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In August, the US Secret Service tipped the Australian Federal Police (AFP) about an online scam transpiring mainly in the US, and the scammers were all based in Sydney. AFP’s investigation led to the arrest of four Chinese nationals.
These cybercriminals are believed to be part of an organised crime syndicate involved in a cyber-enabled investment scam. It is believed that the fraud has already cost a total of $147.6M, victimising people globally.
The four Chinese men were arrested and charged with proceeds of crime-related offences. They are scheduled to appear in Downing Centre Local Court in January 2023. Two of the men who were first apprehended were 19-year-olds. They were caught in Pyrmont and were charged with recklessly dealing with the proceeds of crime.
The other two, 27 and 24, were apprehended separately in Sydney and Melbourne airports after purchasing one-way tickets to Hong Kong. Authorities believe that the older men were the syndicate’s ‘controllers’. All four criminals were charged with one count of dealing in proceeds of crime and, if convicted, could face 15 years in prison.
According to the investigation, the scam used social engineering on sites with heavy engagement, like messaging platforms and dating sites. Once the criminals gain the victim’s trust, they lure them to use a legitimate investment platform for foreign exchange or crypto. The platforms used were legitimate, but the criminals manipulated them to show that the victim was earning money, but in reality, their money had been wiped out.
According to Detective Superintendent Martin Fileman of the NSW Police, “The people behind these scams have zero concern for those members of the community who may have lost their life savings or have been financially crippled. People need to take extra care and protect themselves: the adage, if it sounds too good to be true, it probably is.”
Salam Zreika, Detective Sergeant of AFP Cybercrime Operations Eastern Command, noted that they had observed an increasing number of people falling victim to this kind of scam and ending up losing their life savings.
Zreika warns the public, “Refrain from investing in foreign exchange, crypto-currency or speculative investments with people you’ve only ever encountered in the online environment. If unsure, get a second opinion from a professional, in person.”
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