Search

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

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

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

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

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

Travel Trouble

Convenient but susceptible to fraud: Why it makes sense to regulate charitable crowdfunding

Within 24 hours of <a rel="noopener" href="https://theconversation.com/why-the-southern-us-is-prone-to-december-tornadoes-173643" target="_blank">devastating tornadoes striking six states</a> in December 2021, Kentucky Gov. Andy Beshear launched the <a rel="noopener" href="https://secure.kentucky.gov/formservices/Finance/WKYRelief" target="_blank">Team Western Kentucky Tornado Relief Fund</a>. That the leader of the state this disaster hit hardest would immediately tap into <a rel="noopener" href="https://www.councilofnonprofits.org/tools-resources/crowdfunding-nonprofits" target="_blank">crowdfunded charity</a> – raising money from the public directly – to complement relief dollars from official sources should come as no surprise. Crowdfunded donations have become a key source of disaster assistance – and often raise significant sums. In 2017, for example, football star J.J. Watt quickly raised more than $40 million help people affected by <a rel="noopener" href="https://www.houstontexans.com/news/j-j-watt-foundation-announces-hurricane-harvey-recap-and-2018-19-plans" target="_blank">Hurricane Harvey</a>. Following a series of Australian wildfires, entertainer Celeste Barber made a public appeal that eventually raised more than AU$50 million for the <a rel="noopener" href="https://eprints.qut.edu.au/200554" target="_blank">New South Wales Rural Fire Service & Brigades Donation Fund</a>. And to date, the CDC Foundation has raised more than $51 million to support its “<a rel="noopener" href="https://give4cdcf.org/?utm_source=CDCF&utm_medium=web&utm_campaign=combat-coronavirus" target="_blank">Crush COVID</a>” campaign. What’s not to like about this new way to raise funds for a good cause? Well, as long as there has been charitable fundraising there has been the <a rel="noopener" href="https://theconversation.com/how-donors-can-help-make-nonprofits-more-accountable-85927" target="_blank">potential for scams</a>. As a <a rel="noopener" href="https://scholar.google.com/citations?user=uplx-M8AAAAJ&hl=en&oi=ao" target="_blank">law professor who studies the regulation of charities</a>, as well as a lawyer who has represented numerous charities and donors in legal disputes, I’ve seen that two aspects of charitable crowdfunding make it particularly vulnerable to fraud. Sometimes it turns out to be crowd-frauding In late 2017, a New Jersey couple posted an inspiring story on GoFundMe. A homeless veteran, they said, had come to the wife’s rescue after she ran out of gas on a highway exit ramp. Their “<a rel="noopener" href="https://abc7ny.com/homeless-hero-gofundme-money-stolen-from-man-john-bobbitt-gofund-me-go-fund/4690185/" target="_blank">Paying it Forward</a>” campaign raised more than $400,000 to help the veteran. Heartwarming, right? Trouble is, it was a lie. All three of the people involved in this trickery eventually <a rel="noopener" href="https://www.inquirer.com/news/mark-damico-johnny-bobbitt-kate-mcclure-gofundme-guilty-20211122.html" target="_blank">pleaded guilty to federal charges</a> of “<a rel="noopener" href="https://www.dicindiolaw.com/what-constitutes-theft-by-deception/" target="_blank">theft by deception</a>.” Fraudulent crowdfunding can also prey on political sentiments rather than just exploiting sympathy. In 2020, <a rel="noopener" href="https://www.justice.gov/usao-sdny/pr/leaders-we-build-wall-online-fundraising-campaign-charged-defrauding-hundreds-thousands" target="_blank">federal prosecutors charged</a> former senior Trump adviser Steve Bannon and three others with defrauding thousands of donors to a crowdfunding campaign for <a rel="noopener" href="https://theconversation.com/why-steve-bannon-faces-fraud-charges-4-questions-answered-144834" target="_blank">building portions of a wall</a> along the U.S. border with Mexico. Bannon and his partners allegedly instead used some of the funds raised to compensate themselves and pay for personal expenses. Although then-President <a rel="noopener" href="https://www.cnbc.com/2021/01/19/trump-pardons-expected-day-before-biden-inauguration.html" target="_blank">Donald J. Trump pardoned Bannon</a> in advance of any trial, the former White House aide still <a rel="noopener" href="https://www.forbes.com/sites/alisondurkee/2021/05/25/steve-bannon-officially-cleared-of-federal-charges-after-trump-pardon---but-this-state-probe-still-looms/?sh=1a58e95657c4" target="_blank">faces possible state charges</a>. Reasons for vulnerability Making a special website isn’t necessary to raise charitable funds this way. Some 45 million people donated to or created a fundraiser using Facebook from 2015 to 2020, raising over <a rel="noopener" href="https://about.fb.com/news/2019/09/2-billion-for-causes/" target="_blank">$3 billion for charities</a>, according the company. And crowdfunding efforts can help people without <a rel="noopener" href="https://www.irs.gov/taxtopics/tc506" target="_blank">technically counting as tax-deductible charity</a>. <a rel="noopener" href="https://www.gofundme.com/" target="_blank">GoFundMe</a>, a popular charitable crowdfunding platform, lets people raise funds for both personal needs, such as covering medical expenses, and for specific charities of all kinds. Being fast and cheap to operate makes charitable crowdfunding ideal in some ways, not others. More traditional fundraising campaigns that rely on mailings and phone calls are time-consuming to establish. In contrast, it’s possible to set up a new campaign on GoFundMe that is then visible both nationally and internationally within a few minutes. In the wake of a highly publicized disaster, when many people are <a rel="noopener" href="https://theconversation.com/how-to-select-a-disaster-relief-charity-83928" target="_blank">looking for a quick way to help</a>, everyone – even governors – will want to move fast. Opportunities for fraud are perhaps at their peak. Compounding this problem: Laws governing charitable fundraising do not clearly apply to campaign organizers and crowdfunding platforms. As I detail in an article <a rel="noopener" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686612" target="_blank">soon to be published in the Indiana Law Journal</a>, state legislatures wrote those laws decades ago, when charities raised money either directly or using paid solicitors. As a result, those laws do not usually apply to individuals who voluntarily raise money for individuals or charities to which they have no formal ties. Nor do they apply to the recently emerged platforms where people crowdfund for causes. California takes aim So far, there’s no regulation taking shape to address these issues at the federal level. California became the first state to pass legislation specifically targeting charitable crowdfunding when Gov. Gavin Newson signed Assembly Bill No. 488 into law in October 2021. The measure, which will not <a rel="noopener" href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB488" target="_blank">take effect until Jan. 1, 2023</a>, requires both charities raising funds online and platforms hosting campaigns for specific charities to register and file regular reports with the state’s <a rel="noopener" href="https://oag.ca.gov/charities" target="_blank">Registry of Charitable Trusts</a>. The new law will also require these charities and platforms to make certain public disclosures and receipts, as needed. It will also require platforms to promptly distribute donations to the designated charities and obtain a charity’s written consent before soliciting funds for its benefit – with some exceptions. In my view, California’s new law is a good first effort. It places the burden of compliance on the charities themselves and the handful of online platforms engaged in this work, not on the numerous individuals who start campaigns. But it remains to be seen whether the registration, reporting, disclosure and other requirements will create enough transparency and accountability to sufficiently deter fraud without over burdening legitimate charities and platforms. I appreciate the difficult task legislators face in striking a balance that avoids both over- and underregulation. Lawmakers do not want to overregulate charitable crowdfunding to the point that generous individuals and legitimate charities shy away from launching campaigns because of the legal burdens of doing so. That is, all new laws and regulations, in addition to discouraging crowdfunding fraud, ought to encourage generosity. At the same time, lawmakers want to regulate charitable crowdfunding enough to ensure that all or almost all funds raised go the individuals and charities that the donors intend to support. Time will tell whether California and the states that follow its example have struck the right balance.<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; text-shadow: none !important;" src="https://counter.theconversation.com/content/172029/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a rel="noopener" href="https://theconversation.com/profiles/lloyd-hitoshi-mayer-1148002" target="_blank">Lloyd Hitoshi Mayer</a>, Professor of Law, <a rel="noopener" href="https://theconversation.com/institutions/university-of-notre-dame-990" target="_blank">University of Notre Dame</a> This article is republished from <a rel="noopener" href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a rel="noopener" href="https://theconversation.com/convenient-but-susceptible-to-fraud-why-it-makes-sense-to-regulate-charitable-crowdfunding-172029" target="_blank">original article</a>. Image: Getty Images

Money & Banking

Woman's $940k theft from vet hospital to play pokies app

A woman has pleaded guilty to stealing $940,000 from her employer, after using the funds to fuel her addiction to an online gambling game that doesn’t pay out real money. Tasmanian woman Rachel Naomi Perri appeared before Hobart’s Supreme Court on Monday facing 25 charges of computer-related fraud and one count of fraud. Ms Perri, 49, stole the money over the three years she worked at the Tasmanian Veterinary Hospital as an account manager. The “anomalies” in bank transactions were only discovered after Ms Perri was made redundant. The full extent of her theft was uncovered after a full investigation. Crown prosecutor Simone Wilson told the court that Ms Perri made 475 fraudulent transactions over the course of three years and four months, with the final amount totalling $940,221. Ms Wilson told the court that Ms Perri was the only person managing the hospital’s bank accounts and transferred money from the accounts to a variety of credit cards, personal loans, and other bank accounts in her name. Police also discovered that Ms Perri had fraudulently taken out a $30,000 credit card in her husband’s name in 2015, racking up $24,000 in debt without her husband’s knowledge. When she was interviewed by police in 2019, Ms Perri “immediately said, ‘I’m guilty’.” The court heard that Ms Perri told police she had been playing a game called Heart of Vegas for the past four years, which is where all of the money had gone. “It is similar to playing pokies and you shop to purchase coins or credits,” Ms Wilson told the court. “[But the] credit purchased never turned into actual money. She couldn’t explain why she was playing that game when there was no return.” Heart of Vegas claims to feature “real Vegas slot machines just like the ones you know and love”. Its terms and conditions also state that players “may be required to pay a fee to obtain virtual items”, but that “virtual items may never be redeemed for ‘real world money’”. Ms Wilson read out Ms Perri’s interview with police to the court and said she was in her “own little world” while playing. “I got myself into so much trouble but decided I’d keep going until [I] got caught,” she <a rel="noopener" href="https://www.abc.net.au/news/2021-11-23/woman-pleads-guilty-to-stealing-940k-from-her-workplace/100639450" target="_blank">said</a> in the record of the interview. “I knew I couldn’t get away with it. I was waiting for a knock on the door from police.” Greg Barns, Ms Perri’s lawyer, told the court that the accused had a “lengthy history of gambling” that started when she turned 18 in Launceston. “She began to use poker machines and she won $26 from placing a dollar into a machine and, as she described it, it went from there,” he told the court. Mr Grant said his client had moved from Launceston to Hobart for a fresh start, but began gambling 2008-09. “She described spending consecutive hours on poker machines,” he said. “One session she spent 16 hours continuously playing on the machine.” When Ms Perri discovered Heart of Vegas, Mr Barns said she became so addicted that she would keep spending money just to “keep playing the game”. “She got so addicted that she’d play it first thing in the morning,” he told the court. “She would set it up at night so it played in auto.” Ms Perri was diagnosed as having a severe gambling disorder by forensic psychiatrist Dr Michael Jordan. “He considered that Perri’s gambling disorder was the most significant factor in her fraud activity,” Mr Barns told the court. “[Her gambling was mindless, with no hope of any financial gain.” Mr Barns told the court that Ms Perri voluntarily entered therapy and would need to continue once she was in prison. He said it was unlikely that his client would be able to pay back the veterinary services, after they instituted civil proceedings to recover the money. Ms Wilson said the accused’s behaviour was “planned” and “calculated”, and that she only stopped because she was made redundant. “The prospects of her recovering are slim to non-existent,” she told the court. Ms Perri has been remanded in custody until she is sentenced next month. Image: Getty Images

Legal

Science’s war on art fraud

<div class="copy"> In 2016 a team of scientists led by David Thurrowgood of the National Gallery of Victoria took a painting by French impressionist Edgar Degas to the Australian Synchrotron in order to solve a long-standing mystery. Art experts had previously noted that the artwork, Portrait de Femme (1876-1880) had been painted directly over a previous composition. Faint traces of the earlier work were visible but the piece was otherwise completely obscured – probably as the artist intended. Thurrowgood and the team at the Synchrotron, in the Melbourne suburb of Clayton, used high-definition X-ray fluorescence (XRF) to penetrate the surface of the painting to reveal (upside down, as it were) the face of an entirely different sitter. With false colour added to provide at least figurative flesh to the hidden portrait, the result was extraordinary – and a powerful demonstration of how cutting edge science and technology have an increasingly valuable role to play in revealing the secrets of art. Nowhere is this more the case than in the murky but highly profitable area of forgery. The global art market turns over something north of US$60 billion a year, and some experts estimate that as much as 50% of the works traded are forged. Now, however, new techniques are being developed in laboratories around the world that look set to make the forgers’ lives much more difficult. In 2010, German painter Wolfgang Beltracchi was unmasked as one of the most successful art forgers of the modern era, reaping millions of euros through creating near-perfect artworks, mainly in the styles of 20th century masters. His output included works ostensibly by the great Cubist painter Georges Braque (1882-1963). Should anyone today attempt to repeat that dishonest little trick – and someone, inevitably, will – he or she will find attempts to pass off a moody Braque very, very much more difficult. In 2016, Clara Granzotto and Kenneth Sutherland from the Art Institute of Chicago developed a new imaging technique to investigate the media used by the French artist in creating a painting titled Ajax (1949-54). The work was owned by the institute and catalogued as “oil on paper” but the researchers had a hunch the description was inaccurate. The pair developed a method of analysing minute particles taken from the edges of the work. Called matrix assisted laser desorption ionisation time-of-flight mass spectrometry (MALDI-TOF MS), the technique uses lasers to ionise large molecules, such as carbohydrates. When the results were in, Granzotto and Sutherland found the paint mixture contained two separate types of acacia gum. Known in art circles as gum arabic, the substance was a common addition to watercolour paints during the period. This indicated that Braque had used watercolour as well as oil paints to make the piece. MALDI spectrometry is today used mainly to provide detailed information for conservators and restorers. Should a previously unknown Braque from the same period suddenly come onto the market, however, it’s London to a brick any decent dealer will be giving the gumshoe detectives a call. <h2>Looks deceive no more</h2> Many methods used to determine the authenticity of paintings – scanning electron microscopy, for instance – necessarily destroy part of the artwork itself. Perhaps the best known non-destructive investigative method is optical coherence tomography, a medical imaging system that uses near-infrared light and is employed often by ophthamologists to get three-dimensional, highly detailed images of the retina. In the art world it is extremely useful for providing in-depth data on elements such as the composition and layering of paint. Its main drawback, however, is that it images only very small areas, so using it to map a large canvas is both time-consuming and expensive. Recognising this problem, a team of computer scientists and art historians from the Pusan National University in South Korea set about designing an alternative. Led by Seonhee Hwang, the group developed a method that combined fibre optics reflectance spectroscopy with a laser-based topographic analysis. The system is able to scan an entire artwork, measuring the colour characteristics of the whole piece. At the same time, a laser-based map of the thousands minuscule ridges created by the artist’s brushstrokes and fingerprints is also produced. To test the accuracy of their new technique, Hwang and colleagues commissioned expert painters to create forgeries of paintings by well-known Korean artists. The system was then used on the originals and the fakes. Writing in <a rel="noopener" href="http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0171354" target="_blank">PLOS ONE</a><a rel="noopener" href="http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0171354" target="_blank"> in February this year</a>, the researchers reported that the reflectance spectroscopy identified the forgery in 76% of cases, while the laser topography was successful every time. <h2>It’s in the DNA</h2> Once upon a time an artist’s signature – down there, in the corner of the painting – was just about all the verification anyone needed to be sure an artwork was genuine. If you had the provenance as well – the documented history of the work’s sales and owners – no more proof was needed. Such innocent days are long gone. Signatures and records of sale can both be forged; and even the experts, from time to time, are fooled. {%recommended 3792%} Is there, then, a foolproof way to establish that a work is genuine? For new paintings, the answer is yes, and it involves synthetic DNA. A technique developed at the Global Centre for Innovation at the State University of New York involves inserting a tiny amount of specially created genetic code into still-wet paint – establishing a permanent, updatable record a little like a microchip inside a pet cat. The system was developed at the behest of a company called the ARIS Title Insurance Corporation, which specialises in insuring fine art. Although still in its infancy, the company intends to log the DNA – each piece unique and created to order – into a database, which will also contain provenance information. To verify the authenticity of a tagged work, all any dealer will have to do is run a proprietary scanner over the canvas. The DNA bonds with the media used to make the artwork, so it is impossible to remove it, let alone copy the work. The system – dubbed the i2M Standard – is now being trialled, with a full-scale rollout expected soon. <h2>Doing your block</h2> If master forgers often get away with creating fake oil paintings, imagine what they can get away with digitally made art, a medium that can be copied any number of times without the slightest change occurring. Everyone knows digital art is endlessly reproducible, but over the past few years artists who work specifically in digital media have started to attract big prices for their creations. Since then, two questions have become urgent: how do the artists protect their originals; and how can buyers be sure they are getting the genuine article? The answer is a blockchain – the same type of recording technology now commonplace in the world of online currencies such as Bitcoin. A blockchain is a growing database of individual transaction records (known as blocks). Each transaction produces a timestamp and a link to the previous one – creating a verifiable and (theoretically, at least) forger-proof provenance. Several companies in the art world are already offering blockchain verification services to artists keen to maintain control over their creations. In the world of digital art this is quickly emerging as a critical course. In a field where 10 people can display artworks that to all intents and purposes are exactly the same, there has to be some way to verify who has the “real” – and hence really valuable – one. Image credit: Shutterstock This article was originally published on <a rel="noopener" href="https://cosmosmagazine.com/technology/sciences-war-on-art-fraud/" target="_blank">cosmosmagazine.com</a> and was written by Andrew Masterson. </div>

Art

"Oh my God": Woman discovers $1 billion in her bank account

American woman Julia Yonkowski got the surprise of her life when she went to withdraw $20 from her bank account and saw $1 billion instead. According to the bank receipt she received from Chase Bank, she had $999,985,855.94 in her account. “Oh my God, I was horrified. I know most people would think they won the lottery but I was horrified,” she explained. “When I put in for the $20, the machine came back and said we’ll give you the $20 but that’ll cause an overdraft and you will be charged and I said, ‘Oh just forget it,’”. She hasn't touched her account since Saturday night. “I know I’ve read stories about people that took the money or took out money, and then they had to repay it and I wouldn’t do that anyway because it’s not my money,” she said. “It kind of scares me because you know with cyber threats. You know I don’t know what to think.” She's tried reaching out to Chase Bank several times but gets "tied up" with their automated system. “I just can’t get through. I get tied up with their automated system and I can’t get a person,” she said. However, a representative for Chase Bank confirmed that the high amount of money was a fraud prevention method. It also explains why Yonkowski wasn't able to get the original $20 she tried to withdraw from her account. According to the bank, Yonkowski's late husband was also named on the joint account and the bank requires proper documentation to release the account to a sole individual.

Money & Banking

Why she won't pay: Cancer fraudster Belle Gibson’s "financial crisis"

Belle Gibson has told the court she is in a financial crisis and drowning under the weight of over $170,000 in personal debt. The cancer fraudster has written in a letter to the Federal Court of Australia that she has been unable to pay a cent back of her $500,000 fine to taxpayers for years of lying about having a terminal brain illness and saying eating healthy cured her cancer. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/BwVQmTvnlNf/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" rel="noopener" href="https://www.instagram.com/p/BwVQmTvnlNf/?utm_source=ig_embed&utm_campaign=loading" target="_blank">A post shared by Alyce Cooper Solicitor (@alycecoopersolicitor)</a> on Apr 16, 2019 at 2:52pm PDT </div> </blockquote> In the letter, Gibson explained: “I am indebted to BMW Finance resulting from a personal guarantee in excess of $50,000. “I have a fully drawn credit card with ANZ owing $30,000 and another personal debt exceeding $90,000, all of which I cannot pay. “Consequently, I am not able to pay the amounts ordered by Justice Mortimer [Federal Court judge presiding over Ms. Gibson’s case].” <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/4gs5kRlkc3/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" rel="noopener" href="https://www.instagram.com/p/4gs5kRlkc3/?utm_source=ig_embed&utm_campaign=loading" target="_blank">A post shared by Leah | Business Mindset Coach (@thegoldengoosehq)</a> on Jun 29, 2015 at 4:13am PDT </div> </blockquote> Gibson revealed she hasn't got a job and receives the parenting payment from Centrelink to care for her son. Gibson ended her letter, written 14 November 2017, by asking the government to approach her accountant directly in the future, “given my current health”. Her original $410,000 fine has ballooned past $500,000 due to interest.

Legal

Food fraud is hidden in plain sight

The globalization of the food chain has resulted in increased complexity and diminished transparency and trust into how and where our foods are grown, harvested, processed and by whom. Furthermore, recurring incidents of <a href="https://globalnews.ca/news/4014182/food-fraud-avoiding-fake-product/">food fraud</a> remind us that some of those involved in the food chain are exploiting this complexity. Today, consumers are at an <a href="https://www.foodnavigator.com/Article/2019/02/20/Fragmented-global-supply-chains-have-led-to-an-increase-in-food-fraud">increased risk</a> of buying lower-quality food than what they paid for, or worse, eating food with unsafe ingredients or undeclared allergens. Historically, food chain transparency and trust was established between the shopper and the farmer or fishmonger, green grocer, butcher, milkman and baker. Dutch scholar <a href="https://research.wur.nl/en/publications/governing-chinas-food-quality-through-transparency-a-review">Arthur Mol</a> argued that this personal interaction enabled face-to-face transparency, which built trust. Before modern supermarkets, a local village or town grocery store stocked up to 300 items grown or processed within a 240-kilometre (150-mile) radius. In comparison, our post-modern supermarkets carry an <a href="https://www.fmi.org/our-research/supermarket-facts">average of 33,000</a> items that travel 2,400 kilometres or more. The Canadian government is poised to tackle that problem by announcing <a href="https://globalnews.ca/news/6435463/buy-canadian-promotional-campaign/">a Buy Canadian food campaign.</a> While the extent of global food fraud is difficult to quantify, the Canadian Food Inspection Agency (CFIA) suggests <a href="https://inspection.gc.ca/food-safety-for-industry/information-for-consumers/food-safety-system/food-fraud/eng/1548444446366/1548444516192">food fraud</a> affects 10 per cent of commercially sold food. Various academic and industry sources suggest that globally, food fraud ranges from US$10 billion to $49 billion. This is likely a conservative range considering estimates of <a href="https://www.afr.com/life-and-luxury/food-and-wine/cracking-down-on-fake-steak-with-invisible-trackable-barcodes-20180810-h13t3n">fake Australian meats</a> alone and sold worldwide are as high as AUD$4 billion, or more than US$2.5 billion. If you add the sales of fake wines and alcohol, adulterated honey and spices, mislabelled fish and false claims of organic products, wild-caught fish or grain-fed meat, the numbers, and risks, increase significantly. Are Canadian regulations adequate? Regulations are in place to protect Canadians. The Safe Food for Canadians Act (known <a href="https://laws-lois.justice.gc.ca/eng/regulations/SOR-2018-108/index.html">as the SFCR</a>) and the <a href="https://laws-lois.justice.gc.ca/eng/acts/F-27/page-2.html#h-234067">Food and Drug Act</a> work together to protect Canadian consumers from food safety and food fraud risks. The SFCR states that food businesses must have preventative controls in place as well as product traceability records to ensure imported products meet Canadian laws. A provision of the Food and Drug Act states: “No person shall sell an article of food that (a) has in or on it any poisonous or harmful substance; (b) is unfit for human consumption; (c) consists in whole or in part of any filthy, putrid, disgusting, rotten, decomposed or diseased animal or vegetable substance; (d) is adulterated; or (e) was manufactured, prepared, preserved, packaged or stored under unsanitary conditions.” Another section of the act declares: “No person shall label, package, treat, process, sell or advertise any food in a manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character, value, quantity, composition, merit or safety”. But are the regulations being enforced? The CFIA is very active in food fraud prevention and detection. In July 2019, the agency received $24.4 million in new <a href="https://www.canada.ca/en/food-inspection-agency/news/2019/07/government-of-canada-prevents-nearly-12800kg-of-adulterated-honey-from-entering-the-canadian-market.html">food fraud funding</a> after announcing that 12,800 kilograms of adulterated honey was blocked from entering the Canadian market. Honey adulteration is the process of cutting pure honey with fillers and cheaper sweeteners, including corn syrup. The CFIA has several enforcement instruments it can apply to offenders including <a href="https://www.inspection.gc.ca/about-the-cfia/accountability/compliance-and-enforcement/amps/fact-sheet/eng/1547233099837/1547233100149">administrative monetary penalties</a>, <a href="https://www.inspection.gc.ca/about-the-cfia/accountability/compliance-and-enforcement/licences/eng/1324052022644/1324052753628">licence suspension or cancellation</a> and <a href="https://www.inspection.gc.ca/about-the-cfia/newsroom/prosecution-bulletins/eng/1298575869119/1299852705293">criminal prosecution</a>. Is food fraud the same as consumer fraud? No. Canada is recovering from a significant consumer fraud incident where some of the most trusted brands colluded for more than a decade to fix the price of bread in what’s <a href="https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/04335.html">often termed breadgate</a>. This was a breach of the <a href="https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/04267.html">Canadian Competition Act</a>. Canada was one of the first countries in the world with a formal Competition Act, initiated in 1889. While breadgate’s egregious breach of trust shocked Canadians, consumers are known to have short memories and to quickly forgive. The protection of insiders acting as whistle-blowers in the food industry is critically important to expose both consumer fraud and food fraud. However, most food fraud detection requires the use of advanced high-tech methods. In 2017, the University of Guelph’s Biodiversity Institute, in partnership with the CFIA, received $320,000 in <a href="https://news.uoguelph.ca/2017/09/u-g-cfia-collaboration-gets-320000-investment/">federal funding</a> to develop better genomics and DNA bar-coding tools, including portable devices. DNA bar-coding allows researchers to match animal and plant DNA against a reference database to identify a species. Mislabelled fish, sausage The partnership has published a number of research papers uncovering food fraud and <a href="https://news.uoguelph.ca/2019/02/persistent-seafood-mislabeling-persistent-throughout-canadas-supply-chain-u-of-g-study-reveals/">revealing the mislabelling of fish</a> species in Canadian restaurants and grocery stores, an area of the institute’s research that now spans more than a decade. In January 2019, the institute <a href="https://www.sciencedirect.com/science/article/abs/pii/S0963996919300304?via%3Dihub">published a paper</a> entitled “Re-visiting the occurrence of undeclared species in sausage products sold in Canada” as a followup to a previous study that showed a <a href="https://kitchener.ctvnews.ca/guelph/20-of-tested-sausages-contained-mislabeled-meat-u-of-g-study-1.3532113">20 per cent mislabelling rate for sausages</a>. The followup indicated 14 per cent of the 100 sausages tested still contained meat DNA that was undeclared on the label. Even more concerning for the public is that many types of food fraud and mislabelling have gone undetected. New technology and methods of testing still has to catch up. As social media amplifies recurring high-profile incidents of food fraud, trust in our global food supply chains remains a concern. For the foreseeable future, much of Canada’s food fraud remains hidden in plain sight, sitting right there on our grocery store shelves. Written by John G. Keogh. Republished with permission of <a href="https://theconversation.com/fish-sausage-even-honey-food-fraud-is-hidden-in-plain-sight-130186">The Conversation.</a>

Legal

Landlord charged for truly “underhand” act that cost tenants $3700

A man has been charged after listing his ex-girlfriend’s flat to rent, pocketing the cash and heading overseas. Phillip Allman and Lucy Sharp were in a relationship for six years before ending it last December. The pair remained friends and Sharp allowed Allman to move into her apartment temporarily after his last relationship ended. However, the 29-year-old man abused that generosity by listing Sharp’s flat as available for rental online. According to Wales Online, Jolanta Goniuch responded to the advertisement on Gumtree that listed the flat at £400 ($NZD 808) and required a £400 deposit upfront. Goniuch called Allman to arrange an inspection and was told that the flat would be available from late June. After the phone call, she then transferred £800 ($NZD 1616) into his bank account. Another victim, Natera Morris and her partner Sean Malone, fell for the scam the next day and paid a total of £600 ($NZD 1212). It wasn’t until later that another victim also paid £600. In total, Allman pocketed more than £2,000 ($NZD 4040) from the tenants. On June 10, Allman disappeared and Sharp only became aware of the con when Malone arrived on her doorstep. Sharp tried to contact Allman, but was ignored. He was eventually caught by the police and sentenced to one year behind bars. “The offences for which I have to deal with you are really mean and underhand offences of dishonesty,” he said, according to <a href="https://www.walesonline.co.uk/news/wales-news/phillip-allman-newport-jailed-court-17217610">Wales Online</a>. “They come from a man who has been committing offences of dishonesty for years and years. “You were fortunate enough to have a generous friend. You abused her friendship and trust to cheat people out of money.” Allman admitted to three counts of fraud in breach of a suspended sentence and all the victims were repaid the money they sent Allman via bank transfer. However, Morris and Lobina paid some funds in cash, which were unable to be recovered.

Money & Banking

Family outraged after couple cancel wedding but keep money for their honeymoon

Guests who were supposed to be attending an upcoming wedding have been left gobsmacked and furious over the bride and groom’s decision to cancel the wedding but keep the money donated for the honeymoon. The couple had raked in over $43,000 (US $30,000) from generous friends and family and did not give guests the opportunity to get their money back as it was “donated”. Naturally, friends and family of the bride have been left furious as they found all of this out in a lengthy Facebook post by the bride. “Hi invitees to the wedding.” The post cheerily started. “After much reflection and tear-filled conversation with our closest family members, we have decided to cancel our upcoming winter wedding. We will further notify this group when we are in a better place to reschedule. “We thank each and every one of you for your generous early donations to our money fund. Can you believe we have raised over $30,000??? Unbelievable!” <blockquote class="twitter-tweet" data-lang="en-gb"> How disgusting <a href="https://t.co/YaW9cOhm5p">pic.twitter.com/YaW9cOhm5p</a> — christ on a bike’s AUDACITY (@wthDARIELLE) <a href="https://twitter.com/wthDARIELLE/status/1191407989472792578?ref_src=twsrc%5Etfw">4 November 2019</a></blockquote> The bride goes onto explain that their donations will “not be used in vain”. “Don’t worry, the money you’ve donated will not be spent in vain but rather used towards a honeymoon in the coming months. “After we regain financial stability and hold calm in our hearts after a honeymoon, we will announce a new wedding date and re-open our money fund for any further gifts. Weddings are expensive!” Naturally, friends and family of the couple were furious. <blockquote class="twitter-tweet" data-lang="en-gb"> Updated comment section 1 <a href="https://t.co/rIw0oq9cLP">pic.twitter.com/rIw0oq9cLP</a> — christ on a bike’s AUDACITY (@wthDARIELLE) <a href="https://twitter.com/wthDARIELLE/status/1191485743312580609?ref_src=twsrc%5Etfw">4 November 2019</a></blockquote> One uncle, who generously donated the bride and groom $17,000 ($US 12,000) posted underneath his initial comment after the bride and groom didn’t get back to his calls and messages. “You are to return my more than generous $12,000 donation on behalf of the [blanked out] family in one week. If on 11/13/2019 I don’t see that money, IN CASH, in my bank account, I will be seeing you in court.”

International Travel

How to safeguard your identity online

With almost everyone in the country now using a computer, there are important precautions you need to take to ensure you stay cyber-safe. According to the Norton Cybersecurity Insights Report, in 2014, 384 million identities were stolen worldwide when thieves hacked trusted institutions online. Statistics from the Australian Federal Police show that thousands of Australian devices are infected with the malware responsible for this identity theft and other malicious malware every day. What do cybercriminals do with your identity? With your personal details, cybercriminals can steal your money, but also apply for new bank accounts and credit cards in your name and rack up debts. How do I know if my identity has been stolen? Victims often see suspicious transactions in their accounts, receive unknown or unsolicited letters or bills in their names, or are rejected when applying for loans or other financial applications. Can you recover your identity and money? Often your identity can be very difficult to recover. You can report it to <a href="http://www.idcare.org/">iDcare</a>, Australia and New Zealand's National Identity Support Service, who assist consumers when they believe their personal information has been compromised or misused. You can fill out an online Support Request Form <a href="https://idcare.knackhq.com/clientlog#supportrequestform/">here</a> for free and anonymous support. Your bank can reimburse stolen money to you after an investigation finds you not at fault. But you can be proactive and reduce the threat to your family by following a few simple precautions. Follow these tips to help protect your online identity <ol> <li> Don’t respond to unknown communications Scammers frequently ‘phish’ for your information by sending you emails containing malicious attachments or links that often direct you to fraudulent websites. As a general rule, don’t respond to unknown emails, links, attachments or reply to unknown messages or calls. These same rules apply to mobile phones, tablets and laptops too, which cybercriminals are increasingly targeting.</li> <li> Practise safe online banking Avoid using Internet banking at unsecured wireless hotposts and in Internet cafes where your activities may be monitored. If you regularly use free wifi, install an app such as <a href="http://au.norton.com/wifi-privacy">Norton WiFi Privacy</a>on your mobile device, to protect your passwords and credit card numbers while surfing public hot-spots. If you need to make payments online for goods bought on websites, always ensure you use trusted online payment websites.</li> </ol> When purchasing from an online store, make sure they use trusted and secure ways of payment <ol start="3"> <li> Monitor your bank accounts Monitor your bank accounts for unauthorised transactions. Another good way to check if you have been a victim of financial fraud is to get a credit report to check on your credit rating.</li> <li> Be careful what information you reveal on social media Never share your birth date, phone numbers, where you live, your tax file number or any other financial information on social media, and set your security settings to high. ”People don’t know just how much information cybercriminals can gather. You may have removed your birth date from your Facebook profile but your contacts may still post happy birthday messages on your personal page that cybercriminals can then use to steal your identity,” says Nick Savvides, Security Strategist for Asia Pacific and Japan at Symantec, the makers of Norton security products.</li> <li> Beware of sending personal details to online job or rental advertisements Do some research into the company or organisation that you may be applying to before sending any personal information or documents electronically. Bogus employment and rental websites are often used to capture personal information. “The scammers can create websites that are almost exact replicas of companies,” cautions Savvides.</li> <li> Only download from trusted websites and beware anything free Steer clear of websites offering free games, music or software downloads. “About 80 per cent of those apps are actually legitimate apps that have been bundled with malware that people then download and install,” says Savvides.</li> <li> Install a comprehensive security solution for firewall and anti-malware protection Malware like trojans and viruses are commonly used to gain access to your computer and devices and steal personal information. Some malware allows keylogging where cybercriminals can see everything you type, even your passwords.</li> </ol> A comprehensive protection against different kinds of malware for both your computer and mobile devices is <a href="http://click.linksynergy.com/fs-bin/click?id=TKAopWYXsko&offerid=453594.36&type=3&subid=0">Norton Security Premium</a>. This software includes firewall protection that monitors incoming and outgoing traffic for any malicious malware. It also includes antispyware protection that monitors your computer or device for anyone that might be spying on your files. How do you keep your identity safe online? Let us know in the comments. Written by Dominic Bayley. Republished with permission of <a href="https://www.wyza.com.au/articles/lifestyle/wyza-life/how-to-safeguard-your-identity-online.aspx">Wyza.com.au</a>.

Technology

Scam alert: Fans lose thousands of dollars from fake Olivia Newton-John impersonators

Olivia Newton-John has found herself embroiled in a fraud scheme, where impersonators scam her fans out of thousands of dollars. According to Newton-John’s publicist, a few people pretending to be the 70-year-old singer have asked fans on social media sites to donate to her cancer treatment centre, the Olivia Newton-John Cancer Wellness & Research Centre. These fake accounts have successfully swindled large sums of money out of fans’ pocket. <iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Folivianewtonjohn%2Fposts%2F2311011185578242&width=500" width="500" height="383" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe> “If you get a message from anyone saying they are Olivia – this is a scam!” publicist Michael Caprio wrote on Newton-John’s official Facebook page. “Olivia does not direct message anyone on her social media pages so, beware.” Caprio said his team is currently working to get the fake accounts shut down. Some fans responded that they had been approached by the scammers. “A few months ago a person pretending to be Olivia Newton-John contacted me via Messenger,” one fan commented. “I thought it was suspicious that Olivia contacted an ordinary man like me asking ‘Hi’ and ‘How are you?’” Another fan confirmed that type of tactic is common. “They contacted me but I knew it was a scam. I also got contacted by the fake Cher and the fake Barbra Streisand.” Have you received any suspicious message from a ‘celebrity’? Let us know about your encounters with scammers in the comments below.

Technology

Lotto “winner” who claimed $5 million jackpot is exposed for using fake ticket

A British man has been charged with lottery fraud after nearly a decade for using an alleged fake ticket to claim a $5 million jackpot. Hertfordshire Police said 53-year-old Edward Putman had been charged with fraud by false representation after an investigation into the incident that occurred in 2009. The winning numbers 6, 9, 20, 21, 31, 34 were drawn on March 11 and matched a ticket bought in Worcestershire, about two hours way from where Mr Putman was living at the time. When no one came forward to claim the prize, Mr Putman saw it as an opportunity to take the jackpot for himself. The £2.5 million ($5 million) was paid out by National Lottery operator Camelot, even though the ticket Mr Putman provided did not have a working barcode. “In 2015 an investigation was opened by Hertfordshire Constabulary’s Serious Fraud and Cyber Unit, after evidence came to light that the claim was not genuine,” police said in a statement. As reported by <a href="https://www.telegraph.co.uk/news/2018/09/11/lotto-winner-charged-fraud-claiming-25m-jackpot-almost-10-years/">The Telegraph</a>, at the time of the incident, Mr Putman asked for “no publicity” after winning the jackpot. With the money he obtained, he went on to purchase two homes in the village of Kings Langley – one for £600,000 ($1.2 million) and another for £400,000 ($800,000). He also went and bought over a dozen cars. The issue is said to have been “immediately brought to the attention of the Commission and police” and after conducting an in-depth investigation, the UK Gambling Commission fined Camelot £3 million ($6 million). Mr Putman was reportedly arrested in 2015 but released without charge. The investigation conducted by the Commission concluded that, “whilst it could not be certain a fraud had taken place, it was more likely than not that a fraudulent prize claim had been made and paid out” on a “deliberately damaged ticket.” “The Gambling Commission’s chief concern is to ensure the National Lottery is run with integrity and that player interests are protected,” Commission chief executive Sarah Harrison said in a statement at the time. “Camelot’s failures in this case are serious and the penalty package reflects this. Importantly, the package also ensures that good causes will not lose out as a result of Camelot’s licence breach. “Lottery players can feel reassured that our investigations have found no evidence of similar events happening and that controls are in place today to mitigate against future prize payout failings of this type.” Mr Putman was released on bail to appear at St Albans Magistrates Court on October 16.

Technology

Fraudsters hiding tiny cameras hidden at ATMs

This ATM appears to be like every other ATM but it has been tampered with by fraudsters. A small pinhead-sized hole in the casing shows the tiny camera that has been inserted into the ATM. <img width="498" height="315" src="https://oversixtydev.blob.core.windows.net/media/34294/london-atm-2_498x315.jpg" alt="London ATM 2"/> The London ATM was discovered by police investigating cashpoint tampering who found a tiny hole near the cash dispenser. This tiny camera records ATM users putting in their pin number. This ATM in St Paul’s Churchyard, is just one of the several tampered ATMs that have been discovered in the last month. At the beginning of the month, Police found an ATM where the camera hole was placed in the plastic above the keypad. Behind the plastic were mini-recording devices which could also easily record pin numbers. <img width="496" height="185" src="https://oversixtydev.blob.core.windows.net/media/34295/london-atm-3_496x185.jpg" alt="London Atm 3"/> Police are publishing the photos to show the public just how subtle these cameras are to the untrained eye. PC Matt Clarke, from the City of London Police Crime Squad, said, "If you spot anything unusual about a cash machine, or if there are signs of tampering, don’t use it. If in doubt, try and use a machine inside a branch.” Have you ever seen an ATM that had been tampered with? Let us know in the comments below? Image credit: City of London Police

Money & Banking

Over 60

News

Shop

Catalogues

Travel

Health

Lifestyle

Finance

Entertainment

Property

Information

Keep up to date

Search

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

Bride slammed for asking wedding photographer to commit fraud

Riley Keough fights Graceland foreclosure sale

Property tycoon sentenced to death over $27 billion fraud

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

Top tips for avoiding scams

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

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

Convenient but susceptible to fraud: Why it makes sense to regulate charitable crowdfunding

Woman's $940k theft from vet hospital to play pokies app

Science’s war on art fraud

"Oh my God": Woman discovers $1 billion in her bank account

Why she won't pay: Cancer fraudster Belle Gibson’s "financial crisis"

Food fraud is hidden in plain sight

Landlord charged for truly “underhand” act that cost tenants $3700

Family outraged after couple cancel wedding but keep money for their honeymoon

How to safeguard your identity online

Scam alert: Fans lose thousands of dollars from fake Olivia Newton-John impersonators

Lotto “winner” who claimed $5 million jackpot is exposed for using fake ticket

Fraudsters hiding tiny cameras hidden at ATMs