Private Investigator Training

Sixteen million missing from Queensland Health December 2011. Two Hundred and Ninety Six million dollars defrauded from the Commonwealth by one man between 1982 -1988.

FRAUD – the word that has launched a thousand investigation training schools conferences and events. 95% of which offer no solutions to “fraud” but do help the gullible to part with their money in a vague hope of reducing fraud in their workplace.

In this article Mike Evans reveals an old Fraud that targets every Australian Business and Government Agency, and what to do if you become an intended victim.

Few “Fraud” events address serious solutions to common Australian Fraud activity. That is because the good frauds are small and not noteworthy of a major CIA guest speaker who can talk for hours on terrorism and money laundering, which is irrelevant to my reality and that of 99% of Australia.

The committed fraudster is creative and has a “speed to market” that circumvents any response, and once fraud is exposed too much time has elapsed since , and not enough money is involved to warrant police involvement or interest. The best scams, ask for small amounts from hundreds of thousands of potential victims. This keeps defences down, and it easier to pay for the small amount than look up an invoice that was allegedly received 11 months ago.

Professional Fraudsters do get away with their activities, have access to legal representation when caught and are treated leniently by the justice system when sentenced or fined. The victims get nothing. Fraud without violence or use of weapons is called White Collar Crime, and in Australia it is rife.

I should know I set up my Investigation Training Academy on the Gold Coast – Australia’s Fraud Capital. Perhaps that is one of the reasons my investigation training business has boomed! Australian business wants to know about fraud that affects Australia.

Perhaps the most vigorous professionally operated White Collar Crime Fraud activity in Australia is:

Invoice Fraud

This fraud can be committed without violence, use of weapons or sale of drugs, however the proceeds of these types of fraud can be used to finance other activities such as drug or arms importation. Such fraud is attractive because penalties are almost non-existent.

Invoice Fraud is commonly known as “Blowing” it is widespread and the Gold Coast in Queensland is the centre of activity. The term “Blower” has been adopted as the Fraudster uses the telephone or a fax machine to solicit payments for Directory Advertising that has never been approved nor will ever be published.

Every school, university, business, government agency, website and charity in Australia is targeted by “Blowers”. Blowers collect logos, signatures, crests and letterheads to create false approval letters from any financial authority listed by an intended victim on a website or in any annual report or similar publication.

When approval for advertising is queried by a bookkeeper, accountant or auditor a forged approval complete with letterhead and signature can be faxed back straight away to invoke prompt payment. Some “Blowers” are so well organised that they have used genuine Collection Agencies to collect the overdue invoices for advertising that was never approved or provided. (Collection agencies don’t ask questions, they want business too.)

Investigating Blowers

These Fraudsters are smart people who know how to use the system to work in their favour:
 • They change address frequently (In Europe and America this is known as Boiler Room Addressing. Low cost rental in CDB building for 3 months, slash and burn the local business district through false invoicing, then move on to avoid detection)
 • A physical address never appears on the false invoices.
 • Telcos will not reveal the location of physical phones (The Fraudster knows how to use the system).
 • PO Boxes are never attached to the commercial premises.
 • Secure commercial premises that can only be accessed by lifts are another base preferred by Blowers.
 • Complainants don’t keep records of documents or conversations (no continuity of evidence)
 • Complainants are vague about the misrepresentations made to them.
 • Sales staff never use their real names

Examples of known income

Premises searches, interviews with and the bank records of 3 Gold Coast Blowers revealed:
 • One Blower grossing in excess of 3 million dollars per year.
 • One Blower openly admitting that in 17 years of trade on the Gold Coast he had made $40 million dollars.
 • A single young woman operating out of a Gold Coast High Rise selling advertising into two non-existent directories using a phone, fax and computer made $160,000.00 in 4 months. (She was charged and fined $5,000.00; I wonder what she is doing today?)

Don’t sucker for Invoice Fraud

Every workplace listed in the white pages, yellow pages, any directory, the Internet, and all government agencies, sports clubs, associations and charities are potential targets of this type of fraud.

If you receive an invoice for advertising or goods you did not approve, or you are unaware of contact the Office of Fair Trading in your state:
 • Keep the false invoice do not throw it away most people do and vital evidence is lost.
 • Keep a detailed record of any telephone conversations that follow requesting payment. Day, date and time, I said / She said.
 •  Insist on attending the premises to view the published advertising, approval letter and records of previous contact by the organisations sales staff. (They don’t want you there.)
 •  Ask to speak to the sales person who called you.
 • Remember you are dealing with professional fraudsters here, if they think you are aware of them their modus operendi they will leave you alone.

They rely on you being too busy to check, and gullible about supporting a non-existent directory for a worthy cause. Believe me their cause is not worthy, it is 100% fraudulent. And one final note, these Blower organisations are organised, they have sales targets, awards for sales person of the month and employee of the year. This is serious business with huge potential returns and low penalties; only you and I can put them out of business by not falling for their scam.