Category: Scams

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Australia Cryptocurrencies Scams

Sydney-based Businessman Owns Up To Crypto Scam Worth Tens Of Millions

Running a firm specializing in private security, promoting concerts at the Sydney Opera House, and owning a sizable real estate portfolio – all respectable ventures that would lend an aura of trust to anyone. Unfortunately, it would appear the trust of nearly 150 Sydney residents was misplaced.

Ponzi Scheme

Back in 2017 during the cryptocurrency boom – Mr. Harpreet Singh Sahni started hosting seminars on cryptocurrency, claiming that “crypto is the safest investment possible.”, as reported by ABC News.

He also allegedly started advertising a cryptocurrency called Plus Gold Union Coin – and claimed the cryptocurrency was netting him between $5000 and $8000 a day.

Early adopters and investors are rumored to have been rewarded with huge commissions and expensive holidays for attracting even more investors. Coupled with the seemingly trustworthy nature of Mr. Sahni, news of the cryptocurrency spread rapidly.

Within a few months, investors across 22 countries had poured over $50 million into the cryptocurrency scam.

Mr. Sahni claimed that by depositing around $7000, investors could earn over $100,000 in a year.

However, in order to reap the large rewards, investors would have to lock into a contract that would not permit them to withdraw funds for 12 months.

Unfortunately, the PGUC website would go down for several weeks at a time – and when the crypto market crashed suddenly in December of 2017, users were understandably worried.

At the time, Mr. Sahini assured investors that everything was under control and that their assets were safe. Later on, he admitted he had taken advantage of close acquaintances to widen the scope of the project.

According to an investor whose name has been withheld – who had known him for  15 years – the $38,000 she had invested  together with her parents were invested with full confidence.

“We’ve always heard great things about him in terms of his ability to do charity or his ability to do service for God or for people.”

The investor admitted that she should probably have done more research before investing.

 After leaving investors in a sea of worry, August 2019 brought the news that Mr. Sahni had been arrested by New Delhi Police, following a complaint placed by Sydney real estate agent Rajiv Sharma.

Mr. Sahni has since stated in three written confessions that he had been approached by 3 men in early 2017 – who told him it was a scam – but he went with the plan anyway.

On the 25th of November, Mr. Sahni will appear in court – and face a maximum sentence of 25 years, if convicted.

Categories
Australia Crypto News Cryptocurrencies Scams

Dick Smith Entangled in Another Crypto Scam Advertised on Major News Platforms

Australian entrepreneur Dick Smith has once again been targeted by cryptocurrency scammers using his reputation and likeness to push fraudulent crypto investment offers — this time, though advertisements published on major news platform The Guardian Australia.

Advertisements published via The Guardian’s Australia-specific news outlet alongside additional ads published on aviation website pprune.org have used Smith’s image and likeness in order to defraud would-be cryptocurrency investors through scam offers and unregistered investment schemes.

Crypto scammers using Smith’s image to push fraudulent investment offers isn’t new — the entrepreneur’s likeness has been used to promote scams to often that the Australian adventurer and business icon has formally distanced himself from cryptocurrency investing via Twitter.

Other Australian celebrities impersonated by crypto scammers include David ‘Kochie’ Koch, Michael Rowland, Karl Stefanovic and Virginia Trioli.

Dick Smith Legal Team Strikes Out at The Guardian

The fraudulent advertisements published via The Guardian linked readers to fake news articles that presented fake quotes by Smith, stating that the entrepreneur invested in cryptocurrencies. The Australian reports that Smith’s legal team has approached The Guardian, instructing the news platform to remove the ads and ensure that any offending advertisements are not published by The Guardian in future. 

“Mr Smith is determined to ensure the cryptocurrency scam promptly comes to a permanent end … While we acknowledge that The Guardian Australia does take the fraudulent advertisements down once notified, that does not prevent your Australian readers from falling victim to this prolific cryptocurrency scam”

The fraudulent advertisements are associated with criminal syndicates, and typically present images of Smith’s face alongside Australian flags or associated imagery with the text “D. Smith scared Australian banks, he told how to make money easy (sic)” or “get rich in a few days; this method has helped thousands of Australians”.

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Australia Bitcoin Cryptocurrencies Scams

Anglicare Sydney Held to Crypto Ransom Over Data Hack

Australian not-for-profit Anglicare Sydney has confirmed that it is currently being held ransom for cryptocurrency due to a large data leak caused by hackers that have stolen a significant amount of sensitive personal information from their computer systems.

Anglicare Sydney manages records for a wide range of healthcare services, including adoption, foster care, counselling, and mental health services. The not-for-profit has announced that over 17 gigabytes of data was hacked and sent to a remote location on August 31 in a malicious cyber track.

The hack represents a significant data loss, as Anglicare Sydney is currently contracted by the NSW Department of Family and Community Services to provide both adoption services and foster care, as well as a series of programs designed to assist vulnerable families and at-risk youth.

In a statement released regarding the hack, Anglicare Sydney noted that the main system relating to Anglicare Sydney’s Out of Home Care Program, which includes the foster care program, was not impacted. 

Signals Directorate Confirms Crypto Ransom Demands

The hack is currently under active investigation by the NSW police, who have stated that they are conducting inquiries. Notably the Australian Signals Directorate — Australian government’s intelligence, cyber warfare and information security agency — confirmed that it is currently working alongside Anglicare Sydney to investigate the hack, highlighting the fact that the hackers are demanding cryptocurrency as a payment method.

“Ransomware can cripple organisations that rely on computer systems to function by encrypting all connected electronic devices, folders and files and rendering systems inaccessible. Cybercriminals will then demand a ransom in return for the decryption keys, often in the form of untraceable cryptocurrencies such as Bitcoin.”

Anglicare Sydney has announced that it will refuse to pay a ransom or engage with cyber criminals.

Categories
Australia Cryptocurrencies Cryptocurrency Law Scams

Online Romance Cryptocurrency Scams On The Rise

Scams carried out by means of romantic attraction are one of the oldest tricks in the book – but reports from the Financial and Cyber Crime Group reveal that many fraudsters have modernized their methods.

Investigators have reminded Australians to stay vigilant to online romance scams, following a spike in complaints involving cryptocurrency-related fraud – many of which start on online dating platforms.

The Financial and Cyber Crime group has investigated more than 70 complaints from victims over the last six months –some Queensland victims have lost several hundred thousand dollars.

Criminal Organizations Seem To Be The Culprits

The ASIC has reported that from March through May of 2020, the rate of online scams involving cryptocurrency has increased by 20%. These scams follow a generally predictable pattern.

First of all, a romantic partner or even a simple acquaintance tells an unsuspecting victim how they made money on a certain trading platform and encourages them to deposit as many funds as possible. Reassuring the client that it is perfectly safe to trade – since blockchain transactions cannot be faked – the bad actor gains the victim’s trust.

The catch, however, is that the platforms the victims are directed to are actually fake and do not deal with cryptocurrencies. Once the new user starts trading, the user is shown fake data to convince them that they are turning a profit.

Eventually, the user is shown more fake data showing trading losses, despite the fact that there is either no trading taking place – or the devaluation of the cryptocurrency imitated by the platform is nowhere as severe.

Once a victim tries to withdraw whatever funds they have left, the bad actor either suddenly cuts off all contact or requests more money in order to release the remaining funds.

The targets also often become victims of identity theft or data mining, carried out through the usual methods – however, due to the nature of cryptocurrency trading platforms, it does not look out of place for the fake website to request a photo of an ID card and a selfie in order to perform KYC.

The ASIC suggests all traders employ caution and use their better judgment. Before engaging in cryptocurrency trading, always make sure that the platform you are trading on is legitimate. For an in-depth list of measures you can take to stay safe while trading cryptocurrencies, you can check out our article on the subject. 

Categories
Australia Crypto Debit Cards Scams

ASX-Listed Fintech Giant to Buy Australian Wirecard Assets After Crypto Card Platform Collapse

A US-based fintech enterprise listed on the ASX has announced a bid to buy Wirecard’s Australian and New Zealand businesses subsequent to the collapse of the international cryptocurrency debit card company in June this year.

Change Financial, a US-based fintech company, has announced that it recently entered into a binding agreement that will see it acquire all of the business assets of Wirecard in both Australia and New Zealand for a total cost of $7.8 million.

Wirecard, which promised worldwide crypto-powered debit cards, collapsed in June after revealing that €1.9 billion in company assets did not exist. The payments company, originally based in Germany, was operating as a major crypto debit card issuer, until financial strife revealed poor bookkeeping and fictional assets.

Controversy regarding Wirecard began on June 18, when Ernst & Young auditors reported that more than $2 billion that was supposed to be held by Wirecard in Philippines-based accounts did not exist. The CEO of Wirecard, Markus Braun, was subsequently arrested on August 23, with Wirecard filing for insolvency on June 25.

Ernst & Young global chairman Carmine Di Sibio released a statement via a letter distributed to senior executives this week, expressing regret that Wirecard’s fraud was not identified sooner.

“Many people believe that the fraud at Wirecard should have been detected earlier and we fully understand that. Even though we were successful in uncovering the fraud, we regret that it was not uncovered sooner.”

Change Cashes in on Wirecard Assets

Change Financial, however, is cashing in on the controversy surrounding the now-defunct card provider, purchasing all of Wirecard’s business assets in both Australia and New Zealand for less than $8 million. 

The strategic acquisition includes a blue chip client base that includes Australia’s Big 4 Banks, an estimated $15.4 million in revenue for the 2020 financial year, and partnerships with Visa, Amex, UnionPay, and Diners. 

Change has stated that it aims to upgrade and expand upon Wirecard’s existing platform in order to expand into the US market over the next 12 months. 

Categories
Cryptocurrencies Cryptocurrency Law Scams

Australian Federal Police Loot Cryptocurrency, Homes, Luxury Goods from Gangsters

The Australian Federal Police has executed a series of initiatives designed to decentralize organized crime syndicates away from ill-gotten goods, confiscating cryptocurrency hoards, designer goods, luxury cars, and homes in a new policing effort.

The latest AFP campaign against criminal syndicates has seen Federal Officers confiscate designer handbags and other luxury assets from the wives and girlfriends of criminals, along with significant cryptocurrency holdings. 

In statements released to Australian news media, AFP Criminal Assets Confiscation national manager Stefan Jerga announced that the AFP is actively targeting all forms of currency possessed by criminals, along with goods, vehicles, and real estate. 

“We come after all their assets. Whether it be the roof over their heads, their modes of transport and recreational toys, moneys in their possession or bank accounts, or the watches, bags and shoes they parade, we target it all,”

Elaborating on the focus of the confiscation program, Jerga specified that the efforts of the AFP are designed to disrupt organized criminal activity, causing maximum damage to the criminal environment. 

AFP Captures Hundreds of Millions in Criminal Assets

To date, the AFP-led Criminal Assets Confiscation Taskforce has confiscated and restrained over $250 million in criminal assets both in Australia and abroad. Confiscated assets include real estate, luxury vehicles and watercraft, high end jewellery such as diamond-encrusted luxury watches, and cryptocurrency.

Seized cryptocurrency amounts to a significant store of capital for the Australian Federal Police. 

In January 2018, for example, members of the Criminal Assets Confiscation Taskforce and Criminal Assets Litigation teams in Brisbane successfully restrained the Bitcoin of a suspect under the Proceeds of Crime Act 2002 (Cth) — seizing the cryptocurrency assets of an arrested individual that were, at the time, worth $7300.

By November, 2018, the individual in possession of the Bitcoin agreed to forfeit the Bitcoin holdings. The interim price rise in the value of the asset saw the cryptocurrency hoard increase in value to approximately $154,000.

More recently, a December 2019 drug bust led Australian Federal Police Officers to a record cryptocurrency seizure,  with police forces capturing “millions of dollars” worth of physical property and over $1.5 million dollars worth of cryptocurrency. 

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Bitcoin Crypto Exchange Cryptocurrencies Scams

Australian Crypto Traders Hit With Barrage of Bitcoin Scam Emails

Australian cryptocurrency and traders are receiving higher amounts of Bitcoin and crypto-related scam emails than ever before — despite the best efforts of the Australian Federal Police and a new international anti-scam initiative.

The latest flood of Bitcoin scam emails targeting Australian cryptocurrency holders and investors take a “traditional”  approach to defrauding targets out of their crypto holdings, promising foolproof investment schemes, fraudulent payment claim phishing emails, and nonexistent bonus programs aimed at capturing financial details from unsuspecting recipients. 

Bitcoin Email Scammers Use Leaked User Data

Phishing and payment claims scams are nothing new in the world of cryptocurrency — Australian predictive email security platform MailGuard published a warning in December 2019 warning Aussies of a cryptocurrency focused extortion scam fueled by multiple large scale data breaches. 

Cryptocurrency scammers use data leaked in hacks that, in many cases, provides fraudsters with names, email addresses, and other personal information. A major cryptocurrency exchange leak in November 2019 saw the BitMEX exchange, for example, saw a vast amount of user email addresses leaked through negligent misuse of mass-email practices in an event described by crypto-focused lawyer Jake Chervinsky as “outrageously incompetent”

A more recent data leak saw a large portion of the users of cryptocurrency exchange Poloniex notify customers that their email addresses and passwords had been leaked, resulting in widespread distribution of scam emails taking advantage of the event.    

Aussies Targeted by Bitcoin Sextortion Scam

The new wave of crypto scam emails targeting Australian traders reflects a recent rise in scammers focusing on Australian traders. Earlier this year, the Australian Cyber Security Center published a notification warning Australians of a new “sextortion” campaign in which scammers threaten to release personal or sensitive information unless paid in Bitcoin.

The Australian Federal Police has taken a hardline approach to combating international cryptocurrency scammers, recently distributing AFP officers around the world in order to target criminals in Eastern Europe, Nigeria, and Brazil. 

While the scam emails presented in this email article are all marked as spam by email filters, cryptocurrency holders are reminded to maintain a vigilant stance toward email-based cryptocurrency spam. 

Categories
Australia Blockchain Scams

Bitcoin Bust Leads Queensland Police to Serial Scammer Peter Foster

Serial scammer Peter Foster was arrested on Thursday by Queensland police officers in relation to a multi-million dollar international sports betting scam. Bitcoin transactions have been identified as key evidence used by international cybercrime investigation and asset recovery IFW Global to implicate Foster in the scheme. 

Foster, a convicted conman who has served multiple sentences for fraud worth millions of dollars in damages in Australia, the United Kingdom, the United States of America and Vanuatu, was identified using a currency whose trail cannot be erased no matter how hard one might try – Bitcoin.

Foster allegedly established a company named Sports Predictions, offering gambling services and receiving sporting bets — which, complaints state, were never placed. This company attracted plenty of high rolling bettors – including an as yet undisclosed Asian businessman who claims to have lost around two million dollars in bets that were never placed.

IFW Global’s investigation into Foster’s alleged betting scam indicates that Foster may have received over $2 million in payments for bets that were never executed, with funds diverted and laundered in NSW. Statements issued by the NSW police indicate that the state police force will apply for Foster’s extradition to NSW and expects to charge the sports betting platform operator with multiple fraud offenses. 

Serial Scammer Identified Through Blockchain Records

Transactions made through a blockchain are irreversible and visible to anyone, allowing investigators to trace the transaction in order to discover an attempt at laundering the money through New South Wales.

Information passed through Queensland Police by IFW global included an attempt made by Foster to purchase a luxury moto yacht for over $1 million AUD, along with Bitcoin transaction data provided by an unnamed IFW client to private investigator Ken Gamble, chairman of IFW Global.

The use of blockchain technology to identify and arrest criminals is a growing trend, with Australian federal police now able to access deeper and more detailed information regarding cryptocurrency transactions. 

New initiatives launched by the Australian Federal Police will see officers posted around the world in order to establish a global net aimed at eliminating international scammers. More recently, a 52-year old Sydney woman was arrested for laundering over $5 million in cryptocurrency — the Australian Government’s new $1.6 billion cybersecurity strategy aims to eliminate scammers and cryptocurrency fraud both from within Australian borders and abroad. 

Categories
Australia Crypto Exchange Crypto News Scams

Australian Crypto Exchange ACX.io Under Scrutiny from Crypto Community as Possible Exit Scam

ACX, boasted as Australia’s “most liquid Bitcoin exchange,” has come under fire multiple times this year from concerned cryptocurrency traders and platform users who report that they are unable to withdraw funds.

Discussions on popular media platform Reddit concerning the trading platform note that many users claim to be unable to withdraw cryptocurrency funds, citing empty public hot wallet addresses and complaints filed with the Australian Financial Complaints Authority (AFCA).

ACX.io was ejected from the Blockchain Australia industry body subsequent to an internal disciplinary process. The trading platform, supported at launch by Blockchain Global Limited (BGL), is currently the target of a group of cryptocurrency users that plan to file a class-action lawsuit against key stakeholders of ACX.io, including Sam Lee, Allan Guo, and Wenyong Huang. 

Concerns of ACX Exit Scam Increase

Traders and cryptocurrency investors active on the ACX trading platform have remained vocal on social media throughout 2020, claiming that the Melbourne ACX office is “completely deserted.”

In January 2020, the exchange was subject to an “audit” announced on the website, which stated that withdrawals were “temporarily disabled”

“Dear ACX customers we are going through the audit process with ACX hot and cold wallet. During this time, the deposit and withdrawal functions will be temporarily disabled.”

Blockchain Global Will Pay for Legal Action on Behalf of Customers

In March 2020, Blockchain Global published an announcement announcing that it had received multiple complaints regarding the ACX platform, noting that ACX was launched with the assistance of accelerator funding during an incubation period, which ended in December 2017. 

All wallet management thereafter, according to the Blockchain Global Statement, was handled by a “Blockchain Tech PTY LTD” a company established in March 2017 owned by “Blockchain Jet PTY LTD.” Blockchain Global, states the announcement, has had no access to customer funds or exchange operations, and had not received any shareholder updates or management visibility up to the date of the announcement.

Interestingly, Blockchain Global stated in the same announcement that if ACX were unable to deliver a timeline in which all withdrawal requests could be met or a litigation process to reveal contracts between specific stakeholders could not deliver transparency, Blockchain Global itself would fund legal fees for the liquidation of all related entities in order to return customer funds. 

Categories
Australia Bitcoin Scams

Netwalker Crypto Ransomware Threat Widespread in Australia

New data published by international cybersecurity platform McAfee reveals that the highly prolific Netwalker ransomware, which encrypts the files of victims and demands ransom in Bitcoin, is highly active in Australia.

A report published by McAfee indicates that the activity of the advanced ransomware threat has increased over Q2 2020, developing a complex ecosystem of affiliates and gangs that are earning millions. 

McAfee data reveals the global prevalence of the NetWalker ransomware.

The Netwalker threat was first identified in August 2019, with several variants of the original ransomware tool subsequently appearing around the world. Microsoft’s Threat Intelligence Protection platform isused a warning in April 2020 that Netwalker was used to attack a variety of healthcare and critical service providers around the world.

Interestingly, Netwalker provides victims with access to human operators in order to negotiate ransoms and guide affected individuals through the decryption process after paying their ransom. Groups using the Netwalker ransomware also threaten to exfiltrate sensitive victim data and publish it online if individuals do not pay ransom fees in Bitcoin. 

Aussie Aged Care Providers Hit By Ransomware Data Breach

Netwalker isn’t the only ransomware threat to hit Australian in 2020 —ASX listed aged care provider lost a significant amount of data to overseas-based ransomware platform Maze earlier this week, with the company announcing that it had suffered a breach that saw the hackers copy “some data from (the) IT system and release certain personal data publicly.”

The attack prompted a response from the ACSC on Sunday, highlighting the importance of remaining vigilant against ransomware threats — especially in the aged care and healthcare sectors:

“The Australian Cyber Security Centre (ACSC) is aware of recent ransomware campaigns targeting the aged care and healthcare sectors. Cyber criminals view the aged care and healthcare sectors as lucrative targets for ransomware attacks.”