Latest news with #FintelAlliance
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.
The Age
11-05-2025
- Business
- The Age
From ‘money muling' to ‘micro-laundering', new scams grab watchdog's attention
'It's allowing us to get access to bigger amounts of data and information in a much faster way, and it then allows us to bring a bunch of different perspectives to analysing that data and information to give us a better understanding of the criminal threats, risks to the financial system and, importantly, big criminal networks,' he says. The alliance is being used to detect other scams like micro-laundering where illicit funds are mingled with money from legitimate sources and moved at volume through low-value digital transactions. Money muling is another issue the alliance has uncovered. It involves students from overseas receiving ads to sell their bank accounts after they leave Australia. It gives criminals control of bank accounts that have already been vetted by the banks and are not considered a threat. Scambling is another threat not captured by traditional AUSTRAC reporting thresholds. It involves unlicensed gambling operators tricking people onto scam websites and then to participate in gambling. A campaign by the watchdog found scambling to be a particular problem in regional and remote Aboriginal communities. Co-operation through the Fintel Alliance represents a remarkable turnaround in the relationship between the regulator and the companies it regulates. In 2020, Westpac was ordered by the courts to pay a $1.3 billion fine for money-laundering breaches after AUSTRAC brought action against the bank. Loading The Commonwealth Bank paid a $700 million fine in 2018, Crown was hit with a $350 million penalty in 2023, and Star Entertainment is due to appear in court next month and may face a $300 million fine for alleged money-laundering breaches. The banks and casinos have beefed up their anti-money laundering units in response to these cases which has helped boost the effectiveness of the alliance. In turn, it allows these companies to check whether their controls are working effectively, spot any weaknesses in their systems and reduce the risk of money-laundering breaches. 'Criminals are adept at finding the weak points. By working together to develop and use new tools, technologies and fresh approaches to combat crime, we can strengthen the ecosystem we all operate in,' says ANZ Group's financial crime risk boss, Cassandra Hewett. To give an idea of how much things have changed, NAB's financial crime risk boss Paul Jevtovic was AUSTRAC's chief executive when the Fintel Alliance was first introduced. For AUSTRAC, the next step is to take the program global. After all, that is where most of the money being laundered in Australia is coming from. 'Organised crime is a global business,' Thomas says. 'We've got billions of dollars moving between jurisdictions around the world, and we can all take action in our own jurisdictions to combat that much (more strongly) if we've got international governments, global banks and others working together across multiple jurisdictions to try and combat crime.
Sydney Morning Herald
11-05-2025
- Business
- Sydney Morning Herald
From ‘money muling' to ‘micro-laundering', new scams grab watchdog's attention
'It's allowing us to get access to bigger amounts of data and information in a much faster way, and it then allows us to bring a bunch of different perspectives to analysing that data and information to give us a better understanding of the criminal threats, risks to the financial system and, importantly, big criminal networks,' he says. The alliance is being used to detect other scams like micro-laundering where illicit funds are mingled with money from legitimate sources and moved at volume through low-value digital transactions. Money muling is another issue the alliance has uncovered. It involves students from overseas receiving ads to sell their bank accounts after they leave Australia. It gives criminals control of bank accounts that have already been vetted by the banks and are not considered a threat. Scambling is another threat not captured by traditional AUSTRAC reporting thresholds. It involves unlicensed gambling operators tricking people onto scam websites and then to participate in gambling. A campaign by the watchdog found scambling to be a particular problem in regional and remote Aboriginal communities. Co-operation through the Fintel Alliance represents a remarkable turnaround in the relationship between the regulator and the companies it regulates. In 2020, Westpac was ordered by the courts to pay a $1.3 billion fine for money-laundering breaches after AUSTRAC brought action against the bank. Loading The Commonwealth Bank paid a $700 million fine in 2018, Crown was hit with a $350 million penalty in 2023, and Star Entertainment is due to appear in court next month and may face a $300 million fine for alleged money-laundering breaches. The banks and casinos have beefed up their anti-money laundering units in response to these cases which has helped boost the effectiveness of the alliance. In turn, it allows these companies to check whether their controls are working effectively, spot any weaknesses in their systems and reduce the risk of money-laundering breaches. 'Criminals are adept at finding the weak points. By working together to develop and use new tools, technologies and fresh approaches to combat crime, we can strengthen the ecosystem we all operate in,' says ANZ Group's financial crime risk boss, Cassandra Hewett. To give an idea of how much things have changed, NAB's financial crime risk boss Paul Jevtovic was AUSTRAC's chief executive when the Fintel Alliance was first introduced. For AUSTRAC, the next step is to take the program global. After all, that is where most of the money being laundered in Australia is coming from. 'Organised crime is a global business,' Thomas says. 'We've got billions of dollars moving between jurisdictions around the world, and we can all take action in our own jurisdictions to combat that much (more strongly) if we've got international governments, global banks and others working together across multiple jurisdictions to try and combat crime.
