Month: December 2012

For years scammers have been swiping ever-increasing fortunes from unsuspecting consumers.

But technology finally appears to be catching up with the fraudsters that prey on Australians with debit and credit cards.

Industry figures indicate the amount Australians are losing to card fraud has slipped this year as measures to fight overseas online swindles take effect.

According to the Australian Payments Clearing Association, fraud accounted for 15.6c in every $1000 of spending last financial year.

This was down from 16.3c for the 2011 calendar year.

While the number of fraud transactions increased slightly to 1.2 million in the year to June – up from 1.15 million in the year to last December – the total value of the transactions fell.

Fraudulent transactions totalled $284.5 million in the year to June, down from $301.6 million in the period to last December.

Fraud investigation rates peaked in the six months to last December after a spike in overseas fraudsters targeting Australian card data.

“Counter-measures have been in place for more than six months and we can see this coming through in this financial year data” association chief Chris Hamilton said. “We have actually seen a decline in card fraud in the first half of 2012.”

The figures showed cheque fraud rates continue to fall and now account for less than 1c in every $1000 paid by cheque.

Fraud on proprietary debit cards – where a PIN is required at a till – was flat at 4.9c in every $1000 worth of payments. Fraud on scheme credit, debit and charge-cards – where a signature is permitted or the card is used remotely – fell from 96c to 87.7c.

Australian Bankers Association chief executive Steven Munchenberg welcomed the trend, saying consumers were increasingly aware of the risks and banks were now quicker to respond to suspicious transactions.

(Source: Jane Harper, Herald Sun, 12 December 2012) 

Further Information – Forensic Accountant

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A former Commonwealth Bank employee who stole almost $250,000 from customers’ accounts has been described by a magistrate as intelligent and resourceful but gripped by “chronic gambling”.

Karen Myhanh Chau, 40, stole almost $250,000 from wealthy clients, including author Thomas Keneally, and transferred the funds into a personal account.

She committed the crimes between October 2010 and January of this year.

Chau pleaded guilty in August to six counts of dishonestly obtaining financial advantage by deception and in October was sentenced to 18 months’ imprisonment with a non-parole period of one year.

In Downing Centre Local court on Wednesday, Deputy Chief Magistrate Jane Mottley ruled that Chau could serve out her sentence in home detention.

“She is clearly a resourceful and intelligent woman,” Ms Mottley told the court.

“She is likely to find it difficult to get employment in the financial industry as a result of this offence.”

Chau took the money from the clients in 72 separate transactions and put some funds back into some of the victim’s accounts to indicate interest was being earned.

The Commonwealth Bank has said it had refunded all the money to the clients.

Ms Mottley said Chau had endured tough personal circumstances in the early 2000s, including a miscarriage, and this had led to depression, contributing to her gambling addiction.

She said Chau was “gripped by a chronic gambling problem” and gambling had become a coping strategy for her.

“This offence is a clear manifestation of an unresolved addiction” she said.

Chau has no prior convictions and was described as a “model citizen” during sentence submissions in October.

The court heard she has been making excellent progress at gambling counselling sessions.

Her minimum home detention period expires in October next year.

(Source: AAP, 28 November 28 2012)

Further Information – Forensic Accountant

If you would like further information about using our forensic accounting services for a financial investigation or other expert witness matter, then please contact us for an obligation free discussion.

We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.

ASIC yesterday obtained court orders permanently banning Melinda Scott from providing any financial services and disqualifying her from managing corporations for 25 years after she defrauded clients of more than $3.6 million over 8 years.

The Supreme Court of New South Wales also made orders permanently restraining Roach Graham Scott Pty Ltd (RGS), a company of which Ms Scott, of Lilli Pilli, was sole director, from carrying on a financial services business or providing a financial service.

The Court declared between 9 February 2004 and 27 April 2012 both Ms Scott and RGS repeatedly and persistently engaged in dishonest conduct when providing financial services. In particular, the Court found Ms Scott and RGS obtained $3,632,759.46 from 56 separate clients, which Ms Scott generally used for her own personal benefit knowing that this was not in accordance with the clients’ instructions. The Court also found Ms Scott and RGS falsely told some clients their money had been invested in accordance with their instructions and was making returns.

ASIC’s investigation into Ms Scott’s conduct is continuing.

Ms Scott engaged in the aforementioned conduct when she was an authorised representative of Millennium 3 Financial Services Pty Ltd, a financial advice business owned by the Australia and New Zealand Banking Group Limited. Her authorisation was revoked on 15 May 2012.

ASIC first obtained court orders against Ms Scott preventing her from carrying on a financial services business in May 2012.

(Source: ASIC,  4 December 2012)