The AFP has charged four men living in Sydney following investigations into an alleged organised criminal syndicate involved in a cyber-enabled investment scam.
The alleged scam, the Australian Federal Police (AFP) statement said, has resulted in more than $US100 million (nearly $150 million) in losses worldwide.
According to the AFP, the highly-sophisticated scam involves the unlawful manipulation of legitimate electronic trading platforms, normally licensed to foreign exchange brokers who then provide the software to their clients.
Although investigations into the true scope of the fraud on potential Australian victims are ongoing, the AFP said the alleged organised crime syndicate employs a sophisticated mix of social engineering techniques, including the use of dating sites, employment sites and messaging platforms to gain the victim’s trust before mentioning investment opportunities.
“The victims are then directed to both fraudulent and legitimate investment applications that deal in foreign exchange and cryptocurrency, which have been maliciously manipulated to show a false positive return on investments,” the AFP explained.
“The syndicate recruits victims to subscribe to a financial investment service, and manipulates the data provided through the legitimate application to encourage further investment, while concealing the fact their money has actually been stolen.”
The AFP said the United States Secret Service notified the AFP-led Joint Policing Cybercrime Coordination Centre about Australian links to the predominantly U.S.-based scam in August 2022. AFP Cyber Command then began a parallel investigation – codenamed Operation Wickham – in cooperation with an investigation by the New South Wales Police Force, it explained.
This investigation resulted in the identification of $22.5 million in 24 bank accounts allegedly linked to the criminal syndicate.
“AFP Cybercrime Operations Eastern Command investigators identified the syndicate was using Chinese nationals living in Australia, predominantly students, to undertake a variety of activities to build the infrastructure required to facilitate their fraudulent activities,” the AFP statement continued.
Four Chinese nationals living in Sydney, aged 27, 24, 19 and 19, have been charged with proceeds of crime-related offences, and are scheduled to next appear in Downing Centre Local Court in January 2023.
It will be alleged in court the four people arrested were used to register Australian companies with the Australian Securities and Investments Commission (ASIC), to enhance the legitimate appearance of fraud efforts, and also establish Australian business bank accounts to launder the proceeds of crime.
The two 19-year-old men have been charged with one count each of recklessly dealing with proceeds of crime, contrary to section 193B(3) of the Crimes Act 1900 (NSW). The two other men are alleged to be Australian ‘controllers’ of the syndicate and the AFP said they were each charged with one count of dealing in proceeds of crime — money or property worth $10,000,000 or more, contrary to section 400.2B(4) of the Criminal Code (Cth).
The maximum penalty for this offence is 15 years’ imprisonment, the AFP said.