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Investigation & Fraud News – Week ending 14 March 2024
Spanish police uncover Banksy fakes workshop, four arrested in alleged syndicate – 6 March 2024
Four people have been arrested in Spain accused of running a syndicate selling counterfeit Banksy artworks. The ring is suspected to have sold at least 25 works around the world at prices up to 1,500 euros ($2,480) a piece. Police are continuing to investigate and have not ruled out further arrests.
https://www.abc.net.au/news/2024-03-08/spanish-police-smash-banksy-fakes-syndicate/103564140
INTERPOL Financial Fraud assessment: A global threat boosted by technology – 11 March 2024
A new INTERPOL assessment on global financial fraud highlights how the increased use of technology is enabling organised crime groups to better target victims around the world. The use of Artificial Intelligence (AI), large language models and cryptocurrencies combined with phishing- and ransomware-as-a-service business models have resulted in more sophisticated and professional fraud campaigns without the need for advanced technical skills, and at relatively little cost. Analysis behind the INTERPOL Global Financial Fraud Assessment also points to the global expansion of human trafficking for the purpose of forced criminality in call centres, particularly to carry out ‘pig-butchering’ scams – a hybrid scheme combining romance and investment frauds, using cryptocurrencies.
How to protect your personal data from China’s mass surveillance regime, according to top cyber experts – 12 March 2024
Top Canberra insiders and cybersecurity specialists reveal how China is weaponising artificial intelligence and social media like TikTok to undermine Australian democracy. “We are facing an authoritarian regime that can reach right into our bedrooms, into our kids’ room, into our lounge room, and we don’t know how to handle that,” intelligence expert Professor John Blaxland, whose research confirms that China has penetrated Western countries with a multitude of advanced AI-led surveillance and cyber espionage capabilities.
Toormina man sentenced in Coffs Harbour after financially scamming Sydney law firms – 12 March 2024
Toormina man Anthony Gerard Kent has been sentenced at Coffs Harbour Local Court after scamming more than $700,000 from Sydney law firms and charities. The court heard he was not the “mastermind” behind the operation, but used emails and fake bank accounts. He will serve a 15-month intensive corrections order in the community.
https://www.abc.net.au/news/2024-03-12/law-firm-email-scammer-anthony-gerard-kent/103493452
Experts concerned over ASIC’s lack of phoenixing prosecutions – 12 March 2024
Experts say little has changed in illegal phoenixing since the $105 million Plutus tax fraud, as the building industry deals with a wave of claims about multi-million dollar tax-dodging schemes operating over decades. University of Sydney Business School Professor Clinton Free, found in a recently published analysis that despite the former Morrison government introducing laws to combat illegal phoenixing in 2020, the corporate watchdog had not yet used the new powers to bring criminal or civil prosecutions.
Access to digital version of AFR required to read article.
‘Nobody gets a free pass’ Australian Government delegate tells Facebook at Global Fraud Summit – 13 March 2024
Federal assistant treasurer Stephen Jones called for social media giants to ‘do better’ when it comes to fraud and scams while attending the Global Fraud Summit. Member nations of the summit, including Britain, Canada, Germany, Italy, France, Japan, Korea, Singapore, New Zealand and the US, resoundingly backed Jones’s call for Facebook (NASDAQ:META) parent company Meta, in particular, to up its game in the fight against fraud and scams. The summit heard that some states had seen a threefold-plus increase in complaints to their attorneys-general in the last year from consumers who had social media accounts hacked.
New ACCC figures show sharp rise in older people being fleeced in social media scams – 13 March 2024
Australians lost a total of $477 million to scams last year, according to new ACCC figures. The Scamwatch report also showed year-on-year losses dropping by $92 million, especially for investment scams. The government has plans to introduce mandatory codes for banks, telcos and social media companies which it says will impose tough new standards.
Fatal Ballarat mine collapse under investigation – 14 March 2024
Victoria’s workplace safety regulator has launched an investigation into a mine collapse at Ballarat that killed one miner and badly injured another.
Former Fiji prime minister Frank Bainimarama found guilty of interfering in police investigation – 14 March 2024
A court has found former Fiji prime minister Frank Bainimarama guilty of attempting to pervert the course of justice. State prosecutors had appealed a decision by a lower court to acquit Bainimarama, after it found there was insufficient evidence to convict him of interfering in a police investigation. Bainimarama will face sentencing back in the magistrates court on March 28.
NT ICAC commissioner says investigations ‘thwarted’ by denial of access to cabinet documents, inadequate funding – 14 March 2024
The NT ICAC says on four occasions since July 2022, the NT government has refused to hand over cabinet documents that could assist its investigations. Commissioner Michael Riches has also raised concerns around his office’s budget and staffing levels, and government transparency. The concerns have been aired in a report tabled in NT Parliament this week, in which Mr Riches said his office currently had 15 active investigations.
https://www.abc.net.au/news/2024-03-14/nt-icac-report-says-government-refusing-cabinet-document-access/103582196
NSW government doubles penalties for environmental crimes to ‘make polluters pay’ after asbestos-contaminated mulch fiasco – 14 March 2024
The NSW government has given stronger powers to the Environment Protection Authority (EPA) to penalise environmental fines. The move was spurred by a criminal investigation into 78 sites testing positive with asbestos-containing mulch, and include a $4 million penalty for related offences for companies.
Whistleblowers allege they were targeted by Queensland Health after exposing problems with tuberculosis patient care – 14 March 2024
The frontline unit established to combat tuberculosis (TB) in Queensland is alleged to have lost key medical files, employed systems that potentially compromised patient care and persecuted two of its most senior staff, forcing them to seek whistleblower status. The allegations emerged after two of the unit’s most senior medicos – infectious diseases expert Doctor Emma McBryde and the unit’s former head nurse – made complaints to the state’s Crime and Corruption Commission seeking protection as official whistleblowers.
Boeing death a stark reminder of the need for a Whistleblower Authority – 14 March 2024
The reported suicide of Boeing whistleblower John Barnett in Charleston, South Carolina (US), is a reminder of the need for reform in Australia. Following the PwC tax leaks scandal, the Government has introduced a Bill to extend whistleblower protections to cover disclosures made to the Tax Practitioner board. A comprehensive review of Australia’s tax and corporate whistleblower laws will commence in July. Proposals for strengthening whistleblower protections will include extending its breadth – who and what is covered, at what stage, and on what basis.
https://michaelwest.com.au/lendlease-whistleblower-calls-for-whistleblower-authority/
How AI-powered technologies can eventually eradicate retail crime – 14 March 2024
Retailers are hoping AI-powered surveillance and other technologies can eventually make theft a thing of the past.
Video surveillance systems, locked cases that can be operated by smartphones, and AI-powered heat maps are just a few of the anti-theft advancements on the market. The live heat map pulls in real-time data from a variety of sources, including retailers, law enforcement, and fire rescue agencies. The map aims to track and prevent theft – or, at a minimum, alert other retailers on the app if a crime occurs nearby.
Australia introduces Scam Safe Accord to combat AUD $3.1bn scam crisis – 14 March 2024
Australia’s efforts to combat an alarming tide of scams have culminated in the launch of the Scam Safe Accord, a consolidated and innovative response conceived by the country’s financial institutions. According to sources, Australians lost a staggering AUD $3.1 billion to scams in 2022 alone, marking a 253% surge over two years. The Scam Safe Accord, brought to fruition by the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), aims to staunch this bleeding of resources and protect Australians from further financial exploitation.
Investigation & Fraud News – Week ending 8 March 2024
As David McBride braces himself for a prison sentence, what will it take for the public to care about whistleblowers? – 4 March 2024
McBride pleaded guilty in November to leaking sensitive classified military information to the ABC because he said the law as it stood for whistleblowers left him with no other choice. The documents were used to expose war crimes by special forces in Afghanistan in a series known as the Afghan Files. The sentencing of David McBride will be a clarifying moment for whistleblowing protections in this country and raises the question, as to whether the public, is doing enough to support whistleblowers.
https://www.abc.net.au/news/2024-03-04/david-mcbride-sentencing-whistleblower-protection/103539646
ASIC takes down 3,500 scam websites in six months – 5 March 2024
The federal government’s new scam website takedown service is removing nearly 20 websites every day since it was launched midway through last year. According to new statistics released by ASIC, this new service took down 3,490 investment scam and phishing websites from 1 July to 31 December last year, the first six months of its operation. ASIC has also launched an investor list to help consumers inform themselves if an entity they are considering investing in may be fraudulent, unlicensed or a scam.
https://ia.acs.org.au/article/2024/asic-takes-down-3-500-scam-websites-in-six-months.html
Terry Irving was imprisoned for a crime he didn’t commit. Now the justice system will be asked to answer the ultimate question: What’s the cost of loss of liberty? – 5 March 2024
Terry Irving spent years in jail for a crime he didn’t commit. Terry and his legal team continue to seek justice and compensation, their fight underscores the broader impacts of such cases on public faith in the legal system and the urgent need for reforms to address racial biases and ensure fairness and transparency in judicial proceedings. Terry Irving’s story is a sobering reminder of the cost of freedom and the price paid by those wrongfully deprived of it.
Former Thai prime minister Yingluck Shinawatra acquitted of mishandling government funds – 5 March 2024
Thailand’s former prime minister Yingluck Shinawatra has been acquitted of mishandling funds for a government project in 2013. Currently in exile, to return to Thailand without facing prison, Ms Yingluck would also need a pardon from King Maha Vajiralongkorn or another form of clemency.
Combating financial crime with AI – 6 March 2024
While the public sector is moving quickly to address fraud with regulations like the Commonwealth Fraud Control Framework, fighting AI-driven fraud is increasingly resource-intensive for many in the private sector. Investigators are spending more time diving into countless records and behavioural indicators to identify fraud. And just as one fraud trend is countered, criminals employ a different attack method. Article looks at how financial institutions can better fight fraud in the face of high-cost pressures, while adhering to tightening compliance regulations.
Damning report into former Sydney prison guard who sexually assaulted inmates highlights culture, management problems – 6 March 2024
A report into the sexual offences committed by former prison guard Wayne Gregory Astill has been released publicly. It found Astill should have never been hired by Corrective Services NSW after concerns during his time as a police officer. A taskforce will be set up to fix the culture and procedures in Corrective Services.
Former Julalikari CEO Sam Ashton sacked after $1.2m in financial irregularities found, document reveals – 6 March 2024
The former CEO of a large Northern Territory Aboriginal corporation was sacked after an investigation uncovered $1.2 million of financial irregularities. The irregularities impacted several of Julalikari’s businesses, including a fund for Indigenous people who cannot afford a funeral service.
A member of the organisation hopes Julalikari can return to its former glory with “a lot of hard work”.
Spanish prosecutors accuse Real Madrid coach Carlo Ancelotti of $1.7 million tax fraud – 6 March 2024
Real Madrid coach Carlo Ancelotti has been accused of committing tax fraud worth 1 million euros ($1.7 million) by Spanish state prosecutors. The Italian, who is one of soccer’s most successful coaches, is alleged to have used shell companies to hide parts of his income in 2014 and 2015. Prosecutors say Ancelotti could face up to four years and nine months in prison.
Cryptocurrency fraud is now the riskiest scam for consumers, according to BBB – 6 March 2024
Cryptocurrency is an unregulated investment space that federal regulators and consumer advocates have long said makes it ripe for fraud. The Better Business Bureau has stated that these scams are now the riskiest type of cons in the U.S., with about 80% of Americans targeted in crypto and investment scams last year losing money.
https://www.cbsnews.com/news/crypto-scam-risk-bbb-report/
This is food fraud: The growing problem in Australia that ‘can fool anyone’ – 7 March 2024
There are different types of food fraud, including tampering, mislabelling, counterfeit products, and dilution. A 2021 report by AgriFutures found food fraud was costing producers globally around $40 to 50 billion a year, and $2 to 3 billion in Australia alone, without accounting for the vast scale of undetected fraud.
https://www.sbs.com.au/news/article/food-fraud-is-on-the-rise-and-can-fool-anyone/aikgyxlzg
Australian HSBC customers demand action over $6.3m ‘spoofing’ scam – 8 March 2024
Australians continue to lose huge amounts of money to a long-running text message scam targeting customers of HSBC. The ABC has obtained a recording of a scammer speaking to a victim. Whilst consumer advocates are calling for urgent action to shut the scam down and investigate “weak spots” in scam prevention networks.
https://www.abc.net.au/news/2024-03-08/hsbc-customers-demand-spoof-scam-action/103549516
Investigation & Fraud News – Week ending 1 March 2024
12 stories this week:
Class action filed as Apple and Google are accused of breaching legislation – 22 Feburary 2024
Millions of Australians are unknowingly taking on Apple and Google in a massive class action beginning next month. The tech giants are accused of breaching Australian Consumer Law, by forcing app developers to use their payment systems, in turn leading to higher prices for apps by consumers.
https://www.youtube.com/watch?v=fCNmLh8Fok0
‘Uncontrollable’: We’re facing a scams ‘epidemic’, and this is what’s driving it – 22 Feburary 2024
Artificial intelligence is fuelling an epidemic of online financial scams, cyber security experts warn. In 2022, Australians lost more than $3 billion to scams – $377 million involving fraudulent investment schemes. The warning comes alongside an AAP FactCheck investigation into cryptocurrency scams targeting the Pacific Islands.
The AFP could learn a lesson from Oregon about engaging the public on surveillance technologies – 22 Feburary 2024
The investigation of the Australian Federal Police (AFP) and its misuse of Auror, a digital surveillance platform collecting and flagging data about criminal suspects, reveals a disturbing pattern of privacy violations. Article explains how in Portland, Oregon they embraced public engagement, getting those impacted involved, and rebuilt trust as a solution.
GST registration to become “slower and potentially more difficult” after $2 billion fraud – 22 Feburary 2024
The wave of fake ABN and GST registrations resulted in $2 million worth of brazen fraud. ATO has consequently changed its approach to ABN and GST signups, to the detriment of small businesses doing the right thing. The ATO has also identified nine current contractors and three current employees as participants in the fraud.
Coles, Woolworths Profit from High-Tech Surveillance Control – 23 Feburary 2024
Australian Council of Trade Unions and the ACCC have found that Coles and Woolworths have engaged in unfair pricing practices. An ongoing Senate inquiry into food prices is now looking at how these practices are linked to inflation; and the ACCC has just begun a government-directed inquiry into potentially anti-competitive behaviour in Australia’s supermarkets. Furthermore, Coles and Woolworths are both implementing technologies that treat the supermarket as a “problem space” in which workers are controlled, customers are tracked and profits are boosted.
https://www.miragenews.com/coles-woolworths-profit-from-high-tech-1179723/
Australia: Australian Corporate Crime And Investigations Outlook 2024 – 27 Feburary 2024
This article explores new corporate crime and investigations issues to watch in 2024. Environmental, social and governance is highlighted and we can expect to continue to see companies exposed to regulatory and enforcement scrutiny, where there has been an inadequate appreciation of corporate crime expectations, within the risk environment.
https://www.mondaq.com/australia/corporate-crime/1429572/australian-corporate-crime-and-investigations-outlook-2024
Crypto king’s passport seized over $50m collapse – 28 Feburary 2024
The Chinese director of Blockchain Global has been banned from leaving Australia, while a criminal investigation looks into the $50m collapse of the firm.
Access to digital version of the Australian required to read article
AI deepfake scams surge with celebrity voice cloning on social media – 28 Feburary 2024
Advanced AI technology has increased the frequency of celebrity deepfake scams, particularly audio scams on popular social media platforms such as Facebook. These scams use voice cloning technology to replicate the tone and speech patterns of notable celebrities, including Oprah, Jennifer Aniston, Elon Musk, and YouTube star Mr. Beast.
Police bust alleged Gold Coast-based ‘boiler room’ investment fraud ring – 29 Feburary 2024
Police have charged five people allegedly behind an investment fraud operation, which claimed $3 million from at least 300 victims. A 60-year-old woman has been charged with money laundering, fraud, and personation in general – falsely represent, while two men, have been charged with one count each of money laundering and fraud.
Unnamed ‘traitor’ politician cultivated by spies puts loyalty of all politicians in question, says former treasurer – 29 Feburary 2024
Australian intelligence has revealed a retired politician was recruited by an international spy ring, and in one plot attempted to introduce a prime minister’s family to their foreign handlers. Former treasurer Joe Hockey says every politician will be questioned as a traitor, until the politician recruited by spies is named.
Facebook Marketplace has become the home of scammers. The problem may be getting worse – 1 March 2024
Facebook Marketplace dominates reports of online buying scams and the problem appears to be getting worse. NAB reports of “buying and selling” scams increased 78 per cent in the final quarter of 2023, with most of these reports involving social media or an online marketplace. The Australian government is preparing a mandatory code that would require digital platforms to do more to block scammers and scam listings.
Fraud-accused arrested for allegedly claiming $16,000 in River Murray flood recovery funding – 1 March 2024
A 47-year-old woman allegedly submitted false applications involving two flood relief grants in December 2022 and March 2023. She was arrested in Encounter Bay last month and charged with fraud offences. Police and government authorities will assess other applications for potential fraudulence.
Investigation & Fraud News – Week ending 23 February 2024
14 stories this week:
Insurance industry accuses ‘claim management’ services of misleading customers, increasing premiums – 15 February 2024
The Insurance Council of Australia says claim management companies use misleading tactics to attract customers. The companies act as intermediaries for insurance claims but often add extra fees to the claim. The industry would like to see tighter regulation by ASIC and state consumer protection.
Navy chief refers allegations of inappropriate behaviour involving sexual conquests to military police – 15 February 2024
Allegations of sexually inappropriate behaviour inside the Royal Australian Navy have been referred to military police, with parliament being told the matter involves an “officer-only conquest club”.
Australian Federal Police officer William Wheatley to fight crypto fortune theft allegations – 16 February 2024
William Wheatley, a cyber crime police officer will fight allegations he stole a cryptocurrency fortune seized during a drug trafficking investigation. Mr Wheatley has denied he is responsible for the alleged crypto theft and will appear in the County Court.
Julian Assange – The Controversial Whistleblower And The Quest For Transparency – 16 February 2024
Julian Assange. The Australian-born computer programmer, journalist, and founder of WikiLeaks has become a focal point in debates over press freedom, government transparency, and cyber-security. His story is outlined in this paper, describing a complex web of political intrigue, legal battles, and ethical questions that continue to stir global discourse.
https://washingtonindependent.com/julian-assange/
A Whistleblower Protection Authority in Australia? – 18 February 2024
Transparency International and the Human Rights Centre have released draft principles for a whistleblower protection authority and there is hope that the Attorney-General’s Department, may look at it as part of current considerations for public sector reforms. This broadcast, looks at what whistleblowing protection authorities look like overseas, and what can Australia learn from them?
https://www.abc.net.au/listen/programs/sundayextra/whistleblowing-design-principles/103465754
F1 makes first statement on Red Bull investigation of Christian Horner – 19 February 2024
Red Bull is investigating its team principal Christian Horner, after allegations of workplace misconduct were made public. Horner has been subjected to a meeting with investigators, and further allegations made in Dutch media last week, allege the misconduct against a female employee may be sexual.
Kate McClymont on crime, corruption and courts – 19 February 2024
Kate has been a journalist for nearly 40 years. She’s exposed corruption at the highest levels of politics, she’s also lead investigations into financial conwoman Melissa Caddick, high profile neurosurgeon Charlie Teo, High Court Judge Dyson Heydon, and media personalities Don Burke and Alan Jones. Listen to this interview on ABC talking about crime and corporate reporting.
A refresher on Australia’s whistleblower laws – 19 February 2024
It’s time for businesses to think about the year ahead and legal and compliance teams to look at updating their compliance policies and undertaking compliance training. This article will assist with a refresher on the whistleblower requirements of the Corporations Act 2001 (Cth) (Corporations Act).
https://www.lexology.com/library/detail.aspx?g=86390711-e80e-48a9-89b7-6697f3b809b9
Federal Court finds NAB fraud secrecy claim has ‘air of a Kafka novel’ – 19 February 2024
The National Australia Bank falsely identified a Melbourne bullion dealer as a scammer and told his now “hysterical” customers they had purchased more than $600,000 in gold that was either fake or never existed.
After the dealer sued the bank, NAB argued the case should be kept secret from the public because of laws and regulations. The federal Court dismissed the company’s application for a suppression order. NAB has filed a defence and denies the allegations.
Australia holds Chinese man over suspected North Korea tobacco smuggling – 20 February 2024
A Chinese man is being held in Australia over his alleged role in a tobacco smuggling scheme that generated $700m for North Korea. Jin Guanghua now awaits extradition to the US, where he faces prosecution for a number of sanctions, bank fraud, money laundering, and conspiracy offences.
https://www.bbc.com/news/world-australia-68344790
Halls Creek Shire defends Olabud Doogethu Indigenous program amid investigation of ex-CEO Phillip Cassell – 20 February 2024
Halls Creek Shire has asked for community patience regarding an investigation into the former CEO(Phillip Cassell), over allegations of workplace misconduct. The controversy has sparked community backlash and calls for more transparency.
https://www.abc.net.au/news/2024-02-20/halls-creek-ceo-phillip-cassell-investigation/103485554
Tool to prevent AI scams raised Aussies’ Tinder hit rates by 67pc – 21 February 2024
Tinder is expanding its identity verification program at a time when artificial intelligence can make it hard to tell who’s real and crime is rising on dating apps. The process requires a valid driver’s license or passport and a self-recorded video. A third-party vendor checks the birth date and whether the face in the video selfie matches the individual’s profile photos and ID.
Judge orders Trump to pay $355 million for lying about his wealth in staggering civil fraud ruling – 22 February 2024
A New York judge ordered Donald Trump to pay $355 million (€329.4 million) in penalties, finding that the former US president lied about his wealth for years in a sweeping civil fraud verdict that pierces his billionaire image but stops short of putting his real estate empire out of business.
Russian linked to Medibank hack reportedly detained for alleged cyber crimes – 22 February 2024
Russian man Aleksandr Ermakov, who was named responsible for the 2022 Medibank hack, has reportedly been detained in Russia over alleged cyber crimes. In January, the federal government named Mr Ermakov as the hacker responsible for the data breach in January, and used new cyber laws for the first time to lay financial sanctions on the Russian national. Australian intelligence has linked Mr Ermakov to the hacking syndicate REvil, a Russian cybercrime gang that supplies hacking tools to novices in return for a cut of any ransoms paid.
