstrata has been using its wholly owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate. The company was also exposed for having taken kickbacks from contractors and suppliers it hires using the strata funds of more than 1,000 buildings, and 35,000 apartments, across NSW.
Australian Bureau of Statistics reveal details of ‘sizeable’ increase in card fraud as Australians lose $2.2 billion in 2023 – 21 March 2024
There has been a “sizeable” increase in the number of Australians affected by card fraud in 2023, compared to the previous year. An Australian Bureau of Statistics report says an estimated gross amount of $2.2 billion was lost to card fraud. The ABS and ACCC say Australians are becoming “more and more aware” of personal fraud and scams.
https://www.abc.net.au/news/2024-03-20/abs-card-fraud-scam-data/103609822
PwC chairman refuses to share tax leaks scandal investigation with Australian parliament – 21 March 2024
PwC’s global chairman, Bob Moritz, has refused to comply with a request from the Australian parliament to share a copy of an investigation used to contain the tax leaks scandal to Australia. The decision will likely set up another showdown with Australian politicians who have strongly criticised the firm for not sharing the report, and frustrate government departments that have believe it should be shared.
Consumer group calls for action on super scams – 21 March 2024
Advocacy group Super Consumers Australia is urging the Federal Government to introduce a superannuation industry anti-scam code. Heather Gray, the lead ombudsman for superannuation at the Australian Financial Complaints Authority (AFCA), told Super Consumers that superannuation funds have fallen behind the banks in their ability to detect and prevent scams and fraud.
https://nationalseniors.com.au/news/finance/consumer-group-calls-for-action-on-super-scams
Ethics committee for Formula 1 clears FIA president Mohammed Ben Sulayem of wrongdoing in whistleblower complaint – 21 March 2024
FIA president Mohammed Ben Sulayem was accused of interfering in two races during last year’s F1 season. An independent ethics committee cleared Ben Sulayem of wrongdoing after a 30-day investigation.
The F1 returns to Australia this weekend, with the main race set to start on Sunday at 3pm (AEDT).
