In 2022 we were lucky to have some of the team from Hume Bank pop into our Albury office to deliver a seminar on Financial Crime.
So, what exactly is Financial Crime? It refers to all crimes that involve taking money or other property that belongs to someone else, to obtain a financial or professional gain.
Financial crime is not victimless and has a serious economic impact on the community. It deprives the community of funding for essential services such as health, education and infrastructure.
Financial crime also has significant direct impacts on individuals and businesses.
Examples can include:
– Cyber criminals who steal people’s life savings or identities
– Companies which are deliberately liquidated, wound up or abandoned (referred to as illegal phoenix activity) before they can pay creditors such as the ATO, honest businesses or subcontractors
– Organised criminals who orchestrate illicit growing operations, robbing our community of millions in revenue and taking business from legitimate retailers.
In most cases there is a toll on victims’ emotional wellbeing, physical health and relationships as well.
The Mum & Dad Scam
A text message scam dubbed the “Mum and Dad” scam cost Australian residents more than $2 million in 2022.
The scam usually involves a scammer messaging a parent on WhatsApp claiming to be their child and asking for money or to pay a bill.
Here are some tips to help you spot a similar scam:
– Scammers may pose as family and friends to gain instant trust
– It’s usually an unexpected and urgent message from someone claiming they have a new number or new bank account and need your help with a money transfer – if this happens, call them directly on their usual number to confirm
– Never transfer money or hand over credit card details to anyone without first confirming in person & triple checking details
From January to mid-July 2022, more than 600 reports about the scam were made to the Australian Competition and Consumer Commission (ACCC).
Legally, it can be hard to prevent these types of scams and recover funds. Scammers may have accessed your details in a security or privacy breach or by hacking your loved one’s electronic device.
Victims who have sent money or given credit card details should contact their bank or credit card provider immediately to try to stop the transfer or ensure there are no unauthorised withdrawals from their credit card.
The Invoicing Scam
Another common scam is known as the ‘invoicing scam’ targeting business owners online. Also known as a payment redirection scam or business email compromise.
Using information they have obtained by hacking your computer systems or impersonating another business representative, a scammer will tell you that their banking details have changed in order to trick an employee, customer or vendor into transferring money or sensitive information. They may tell you they have recently changed banks, and may use stolen letterhead and branding to convince you they are legitimate. They may even use fake email addresses or websites that look legitimate and provide you with a new bank account number, asking that all future payments are processed accordingly.
These business email scams cause businesses significant financial damage, accounting for 63% of all business losses reported to Scamwatch. The average loss is nearly $30,000!
Check out these tips from Cyber.Gov.Au for more information here.
Social Media Copyright Infringement Scam
A “copyright infringement” scam on social media platforms such as Instagram is another popular scam. In the past, many Instagram users, including well known influencers and celebrities, have fallen victim to a clever phishing scam citing “copyright infringement.” The scam message sent via PM purports to be from the “Instagram Help Center.”
It then directs users to a “Copyright Appeal Form” prompting users to input personal details, including their Instagram passwords.
If you see receive this message – don’t follow the links! Report it as a phishing attempt on Instagram.
Copyright/IP infringement IS an issue across social media and this is something we regularly share information on across our social media platforms.
A Final Word:
Like any crimes, financial crimes are diverse in nature, scale and the amount of harm they cause. They are often structured in ways that combine legal and illegal transactions and payments, trying to make it difficult to unravel the full extent of the illegal activities.
Whether financial crime threats originate in Australia or offshore they are usually enabled by facilitators and technology. For example, rapidly evolving technology and platforms help cyber criminals access information and sensitive data, making it easier for them to commit crimes against:
– Individuals
– Businesses
– The government
For more information, head to the ATO here.
If you need assistance with any Financial Crime matters, contact our office by heading to our contact page here.
