Category: Fraud

EU Fraud Probe Nets 12 Arrests, €9.6M in Assets Seized

talian authorities arrested 12 people and seized more than 9.6 million euros ($10.9 million) in assets as part of a sweeping investigation into an alleged fraud scheme targeting European Union agricultural subsidies, officials said Wednesday. At the request of the European Public Prosecutor’s Office (EPPO) in Naples, the Financial Police (Guardia di Finanza) in Caserta carried out the arrests under an order from a judge at the Court of Salerno. The case centers on a suspected criminal network that allegedly defrauded the EU of more than 12.5 million euros ($14.2 million) in agricultural funds between 2018 and 2022. Prosecutors say…

FCA confiscates over £300,000 from convicted fraudsters

The FCA has secured confiscation orders of £305,284 against Raheel Mirza, Cameron Vickers and Opeyemi Solaja for their roles in an investment fraud. This amounts to all their remaining assets. The confiscation proceedings for Reuben Akpojaro have been adjourned to a later date. The money will be returned to investors at the earliest opportunity. Failure to pay can lead to imprisonment. Between June 2016 and January 2020, the defendants cold called people to convince them to invest in a shell company. They then claimed to trade their client’s money in binary options (a type of fixed odds financial betting) when…

International Coalition Uncovers €3m Online Investment Fraud

An organised criminal group (OCG) operating globally has defrauded more than 100 victims of over EUR 3 million through a fake online investment platform. Cooperation between German, Cypriot, Albanian, British and Israeli investigators, supported by Eurojust and Europol, led to the dismantling of the criminal group and the arrest of a suspect in Cyprus.Using the method of cyber trading, the group was able to make considerable profits and defraud victims of their substantial savings. The criminals created a fake online trading platform that promised large profits in a short period of time. After initially transferring modest sums of money to…

Fraud costing U.S. government hundreds of billions a year as crime rings use stolen identities

Fraud costing U.S. government hundreds of billions a year as crime rings use stolen identities It’s the most popular f-word in Washington: fraud. And DOGE — the Trump administration’s Department of Government Efficiency — has been tearing through federal agencies on the hunt for it. But is DOGE looking in the right places? The fraud we’ll tell you about tonight is complex, pervasive and being carried out by transnational criminal organizations often using stolen identities to target U.S. taxpayers – costing the government hundreds of billions of dollars a year. Linda Miller: To be honest, Elon Musk coming out and…

The story so far: A snapshot of what we’ve seen since our APP scams reimbursement requirement went live

Managing Director David Geale reflects on what we have seen since implementation of the world leading reimbursement requirements to protect users. Our new authorised push payment (APP) scams reimbursement requirement went live on 7 October 2024. It gave stronger protections to victims of APP scams in a way no other country had done before. We’re now just over seven months in and we’re looking back at how payment service providers (PSPs) implemented the policy, and the impact it’s had on people so far. As with any new policy, implementation can be challenging as firms train staff and roll out the…

Wine Fraud Rocks Switzerland

Wine fraudster Cédric Flaction once drove showy cars including two Aston Martins, two Ferraris, two Porsches, an Audi and a BMW. The Swiss winemaker, however, has become better known for being the first vigneron in the Valais, Switzerland’s biggest wine region, to be convicted of wine fraud and forgery. On September 2, 2024, a court in Sion sentenced Flaction to three-and-a-half years’ imprisonment, and ordered him to pay 1.94 million Swiss francs ($2.34 million) in compensation costs. Flaction is alleged to have bought 750,000 liters of Spanish bulk wine and 105,000 liters of Pinot Noir from Schaffhausen – a less-prestigious…

India’s Former UCO Bank Chief Arrested in Major Fraud Case

Indian authorities have arrested Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank, in connection with major money laundering and bank fraud worth some $726 million. The case concerns loans he allegedly approved to Concast Steel & Power Ltd. (CSPL) during his tenure. Investigators say the funds were diverted through shell companies and front entities by the borrowers and in exchange, Goel allegedly received large illegal payments. According to the Enforcement Directorate (ED), Goel was paid in cash, real estate, luxury items, and hotel stays. These benefits were routed through family members and dummy companies to hide…

Cyprus Parliament Asked to Probe Abramovich Firm’s Taxes After Superyacht Scheme

A Cypriot parliamentary committee is scheduled to discuss a company owned by Russian billionaire Roman Abramovich, which shut down after being hit by $18.5-million in taxes related to a fraudulent superyacht-rental scheme. Citing a January investigation by OCCRP and its Cypriot member center, CIReN, Parliamentarian Alexandra Attalides wrote a letter asking the Committee on Ethics to look into whether the tax bill was paid. “In the event that this has not happened,” she asked the parliamentary committee to seek information on “what actions the competent authority took before the dissolution of the company, in order to ensure the repayment of…

EPPO Uncovers Massive €100M VoIP VAT Fraud

German authorities have convicted three men in a massive tax fraud scheme involving internet-based phone services, in a case that European prosecutors say cost taxpayers an estimated 100 million euros ($113.9 million). The European Public Prosecutor’s Office (EPPO) said Monday that its office in Munich helped secure the convictions, which mark a significant breakthrough in one of Europe’s most complex cases of so-called VAT carousel fraud. The scheme was run by a criminal group code-named “Cuba” and centered around Voice over Internet Protocol (VoIP)—technology that allows people to make phone calls over the internet instead of traditional telephone networks. Investigators…

Transnational Cybercrime in Southeast Asia Hits Record High

Transnational organized crime in Southeast Asia has reached unprecedented levels, driven by a surge in large-scale cyber scam operations run by complex criminal networks, according to a new report from the United Nations Office on Drugs and Crime (UNODC). The report describes the rise of “sophisticated transnational syndicates” that have built vast cybercrime centers powered by interconnected networks of money launderers, human traffickers, data brokers and other illicit service providers. These actors have helped turn Asian criminal syndicates into global leaders in cyber fraud, underground banking and money laundering, the UNODC said. Their success is credited to their ability to…

Operation Henhouse: 433 arrests and £7.5m seized in national crackdown on fraud

433 people have been arrested in a UK-wide campaign against fraud, coordinated by the National Economic Crime Centre and City of London Police. The activity, which was the fourth iteration of the multi-agency Operation Henhouse, ran across February 2025 and resulted in: 433 arrests156 voluntary interviews471 cease and desist noticesaccount freezing orders against £4mseizures of cash and assets worth £7.5m Fraud is the most prevalent crime in the UK, causing victims long-lasting emotional and psychological harm as well as financial loss. It accounts for approximately 41% of all crime reports, and costs an estimated £6.8bn each year in England and…

Arms Dealer Dadak Indicted in New York for Fraud

French-Polish arms dealer Pierre Konrad Dadak, previously exposed for fraudulent arms schemes, has been indicted in the U.S. for allegedly running a luxury goods scam and extortion scheme, using stolen identities to fund his lavish lifestyle. Pierre Konrad Dadak, 48, was indicted by a grand jury in New York’s Southern District for an alleged scheme in 2021 and 2022 that saw him impersonate an unnamed luxury goods retailer, tricking customers to send him money into a bank account that he opened using a stolen identity. He allegedly spent the proceeds on himself, including a diamond-encrusted watch and a vintage 1960s-era…

Ukrainians Linked to $13M International Crypto Fraud Scheme

Ukrainian law enforcement, working with international agencies, have uncovered a scheme in which suspects convinced people to invest in a fake cryptocurrency mining project, officials said Wednesday. Three Ukrainian nationals allegedly helped orchestrate the scheme, which defrauded victims of about $13 million in the United States, Latvia, Israel, Malta, Spain, and other countries, according to Ukraine’s National Police. Since early 2021, the suspects had advertised cryptocurrency “cloud mining” services, mainly targeting European internet users. Victims were persuaded to pay to rent computing power from third-party companies, which were supposedly generating virtual assets to be paid out as dividends. The group…

No action against ex-Tory worker in £1m VAT scam

A former Conservative party branch treasurer involved in a £1m VAT fraud and money laundering scheme will have no further action taken against him. Malcolm Macaskill – who has a brain tumour and was unfit to stand trial – filed bogus forms to HMRC which grossly overstated the sales from his sandwich businesses to reclaim more than £800,000. He also laundered £200,000 through his local Conservative parties in Glasgow and Rutherglen, Lanarkshire where he was treasurer as well as deputy chairman. Further money was then funnelled through the bank accounts of his current and ex-wives. Because of Macaskill’s illness, an…

Combatting insurance fraud together

As the newly appointed head of the City of London Police’s Insurance Fraud Enforcement Department (IFED), I am eager to continue our strong partnership with the ABI and its members. By working together, we will advance our strategic priorities of enforcement, disruption, protection and prevention. IFED tackles all forms of insurance fraud, including motor, commercial and public liability. We tackle threats such as illegal insurance intermediaries, also known as ghost brokers. We are committed to bringing organised criminal groups and opportunistic fraudsters to justice. Achieving these goals relies on strong collaboration and partnership with the insurance industry. IFED serves as…

Seized golf course and home up for sale for £19.5m

A Berkshire golf club and Knightsbridge house forfeited by a jailed banker’s wife have been put up for sale for a total of £19.5m. Zamira Hajiyeva agreed to give up Mill Ride Golf Club in Ascot and the home, which is on the market for £14.75m, external, after a six-year National Crime Agency (NCA) fraud investigation. It resulted in the UK’s first unexplained wealth order and a trustee was appointed by the High Court to sell the assets in the autumn. Online adverts for them went live last month. Mrs Hajiyeva’s husband, Jahangir, was the chairman of the state-controlled International…

Former Art Advisor Lisa Schiff Sentenced To 30 Months In Prison For Defrauding Clients

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that LISA SCHIFF, a Manhattan-based art advisor focused on contemporary art, was sentenced today to 30 months in prison by U.S. District Judge J. Paul Oetken for perpetrating a multi-year scheme in which she defrauded the clients of her art advisory business of approximately $6.5 million in connection with the purchase and sale of approximately fifty-five artworks. Acting U.S. Attorney Matthew Podolsky said: “For five years, Lisa Schiff breached the trust of her art advisory clients by diverting millions of dollars to pay her…

Canadian Businessman Sentenced for Obstruction of Justice for Hiding and Laundering Millions After His 2020 Money Laundering Conviction

Firoz Patel, 50, of Montreal, Canada, was sentenced to 41 months in federal prison today in connection with his efforts to conceal and launder 450 Bitcoin, currently valued at over $43 million, that he hid from the U.S. District Court handling his 2020 conviction and sentencing for conspiring to operate an unlicensed money transmitting business and to commit money laundering. The sentence was announced by U.S. Attorney Edward R. Martin, Jr., HSI Acting Special Agent in Charge Kai Wah Chan of Homeland Security Investigation’s Washington, D.C., Field Office. Patel plead guilty on September 17, 2024, to one count of obstruction…

Guidance on the failure to prevent fraud offence (ECCTA 2023)

Section 199 of the UK’s Economic Crime and Corporate Transparency Act 2023 sets out a corporate criminal offence for failure to prevent fraud. UK Finance has developed financial services guidance on behalf of our members to supplement guidance issued by the Home Office under section 204 of the Act. This UK Finance sector-specific guidance is not statutory guidance and is advisory only. If there is a conflict between this sector-specific guidance and the Home Office guidance, the Home Office guidance will take priority. The document sets out sector-specific guidance for the purposes of interpretation of the failure to prevent fraud…

Romania: EPPO arrests ringleader of €100 million fraud scheme with mafia ties

(Luxembourg, 10 February 2025) – A suspected ringleader of a €100 million subsidy fraud was arrested last week, following an investigation by the European Public Prosecutor’s Office (EPPO) in Bucharest (Romania) into a criminal organisation believed to have mafia ties. According to the investigation, the suspect, an Italian citizen, operated a criminal group dedicated to systematic fraud involving EU funding. He was detained on Tuesday, 4 February 2025, in Bucharest “Henri Coanda” International Airport while trying to flee Romania, and placed in pre-trial detention by the Bucharest Tribunal, on EPPO’s request. Two other suspected members of the criminal organisation were…

Germany: EPPO arrests suspect and carries out searches and seizures in €5.8 million VAT fraud involving luxury cars

(Luxembourg, 7 February 2025) – In a VAT fraud probe led by the European Public Prosecutor’s Office (EPPO) in Cologne (Germany), tax and police investigators have carried out six searches, and have seized 40 luxury cars worth around €1.2 million, real estate and €40 000 in cash yesterday. One person was arrested. The investigation, codenamed ´Dutch Windmill`, was initiated in September 2024, based on findings of an ongoing investigation into the sales of used vehicles by the EPPO office in Rotterdam (Netherlands). The total fraudulent turnover of the group behind the scheme is estimated at over €30 million, and the…

When child’s play turns to child’s pay: Almost one million British children were scammed online in the last year

The average financial loss per scam is £103 but the hidden emotional cost is far greater, with parents reporting young people became anxious and couldn’t stop worrying (69%), and nearly a quarter (24%) stopping doing the things they enjoy online.8-in-10 (81%) parents say their children faced long-lasting impacts like anxiety, depression and mood swings after being scammed online.4-in-10 young people say their biggest fear when going online is scammers stealing their personal information, identity or money, but 60% admit they’re not sure where to turn to for help.A fifth of the nation’s teachers have experienced their pupils being scammed online,…

Block Faces $175 Million CFPB Order Over Fraud Failures, Following $80 Million State-Led Crackdown

In a world where swiping right or transferring money can be done in seconds, trust is the bedrock of our digital lives. For Cash App users, that trust has been shaken—and regulators are stepping in with a forceful reminder that convenience can’t come at the cost of consumer protection. Today, the Consumer Financial Protection Bureau (CFPB) announced a $175 million settlement with Block, Inc., the parent company of Cash App. The headline is grim: $120 million is set aside to refund users burned by fraud and mishandled disputes, with another $55 million going to a victims relief fund. But the…

Biggest fraud crackdown in a generation

Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they repeatedly fail to reimburse the public and repay their debt.  Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they repeatedly fail to reimburse the public and repay their debt. As part of new legislation set to be introduced in Parliament today to deliver the biggest fraud crackdown in a generation, benefit cheats could be disqualified from driving for periods of up to two years if they refuse all opportunities to repay…

£1 million fraud at Aberdeen City Council sends a warning across local government

All Scottish councils must learn from the weaknesses that allowed an Aberdeen City Council employee’s £1.1 million fraud go undetected over 17 years. Between 2006 and 2023, the employee transferred 655 council tax refund payments totalling £1.109m into his own bank account. Another staff member acted swiftly and alerted senior colleagues when they became suspicious in September 2023. The council expects to be able to recover the lost funds, with no loss to the taxpayers whose accounts were affected. But the Accounts Commission is concerned that whilst the council had a system of controls in place, these were not adhered…

Gen Digital’s $55.1M Settlement Closes the Curtain on a Decade-Long Fraud Battle

After ten years of legal wrangling, Gen Digital Inc. — the tech giant once known as Symantec Corp. — has paid $55.1 million to settle a False Claims Act case involving overcharges to the U.S. government. The hefty payout, which includes $16.1 million in damages and $36.8 million in civil penalties, wraps up one of the longest-running procurement fraud battles in recent memory. The saga began with a whistleblower’s claims that Symantec had deliberately fudged its pricing disclosures during negotiations for a lucrative General Services Administration (GSA) contract. Those alleged misrepresentations not only secured higher payments than the government should…

FCA secures convictions against two individuals for £1.5m fraud

Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga, defrauded at least 65 investors out of £1,541,799. The group cold-called consumers, directing them to a professional-looking website where they were offered high returns for fake investments in crypto. Raymondip Bedi pleaded guilty to conspiracy to defraud, conspiracy to breach the general prohibition under the Financial Services and Markets Act 2000 and money laundering offences at an earlier hearing. Patrick Mavanga pleaded guilty to conspiracy to defraud, conspiracy to breach the general prohibition under the Financial Services and Markets Act 2000 and possession of false identification documents with an…

Trade-based financial crime accounts for 31% of global fraud costs but just 0.1% of media coverage

Trade-based financial crime (TBFC) is responsible for an estimated $1.6 trillion in losses each year, nearly a third of the total cost of global fraud, which stands at $5.127 trillion annually. Yet, despite its massive economic impact, TBFC is alarmingly underreported in the media, making up just 0.1% of all fraud-related mentions in articles over the last year. Meanwhile, other smaller-scale types of fraud like Authorised Push Payment (APP) scams, projected to cost $6.8 billion annually by 2027, receive more media attention. Over the past year, APP scams were mentioned 17,121 times in the media – nearly twice as often…

International operation leads to seizure of 2 000 fake works of art with potential losses of EUR 200 million

Thirty-eight people have been indicted following an unprecedented operation supported by Eurojust against a criminal network for forging over 2 000 works of contemporary art. A year-and-a-half-long investigation by Italian authorities, in cooperation with Belgian, French and Spanish counterparts, led to the dismantling of the network, which would have caused economic damage of EUR 200 million. Fake art seizedThe fake art recovered by the authorities included forged works by famous artists such as Banksy, Andy Warhol, Pablo Picasso, Joan Miró, Francis Bacon, Wassily Kandinsky, Gustav Klimt, Claude Monet, Vincent van Gogh and Salvador Dalí. Investigations into the fake works revealed…

New failure to prevent fraud guidance published

Today we’ve published guidance that will provide organisations with important advice on the new corporate criminal offence of ‘failure to prevent fraud’, helping make sure they are taking action to prevent fraud. Introduced last year as part of the Economic Crime and Corporate Transparency Act (ECCT), the offence is intended to hold large organisations to account if they profit from fraud. Under the offence, which has cross-Parliament support, large organisations may be held criminally liable where an employee, agent, subsidiary, or other “associated person”, commits a fraud intending to benefit the organisation. Examples may include dishonest sales practices, the hiding…

Popular golf course to be sold after fraud scandal

A popular English championship golf course is set to be sold after becoming embroiled in a high-profile fraud scandal. Mill Ride Golf Club in Berkshire was one of a number of assets forfeited by the wife of a jailed banker following a six-year National Crime Agency (NCA) investigation into fraudulent acquisitions. Zamira Hajiyeva was forced to give up the Berkshire course – as well as a £14million Knightsbridge House – after the NCA concluded it was obtained as a “direct result of large-scale fraud and embezzlement, false accounting and money laundering.” Her husband Jahangir is the former chairman of the…

Billion-dollar cyberfraud industry expands in Southeast Asia as criminals adopt new technologies

A new report launched today has found that Asian crime syndicates have integrated new service-based business models and technologies including malware, generative artificial intelligence (AI), and deepfakes into their operations while establishing new underground markets and cryptocurrency solutions for their money laundering needs.The report, titled Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape, is the second in a series of ongoing threat analyses produced by the UN Office on Drugs and Crime (UNODC).“Organized crime groups are converging and exploiting vulnerabilities, and the evolving situation is rapidly outpacing governments’ capacity to…

Student Smishing Scams on the Rise

At the start of the 24/25 academic year, the Students Loans Company (SLC) is reminding students to be vigilant of smishing scams. Scammers target students at this time of year as they receive their first maintenance loan payment. SLC is expecting to pay £2bn to students over the autumn term and last year it stopped £2.9m of maintenance loan payments being taken by smishing and phishing scams, where students received and acted on false communications. Smishing, which is fraud involving text messages, is currently the most popular form of scam, with students usually being asked to click a link to…

SEC Charges Macquarie Investment Management Business Trust with $79.8 Million Fraud Settlement

The Securities and Exchange Commission (SEC) announced today that Macquarie Investment Management Business Trust (MIMBT), a registered investment adviser, has agreed to pay $79.8 million to settle charges of fraud. The case involves the overvaluation of illiquid assets and the execution of unlawful cross trades that favored certain clients over others. According to the SEC’s order, from January 2017 through April 2021, MIMBT managed the Absolute Return Mortgage-Backed Securities strategy, which primarily invested in mortgage-backed securities, collateralized mortgage obligations (CMOs), and treasury futures. The firm is accused of overvaluing approximately 4,900 largely illiquid CMOs held in 20 advisory accounts, including…

Walgreens to Pay $106.8 Million in Major Healthcare Fraud Settlement

Retail pharmacy giant Walgreens has agreed to pay $106.8 million to settle allegations of widespread fraud against government health care programs, the U.S. Department of Justice announced on Friday. The settlement resolves claims that Walgreens billed Medicare, Medicaid, and other federal health care programs for prescriptions that were never actually dispensed to patients. The alleged fraudulent activity spanned over a decade, from 2009 to 2020, during which Walgreens is accused of submitting false claims for payment, resulting in the company receiving tens of millions of dollars for prescriptions that were processed but never picked up by beneficiaries. Principal Deputy Assistant…

Banks must refund fraud up to £85,000 in five days

UK banks must refund fraud victims up to £85,000 within five days under new rules. Most High Street banks and payment companies voluntarily compensate customers who are tricked into sending money to scammers. But in a world first, these refunds will become mandatory from 7 October, the Payment Systems Regulator (PSR) has announced. The watchdog has reduced the maximum compensation from a previous proposal of £415,000. It said the new cap of £85,000 would cover more than 99% of claims. It also announced that once a bank or payment company had refunded a customer, it could claim half back from…

PwC Fined £15m for Fraud Alert Failures

PwC has been fined £15m for failing to alert the Financial Conduct Authority (FCA) to suspected fraudulent activity at London Capital & Finance (LCF). The FCA, which is fining an audit firm for the first time, said PwC encountered “significant issues” throughout its 2016 audit of LCF, with the company having and provided the Big Four outfit with “inaccurate and misleading information”. A senior individual at LCF also acted aggressively towards auditors. Considerably longer to complete According to the FCA, PwC found the audit very complex and it took “considerably longer to complete” than anticipated with the firm ultimately coming…

SEC Charges NovaTech and its Principals and Promoters with $650m Crypto Fraud

The Securities and Exchange Commission today announced charges against Cynthia and Eddy Petion, along with their company, NovaTech Ltd., for operating a fraudulent scheme that raised more than $650 million in crypto assets from more than 200,000 investors worldwide, including many in the Haitian-American community. The SEC also charged Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley for their roles in promoting NovaTech to investors. According to the SEC’s complaint, the Petions operated NovaTech as a multi-level marketing (MLM) and crypto asset investment program from 2019 through 2023. They lured investors by claiming NovaTech would…

Investigation Goliath: Suspected ringleaders of international crime group charged with €93 million VAT fraud

Three suspected ringleaders of an international criminal group were indicted yesterday at the Regional Court of Dusseldorf (Germany) for a €93 million VAT fraud, following an investigation by the European Public Prosecutor’s Office (EPPO) in Hamburg, code-named Goliath. The three were charged with criminal association and VAT fraud on a large scale. Two of the defendants remain in pre-trial detention. One of the suspects was arrested during an action carried out by the EPPO on 22 November 2023, targeting the international criminal ring. Another suspect – a Danish citizen who had fled to Africa to escape detention – was arrested…

Left steaming at the ears: father and son duo jailed after City of London Police uncover £136,000 iron fraud

A father and son have been jailed for a total of five years after pocketing £136,000 in an elaborate scheme of purchasing reconditioned steam irons and returning them with forged receipts to Argos.Paul Mathews, 62, and Dean Mathews, 40, both of Queens Road, Wisbech, purchased heavily discounted Tefal steam irons, worth £400, and then returned them to Argos.Paul Mathews and Dean Mathews both pled guilty to conspiracy to commit fraud and money laundering and were sentenced to three years and two years, respectively, at Norwich Crown Court on 13 August 2024.The steam irons that were purchased by Paul and Dean…