Summary
AUSTRAC used data from financial reporting to identify an Australian who sent approximately A$2 million to an international crime syndicate. This information helped authorities identify the individual as a victim of fraud. The victim stopped sending funds after the authorities alerted him to the scam.
What to look out for
- High volume of international funds transfers from Australia for no apparent logical reason.
- International funds transfers to a high-risk jurisdiction.
The crime
This was a case of ‘advance fee’ fraud. In this kind of fraud, victims are approached and deceived into sending ‘advance fee’ payments or giving their bank details with the promise of money from unlikely sources such as overseas lottery wins or inheritances.
Analysis of international funds transfer instructions (IFTI) reports showed that an Australian man had sent A$1.2 million over seven years to multiple recipients in Ghana, Lebanon, Malaysia, Nigeria, Spain and the UK.
AUSTRAC then found relevant suspicious matter reports (SMRs) in its database that showed he had also made transfers to Egypt, Lebanon, Nigeria, Spain, Sri Lanka and the UK.
The transfers of between A$200 and A$123,000 were sent using banks and remittance services. In total, the victim sent A$2 million to the fraudsters.
Authorities analysed AUSTRAC’s data, which indicated that the man who had transferred the money was probably a victim of fraud. They were right: the man believed he would receive £32 million in lost funds from the UK once the fees were fully paid. He stopped sending funds after being advised he was the victim of a scam.
How business reporting helped
IFTI reports and SMRs alerted AUSTRAC to a high volume of unexplained funds transfers being sent to beneficiaries in overseas countries.
AUSTRAC’s role
AUSTRAC’s financial intelligence was referred to authorities. This helped authorities determine that the individual was a fraud victim and discourage him from sending more money to the syndicate.
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