AFP arrests four over crypto, investment scams

After a tipoff from the US Secret Service, the Australian Federal Police has arrested four men over a scam that the police say has netted more than $100 million worldwide.

Known colloquially as “pig butchering”, the scam involves social engineering using platforms like dating sites, employment sites and messaging platforms to gain the trust of the victim, before drawing them into dodgy investments.

“Pig butchering” refers to the way scammers are fattening up their victims before slaughter.

“The victims are 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 in a statement.

“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 Secret Service notified the Joint Policing Cybercrime Coordination Centre in August, and the AFP launched Operation Wickham in cooperation with NSW Police.

The AFP says it has restrained $22.5 million in 24 bank accounts allegedly linked to the syndicate.

The allegations against the four men include registering companies with ASIC to help make the fraud look legitimate, and establishing bank accounts to launder the proceeds of the operation.

Two of the men were arrested on October 20 and have been charged with recklessly dealing with the proceeds of crime.

The other two men were arrested on November 24 at Sydney and Melbourne airports allegedly trying to board flights to Hong Kong, and have been charged with dealing in the proceeds of crime.

The men will next appear in Downing Centre Court in Sydney in January 2023.