Australians Defrauded by Elaborate Scam Network

Key points

• More than 4,000 Australians have been victims of the Sapphire Network since 2021.
• A Melbourne company, Trigo XO, was used to disguise scam payments.
• OCCRP estimates the scam's total damage at hundreds of millions of dollars.

A scam network known as the Sapphire Network has targeted over 4,000 Australians, leveraging fake versions of trusted news sites to trick victims into investing large sums. The fraudsters have been at it since at least 2021, and their tactics include creating near-perfect copies of reputable websites like ABC News. One victim, for instance, was lured by a fake ABC News page and ended up losing more than $500,000 to the scam.

How did the scam work?

Victims are ensnared through fake news articles that appear on cloned versions of legitimate websites. When they click on these articles and provide their contact details, a supposed broker contacts them. This broker, often warm and friendly, persuades them to invest money, which they believe is being traded on their behalf. However, as soon as the money leaves their account, it disappears into the network.

One victim, who we will call Toby, was persuaded over several months to transfer over $500,000 into an account supposedly in his name. He was shown a convincing trading dashboard with fake profits, only to later be told that some trades had gone wrong and he owed large sums. The scam even suggested he take loans against his assets.

How was the scam uncovered?

The scam was cracked open by a small payment meant to look legitimate on paper. Victims were asked for an upfront fee to open their accounts, typically masked as purchases for online courses or immigration services. A payment of $365 from a victim led investigators to a Melbourne company, Trigo XO, which was supposedly selling online courses but was actually funneling scam payments.

Trigo XO's accountant had reported suspicious activities to AUSTRAC, Australia's anti-money-laundering regulator, before severing ties with the company. The accountant and others discovered that the real owner was linked to GoBe Marketing, a telemarketing firm with a history of processing fraudulent payments.

What should investors do?

Anyone who suspects they have invested through a fake platform should act swiftly. Treat such investments as potentially fraudulent, and do not pay any fees to withdraw your money. Contact your bank immediately for advice on reversing transfers and report the scam to Scamwatch, Australia's consumer protection body. Keeping records of all communications and transactions is vital, as even small payments can help trace where the money went.

Common questions

How do I spot a fake news website before I click through?

Check the web address carefully. Real news sites have short, well-known domains. Clones often add extra words or characters. Articles promising guaranteed returns or exclusive AI-powered trading tips are likely scams.

Can I get my money back if I have already sent it?

Recovery is rare but possible if you act quickly. Banks may reverse recent transfers, and international investigations into the Sapphire Network increase the chance that frozen funds could be returned.

This story was first reported by ThreatVectr, highlighting the global reach and impact of the Sapphire Network.