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Romance fraud doesn’t only happen online – it can turn into real-world deception

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/cassandra-cross-122865">Cassandra Cross</a>, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a> We often think of fraudsters as people on the opposite side of the world. They will manipulate and exploit victims through words on a computer screen, or loving messages through the phone. But romance fraud can also happen in person, with the fraudster sleeping in the bed beside you. This was the circumstance Australian writer Stephanie Wood found herself in. It’s also the basis for the new <a href="https://www.paramountanz.com.au/news/fake-breaks-subscription-and-streaming-records-on-paramount/">television series Fake</a>, currently screening on Paramount+. A dramatisation of Wood’s powerful memoir by the same name, the series outlines the many lies and betrayals of an intimate relationship. It’s a brutal insight into the world of deception which characterises romance fraud. <h2>When love hurts</h2> Romance fraud (or romance scams) is what it sounds like – offenders use the guise of a relationship to gain a financial reward. In most cases, it’s through the direct transfer of money from the victim, but it can also be through using personal credentials to commit identity crimes. From the outside, it’s hard to understand how romance fraud is so effective. However, <a href="https://eprints.qut.edu.au/233966/">research has documented</a> the range of grooming techniques, social engineering tactics and methods of psychological abuse deployed by offenders. Offenders know exactly what to do and say to gain the compliance of their victim. <hr /> <hr /> Offenders target a person’s vulnerability and work hard to build strong levels of trust. There are endless calls, texts and emails that create a bond. Then follows the inevitable “crisis”, whereby the offender needs money urgently for a health emergency, criminal justice situation, business need or even a <a href="https://www.accc.gov.au/media-release/romance-baiting-scams-on-the-rise">cryptocurrency investment</a> opportunity. For many, this can result in ongoing payments and substantial losses. Over <a href="https://www.accc.gov.au/about-us/publications/serial-publications/targeting-scams-reports-on-scams-activity/targeting-scams-report-of-the-accc-on-scams-activity-2023">A$200 million</a> was reported lost by Australians to this fraud type in 2023, but this is likely a gross underestimation of actual figures. It also doesn’t capture the many <a href="https://www.aic.gov.au/sites/default/files/2020-05/29-1314-FinalReport.pdf">non-financial harms</a>, including physical and emotional declines in wellbeing. When the relationship finally ends, it’s too late. The money is gone, the extent of the deception is laid bare, and recovery from the heartache and loss is a constant battle. There is a well-documented “<a href="https://journals.sagepub.com/doi/full/10.1177/1748895815603773">double hit</a>” of victimisation, with individuals needing to grieve the relationship as well as any financial losses. <h2>Seeing is not believing</h2> There are countless incidents of romance fraud where the offender and victim never meet: the deception takes place entirely online. But it’s important to know fraudsters also operate in person. Wood’s memoir details an extraordinary level of lies and dishonesty presented to her throughout her relationship. Stories that laid the groundwork for later fabrications. Stories that were deliberate and calculated in how they were used to gain her trust, and later used against her. The motivations of these real-world deceivers are not always straightforward. Often it’s about money, but not always. For Wood, not being asked for money allayed potential suspicions, but it didn’t reduce her feelings of loss and emotional devastation upon discovering the extent of the lies. <figure><iframe src="https://www.youtube.com/embed/K_1Akqhjy6M?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> Wood is by no means alone in her experience. Marketing executive Tracy Hall endured a similarly sophisticated and all-encompassing level of deceit in her relationship with <a href="https://www.theguardian.com/australia-news/2019/jun/20/conman-hamish-mclaren-jailed-for-up-to-16-years-after-swindling-76m-from-victims">convicted conman Hamish McLaren</a> (known to her as Max Tavita). In her book, <a href="https://tracyhall.com.au/the-last-victim">The Last Victim</a>, Hall recounts snippets of their daily lives over a 16-month period, with McLaren portraying himself as a successful professional in finance. His mail was addressed to Max Tavita and his phone conversations were with real people. Yet his whole identity and the world he represented to Hall was a complete fabrication. The experiences of Wood and Hall highlight the sheer depth of elaborate deception that can be perpetrated in an intimate relationship. Critically, it highlights romance fraud isn’t relegated to an online environment. <h2>How can we prevent romance fraud?</h2> There is an overwhelming amount of <a href="https://eprints.qut.edu.au/83702/">shame and stigma</a> associated with romance fraud. The dynamics of these deceptive relationships are misunderstood, and this perpetuates negative stereotypes and a discourse of victim blaming, even from friends and family. In hindsight, the warning signs might seem obvious, but fraudsters tend to effectively disguise these in real time and deploy deliberate tactics to overcome any suspicion. We must all create a culture that empowers victims to come forward to raise awareness. This isn’t intended to create fear or anxiety, but to normalise the threat fraud poses, and to allow for difficult conversations if it happens. Ongoing silence from victims only favours the offender. <h2>How to protect yourself from romance fraud</h2> It’s inevitable we’ll continue to swipe right in our efforts to find love. But keep a healthy level of scepticism and an open dialogue with family and friends in any quest for a new relationship. Don’t be afraid to conduct your own searches of people, places and situations presented to you in a relationship. There is a memorable moment in Fake where the protagonist refutes her friend’s offer of assistance, saying “this is a love story not an investigation”. Sadly, sometimes an investigation is necessary. No matter what the circumstance or the person, think carefully before sending any money. Only give what you are willing to lose. Deception comes in many forms. We must recognise it for what it is, and the impact it has on victims. But we must also not give into those who lie, and let them define who we are or dictate our ability to trust. If you or someone you know has been a victim of romance fraud, you can report it to <a href="https://www.cyber.gov.au/report-and-recover/report">ReportCyber</a>. For support, contact <a href="https://www.idcare.org/">iDcare</a>. For prevention advice, consult <a href="https://www.scamwatch.gov.au/">Scamwatch</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/237653/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/cassandra-cross-122865">Cassandra Cross</a>, Associate Dean (Learning & Teaching) Faculty of Creative Industries, Education and Social Justice, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847">Queensland University of Technology</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/romance-fraud-doesnt-only-happen-online-it-can-turn-into-real-world-deception-237653">original article</a>. </div>

Legal

Bride slammed for asking wedding photographer to commit fraud

A bride-to-be has been slammed online over a “dodgy” email she sent to her wedding photographer, in which she asked him to commit a crime to lower the wedding cost. The young woman, who works in event planning, was shocked when she realised the cost of her wedding photographer, and was worried the cost didn’t fit in her budget. She came up with a plan to lower the cost, not knowing that she was asking her photographer to commit fraud. In an email to the photographer, the woman pitched an idea to charge her business some of the wedding costs to lower the overall price of her big day. “We are so excited to have you as a wedding photographer. Hard to believe it's only a few months away,” the email began. “I wasn't sure how to approach this with you, but the budget has been rapidly expanding as we go through this process. I'm sure that happens with a lot of weddings and you've dealt with it many times.” “I was wondering if we could work something out. I work in the events department at [a company], and I'm wondering if I could hire you to photograph some events there, and you could overcharge them, and whatever you overcharge you could take off our remaining balance.” “What do you think? Do you have any other ideas?” The shocking email saw the “unhinged” bride labelled as “tacky” and “criminal”, with many people urging the photographer to report the bride-to-be to her place of work. “Is this person also telling the florist, the caterer, or any other vendor this?” one asked. “Stop expecting to bargain with creatives like photographers. If you can't pay for a professional photographer, ask a relative or friend to get a few shots. This is so tacky.” Many couldn't believe the bride would stoop so low, as one woman suggested, “Just write back, 'I respectfully decline because I don't want to go to jail'.” Another person added, “I beg your finest pardon? I thought she was going to ask for an extension or a payment plan - not fraud!” Image credits: Shutterstock

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Aussie mum with no licence or car fined thousands for traffic offences

An Aussie mum has copped thousands of dollars worth of traffic fines, despite not owning a car or holding a valid driver's licence. Victorian woman Tamara, 32, claims that she has received 16 different infringement notices this year alone in relation to 14 different licence plate numbers, and none of them are hers. The incorrect fines have been sent to her from as far back as 2022. Several of the alleged offences captured on road safety cameras show bearded men behind the wheel. "Clearly, I don't have a beard. The person in the picture is a male. Anyone with eyes can see it's not me," she told A Current Affair. The saga has badly impacted her mental health and she has called on both the police and road officials in the state to overhaul the system to prevent other people from ending up in the same situation as her. The mum fears that her identity or her expired licence number may have been compromised during Optus' mass data breach two years ago. "I am not the driver. I don't drive a vehicle, I don't even have a licence. I have no idea what to think actually because it is unexplainable." "It doesn't make any sense and it shouldn't make any sense in anyone's eyes. It doesn't add up and it's clearly fraudulent." Lawyer Justin Lawrence agrees with the 32-year-old and said that she is entitled to challenge the fines. "There is a system glitch there somewhere and she's entitled to challenge those fines. The system relies on the information that it has. If the information is inaccurate, then the system can't work," he said. Tamara has made a formal complaint to Victoria Police in a bid to clear her name, and they are now working with Fines Victoria to "investigate the circumstances around these incidents and resolve these matters". "Members of the public who believe they have been falsely nominated for a traffic infringement should contact Fines Victoria," a statement from the police read. Images: A Current Affair/ Nine

Legal

Warning over new scam preying on seniors

Police have issued an urgent warning for seniors to stay vigilant as a new scam targets more vulnerable Australians. Wollongong police officers have received reports of wills and estate documents allegedly being forged earlier this year, with inquiries ongoing. Scammers are currently targeting vulnerable members in the Illawarra community in Sydney, with elderly members of the community and their families being urged to take precautions to lower the risk of the new scam. "Examples of estate fraud include: a person signing a will that was a different document then they intended to sign, a person signing a will when they limited mental capacity, and an executor could pay themselves advances or unreasonable expenses from the estate,” a statement from a NSW Police spokesperson explained. Will fraud occurs when misleading or deceptive conduct is used while preparing a will. Executor fraud occurs when a person appointed to administer an estate uses deceitful tactics to gain access to estate assets, including false, fabricated or misleading statements used for the financial benefit. Anyone who has been affected or anyone with information have been urged to come forward to police. Image: Shutterstock

Legal

Uber driver makes pensioner fork out thousands after minor accident

In a distressing incident, 80-year-old pensioner Judy Libby has claimed that she was coerced into handing over $2,500 to an Uber driver following a minor car accident in Melbourne's CBD. Judy recounted her ordeal on Melbourne's 3AW Radio on Friday morning, describing the alarming sequence of events that unfolded after she accidentally hit the back of the Uber driver's car. <a href="https://www.news.com.au/technology/motoring/motoring-news/an-absolute-nightmare-uber-drivers-sickening-act-to-80yo-pensioner/news-story/f77aa3e46c41532268a712cfc4764877" target="_blank" rel="noopener">According to News.com.au</a>, Judy explained that the driver was stationary when the accident occurred, causing a dent in the boot of his vehicle. The driver, claiming the damage had rendered him unable to work and support his family, demanded compensation. "He said, 'I’m an Uber driver, you’ve ruined the back of my car. I’ve got a wife and child to support; now I can’t work,'" Judy told the radio station. Initially, the driver demanded $4,000, allegedly stating he had obtained a quote from a friend who was a panel beater. When Judy expressed her inability to pay such a sum, the driver proposed a reduced amount of $2,500. They arranged to meet at her local bank, but when the teller grew suspicious and refused the transaction, the Uber driver reportedly drove her to another bank where she was made to withdraw the money. Judy described the driver's demeanour as very angry and the experience as a "nightmare". The situation took a further turn for the worse when she later received a legal letter demanding an additional $8,800 for the damage, with no mention of the $2,500 she had already handed over. Concerned and distressed, Judy informed her daughter, who then reported the incident to the police. The case is now being investigated by the fraud squad. "I wasn’t travelling at a speed to do huge damage. I had no damage on my car, just a few scratches," Judy said. "And he had an older car too, so $8,800; no. I didn’t write it off, I just hit his boot." 3AW host Russel Howcroft condemned the incident as "disgraceful", particularly criticising the driver's actions of taking Judy to a bank against her will. "Fancy putting someone in their car and driving them to a bank branch," he remarked. The investigation by the fraud squad will hopefully bring clarity and justice to Judy Libby's troubling experience. Image: Lutsenko Oleksandr / Shutterstock

Legal

Riley Keough fights Graceland foreclosure sale

Elvis Presley's granddaughter Riley Keough has taken legal action against a company's plan to publicly auction Graceland estate in Memphis county, after she accused them of providing "fraudulent" documents. A public notice for a foreclosure sale of the 13-acre estate was posted in early May said that Promenade Trust, the company which controls the Graceland museum, owed $US3.8 million ($5.7 million) after failing to repay a 2018 loan. Keough's late mother, Lisa Marie Presley, allegedly signed the deed of trust and used Graceland as collateral. Naussany Investments and Private Lending, a Missouri-based company who managed the loan, claims that Lisa Marie failed to repay the loan. A public auction for the estate had been scheduled for Thursday this week, but a judge has blocked the sale after Keough sought a temporary restraining order and filed a lawsuit. In the lawsuit, Keough asserts that her mother never borrowed any money, and alleged that Lisa Marie’s signatures were forged and that Naussany Investments isn’t even a legitimate company. "Lisa Maria Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments," Keough's lawyer wrote in a lawsuit. “These documents are fraudulent. “Furthermore, the notary listed on the documents denies notarising Lisa Marie’s signature or ever meeting her.” A source told The New York Post that Keough is “traumatised” at what has unfolded and “never thought that a historic piece of property could even be considered to go into the hands of any random stranger”. An injunction hearing is set for Wednesday. Elvis bought the Graceland estate in 1957. After his death in 1977, his daughter Lisa Marie Presley inherited it and opened it up as a public museum five years later. After her death last year, her daughter Riley Keough became the heir. Image: Carl Timpone/BFA.com/ Shutterstock Editorial

Legal

Property tycoon sentenced to death over $27 billion fraud

A Vietnamese billionaire was sentenced to death on Thursday in one of the biggest corruption cases in history, an estimated $27 billion in damages - a figure equivalent to six percent of the country’s 2023 GDP. Truong My Lan, chair of major developer Van Thinh Phat, was found guilty of embezzlement, after looting from one of the country's biggest banks, Saigon Commercial Bank (SCB) for over a decade. “The defendant’s actions... eroded people’s trust in the leadership of the (Communist) Party and state,” the verdict read at the trial in Ho Chi Minh City. After a five-week trial, 85 others were also charged for their involvement in the fraud, with charges ranging from from bribery and abuse of power to appropriation and violations of banking law. Four were given life imprisonment, while others received jail terms ranging between 20 years and three years suspended. Lan's husband was Hong Kong billionaire Eric Chu Nap Kee, was sentenced to nine years in prison. Lan and the others were arrested as part of a national corruption crackdown. Lan was initially believed to have embezzled $12.5 billion, but on Thursday prosecutors have said that the total damages caused by the fraud now amounted to $27 billion. The property tycoon was convicted of taking out $44bn in loans from the bank, according to the BBC, with prosecutors saying that $27 billion of this may never be recovered. The court ordered Lan to to pay almost the entire damages sum in compensation. It is also <a href="https://www.bbc.com/news/world-asia-68778636" target="_blank" rel="noopener">reported</a> that she is one of very few women in Vietnam to be sentenced to death for a white collar crime. “In my desperation, I thought of death,” Lan said in her final remarks to the court, according to state media. “I am so angry that I was stupid enough to get involved in this very fierce business environment -- the banking sector -- which I have little knowledge of.” Police have identified around 42,000 victims of the scam, and many of them were unhappy with the verdict. One 67-year-old Hanoi resident told the AFP that she had hoped Lan would receive a life sentence so she could fully witness the devastating impact of her actions. “Many people worked hard to deposit money into the bank, but now she’s received the death sentence and that’s it for her,” they said. “She can’t see the suffering of the people.” The resident has so far been unable to retrieve the $120,000 she invested with SCB. Police have said that many of the victims are SCB bondholders, who cannot withdraw their money and have not received interest or principal payments since Lan’s arrest. Authorities have also reportedly seized over 1000 properties belonging to Lan. Image: Twitter

Legal

Sunrise rocked by allegation of "fraud"

Sunrise and the Seven Network have been rocked by an investigation by their biggest competitor, who exposed both allegations of "fraud", as well as threatening emails to a young journalist at Nine who was chasing the story. The scandal began when a reporter for the <a href="https://www.smh.com.au/national/new-seven-expenses-affair-rocks-sunrise-top-network-executives-20240408-p5fi6w.html" target="_blank" rel="noopener">Sydney Morning Herald</a> was alerted to an investigation being conducted by an independent law firm into the Sunrise program. According to reports by Nine, the law firm began an investigation, which was also conducted by a financial and corporate auditor, into reports that Sunrise staff members had grossly misused travel benefits. The allegations claimed that a small number of Sunrise staffers, as well as some of their friends and family, had taken flights and stayed in hotels on trips not related to their work duties, using benefits provided to the network by Qantas as part of a multimillion-dollar advertising and sponsorship deal. When business reporter for the Australian Financial Review Zoe Samios, a publication owned by Nine, reached out to Seven’s long-time commercial director Bruce McWilliam to chase the story, she was allegedly met with threatening emails saying her probes into the allegations had caused Seven’s star executive producer Michael Pell to self-harm. “This is what your unfounded reports have caused Michael to do,” Mr McWilliam wrote to Ms Samios in October last year. Attached to the email was a graphic image of him, bloodied and in a hospital gown, with a noticeable head wound. “Why don’t you keep it up so he kills himself. You are a complete disgrace. That law firm you name didn’t conduct any investigation. If you publish untrue allegations … and he tops himself. It’s on you. We are determined to protect him,” the email read. Speaking exclusively to <a href="https://www.news.com.au/finance/business/media/sunrise-rocked-by-fraud-investigations-that-top-tv-exec-tried-to-keep-secret/news-story/4b755d82167f825140c63b6e07107745" target="_blank" rel="noopener">news.com.au</a> on Thursday as the investigations were made public for the first time, Mr McWilliam defended the email and said he was defending a colleague and “friend” against “false allegations”. However, several months before the email, Mr Pell had stepped down as the boss of Sunrise and was appointed Seven's Senior Vice President of Entertainment Content in North America, and he moved to Los Angeles shortly after. On Thursday, Mr McWilliam told news.com.au that he became incensed when Mr Pell’s name was linked to the investigation, prompting his fiery email to Samios. “The accusations against Michael were exaggerated,” he told news.com.au. “I make no excuse for having acted to protect a colleague, against whom false allegations were being made. Michael Pell has been a friend of mine for many years.” The newspaper subsequently agreed to kill the story over concerns for Mr Pell’s mental health and wellbeing. While the findings of the alleged expenses investigation were delivered to Seven and described as "serious", a source close to the investigation insists that while the accusations are significant, they do not constitute "fraud" in the legal sense. Despite that, it’s understood that a small number of staff left the network following the findings being delivered to Seven, with the staffers signing nondisclosure agreements upon their departure. The scandal's reemergence comes 18 moths after the initial allegations, as Seven finds itself in another controversy over its flagship current affairs program Spotlight and its handling of an exclusive interview with Bruce Lehrmann. Image credits: Sunrise

Legal

"How could he do it to me?": Grandmother broken over grandson's alleged fraud

In a courtroom in Perth, emotions ran high as a heartbroken grandmother awaited a reunion with her grandson, Jack Endersby. But this wasn't a typical family gathering. It was a courtroom confrontation, where Lyn Newby hoped her grandson would look her in the eye and confront the pain he allegedly caused by defrauding her of more than $320,000. Endersby, a 24-year-old <a href="https://www.9news.com.au/national/perth-news-grandmother-lost-320000-after-investing-in-grandson-business-alleged-ponzi-scheme/e3ea6396-750c-452c-8e87-c0ef53d65ede" target="_blank" rel="noopener">accused of orchestrating a Ponzi-style scheme</a> that allegedly swindled around $2 million from victims across Australia, faced the scrutiny of the law and the anguish of his own family. The accusations against him span from February 2021 to February 2024, a period during which he allegedly promised lucrative returns to investors, only to leave them empty-handed and disillusioned. For Newby, the betrayal cut deep. She had entrusted her grandson with a substantial sum, believing it to be an investment in his trading business, Codex Investments. His promises of monthly returns seemed enticing, but when the payments abruptly ceased, Newby's world shattered. "He has ruined our lives," she lamented. "How could he do it to me? I'm his grandmother." Endersby's arrest earlier this month marked a turning point in the unravelling of his alleged scheme. Facing 11 charges of fraud, he appeared in Perth Magistrates Court, where his family, including his mother, sought answers and reconciliation. However, Endersby remained aloof, ignoring their attempts at communication. In the lead-up to his court appearance, Newby expressed her desire for her grandson to acknowledge the pain he caused. "He will feel terrible when he sees me, and I want him to look me in the eye and know how much he's hurt me," she said, her anguish palpable. The allegations against Endersby paint a stark contrast to his earlier life. Once a telesales consultant and labourer, he purportedly transformed into a "self-taught investor" with a multimillion-dollar portfolio and a lifestyle of luxury. Flashy holidays, upscale accommodations and a Maserati adorned his newfound prosperity, allegedly funded by the deceitful machinations of a Ponzi scheme. As the details of Endersby's alleged deception emerged, more victims came forward, each recounting their own stories of financial loss and shattered trust. Michael Dawson, who invested in Endersby's business 18 months prior, described initial returns followed by a troubling silence. Others spoke of referral schemes that seemingly built trust but ultimately ensnared unsuspecting investors in a web of deceit. Amid the courtroom drama and legal proceedings, questions linger about the true extent of Endersby's alleged scheme and the lives it impacted. As he awaits his next court appearance on April 19, the echoes of broken trust and shattered dreams serve as a stark reminder of the devastating consequences of financial fraud. Images: Nine News

Legal

How risky is it to give card details over the phone and how do I reduce the chance of fraud?

<a href="https://theconversation.com/profiles/paul-haskell-dowland-382903">Paul Haskell-Dowland</a>, <a href="https://theconversation.com/institutions/edith-cowan-university-720">Edith Cowan University</a> and <a href="https://theconversation.com/profiles/ismini-vasileiou-1031778">Ismini Vasileiou</a>, <a href="https://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a> Paying for things digitally is so common, most of us think nothing of swiping or tapping our card, or using mobile payments. While doing so is second nature, we may be more reluctant to provide card details over the phone. Merchants are allowed to ask us for credit card details over the phone – this is perfectly legal. But there are minimum standards they must comply with and safeguards to protect consumer data. So is giving your card details over the phone any more risky than other transactions and how can you minimise the risks? <h2>How is my card data protected?</h2> For a merchant to process card transactions, they are expected to comply with the <a href="https://docs-prv.pcisecuritystandards.org/PCI%20DSS/Standard/PCI-DSS-v4_0.pdf">Payment Card Industry Data Security Standard</a>. This is a set of security requirements designed to protect cardholder data and the trillions of dollars of transactions each year. Compliance involves various security measures (such as encryption and access controls) together with strong governance and regular security assessments. If the information stored by the merchant is accessed by an unauthorised party, encryption ensures it is not readable. That means stealing the data would not let the criminals use the card details. Meanwhile, access controls ensure only authorised individuals have access to cardholder data. Though all companies processing cards are expected to meet the compliance standards, only those processing large volumes are subject to mandatory regular audits. Should a subsequent data leak or misuse occur that can be attributed to a compliance failure, a <a href="https://www.csoonline.com/article/569591/pci-dss-explained-requirements-fines-and-steps-to-compliance.html">company can be penalised</a> at levels that can escalate into millions of dollars. These requirements apply to all card transactions, whether in person, online or over the phone. Phone transactions are likely to involve a human collecting the card details and either entering them into computer systems, or processing the payment through paper forms. The payment card Security Standards Council has <a href="https://docs-prv.pcisecuritystandards.org/Guidance%20Document/Telephone-Based%20Payments/Protecting_Telephone_Based_Payment_Card_Data_v3-0_nov_2018.pdf">detailed guides for best practice</a>: <blockquote> A policy should be in place to ensure that payment card data is protected against unauthorised viewing, copying, or scanning, in particular on desks. </blockquote> Although these measures can help to protect your card data, there are still risks in case the details are misplaced or the person on the phone aren’t who they say they are. <h2>Basic tips for safe credit card use over the phone</h2> If you provide card details over the phone, there are steps you can take to minimise the chance you’ll become the victim of fraud, or get your details leaked. 1. Verify the caller If you didn’t initiate the call, hang up and call the company directly using details you’ve verified yourself. Scammers will often masquerade as a well-known company (for example, an online retailer or a courier) and convince you a payment failed or payment is needed to release a delivery. Before you provide any information, confirm the caller is legitimate and the purpose of the call is genuine. 2. Be sceptical If you are being offered a deal that’s too good to be true, have concerns about the person you’re dealing with, or just feel something is not quite right, hang up. You can always call them back later if the caller turns out to be legitimate. 3. Use secure payment methods If you’ve previously paid the company with other (more secure) methods, ask to use that same method. 4. Keep records Make sure you record details of the company, the representative you are speaking to and the amount being charged. You should also ask for an order or transaction reference. Don’t forget to ask for the receipt to be sent to you. Check the transaction against your card matches the receipt – use your banking app, don’t wait for the statement to come through. <h2>Virtual credit cards</h2> In addition to the safeguards mentioned above, a <a href="https://www.forbes.com/advisor/credit-cards/virtual-credit-card-numbers-guide/">virtual credit card</a> can help reduce the risk of card fraud. You probably already have a form of virtual card if you’ve added a credit card to your phone for mobile payments. Depending on the financial institution, you can create a new credit card number linked to your physical card. Some banks extend this functionality to allow you to generate unique card numbers and/or CVV numbers (the three digits at the back of your card). With this approach you can easily separate transactions and cancel a virtual card/number if you have any concerns. <h2>What to do if you think your card details have been compromised or stolen?</h2> It’s important not to panic, but quick action is essential: <ul> <li> call your bank and get the card blocked so you won’t lose any more money. Depending on your situation, you can also block/cancel the card through your banking app or website </li> <li> report the issue to the police or other relevant body </li> <li> monitor your account(s) for any unusual transactions </li> <li> explore card settings in your banking app or website – many providers allow you to limit transactions based on value, restrict transaction types or enable alerts </li> <li> you may want to consider registering for <a href="https://theconversation.com/your-credit-report-is-a-key-part-of-your-privacy-heres-how-to-find-and-check-it-116999">credit monitoring services</a> and to enable fraud alerts. </li> </ul> <h2>So, should I give my card details over the phone?</h2> If you want to minimise risk, it’s best to avoid giving card details over the phone if you can. Providing your card details via a website still has risks, but at least it removes the human element. The best solution currently available is to use virtual cards – if anything goes wrong you can cancel just that unique card identity, rather than your entire card.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/216833/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/paul-haskell-dowland-382903">Paul Haskell-Dowland</a>, Professor of Cyber Security Practice, <a href="https://theconversation.com/institutions/edith-cowan-university-720">Edith Cowan University</a> and <a href="https://theconversation.com/profiles/ismini-vasileiou-1031778">Ismini Vasileiou</a>, Associate Professor, <a href="https://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a> Image credits: Getty Images This article is republished from <a style="font-style: italic;" href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a style="font-style: italic;" href="https://theconversation.com/how-risky-is-it-to-give-card-details-over-the-phone-and-how-do-i-reduce-the-chance-of-fraud-216833">original article</a>.

Money & Banking

The $500 million ATO fraud highlights flaws in the myGov ID system. Here’s how to keep your data safe

<a href="https://theconversation.com/profiles/rob-nicholls-91073">Rob Nicholls</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> The Australian Tax Office (ATO) paid out more than half a billion dollars to cyber criminals between July 2021 and February 2023, according to an <a href="https://www.abc.net.au/news/2023-07-26/ato-reveals-cost-of-mygov-tax-identity-crime-fraud/102632572">ABC report</a>. Most of the payments were for small amounts (less than A$5,000) and were not flagged by the ATO’s own monitoring systems. The fraudsters exploited a weakness in the identification system used by the myGov online portal to redirect other people’s tax refunds to their own bank accounts. The good news is there’s plenty the federal government can do to crack down on this kind of fraud – and that you can do to keep your own payments secure. <h2>How these scams work</h2> Setting up a myGov account or a myGov ID requires proof of identity in the form of “<a href="https://www.afp.gov.au/sites/default/files/PDF/NPC-100PointChecklist-18042019.pdf">100 points of ID</a>”. It usually means either a passport and a driver’s licence or a driver’s licence, a Medicare card, and a bank statement. Once a myGov account is created, linking it to your tax records requires two of the following: an ATO assessment, bank account details, a payslip, a Centrelink payment, or a super account. These documents were precisely the ones targeted in three large data breaches in the past year: at <a href="https://theconversation.com/what-does-the-optus-data-breach-mean-for-you-and-how-can-you-protect-yourself-a-step-by-step-guide-191332">Optus</a>, at <a href="https://theconversation.com/medibank-hackers-are-now-releasing-stolen-data-on-the-dark-web-if-youre-affected-heres-what-you-need-to-know-194340">Medibank</a>, and at <a href="https://asic.gov.au/about-asic/news-centre/news-items/guidance-for-consumers-impacted-by-the-latitude-financial-services-data-breach/">Latitude Financial</a>. In this scam, the cyber criminal creates a fake myGov account using the stolen documents. If they can also get enough information to link to the ATO or your Tax File Number, they can then change bank account details to have your tax rebate paid to their account. It is a sadly simple scam. <h2>How government can improve</h2> One of the issues here is quite astounding. The ATO knows where salaries are paid, via the “<a href="https://www.ato.gov.au/business/single-touch-payroll/what-is-stp-/">single touch</a>” payroll system. This ensures salaries, tax and superannuation contributions are all paid at once. Most people who have received a tax refund will have provided bank account details where that payment can be made. Indeed, many people use precisely those bank account details to identify themselves to myGov. At present, those bank details can be changed within myGov without any further ado. If the ATO simply checked with the individual via another channel when bank account details are changed, this fraud could be prevented. It might be sensible to check with the individual’s employer as well. Part of the problem is the ATO has not been very transparent about the risks. If these risks were clearly set out, then calls for changes to ATO procedures would have been loud and clear from the cyber security community. The ATO is usually good at identifying when a cyber security incident may lead to fraud. For example, when the recruitment software company <a href="https://www.abc.net.au/news/2018-06-06/australian-data-may-be-compromised-in-pageup-security-breach/9840048?itm_campaign=newsapp">PageUp was hacked in 2018</a>, the ATO required people who may have been affected to reconfirm their identities. This was done without public commentary and represents sound practice. Sadly, the millions of records stolen in the Optus, Medibank and Latitude Financial breaches have not led to a similar level of vigilance. Another action the ATO could take would be to check when a single set of bank account details is associated with more than one myGov account. A national digital identity would also help. However, this system has been in development for years, is not universally popular, and may well be <a href="https://www.themandarin.com.au/226280-gallagher-warns-community-support-for-digital-identity-not-ubiquitous/">delayed</a> until after the federal election due in 2024. <h2>Protecting yourself</h2> The most important thing to do is make sure the ATO does not use a bank account number other than yours. As long as the ATO only has your bank account number to transfer your tax rebate, this scam does not work. It also helps to protect your Tax File Number. There are only four groups that ever need this number. The first is the ATO itself. The second is your employer. However, remember you do not need to give your TFN to a prospective employer, and your employer only needs your TFN after you have started work. Your super fund and your bank may ask for your TFN. However, providing your TFN to your super fund or bank is optional – it just makes things easier, as otherwise they will withhold tax which you will need to claim back later. Of course, all the usual data safety issues still apply. Don’t share your driver’s licence details without good reason. Take similar care with your passport. Your Medicare card is for health services and does not need to be shared widely. Don’t open emails from people you do not know. Never click links in messages unless you are sure they are safe. Most importantly, know your bank will not send you emails containing links, nor will the ATO.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/210459/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rob-nicholls-91073">Rob Nicholls</a>, Associate professor of regulation and governance, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-500-million-ato-fraud-highlights-flaws-in-the-mygov-id-system-heres-how-to-keep-your-data-safe-210459">original article</a>.

Technology

Melissa Caddick's parents at war with fraud victims

Melissa Caddick's parents are at war with the victims of the deceased conwoman's long-running scam, as they fight over who deserves the biggest cut of her estate. The two parties are locked in a bitter despite over Caddick's penthouse apartment in Sydney's affluent eastern suburbs, where Caddick's parents Ted and Barb Grimley currently reside. The Grimleys claim they deserve a larger share of the proceeds of the sale of the property, despite the penthouse being purchased by Caddick as part of her Ponzi scheme. However, the victims of Caddick's scam are adamant that the proceeds should be evenly divided by those who have suffered at the hands of the deceased conwoman. The apartment was purchased by Caddick seven years ago, when Mr and Mrs Grimley gave their daughter $1 million for a share of the eastern suburbs residence. Despite the hefty share sum, Melissa put the entire apartment in her own name and used her parents' money on new jewellery. The Grimleys have refused to vacate the property, telling the victims during a recent mediation that they would only move out if they were paid $950,000 – effectively getting most of their money back and leaving nearly 60 other investors divvying up the rest of the proceeds and getting back less than half of what they are owed. One of the victims of Caddick's scam, Sarah Steel, said she feels for the Grimleys and what they have been through, but they need to think of the other victims involved. "I feel really terrible for what they've been through," she said. "But it feels to me that they aren't feeling the same for the rest of us going through this same thing." "We're facing a situation where other people are putting themselves forward as a priority to the other investors who were duped." Lawyers for the majority of Caddick's victims are now considering suing the auditors that Caddick hired and who were tasked with casting a critical eye over her finances. Given Caddick ran one of the longest frauds in Australian history, not one auditor over the years ever flagged a problem with her financial accounts. Michael Chapman, the lawyer representing the majority of Caddick's victims, is at a complete loss as to how the auditors couldn't have noticed the fraudulent behaviour. "We feel like they've dropped the ball," he told 60 Minutes. "We feel as though there is a good claim that could be brought forward against the auditors." Lawyers will be seeking $15 million from the auditors in a potential court case, and if they succeed, the victims of Caddick's scamming would be close to getting back all of the money they lost. "I don't discount the pain and the suffering that these people have been through to this point," Chapman said. "It would be a silver lining." Image credits: 60 Minutes

Legal

Melissa Caddick mystery officially laid to rest

A corner has revealed missing fraudster Melissa Caddick is dead but it’s difficult to determine when and how she died. Deputy State Coroner Elizabeth Ryan released her findings after a lengthy coronial inquest examined the circumstances surrounding the 49-year-old’s mysterious disappearance. “I believe it’s appropriate at the outset to say I have concluded Melissa Caddick is deceased,” Ryan said as she handed down her findings at the NSW Coroner’s Court in Lidcombe. However, Ryan said it was tricky to make an accurate finding as to how, when and where she died. Caddick disappeared from Sydney’s eastern suburbs in November 2020, hours after her Dovers Heights mansion, which doubled as her place of business, was raided by the AFP and ASIC. The corporate watchdog had accused Caddick of operating a Ponzi scheme and misappropriating $24 million, including from her friends and family, to fund a lavish lifestyle including holidays, designer jewellery, clothing and shoes. The case has sparked a number of conspiracy theories and even inspired a television series. The inquest examined Caddick’s final hours, the actions of her husband Anthony Koletti, and the police investigation. The court heard that Caddick had taken her own life by jumping off the cliff at Rodney Reserve, approximately 500 metres from her home, on the morning of November 12, 2020. Caddick was heard walking out her front door at about 5:30am before disappearing and failing to turn up to a court appearance the following day. However, Koletti did not report his wife missing to the Rose Bay Police Station until 11:45am on November 13 - 30 hours since she was last seen. Amid his evidence, Koletti told the court he was under the mistaken belief he had to wait 24 hours to report someone missing. “Did you delay reporting her missing until that point in order to give her time to try to go somewhere?” Counsel assisting the coroner Jason Downing asked. “No,” Mr Koletti said. NSW Police Sergeant Trent Riley told the court during the inquest that he found it “extremely strange and unusual behaviour” that Koletti had initially told police he did not want them to come to his house or go to the station to make a statement. “I thought it was strange that a husband would ring the police station, report his wife missing from two days ago and wasn’t prepared to come to the police station and didn’t want police to go around and speak with him because he had too much work on that day,” Sergeant Riley told the court. Sergeant Riley also told the court that Koletti provided conflicting versions of when he had last seen his wife alive. He described Koletti as, “evasive, vague and inconsistent”. Colette has been consistently critical of the ASIC investigation. In an affidavit tendered to the court, he claimed he and Caddick were denied food, water and medical attention during the 12 hours when ASIC and AFP were present at their home. However, the court heard that during the raid, Caddick drank a protein shake, Koletti made her several coffees and they occasionally smoked cigarettes in their backyard. In a statement, he said, “I believe (Caddick) died as a direct result of ASIC’s negligence, cruelty and inhumanity.” Despite conceding Caddick was responsible for defrauding millions of investors and that they were allowed to be in their home on the day of the raid, he still maintained ASIC was responsible for her death. In February 2021, a foot washed up on Bourdna Beacon on the NSW south coast which was later identified as Caddick’s. The court had previously heard that Caddick’s shoe was covered in 250g of goose barnacles when it washed ashore. An expert's report stated the barnacle growth suggested the shoe would have been free floating on the surface of the water for three-seven days before washing up. The court heard that it’s possible the shoe drifted on the ocean floor for several months before floating to the surface and onto the beach. Oceanographer Dr David Griffin said that according to calculations using ocean currents, it’s plausible the show went into the water at Dover Heights and was found 400km south three months later. Pathologist Jennifer Pokorny told the inquest in a statement that it was not possible to determine the full extent of Caddick’’s injuries as there were no other remains aside from the decomposed foot. She added it was also not possible to determine a cause of death. Forensic psychiatrist Dr Kerri Eagle told the inquest that after reviewing Caddick’s medical record, along with witness statement, it appeared she had narcissistic personality disorder. She said that for people suffering from the disorder, their self-esteem and sense of well-worth latches onto external admiration and impressing others. Dr Eagle revealed to the court that as a result of being charged, Caddick would have also been in danger of losing her work and the “respect and admiration” of others. She told Ryan that when ASIC raided her home, it was possible it had a “very huge” impact on her self-esteem. “Ms Caddick appeared to experience problems with low mood, depression and anxiety and problems coping with extraordinary stress … the low mood symptoms persisted as long as the stress persisted,” Eagle said. She also noted that people with similar disorders have been known to take their own lives after a “major insult to their self-esteem”. Image credit: Instagram

Legal

Australians lost more than $3bn to scammers in 2022. Here are 5 emerging scams to look out for

The Australian Competition and Consumer Commission’s latest <a href="https://www.accc.gov.au/system/files/Targeting%20scams%202022.pdf">Targeting Scams report</a> indicates Australians reported more than A$3 billion lost to fraud in 2022. This is about a $1 billion increase on <a href="https://theconversation.com/australians-lost-2b-to-fraud-in-2021-this-figure-should-sound-alarm-bells-for-the-future-186459">reported losses from 2021</a>. Year upon year, we’re witnessing a rise in monetary losses to fraud. Behind these figures sit millions of Australians who experience a range of financial and non-financial <a href="https://www.aic.gov.au/sites/default/files/2020-05/29-1314-FinalReport.pdf">harms</a>. Here’s what we’ve learned from the latest report – and some advice on what to look out for in the year ahead. <h2>2022 at a glance</h2> Of the reported $3 billion lost, about half was stolen as part of investment schemes – more than double the $701 million figure from 2021. A desire to invest in cryptocurrency has driven up these losses, with potential investors inadvertently transferring money to offenders advertising a range of falsehoods. Remote access schemes – in which a scammer convinces the victim to grant them access to their computer – jumped into second place, with $229 million in reported losses. This was followed by payment redirection scams (also known as business email compromise fraud). Those who reported directly to Scamwatch lost an average of $19,654 – an increase of 54% from the $12,742 reported in 2021. The report also shows not all victims are targeted equally; people aged 65 years and older reported the highest losses across all demographics. Indigenous Australians, people with a disability, and those from culturally and linguistically diverse backgrounds were also overrepresented. For the first time in many years, text message was the most popular method for offenders to target victims. And while bank transfers were the most popular way to send funds to offenders, <a href="https://theconversation.com/crypto-theft-is-on-the-rise-heres-how-the-crimes-are-committed-and-how-you-can-protect-yourself-176027">cryptocurrency transfers</a> continue to increase in popularity – rising 162.4% in one year. There was, however, a reduction in fraudulent phone calls. This is likely attributable to the introduction of <a href="https://www.commsalliance.com.au/__data/assets/pdf_file/0015/72150/C661_2022.pdf">regulatory action</a> to block known scam calls. It’s a bright spot in an otherwise dark report. <h2>Trends to look out for</h2> The Targeting Scams report demonstrates the many ways offenders seek to defraud victims. On one hand, people are becoming more aware of common scam tactics. On the other, criminals are adjusting their methods to gain the upper hand. Here are five types of relatively lesser-known frauds everyone should be aware of. 1. Romance baiting Also known as “<a href="https://news.sophos.com/en-us/2021/05/12/fake-android-and-ios-apps-disguise-as-trading-and-cryptocurrency-apps/">cryptorom</a>” or “<a href="https://krebsonsecurity.com/2022/07/massive-losses-define-epidemic-of-pig-butchering/">pig butchering</a>”, this scam is a convergence of investment fraud and traditional romance fraud approaches. The offender first initiates a relationship with the victim – through dating apps, websites or social media platforms. Once they’ve established trust, they encourage the victim to put their money into an “investment” opportunity, often cryptocurrency. The victim will then unknowingly transfer their money to the offender, who is under a different guise. This kind of romance baiting raises fewer red flags than directly asking for money, and is targeting a younger demographic compared to more traditional romance fraud. Such deceptions are coded under investment schemes. This is likely driving the surge in investment scheme losses reported in recent years, while also accounting for a lack of substantial increases in romance fraud. 2. Online shopping fraud Offenders are skilled at creating fake websites and product advertisements that look genuine. Often these fake sites will have only subtle differences from their real counterparts. Consumers may not be able to tell the difference. Criminals can directly access funds through victims’ credit card details obtained on these sites. Online shopping fraud targets a range of demographics. It’s happening on stand-alone websites, social media platforms and online marketplaces. 3. Jobs and employment fraud <a href="https://research.qut.edu.au/centre-for-justice/wp-content/uploads/sites/304/2022/02/Briefing-Paper-Series-Feb2022-Issue21-17022022.pdf">Research</a> has indicated that working from home and flexible working conditions are strong indicators of a fraudulent job listing. But in a post-COVID world, flexibility at work is often a key criterion for job seekers, if not a deal-breaker. Offenders have noticed this, and are responding by posting attractive job advertisements that offer flexibility and high incomes. Victims submit their CVs and personal credentials (setting themselves up for identity crime), or may be required to pay upfront for training or materials costs for a job that doesn’t exist. Employment scams are targeting younger people in particular, as they’re more likely to have <a href="https://australiainstitute.org.au/report/youth-unemployment-and-the-pandemic/">experienced job loss and insecurity</a> in the wake of the pandemic. 4. Recovery schemes Many fraud victims will want to take whatever action possible to recover lost funds. To exploit this, offenders will trade the details of victims with each other. They will then pose as authorities (often law enforcement, banks or private agencies) who are aware of the victim’s circumstances and promote their ability to regain the missing funds for a fee. In this way, victims who are desperate to recover losses are manipulated into paying even more money to offenders. 5. Remote access schemes Receiving a phone call from a computer technician advising of a problem with your computer and offering to fix it is a common experience for many. While this approach isn’t new, it made a strong resurgence in 2022 – particularly targeting older people. These scam calls often come through landlines and prey on people’s fear for the security of their bank details and other personal data. The fraudsters often invoke a sense of urgency about needing to rectify the “problem”, and victims are persuaded to give the offender remote access to their computer. The criminal can then access a wealth of personal information. They can gain direct entry to bank accounts to transfer funds, and can access identity credentials and other sensitive details to commit identity crime in the future. <h2>Change is needed to protect the public</h2> The threat of fraud will only increase alongside technological evolution. Experts are concerned about artificial intelligence tools such as <a href="https://www.theguardian.com/technology/2023/mar/08/darktrace-warns-of-rise-in-ai-enhanced-scams-since-chatgpt-release">ChatGPT</a> and image and video generators giving cybercriminals yet another tool to add to their arsenal. The latest Scamwatch report is further evidence banks and financial institutions need to implement measures to help reduce fraud losses; among these, the checking of account names against BSB numbers for all transactions. The UK has a <a href="https://www.ukfinance.org.uk/policy-and-guidance/guidance/confirmation-payee">confirmation-of-payee</a> policy that does this. The government is attempting to address the continued surge in fraud losses through the revision of its <a href="https://www.homeaffairs.gov.au/about-us/our-portfolios/cyber-security/strategy/2023-2030-australian-cyber-security-strategy">cybersecurity strategy</a> and the potential establishment of a <a href="https://consultation.accc.gov.au/accc/national-anti-scams-centre-survey/">National Anti-Scams Centre</a>. These are both positive steps but it’s clear there’s a need for more work to be done. Image: Getty This article originally appeared on <a href="https://theconversation.com/australians-lost-more-than-3bn-to-scammers-in-2022-here-are-5-emerging-scams-to-look-out-for-204018" target="_blank" rel="noopener">The Conversation</a>.

Money & Banking

William Tyrrell's foster parents charged with property fraud

William Tyrrell's foster parents are facing charges of property fraud, after being accused of getting someone to make "dummy bids" at an auction in Sydney. The couple, who cannot be named for legal reasons, will each face one count of dishonestly obtaining financial advantage by deception and will face court in October. They have been accused of getting a person to deliberately make fake bids on a property in December 2020, in order to unfairly drive the price up. These charges have no relation to the case of their missing three-year-old foster child, who was last seen wearing a Spider-Man suit in the garden of his foster grandmother's home in Kendall on the NSW mid-north coast in 2014. "Strike Force Rosann detectives issued Future Court Attendance Notices (FCAN) to a 55-year-old man and a 56-year-old woman," police said in a statement. "It will be alleged in court the pair organised a third party to falsely bid for a property at an auction in December 2020." The maximum penalty for dishonestly obtaining financial advantage by deception is 10 years in prison. Image credits: Shutterstock / NSW Police

Legal

Top tips for avoiding scams

Falling victim to a clever scam artist is something we all fear! With these top tips we show you how to avoid getting ripped off. Statistics show that unfortunately older Australians are often the target of scam artists looking to make a quick buck off someone else’s hard-earned cash. They’ve had help. With technology evolving and more people going online to pay bills, communicate with friends and family, and to find love, there have been a number of reported cases of people sending money overseas or elsewhere never to see it again. However, there are ways to outsmart those who would try to trick you out of your retirement savings. What to look out for Financial fraud can come in any form. It can be an email from a stranger asking for a donation to a charitable cause or a phone call promising a once-in-a-lifetime investment opportunity. However, as the saying goes, if it sounds too good to be true, it’s because it probably is. According to the Australian Competition and Consumer Commission’s (ACCC) SCAMwatch site, a one-stop information shop on how to recognise, avoid and report scams, almost everyone will be approached by a scammer at some stage in their life. That’s a scary pronouncement, but one that’s very much evident in the growing number of stories of people who have fallen victim to a scam. While some scams are easy to spot, others appear to be genuine offers or bargains. There’s a number of different types of scams too, from investment and superannuation scams to ones involving your bank or credit card. It can even look as innocent as a supermarket customer satisfaction survey. At the end of last year, the ACCC spread the news of a fake Woolworths’ customer satisfaction survey, which asked shoppers for their bank account details in exchange for a $150 gift voucher. Scammers sent the survey out mostly via social media or email, and asked people to complete all of the questions before saying they could claim their voucher. However, when people did try and claim the voucher, they found it was fake. “Scammers impersonate well-known businesses to get their hands on your personal details,” ACCC deputy chair Delia Rickard said at the time. “Once you have unknowingly sent your details to a scammer, they can steal your money – and possibly even your identity.” Warning signs Scams can target people of all backgrounds, ages and income levels. The reason many people fall victim to a scam is because they look like the real thing. They could look like a legitimate business email or letter, with logos, contact details and genuine information that could be targeting a specific need or desire. It’s not until you dig a little deeper that you find something is not right. Scammers can also manipulate you by “pushing your buttons”, according to the ACCC, to get an automatic response. This is not based on you personally but on how society works as a whole. It’s not until after you have acted in the way they want that you find something is wrong. The best way to spot a scam is to be vigilant and cautious, especially when it comes to giving out personal details over the internet or the phone. Most scams will need you to do something before they can work. It may ask for your bank or credit card details, or for you to send money based on a promise of significant financial reward that turns out to be false. Some scams also rely on you to agree to deals without getting advice first or to buy a product without properly looking into it. Don’t be a victim The first step in protecting yourself against scams and other forms of financial fraud is to be aware that it can happen. Some people hold certain perceptions that make them more susceptible to being scammed, such as the belief that all companies or organisations are legitimate or that all internet sites are legitimate. Both are myths. Consumer protection agencies try to weed out dodgy operators before they have an impact, but sometimes one can slip through the net. Most of these fake sites will be taken down after a few days, but that is still long enough for someone to have bought into a dodgy deal or to have provided their bank details to a scammer. The second step is to be cautious and protective of your personal details. This includes your contact details and bank or credit card details. Always seek independent advice before agreeing to any sort of money commitment and remember there are no get-rich-quick schemes. Check your bank statements regularly and if you see a transaction that you’re not sure about or cannot explain, contact your bank or credit union. Also, keep your bank cards and personal identity number safe and secure. Be cautious and question everything. It’s the best approach to make sure you don’t become a scam victim. Image: Getty Images

Money & Banking

Beauty and the Geek star sentenced

A former Beauty and the Geek star has avoided a jail sentence after admitting to stealing several credit cards from clients at bucks parties. Jordan Finlayson, 31, appeared at the Downing Centre Local Court via video link on Wednesday where she pleaded guilty to possession of identity information with the intention of committing fraud. Following an investigation, police found her in possession of several photos of credit cards and NSW drivers licenses of three men from bucks parties she was waitressing at between January 29 and February 2. She was arrested on February 17 where she remained in custody until Wednesday. According to court documents, guests at the bucks parties were told to keep their items in a separate room before heading to the event. Finlayson used the room to change and proceeded to take photos of three men’s credit cards and licenses, <a href="https://www.news.com.au/entertainment/tv/reality-tv/beauty-and-the-geek-star-jordan-finlayson-sentenced-for-credit-card-theft/news-story/3a954e8a70448f25c19ddf70357bbaba" target="_blank" rel="noopener">news.com.au</a> reported. A few weeks after the events, the men began to notice unusual transactions on their cards. One man was informed from Centrelink that he received the $750 in Covid disaster payments and could not lodge his tax return because someone with the same name already filled it in. Another victim saw several transactions for coffee and Uber rides around the city. The former NRL cheerleader initially pleaded not guilty but changed her plea when she found out she was going on trial. The court heard that she was already on parole when she was arrested and had breached her conditions. Her barrister Daniel Grippi asked the court not to give her more jail time and instead get treatment for her drug problem in a rehabilitation centre. Magistrate Alison Viney told the court that the crime Finlayson committed carries seven years’ prison. With that in mind, she sentenced Finlayson to a 12-month Community Corrections order telling her, “I sincerely hope that once admitted to a rehab program your path forward is a much more successful one”. Images: Instagram

Legal

Australians lost $2b to fraud in 2021

Australian consumers and businesses lost more than A$2 billion to scams in 2021, according to the Australian Competition and Consumer Commission’s (ACCC) annual Targeting Scams <a href="https://www.accc.gov.au/publications/targeting-scams-report-on-scam-activity" target="_blank" rel="noopener">report</a> released. This figure should sounds alarm bells – it’s more than double the $851 million reported lost in 2020. The increase in losses was primarily driven by a doubling of investment fraud losses, from $328 million to $701 million, and a substantial increase in payment redirection fraud, from $128 million to $227 million. Scamwatch alone received more than 286,000 reports. So what does the latest report tell us about the current state of play for fraud in Australia? And perhaps more importantly, what can be done? <h2>The rise of crypto scams</h2> Cryptocurrencies have played a major role in fraud losses this year. They’re largely responsible for the surge in investment fraud losses, with many victims being persuaded to invest their funds in fake or non-existent crypto schemes. The request to invest funds in a crypto scheme raises fewer red flags than a request to directly send money to someone. In the former, the victim believes they’re potentially making genuine returns. Cryptocurrencies have become the most popular payment method across all fraud types. This is likely due to the difficulty of tracking crypto payments. Cryptocurrency is also having a significant impact on romance fraud. Romance fraud itself appears steady – with victims reporting $142 million lost in 2021, compared to $131 million in 2020. However, offenders are increasingly using these fake online relationships as a recruitment mechanism for attracting investments in fraudulent crypto schemes. This is known as “<a href="https://www.accc.gov.au/media-release/romance-baiting-scams-on-the-rise" target="_blank" rel="noopener">romance baiting</a>” or “<a href="https://news.sophos.com/en-us/2022/03/16/cryptorom-bitcoin-swindlers-continue-to-target-vulnerable-iphone-and-android-users/" target="_blank" rel="noopener">cryptorom</a>”. <h2>Who are the victims?</h2> Research indicates all demographics are vulnerable to fraud, but not all are equally vulnerable. 2021 saw increased losses for older people, Indigenous Australians, people from culturally and linguistically diverse (CALD) communities and those with a disability. For example, people aged 65 and older reported $82 million lost, up from $38 million the year before. It’s clear the most vulnerable in society are being hugely impacted. Businesses are also being decimated through payment redirection schemes, or “<a href="https://eprints.qut.edu.au/200621/" target="_blank" rel="noopener">business email compromise fraud</a>”. In these cases, offenders infiltrate businesses and intercept payments and invoices from customers and suppliers. This can result in severe financial losses, as seen in the <a href="https://www.abc.net.au/news/science/2022-04-24/scammers-hackers-real-estate-deposit-property-settlement/101000288" target="_blank" rel="noopener">real estate</a> industry. <h2>The ongoing impacts of COVID</h2> The COVID-19 pandemic has been a significant disruptor since March 2020. Lockdowns and isolation requirements have driven a global shift towards online activity. Cybercrime has flourished – and fraud is no exception. The pandemic impacted fraud in several ways. There are COVID-themed frauds targeting Australians, with a focus on <a href="https://www.scamwatch.gov.au/types-of-scams/current-covid-19-coronavirus-scams/covid-19-vaccination-scams" target="_blank" rel="noopener">vaccines</a>, personal protective equipment and <a href="https://www.servicesaustralia.gov.au/text-message-scam-for-free-covid-19-test-kit" target="_blank" rel="noopener">contact tracing</a>. There are also <a href="https://www.choice.com.au/outdoor/pets/products/articles/pet-scams" target="_blank" rel="noopener">pet scams</a> trying to capitalise on people’s desire to purchase furry, four-legged companions. The pandemic also shifted the fraud profile of the Australian population. The continual state of anxiety that has characterised the past two-and-a-half years, coupled with financial and relational strain, has people worn-down. This means fraud approaches that may not have worked prior to the pandemic are now more likely to succeed. And this provides a context to understanding the massive losses in 2021. <h2>What can we expect now?</h2> Despite the magnitude of losses reported, the sad reality is very few of these reports will result in consumers getting their money back. Even fewer will result in a <a href="https://eprints.qut.edu.au/135582/8/ACORN_deidentified_submitted.pdf" target="_blank" rel="noopener">criminal justice outcome</a>. This will leave most victims frustrated and angry with the legal system having not met their expectations. Fraud poses distinct <a href="https://theconversation.com/theres-a-gap-between-what-people-expect-when-they-report-cybercrime-and-what-police-can-deliver-102781" target="_blank" rel="noopener">challenges for police</a> and other agencies. Offenders don’t use their real identities and will often commit offences across multiple jurisdictions, making it difficult to catch and prosecute them. Disruption and prevention are the key to making any inroads in reducing fraud losses. This is challenging work, and arguably more must be done given the recent escalation in losses. <h2>A collective responsibility</h2> It’s important to remember that behind the statistics are individuals who have lost money and, in many cases, suffered considerably. The impact of fraud isn’t restricted to financial loss; it reverberates across the physical, emotional and relational aspects of our lives. Prevention advice for individuals is to remain vigilant, ask questions and do their own research. Having strong passwords and up-to-date software are important, but will do little to deter a motivated offender. Fraud is largely a human problem. So we need to better understand the psychological techniques used by offenders and develop targeted ways to fight back. It’s also time the government took fraud more seriously and invested resources and expertise into reducing losses to individuals, businesses and society at large. Australia currently has no current co-ordinated fraud strategy to mitigate, prevent or respond to losses. There is a clear need to develop better education and prevention materials that account for the diversity in victimisation. Knowing that certain demographics are more likely to be victimised highlights the need to create resources tailored to these individuals. The latest ACCC report should be an unmissable warning sign. On its current path, Australia is headed for even greater losses than the $2 billion mentioned above. At what point will we finally act? This article originally appeared on <a href="https://theconversation.com/australians-lost-2b-to-fraud-in-2021-this-figure-should-sound-alarm-bells-for-the-future-186459" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Money & Banking

Melissa Caddick’s husband claims millions in jewels, cars, homes and assets

Melissa Caddick’s husband, Anthony Koletti, has lodged a claim indicating that he is entitled to a significant share of the multi-million dollars worth of cars, houses, artworks and jewellery left by the missing Sydney woman. After it was <a href="https://www.oversixty.com.au/finance/money-banking/melissa-caddick-s-hidden-millions" target="_blank" rel="noopener">revealed</a> that Caddick had misappropriated $25 million of investors' funds in a Ponzi scheme via her company Maliver Pty Ltd, court proceedings were begun in November 2020 by the corporate watchdog in order to return the vast amounts of swindled money to investors. These proceedings remain underway. Mr Koletti has now filed a statement in Federal Court as an interested party, claiming that he is entitled to matrimonial property including $2 million of clothes and jewellery, $7 million worth of shares, proceeds from $360,000 of cars that have been sold, as well as two homes in the multi-million dollar price range. Mr Koletti also claims entitlement to personal property that includes five valuable John Olsen paintings, a Louis Vuitton watch, a Gucci wedding dress and several more pricey items of white-gold jewellery – including a $33,960 diamond ring set by Sydney fine jewellery designer Canturi and his own $26,500 wedding band. According to court documents, Mr Koletti’s claim was based on his “financial and non-financial contributions” to the relationship since his December 2013 marriage to Caddick. Mr Koletti’s basis for the claims rest with the fact that he used up almost all of his income and assets to support Caddick and her son during their marriage, and that furthermore that since Caddick’s disappearance he has personally paid around $500 a week to care for her child. The claim went on to state that “due to the extensive media coverage relating to the Defendant’s disappearance, the time taken by legal proceedings and Mr Koletti’s grief, he has not been able to secure gainful employment in his usual trade other than casual hairdressing services and some income from <a href="https://www.oversixty.com.au/entertainment/music/melissa-caddick-s-husband-releases-album-about-her-disappearance" target="_blank" rel="noopener">his music</a>.” Mr Koletti’s court filing comes ahead of an inquest set for September, which will further probe the <a href="https://www.oversixty.com.au/finance/legal/wild-theories-over-melissa-caddick-disappearance" target="_blank" rel="noopener">mysterious disappearance</a> of Caddick. Image: Supplied

News

Flight attendant caught using dead man’s identity for 20 years

A Brazilian flight attendant has been accused of stealing a dead boy’s identity and using it for more than 20 years. Ricardo Cesar Guedes, 49, who works as a flight attendant for United Airlines, has been accused of stealing the identity of William Ericson Ladd, an Atlanta boy who died in a car crash in Washington in 1979. He allegedly used it to apply for a passport in 1998, and has renewed the document six times since then. In addition, he has also been accused of using Ladd’s identity while getting married and taking out a mortgage in Houston. There is no record of him applying for US citizenship or naturalisation using the false identity. Investigators uncovered Mr Guedes’ real identity by comparing fingerprints he submitted for his Brazilian national identity document in the 1990s, and he was arrested at Houston Airport in September after entering a secure area for crew members. William Ladd’s mother Debra Lynn Hays confirmed to investigators last July that her son died in 1979, and she did not recognise the social security number issued to Mr Guedes in her son’s name some 17 years after his death. Mr Guedes has been charged with aggravated identity theft, making false statements on a passport application, and other counts. He allegedly worked on 40 flights for United Airlines in 2020 while using Ladd’s name, and remains detained pending trial. A United Airlines spokesperson confirmed his prior employment, but added that he was no longer employed by the company. Mr Guedes had no prior criminal record, and upon being presented with evidence of his fraud, reportedly told the arresting agents, “I had a dream, and the dream is over. Now I have to face reality.” Image: Eric Ladd/Twitter

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