Fraud Archives - Gizmochina

Hong Kong’s Travel and Online Communities are A Hotspot for Digital Fraud

Anubhav — Fri, 06 Oct 2023 02:35:01 +0000

Hong Kong, renowned for its financial muscle and technological prowess, has an increasingly grim downside: it is becoming a magnet for digital fraudsters, reveals a recent report from TransUnion, an American consumer credit reporting agency.

Most of the scams can be attributed to online payments

The report found that Hong Kong topped the list of regions with high levels of suspected digital fraud, with 18% of digital transactions flagged for potential fraudulent activity in the first half of 2023. This rise in digital scams comes amid a significant uptick in online payments, influenced by the pandemic and subsequent social distancing measures.

What sets Hong Kong apart, however, is the sectors most affected. Interestingly, the travel and leisure sector led the way with a suspected fraud rate of 8%. Jerry Ying, chief product officer at TransUnion Asia-Pacific, argues that as the city opens up post-pandemic and digital transactions in the travel sector surge, fraudsters see new opportunities for exploitation.

Besides travel, online communities like dating websites and forums are also becoming risky spaces. Around 5% of transactions in these areas were flagged for fraud, mostly related to fake profiles. This comes at a time when Hong Kong citizens are relying more on digital platforms for social interaction and personal needs.

Last year, citizens lost HK$4.8 billion (US$611.5 million) to frauds, including schemes involving fake police calls and quick money scams. With more professionals (6% of survey respondents) falling victim to fraud between April and July, the message is clear: businesses and consumers alike need to up their game when it comes to digital security.

According to Ying, it’s not just up to consumers to stay vigilant; businesses should allocate resources to improve their data analytics and technological capabilities to better spot fraudulent activity. As Hong Kong continues to balance its technological advancement with fraud risks, both sectors and individuals must be more cautious than ever.

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Apple Employee’s $17 Million Fraud Scheme Lands Him 3-Year Prison Sentence

Anubhav — Sat, 29 Apr 2023 04:17:08 +0000

Apple, one of the world’s most valuable and innovative companies, has been defrauded out of over $17 million by one of its own employees. Dhirendra Prasad, a former buyer in Apple’s Global Service Supply Chain department, has been sentenced to three years in prison and ordered to repay his ill-gotten gains to the tech giant.

Prasad Used His Knowledge of Apple’s Fraud Detection Practices to Evade Arrest

According to the US Attorney’s Office for the Northern District of California, Prasad conspired with two vendors to conduct fraud against Apple by “taking kickbacks, stealing parts, inflating invoices and causing Apple to pay for items and services it never received.” Prasad used his knowledge of Apple’s fraud detection practices to avoid getting caught for years.

While Prasad was able to evade detection for a while, his schemes were eventually uncovered. He pleaded guilty to charges of conspiracy to commit mail fraud and conspiracy to defraud the United States in November of last year. Two charges of conspiracy to commit money laundering were dismissed during his sentencing.

Prasad’s sentence of three years in prison, followed by three years of supervised release, sends a clear message that defrauding companies, especially ones as prominent as Apple, will not be tolerated. The US government has already seized $5.5 million worth of assets from Prasad, and he has been ordered to pay an additional forfeiture money judgment of $8.1 million, on top of the $17.4 million he defrauded from Apple. He also must pay $1.9 million to the Internal Revenue Service for not paying taxes on the proceeds of his schemes.

The case of Dhirendra Prasad serves as a cautionary tale for other employees who may consider engaging in fraudulent behavior. Companies like Apple rely on the honesty and integrity of their employees, and any violation of that trust is taken very seriously. It is important for individuals to remember that the consequences of fraudulent behavior can be severe, and they will eventually be held accountable for their actions.

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Oppo Mobiles India’s finance manager arrested for tax fraud of Rs 19 crore

Soumyakanti — Thu, 23 Mar 2023 21:12:24 +0000

The Finance and Accounts Manager of Oppo Mobiles India Private Limited, Mahendra Kumar Rawat, has been arrested by the Central Goods and Services Tax (CGST) Commissionerate for allegedly availing of input tax credit (ITC) worth Rs 19 crore through fake invoices. Rawat was later produced in a local court in Bhiwandi town and remanded in judicial custody until April 3.

According to the CGST Bhiwandi Commissionerate’s statement, Rawat was arrested under section 69 of the CGST Act, 2017, for contravening section 132 of the same Act. The investigation conducted by the anti-evasion wing of the CGST Bhiwandi Commissionerate found that Oppo Maharashtra was involved in fraudulently availing of fake ITC without receipt of any goods.

The investigation further revealed that the supplier of Oppo Mobiles India Pvt Ltd, M/S Gain Hero India Private Limited, was non-existent at its principal place of business. Additionally, 16 e-way bills for the said transaction were verified and found to be fake. Statements of the transporters and vehicle owner were recorded, revealing that there was no supply of goods to Oppo Maharashtra.

Rawat, as the authorized signatory and Manager of Finance and Accounts of Oppo Mobiles India Private Limited, played a key role in availing of fraudulent ITC amounting to Rs 19,27,54,093 against invoices amounting to Rs 107,08,56,072 issued by Gain Hero India Private Limited, without receipt of the goods. The accused admitted in his statement that the e-way bills generated were fake, according to the CGST Commissionerate.

The case is part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and tax evaders. The CGST Bhiwandi Commissionerate has arrested 24 persons in the last 18 months.

This incident raises concerns about the credibility of the business practices of Chinese smartphone makers in India. As smartphone penetration in India continues to grow, it is essential for companies to maintain transparency and integrity in their financial transactions. Failure to do so could result in significant penalties, which could adversely affect their reputation and market position. This case serves as a warning to other companies to adhere to the law and avoid fraudulent practices.

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Samsung executive gets arrested over Biotech fraud case in South Korea

Jeet — Wed, 05 Jun 2019 02:50:21 +0000

Prosecutors in South Korea have broadened an investigation into alleged fraud at Samsung BioLogics, which the company has disputed. As a part of this investigation, a Samsung executive was arrested overnight on allegations of ordering the destruction of evidence related to suspecting accounting fraud at a Samsung affiliate.

The executive is accused of ordering the destruction and manipulation of accounting data and other internal documents of Samsung BioLogics and Samsung Bioepis in 2018. The development was first reported by South Korea-based news agency Yonhap.

As a part of this investigation, around eight employees of Samsung and its affiliates have now been arrested. This comes at a time when South Korean prosecutors broaden an investigation into whether top executives covered up evidence linked to alleged accounting fraud in 2015 at the company’s biopharmaceutical unit.

Last month, prosecutors raided a Samsung BioLogics factory and recovered a cache of hidden electronic devices. The prosecutors believe that the newly found electronic devices are linked to the case.

As per the regulators, Samsung BioLogics inflated the value of affiliate Samsung Bioepis by $3.9 billion. Critics have said the move artificially increased the value of parent Cheil Industries to enable an $8 billion merger with Samsung C&T, which held a key stake in Samsung Electronics.

At that time, Lee Jae-Yong, heir to the Samsung group, was a large shareholder in Cheil with a 23 percent stake but he did not own C&T shares and his direct stockholding of Samsung Electronics was less than 1 percent.

Prosecutors said that Ahn and Lee convened the May 5 meeting after the Financial Supervisory Service notified Samsung BioLogics and Samsung Bioepis of their suspected window dressing. They claim that since then, they masterminded the entire process of evidence destruction and manipulation at the two biotech companies.

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