Latest news with #AFCA
Daily Mail
4 days ago
- Business
- Daily Mail
Centrelink recipient wins massive $250,000 payout after his insurer refused to pay up when his $65,000 BMW was wrecked
A Centrelink recipient has been awarded $250,000 after his insurer refused to pay him out when his $65,000 BMW was damaged while parked on a street. Insurer IAG had rejected the man's claim after his BMW was written off following a collision, but the owner of the vehicle hit back and filed a case with the Australian Financial Complaints Authority (AFCA). IAG rejected the man's case on the basis the collision scenario was 'implausible', the Daily Telegraph reported. In the case filed with the AFCA, the man refuted every allegation made against him and won. The insurance giant said the man, who has not been identified, claimed the driver had 'motive' to make a false claim because he stood to benefit financially from the claim and Centrelink benefits appeared to be his main income. Hitting back at the insurer, the man said he earned up to $40,000 a month trading on the stock market and with cryptocurrencies. The man had purchased the BMW for $65,000 days before initially insuring the vehicle for $280,000 and subsequently lowering it to $250,000. AFCA's adjudicator revealed phone recordings showed the man hadn't known how much to insure the car for, with the insurer informing him the average value for his BMW was between $175,000 and $325,000. The collision took place seven months later after the man and his partner had left it parked on a street and taken an Uber to a restaurant. IAG said the man had 'opportunity' and questioned why he hadn't taken the car to the restaurant or found a secure car park for the vehicle. The man said that he and his partner had decided they would have a drink at the restaurant. He also explained that because the street had no parking restrictions he saw no reason why he should waste time driving his car home before the meal. Although the adjudicator accepted these explanations, the insurer continued to lodge further allegations. IAG said the man had not been frank as he failed to mention he was disqualified from driving, he had a previous claim and he didn't call the police after discovering his car was damaged. The insurer also said the damage to the BMW was 'malicious'. A report from the insurer's crash investigator said the collision likely occurred due to a reversing truck doing a three-point turn on an unsuitable stretch of road. 'The report does not provide any specific information as to why the roadway is not conducive to a three-point turn being conducted,' the adjudicator said. The unnamed adjudicator ruled in the complainant's favour and the man received $250,000 plus interest. 'I accept there are inconsistencies, but I am not persuaded these alone, even when considered together, satisfy the burden of proof to establish the complainant has acted fraudulently or failed to be truthful and frank, to the degree where it would allow the insurer to decline the claim,' the adjudicator said. An IAG spokesman said an investigation can be required for certain claims due to the cost and importance of identifying possible fraudulent claims. But the financial settlement was immediately awarded to the man in question as soon as AFCA stated the decision.
Sydney Morning Herald
18-05-2025
- Business
- Sydney Morning Herald
No-ID-necessary accounts make Australians an easy target for cash ‘mules'
International students and non-permanent residents have been targeted by fraudsters for access to their accounts, according to a repor t by the Fintel Alliance, a public-private partnership led by AUSTRAC. The mules can receive between $200 and $500 for use of their accounts, or may receive a commission of up to 10 per cent on the funds received into accounts they operate. This week, this masthead was able to find several Facebook groups offering Australian bank accounts to 'buy, rent or sell'. In one of the online advertisements, an anonymous Facebook user claimed they were offering upfront payments of $350 to buy access to Bendigo or UP bank accounts, $200 for a National Australia Bank (NAB) account or $150 for a Westpac, St George, Ubank, Bank of Melbourne or HSBC account. Brewer, AUSTRAC's Fintel Alliance national manager, said they were detecting advertisements seeking bank accounts to purchase in different languages, and warned those considering partaking in the trade. 'It can be a crime, and it's not a victimless crime, because this money has come from something that has a victim, so someone's been hurt to get this money to then move through your account.' The Australian Federal Police warned those convicted of participating in muling cash can face anywhere from 12 months to life in prison. Digital bank Ubank, owned by NAB, is one of several Australian banks that promotes the ability to open an account within minutes. Last year, a retiree in her 70s discovered that fraudsters had opened two Ubank accounts in her name without the bank viewing any identification documents belonging to her. The third party provided the woman's name, date of birth, address and Medicare card details, but the bank did not require or obtain a copy or record of the actual Medicare card, according to information provided to the Australian Financial Complaints Authority (AFCA). Anne, who didn't want to use her last name because of concerns about her privacy, discovered the identity theft when a 'beautiful pale blue card' from Ubank arrived in the mail in late February last year. She said she was shocked to discover that it had been possible to open an account without any physical documentation confirming her identity. 'This all happened only with the Medicare number. I did not lose the card. I'm appalled that Ubank could get away with such a lack of ID-checking. They received no photo ID, and the banking code didn't help me as a consumer.' Loading Anne complained to AFCA, alleging that the bank had not provided her with satisfactory answers to her questions. AFCA found in favour of the bank, finding that it 'appropriately responded to the complaint … once aware of the fraud'. However, AFCA could not consider Ubank's conduct in opening the fraudulent accounts in the first place, as it falls out of the organisation's jurisdiction. This is set to change next year as a result of new federal laws which could put banks receiving stolen funds on the hook for compensation. 'Currently – and until the change comes into effect in March 2026 – AFCA can only consider the actions of the bank that has the direct customer relationship with the person or entity who has lodged a complaint, so that's the 'sending' bank,' an AFCA spokesperson said. Ubank head of fraud Jacob Donohue described Anne's case as 'an unfortunate example of identity theft, where personal information was compromised outside of the banking channel and used by a criminal without the customer's knowledge'. There is no evidence the accounts opened in Anne's name were used for any scam transactions. Ubank no longer allows Medicare cards as the single identity document to onboard customers, but it does still allow customers to open accounts using a driver license or passport, without requiring a copy of the physical document. This week this masthead was able to set up multiple accounts with Australian digital banks without providing any photo identification. All of Australia's major brick-and-mortar bank brands now require at least one biometric check (such as facial recognition) for new customers opening accounts online, as part of the Australian Banking Association's Scam-Safe Accord. The change was introduced due to recognition that gangs of scammers were opening bank accounts using driver licence and passport numbers stolen in major data breaches. Dan Halpin, whose company Cybertrace specialises in cyberfraud investigations, said he was concerned about several Australian banks that allowed customers to open accounts online using driver licence details without requiring a physical copy of the licence. Loading 'While this approach streamlines the onboarding process, it raises concerns about the ease with which identity fraud can occur, especially considering recent data breaches involving major Australian companies,' Halpin said. 'Higher-level technology such as biometrics needs to be employed during the account opening process.' Of the major banks, NAB and its subsidiaries, which includes Ubank, closed the largest number of mule accounts in the 2024 financial year, shutting down 5669. The Commonwealth Bank closed almost 3000 accounts linked to fraud or scams over the same period, while Westpac closed 2200, a sharp annual rise that they attributed to improved detection capabilities, which drove a 29 per cent decrease in customer scam losses. Ken Gamble, the executive chairman of cybercrime investigation firm IFW Global, said Australian bank accounts remained a critical component of many scams. 'Victims are very nervous about paying money overseas these days, but they're very happy to pay it into an Australian account, so it gives credibility to the relevant scam ... and it lends credibility because it's a major bank, and banks are trusted.' He said he was aware of cases where student money mules had been paid thousands to set up fraudulent corporate bank accounts, which have become more valuable as banks roll out account name verification technology. In one case detailed by federal authorities, $300,000 stolen from a Melbourne woman in a bank-impersonation scam was transferred into 11 separate mule accounts, and then withdrawn from ATMs soon after.
The Age
18-05-2025
- Business
- The Age
No-ID-necessary accounts make Australians an easy target for cash ‘mules'
International students and non-permanent residents have been targeted by fraudsters for access to their accounts, according to a repor t by the Fintel Alliance, a public-private partnership led by AUSTRAC. The mules can receive between $200 and $500 for use of their accounts, or may receive a commission of up to 10 per cent on the funds received into accounts they operate. This week, this masthead was able to find several Facebook groups offering Australian bank accounts to 'buy, rent or sell'. In one of the online advertisements, an anonymous Facebook user claimed they were offering upfront payments of $350 to buy access to Bendigo or UP bank accounts, $200 for a National Australia Bank (NAB) account or $150 for a Westpac, St George, Ubank, Bank of Melbourne or HSBC account. Brewer, AUSTRAC's Fintel Alliance national manager, said they were detecting advertisements seeking bank accounts to purchase in different languages, and warned those considering partaking in the trade. 'It can be a crime, and it's not a victimless crime, because this money has come from something that has a victim, so someone's been hurt to get this money to then move through your account.' The Australian Federal Police warned those convicted of participating in muling cash can face anywhere from 12 months to life in prison. Digital bank Ubank, owned by NAB, is one of several Australian banks that promotes the ability to open an account within minutes. Last year, a retiree in her 70s discovered that fraudsters had opened two Ubank accounts in her name without the bank viewing any identification documents belonging to her. The third party provided the woman's name, date of birth, address and Medicare card details, but the bank did not require or obtain a copy or record of the actual Medicare card, according to information provided to the Australian Financial Complaints Authority (AFCA). Anne, who didn't want to use her last name because of concerns about her privacy, discovered the identity theft when a 'beautiful pale blue card' from Ubank arrived in the mail in late February last year. She said she was shocked to discover that it had been possible to open an account without any physical documentation confirming her identity. 'This all happened only with the Medicare number. I did not lose the card. I'm appalled that Ubank could get away with such a lack of ID-checking. They received no photo ID, and the banking code didn't help me as a consumer.' Loading Anne complained to AFCA, alleging that the bank had not provided her with satisfactory answers to her questions. AFCA found in favour of the bank, finding that it 'appropriately responded to the complaint … once aware of the fraud'. However, AFCA could not consider Ubank's conduct in opening the fraudulent accounts in the first place, as it falls out of the organisation's jurisdiction. This is set to change next year as a result of new federal laws which could put banks receiving stolen funds on the hook for compensation. 'Currently – and until the change comes into effect in March 2026 – AFCA can only consider the actions of the bank that has the direct customer relationship with the person or entity who has lodged a complaint, so that's the 'sending' bank,' an AFCA spokesperson said. Ubank head of fraud Jacob Donohue described Anne's case as 'an unfortunate example of identity theft, where personal information was compromised outside of the banking channel and used by a criminal without the customer's knowledge'. There is no evidence the accounts opened in Anne's name were used for any scam transactions. Ubank no longer allows Medicare cards as the single identity document to onboard customers, but it does still allow customers to open accounts using a driver license or passport, without requiring a copy of the physical document. This week this masthead was able to set up multiple accounts with Australian digital banks without providing any photo identification. All of Australia's major brick-and-mortar bank brands now require at least one biometric check (such as facial recognition) for new customers opening accounts online, as part of the Australian Banking Association's Scam-Safe Accord. The change was introduced due to recognition that gangs of scammers were opening bank accounts using driver licence and passport numbers stolen in major data breaches. Dan Halpin, whose company Cybertrace specialises in cyberfraud investigations, said he was concerned about several Australian banks that allowed customers to open accounts online using driver licence details without requiring a physical copy of the licence. Loading 'While this approach streamlines the onboarding process, it raises concerns about the ease with which identity fraud can occur, especially considering recent data breaches involving major Australian companies,' Halpin said. 'Higher-level technology such as biometrics needs to be employed during the account opening process.' Of the major banks, NAB and its subsidiaries, which includes Ubank, closed the largest number of mule accounts in the 2024 financial year, shutting down 5669. The Commonwealth Bank closed almost 3000 accounts linked to fraud or scams over the same period, while Westpac closed 2200, a sharp annual rise that they attributed to improved detection capabilities, which drove a 29 per cent decrease in customer scam losses. Ken Gamble, the executive chairman of cybercrime investigation firm IFW Global, said Australian bank accounts remained a critical component of many scams. 'Victims are very nervous about paying money overseas these days, but they're very happy to pay it into an Australian account, so it gives credibility to the relevant scam ... and it lends credibility because it's a major bank, and banks are trusted.' He said he was aware of cases where student money mules had been paid thousands to set up fraudulent corporate bank accounts, which have become more valuable as banks roll out account name verification technology. In one case detailed by federal authorities, $300,000 stolen from a Melbourne woman in a bank-impersonation scam was transferred into 11 separate mule accounts, and then withdrawn from ATMs soon after.
Epoch Times
15-05-2025
- Business
- Epoch Times
Australia's Largest Bank Quizzing Customers for Details on Cash Withdrawals
Commonwealth Bank customers have raised concerns after being quizzed about their intentions when withdrawing large amounts of cash. Banks have asked more detail questions about cash transactions with customers (including deposits) in response to government pressure to deal with money laundering concerns. Australian businessman Louis Christopher, co-founder of real estate data agency SQM Research, labelled some of the inquiries 'disgusting.' He claimed he received an email asking for information on how he created his wealth, why he was making cash withdrawals, if he was holding cash at home, and why he had made certain payments to third parties. He shared copies of further correspondence from CommBank, including a warning that his accounts could be restricted or closed within seven days if he did not respond. The bank also threatened to stop his ability to use automatic teller machines and bank cards. Related Stories 2/24/2025 4/30/2025 The correspondence cited Australia's Know Your Customer (KYC) obligations, which require financial institutions to verify customers' identities and understand the source of their wealth in order to comply with anti-money laundering laws. 'They were going to suspend all my accounts this week if I didn't tell them the answers ...,' Christopher The Epoch Times has contacted AUSTRAC—the Australian Transaction Reports and Analysis Centre—for comment. Other customers have also spoken out. Australian academic Eva Bernat said on X she hired a lawyer after CommBank initially refused her request for a large cash withdrawal. While Bernat was able to access her cash after lodging complaints, she said CommBank still demanded receipts to verify her purchases. 'People are leaving banks in droves, to no one's surprise,' she said. Bernat has lodged an official complaint with the Australian Financial Complaints Authority (AFCA), a dispute resolution service for banking customers. AFCA has also been contacted for comment. Former Queensland Premier Campbell Newman said there was no point trying to stamp out financial crime by imposing red tape on honest businesspeople. 'The [anti-money laundering] laws as they stand are draconian, authoritarian, and give banks an excuse to act quite unreasonably,' he said. Australian $50, $20, and $5 banknotes, and Australian Medicare card in a wallet in Sydney, Australia on March 25, 2025. LisaA CommBank spokesperson said the bank was required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. 'All banks operating within Australia are required to collect, verify, and maintain customer identification information,' the spokesperson said. 'In the same way that we need to comply with regulations when a customer first opens an account, we also need to comply with current law regarding the maintenance of their identification information. 'Ensuring we have a customer's most up-to-date and correct details also helps us to keep them safe and protect them from fraud.'
New York Times
15-05-2025
- Business
- New York Times
College football coaches discussing plan to add NFL-style OTAs to spring practice calendar
A new proposal circulating among coaches aims to expand spring practice into NFL-style organized team activities (OTAs), in response to the increase in spring transfers and roster turnover, along with the possibility that college football moves to a single transfer portal window. The OTA idea, which was formed by the American Football Coaches Association board of trustees last month, is now being socialized at conference spring meetings. It would add six non-padded workouts to the existing 15 spring practices, but those 21 allotted days could be split across two different five-week windows for a total of seven weeks. There must be at least three weeks between the two sessions, which could span from anywhere between January and June. Advertisement 'If you're a Clemson who doesn't lose anybody, you can have a traditional spring and get six extra opportunities in the summer,' said Liberty head coach and AFCA board member Jamey Chadwell. 'Or if you're like us that loses a lot every year and you don't have the majority of your team until May, then you can practice more in May or June.' Remaking the spring calendar has been a frequent point of discussion by the sport's leaders. In January, the AFCA proposed moving from two transfer portal windows in December and April to a single 10-day window in January. The AFCA is not a governing body, but executive director Craig Bohl is a non-voting member of the FBS football oversight committee, which is looking into making the ideas into official proposals. The oversight committee's work has been at a standstill for months, waiting for full approval of the House v. NCAA settlement, which would establish a system of revenue sharing with athletes up to a cap of around $20.5 million. An oversight committee subgroup has been working behind the scenes on the single-window vision for the transfer portal, which could take place as early as January or later in March or April. Coaches and conferences have mixed opinions on the best timing. Some want to have their rosters in place heading into spring. Others don't want to force players who are disgruntled after spring ball to stick around. A decision on a single portal window is likely to come before any OTA decision. But the flexibility of the OTAs' scheduling would help avoid the issue, which is why the AFCA is putting it out before any portal decision is finalized. 'It's been met with positive appetite from the initial rollouts,' said Bohl, the former head coach at Wyoming and North Dakota State. College football programs were basically forced into a OTA calendar during the COVID-19 pandemic in 2020. Spring football was pushed back, and COVID restrictions moved schedules around and put more activities outside. Some programs in the ensuing years adjusted their format to match it. This idea could expand the concept. Advertisement 'It certainly helped me,' Bohl said of the 2020 experience. 'What became apparent was you had to look at preparing a team differently because of the restraints. We saw great value in taking guys out on the field for a learning experience. Our world's changing, the schedule's have changed. Coaches wanted to have a plan to adapt, and we think this addresses it.'
