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How FinTech is advancing AML Controls in the UAE?

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Jerin Mathew
14 December 2022
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10 min

With the advent of new technology, the way we conduct financial transactions has changed dramatically. We have gone from a world where cash was king to one where digital transactions are the norm. This shift has been especially pronounced in the Middle East, where a region traditionally dominated by physical currency is now embracing digitization and taking measures to increase innovation.

Compared with Europe’s annual growth of 4-5 percent, consumer digital payment transactions in the UAE grew at a rate of over 9 percent between 2014 and 2019. In 2022, digital payment volumes from SMEs grew by 44%, according to a report by McKinsey and Co.

Along with new opportunities, the growing cashless society in the Middle East has presented the need for new onboarding and ongoing due diligence mechanisms within fintech companies, with an increasing reliance on technology to fight financial crime. As more and more businesses move online, it's no surprise that financial crime is following suit.

The move to a cashless society in the Middle East presents both challenges and opportunities for anti-financial crime professionals. Traditional methods of due diligence and onboarding are no longer sufficient in a digital world. In order to explore some of the critical things that financial institutions need to know to ensure financial crime compliance in line with growing digitalization, Tookitaki conducted a webinar on December 13 as part of our Compliant Conversations webinar series.

Moderated by Gloria Chraim, Tookitaki’s Regional Head of Sales (MEA), we were fortunate to have on board Meyya EL Amine, Chief Compliance Officer at Yap Payment Services, and Gurminder Kaur, Head of Compliance at Al Rostamani International Exchange, as our key speakers in the webinar. The speakers covered topics such as addressing the shift from traditional banking to digital banking, how new trends and technologies are shaping up the anti-financial crime efforts in the Middle East and how the regulatory landscape is changing to support the continued adoption of technology.  The speakers also shared tips for fintech companies to stay proactive and ensure compliance with holistic visibility and better insights into customer behaviour and identifying suspicious activities at large.

The Rising Popularity of Digital Banking in the UAE

In the UAE, digital banking started with individuals, however, the sector has now grown to incorporate small and medium enterprises (SMEs) and even bigger companies. In digital banking, automation, multimedia and telecom came together to give customers a seamless banking experience. Compared to traditional banking, it is faster, more convenient, customer friendly and smart.

During the pandemic, the existing digital infrastructure in the UAE came to people’s rescue and they happily embraced digital banking and digital financial services. The emergence of digital banking positively impacted the way how financial institutions do their regulatory filing that too have gone digital to a large extent. The UAE government and the regulatory authorities were well prepared for the change as they have already laid down measures supported by a great infrastructure.

The Opportunities and Challenges of a Cashless Economy

The transition to a cashless economy has the potential to bring many benefits, such as increased convenience and speed of transactions, reduced costs for businesses and financial institutions, and improved financial inclusion for underserved populations.

However, the transition to a cashless economy also presents some challenges that the UAE must carefully address in order to ensure a smooth and successful transition. Some of the key opportunities and challenges of a cashless economy in the UAE are discussed below.

Opportunities:

Increased convenience and speed of transactions: Digital payment methods are typically faster and more convenient than using cash, allowing for more efficient transactions and reducing the time and effort required for both consumers and businesses.

Reduced costs for businesses and financial institutions: A cashless economy can help reduce the costs associated with handling and transporting physical money, such as security and transportation expenses. This can be particularly beneficial for small businesses and financial institutions.

Improved financial inclusion: A cashless economy can help improve access to financial services for underserved populations, such as migrant workers or rural communities. This can help promote economic growth and reduce inequality.

Challenges:

Access to technology and financial services: In order for a cashless economy to be successful, everyone must have access to the necessary technology and financial services. This can be a challenge in the UAE, where there is a large population of migrant workers who may not have access to bank accounts or the means to use digital payment methods.

Impact on small businesses and traditional industries: The transition to a cashless economy may be difficult for small businesses and traditional industries that do not have the infrastructure or resources to support digital payment methods. These businesses may struggle to compete with larger, more technologically advanced companies if they are unable to accept digital payments.

Money Laundering/Terrorist Financing Risks: A cashless economy can make it easier for criminals to conduct financial transactions without leaving a paper trail, making it more difficult for law enforcement agencies to detect and prevent money laundering and terrorist financing.

Cybersecurity risks: As more transactions are conducted digitally, there is an increased risk of sensitive financial information being compromised. The UAE must take steps to ensure the security of digital payment systems in order to protect against fraud and hacking.

Overall, while the transition to a cashless economy in the UAE has the potential to bring many benefits, it is important for the government and other stakeholders to carefully address these challenges in order to ensure a smooth and successful transition.

The Gaps of Traditional Approaches to Fighting Financial Crime

With financial channels going online, the bad actors have more chances for their illicit activities, taking advantage of possible gaps in the digital financial system. Regulatory scrutiny over financial institutions has continued to increase and fines have been rising too. It might be because of a disconnect between what we have been practicing and what needs to be done given the changing scenarios.

We still create customer risk profiles n silos. Within compliance, customer screening, transaction monitoring and customer risk scoring processes do not speak to each other, thereby failing to provide a holistic view of the customer. This is one of the reasons why the traditional rule-based or scenario-based approaches are failing today. With a huge customer base, where the data fields are static and are not regularly updated, the actual customer risk remains not captured. Compliance analysts are often burdened with a large number of alerts, leading to the possibility of many high-risk customers remaining unaffected.

The Need for New Onboarding and Ongoing Due Diligence Mechanisms

Rule-based customer risk assessment is no longer an option. This needs to be done in a dynamic fashion and on an ongoing basis. If our data on customer is obsolete or not up to the mark, then definitely we will feel the pinch as those data is the basis of all our customer risk assessment, transaction monitoring and name screening processes. Despite the possibilities of fraud, digital know your customer or KYC has actually come as a boon as it helps in remediating your data issues to a large extent. However, digital KYC alone is not going to help us; we need to feed the digital KYC systems properly.

We need to first understand our data and segment our customers. There cannot be a one-size-fits-all approach. Customers need to be segmented based on geographies, nationalities, occupation, industries, etc., depending on the business model, and proper risk values or scores need to be determined for each customer. Based on perceived risk, the nature of questions at the time of onboarding can be simplified or made tougher.

Technologies like Optical Character Recognition (OCR) and facial recognitioncan also help to a great extent. OCR can take old data, validate it and populate it into a more readable, more accurate form. With facial recognition, we can have liveliness check, biometrics assessment and validate the customer with a central database. Ongoing due diligence is also required to feed the customer risk rating models. This will help rescore customer risk dynamically at regular intervals or if there are any changes in the original customer profile.

The Impact of New Trends and Technologies on Compliance

The UAE in particular and the GCC or MENA region in general are embracing the risk-based approach (RBA) to fighting financial crime. Today, the compliance trend is to have easily verifiable and real-time channels for customer identification documents and commercial registries. Technology is helping us a lot in compliance, and the regulatory requirements are also boosting technology to be more innovative, smarter and quicker. All of us, the customers, the businesses and regulators, are benefiting from it. Businesses are even using it for understanding the consumer better and customise their product and service offerings.

This is all coming to the surface of the final consumer and the business. Even though it is compliance related and a part of regulatory requirements, it is serving us immensely and it's growing exponentially.

The Role of Technology in Fighting Financial Crime

Technology plays a crucial role in the fight against financial crime by providing tools and systems that can help detect and prevent illegal activities.

  • Machine learning is a type of artificial intelligence that involves training algorithms on large amounts of data to enable them to make predictions or take actions based on that data. This technology can be used in the fight against financial crime by providing algorithms with data on past financial crimes, such as money laundering or fraud. The algorithms can then learn to identify patterns and anomalies in financial data that may indicate illegal activity.
  • One potential application of machine learning in the fight against financial crime is in the detection of money laundering. By analyzing transaction data, algorithms can learn to identify the characteristics of money laundering transactions, such as the use of multiple bank accounts or the movement of money through different countries. This can help law enforcement agencies and financial institutions detect potential money laundering activities and take action to prevent them.
  • Another potential application of machine learning in the fight against financial crime is in the detection of fraud. Algorithms can be trained on data from past fraud cases to learn the patterns and characteristics of fraudulent transactions.
  • Overall, machine learning has the potential to play a significant role in the fight against financial crime by providing algorithms with the ability to identify patterns and anomalies in financial data that may indicate illegal activity.
  • Another way that technology is used in the fight against financial crime is through the development of secure payment systems. These systems use encryption and other security measures to protect financial transactions and prevent fraud. This can help protect consumers and businesses from becoming victims of financial crimes.
  • Additionally, technology is also used to improve communication and collaboration among law enforcement agencies, regulatory bodies, and financial institutions. This can help these organizations share information and collaborate effectively to combat financial crime.

The Importance of Collective Intelligence

Collective intelligence can play an important role in fighting financial crime by allowing organisations and individuals to share information and resources, coordinate efforts, and work together towards a common goal. For example, financial institutions can use collective intelligence to share information about suspicious transactions and patterns of behaviour that may indicate financial crimes such as money laundering or fraud. This can help identify potential threats and enable law enforcement and other agencies to take action.

In addition, collective intelligence can be used to develop and improve algorithms and other technologies for detecting and preventing financial crimes. By pooling their expertise and resources, organisations and individuals can work together to create more effective solutions for detecting and preventing financial crime.

The Change in Regulatory Landscape to Support Tech Adoption

The regulatory acceptance to new technology has come at a very fast pace. The regulators are not just interested in that you have a system, rather they are interested in knowing why do you have that system. They're interested in understanding that whether you have the know-how of your technology, customer base and typologies, and whether that has been correctly embodied them in your customer risk assessment model.

Regulators can play an active role in bringing standardization in compliance technology adoption also. The federal registry, the IP validations for retail customer database and the public registry for the beneficial ownership are proactive measures from the regulators to ensure that the financial industry is upgrading itself with newer systems.

One example of a change in the regulatory landscape to support tech adoption is the growth of regulatory sandboxes. These are controlled environments in which companies can test new technologies and business models without being subject to all of the usual regulations. This can help companies innovate and bring new products and services to market more quickly, while also ensuring that these products and services are safe and comply with relevant regulations.

How can Fintechs Ensure Compliance?

Fintechs can ensure compliance by optimizing on their systems, by optimizing and investing in their human capital and by looking up to the best practices around the world and applying that. Even if the regulators are not asking to do it, do it now. Furthermore, we need to share knowledge across the organization. We need to make every line of defense understand what is the risk that is associated to our organization, and how we are best at mitigating it.

Improving Compliance with Tookitaki

Headquartered in Singapore, Tookitaki is a regulatory technology company offering financial crime detection and prevention to some of the world's leading banks and fintechs to help them stay vigilant and compliant.

The anti-money laundering (AML) compliance departments of today’s financial institutions are inundated with voluminous false positives and case backlogs that add to costs and prevent them from filtering out high quality alerts.

Tookitaki’s Anti-Money Laundering Suite (AMLS) helps protect your customers throughout the entire onboarding, and ongoing proceses through two modules customised to suit your needs- Intelligent Alert Detection (IAD) for detection and prevention and Smart Alert Management (SAM) for management. Designed on three C-principles – comprehensive, convenient and compliant, the AMLS uses transaction monitoring, smart screening and customer risk scoring solutions. The alerts from all solutions are unified in an interactive, modern-age Case Manager that offers speedy alert disposition and easy regulatory report filing.


Stay empowered with increased risk coverage and mitigate risks seamlessly in the ever-evolving world of regulatory compliance.
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Blogs
25 Aug 2025
5 min
read

Stablecoins Are Booming. Is Compliance Falling Behind?

Programmable money isn’t a futuristic buzzword anymore — it’s here, and it’s scaling at breakneck speed. In 2024, stablecoin transactions exceeded $27 trillion, surpassing Visa and Mastercard combined. From international remittances to e-commerce, stablecoins are reshaping how money moves across borders.

But there’s a catch: the same features that make stablecoins so powerful — speed, cost efficiency, accessibility — also make them attractive for financial crime. Instant, irreversible, and identity-light transactions have created a compliance challenge unlike any before. For regulators, banks, and fintechs, the question is clear: can compliance scale as fast as stablecoins?

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The Rise of Stablecoins: More Than Just Crypto

Stablecoins are digital tokens pegged to a stable asset like the U.S. dollar or euro. Unlike Bitcoin or Ether, they aren’t designed for volatility — they’re designed for utility. That’s why they’ve become the backbone of digital payments and decentralised finance (DeFi).

  • Cross-border remittances: Workers abroad can send money home cheaply and instantly.
  • Trading and settlements: Exchanges use stablecoins as liquidity anchors.
  • Merchant adoption: From small retailers to payment giants like PayPal (with its PYUSD stablecoin launched in 2023), stablecoin rails are entering mainstream commerce.

With global players like USDT (Tether) and USDC (Circle) dominating, and even central banks exploring CBDCs (Central Bank Digital Currencies), it’s clear stablecoins are no longer niche. They are programmable, scalable, and systemically important.

But scale brings scrutiny.

The Compliance Gap: Why Old Tools Don’t Work

Most financial institutions still rely on compliance infrastructure designed decades ago for slower, linear payment systems. Batch settlements, SWIFT messages, and pre-clearing windows gave compliance teams time to check, flag, or stop suspicious activity.

Stablecoins operate on entirely different principles:

  • Real-time settlement: Transactions confirm in seconds.
  • Pseudonymous wallets: No guaranteed link between a wallet and its true owner.
  • DeFi composability: Funds can move through multiple protocols, contracts, and blockchains with no central chokepoint.
  • Irreversibility: Once sent, funds can’t be clawed back.

This creates an environment where bad actors can launder funds at the speed of code. Legacy compliance systems — built for yesterday’s risks — simply cannot keep up.

The New Typologies Emerging on Stablecoin Rails

Financial crime doesn’t stand still. It adapts to new rails faster than regulation or compliance can. Here are some typologies unique to stablecoins:

  1. Money Mule Networks
    Organised groups recruit international students or gig workers to act as “cash-out points,” moving illicit funds through stablecoin wallets before converting back to fiat.
  2. Cross-Chain Laundering
    Criminals exploit bridges between blockchains (e.g., Ethereum to Tron or Solana) to break traceability, making it harder to follow the money. This tactic was highlighted in multiple reports after North Korea’s Lazarus Group laundered hundreds of millions in stolen crypto across chains.
  3. DeFi Layering
    Funds are routed through decentralised exchanges, lending platforms, or automated market makers to mix flows and obscure origins. The U.S. Treasury’s sanctions on Tornado Cash in 2022 marked a watershed moment, underscoring how DeFi mixers can become systemic laundering tools.
  4. Sanctions Evasion
    With traditional banking rails restricted, sanctioned entities increasingly turn to stablecoins. The U.S. Office of Foreign Assets Control (OFAC) has flagged stablecoin usage in multiple enforcement actions tied to Russia and other high-risk jurisdictions.

Each of these typologies highlights the speed, complexity, and opacity of stablecoin-based laundering. They don’t look like traditional fiat red flags — they demand new methods of detection.

ChatGPT Image Aug 25, 2025, 01_49_10 PM

What Compliance Needs to Look Like for Stablecoins

To match the speed of programmable money, compliance must itself become programmable, adaptive, and dynamic. Static, rule-based systems are insufficient. Instead, compliance must shift to a risk infrastructure that is:

1. Risk-in-Motion Monitoring

Rather than flagging transactions after they settle, monitoring must happen in real time, detecting structuring, layering, and unusual flow patterns as they unfold.

2. Smart Sanctions & Wallet Screening

Name checks aren’t enough. Risk detection must consider wallet metadata, behavioural history, device intelligence, and network analysis to surface high-risk entities hidden behind pseudonyms.

3. Wallet Risk Scoring

A static “high-risk wallet list” doesn’t work in a world where wallets are created and discarded easily. Risk scoring must be dynamic and contextual, combining geolocation, device, transaction history, and counterparties into evolving risk profiles.

This is compliance at the speed of programmable money.

Tookitaki’s FinCense: Building the Trust Layer for Stablecoins

At Tookitaki, we’re not retrofitting legacy tools to fit this new world. We’re building the infrastructure-grade compliance layer programmable money deserves.

Here’s how FinCense powers trust on stablecoin rails:

  • Risk-in-Motion Monitoring
    Detects structuring, layering, and anomalous flows across chains in real time.
  • Smart Sanctions & Wallet Screening
    Goes beyond simple lists, screening metadata, networks, and behavioural red flags.
  • Wallet Risk Scoring
    Integrates device, location, and transaction intelligence to give every wallet a living, breathing risk profile.
  • Federated Intelligence from the AFC Ecosystem
    Scenarios contributed by 200+ compliance experts worldwide enrich the system with the latest typologies.
  • Agentic AI for Investigations
    Accelerates investigations with an AI copilot, surfacing insights and reducing false positives.

FinCense is modular, composable, and built for the future of programmable finance. Whether you’re a digital asset exchange, fintech, or bank integrating stablecoin rails, it enables you to operate with trust and resilience.

Conclusion: Scaling Trust with Stablecoins

Stablecoins are here to stay. They’re reshaping payments, cross-border transfers, and financial inclusion. But they’re also rewriting the rules of financial crime.

The next phase of growth won’t be defined by speed or accessibility alone — it will be defined by trust. And trust comes from compliance that can move as fast and adapt as dynamically as programmable money itself.

Stablecoins will define the next decade of finance. Whether they become rails for inclusion or loopholes for crime depends on how we build trust today. Tookitaki’s FinCense is here to make that trust possible.

Stablecoins Are Booming. Is Compliance Falling Behind?
Blogs
20 Aug 2025
6 min
read

Ferraris, Ghost Cars, and Dirty Money: Inside Australia’s 2025 Barangaroo Laundering Scandal

In July 2025, Sydney’s Barangaroo precinct became the unlikely stage for one of Australia’s most audacious money laundering cases. Beyond the headlines about Ferraris and luxury goods lies a sobering truth: criminals are still exploiting the blind spots in Australia’s financial crime defences.

A Case That Reads Like a Movie Script

On 30 July 2025, Australian police raided properties across Sydney and arrested two men—Bing “Michael” Li, 38, and Yizhe “Tony” He, 34.

Both men were charged with an astonishing 194 fraud-related offences. Li faces 87 charges tied to AUD 12.9 million, while He faces 107 charges tied to about AUD 4 million. Authorities also froze AUD 38 million worth of assets, including Bentleys, Ferraris, designer goods, and property leases.

At the heart of the case was a fraud and laundering scheme that funnelled stolen money into the high-end economy of cars, luxury fashion, and short-term property leases. Investigators dubbed them “ghost cars”—vehicles purchased as a way to obscure illicit funds.

It’s a tale that grabs attention for its glitz, but what really matters is the deeper lesson: Australia still has critical AML blind spots that criminals know how to exploit.

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How the Syndicate Operated

The mechanics of the scheme reveal just how calculated it was:

  • Rapid loan cycling: The accused are alleged to have obtained loans, often short-term, which were cycled quickly to create complex repayment patterns. This made tracing the origins of funds difficult.
  • Luxury asset laundering: The money was used to purchase high-value cars (Ferraris, Bentleys, Mercedes) and designer items from brands like Louis Vuitton. Assets of prestige become a laundering tool, integrating dirty money into seemingly legitimate wealth.
  • Property as camouflage: Short-term leases of expensive properties in Barangaroo and other high-end districts provided both a lifestyle cover and another channel to absorb illicit funds.
  • Gatekeeper loopholes: Real estate agents, accountants, and luxury dealers in Australia are not yet fully bound by AML/CTF obligations. This gap created the perfect playground for laundering.

What’s striking is not the creativity of the scheme—it’s the simplicity. By targeting sectors without AML scrutiny, the syndicate turned everyday transactions into a pipeline for cleaning millions.

The Regulatory Gap

This case lands at a critical time. For years, Australia has been under pressure from the Financial Action Task Force (FATF) to extend AML/CTF laws to the so-called “gatekeeper professions”—real estate agents, accountants, lawyers, and dealers in high-value goods.

As of 2025, these obligations are still not fully in place. The expansion is only scheduled to take effect from July 2026. Until then, large swathes of the economy remain outside AUSTRAC’s oversight.

The Barangaroo arrests underscore what critics have long warned: criminals don’t wait for legislation. They are already steps ahead, embedding illicit funds into sectors that regulators have yet to fence off.

For businesses in real estate, luxury retail, and professional services, this case is more than a headline—it’s a wake-up call to prepare now, not later.

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Why This Case Matters for Australia

The Barangaroo case isn’t just about two individuals—it highlights systemic vulnerabilities in the Australian financial ecosystem.

  1. Criminal Adaptation: Syndicates will always pivot to the weakest link. If banks tighten their checks, criminals move to less regulated industries.
  2. Erosion of Trust: When high-value markets become conduits for laundering, it damages Australia’s reputation as a clean, well-regulated financial hub.
  3. Compliance Risk: Businesses in these sectors risk being blindsided by new regulations if they don’t start implementing AML controls now.
  4. Global Implications: With assets like luxury cars and crypto being easy to move or sell internationally, local failures in AML quickly ripple across borders.

This isn’t an isolated story. It’s part of a broader trend where fraud, luxury assets, and regulatory lag intersect to create fertile ground for financial crime.

Lessons for Businesses

For financial institutions, fintechs, and gatekeeper industries, the Barangaroo case offers several practical takeaways:

  • Monitor for rapid loan cycling: Short-term loans repaid unusually fast, or loans tied to sudden high-value purchases, should trigger alerts.
  • Scrutinise asset purchases: Repeated luxury acquisitions, especially where the source of funds is vague, are classic laundering red flags.
  • Don’t rely solely on regulation: Just because AML obligations aren’t mandatory yet doesn’t mean businesses can ignore risk. Voluntary adoption of AML best practices can prevent reputational damage.
  • Collaborate cross-sector: Banks, real estate firms, and luxury dealers must share intelligence. Laundering rarely stays within one sector.
  • Prepare for 2026: When the law expands, regulators will expect not just compliance but also readiness. Being proactive now can avoid penalties later.

How Tookitaki’s FinCense Can Help

The Barangaroo case demonstrates a truth that regulators and compliance teams already know: criminals are fast, and rules often move too slowly.

This is where FinCense, Tookitaki’s AI-powered compliance platform, makes the difference.

  • Scenario-based Monitoring
    FinCense doesn’t just look for generic suspicious behaviour—it monitors for specific typologies like “rapid loan cycling leading to high-value asset purchases.” These scenarios mirror real-world cases, allowing institutions to spot laundering patterns early.
  • Federated Intelligence
    FinCense leverages insights from a global compliance community. A laundering method detected in one country can be quickly shared and simulated in others. If the Barangaroo pattern emerged elsewhere, FinCense could help Australian institutions adapt almost immediately.
  • Agentic AI for Real-Time Detection
    Criminal tactics evolve constantly. FinCense’s Agentic AI ensures models don’t go stale—it adapts to new data, learns continuously, and responds to threats as they arise. That means institutions don’t wait months for rule updates; they act in real time.
  • End-to-End Compliance Coverage
    From customer onboarding to transaction monitoring and investigation, FinCense provides a unified platform. For banks, this means capturing anomalies at multiple points, not just after funds have already flowed into cars and luxury handbags.

The result is a system that doesn’t just tick compliance boxes but actively prevents fraud and laundering—protecting both businesses and Australia’s reputation.

The Bigger Picture: Trust and Reputation

Australia has ambitions to strengthen its role as a regional financial hub. But trust is the currency that underpins global finance.

Cases like Barangaroo remind us that even one high-profile lapse can shake investor and customer confidence. With scams and laundering scandals making headlines globally—from Crown Resorts to major online frauds—Australia cannot afford to be reactive.

For businesses, the message is clear: compliance isn’t just about avoiding fines, it’s about protecting your licence to operate. Customers and partners expect vigilance, transparency, and accountability.

Conclusion: A Warning Shot

The Barangaroo “ghost cars and luxury laundering” saga is more than a crime story—it’s a preview of what happens when regulation lags and businesses underestimate financial crime risk.

With AUSTRAC set to extend AML coverage in 2026, industries like real estate and luxury retail must act now. Waiting until the law forces compliance could mean walking straight into reputational disaster.

For financial institutions and businesses alike, the smarter path is to embrace advanced solutions like Tookitaki’s FinCense, which combine scenario-driven intelligence with adaptive AI.

Because at the end of the day, Ferraris and Bentleys may be glamorous—but when they’re bought with dirty money, they carry a far higher cost.

Ferraris, Ghost Cars, and Dirty Money: Inside Australia’s 2025 Barangaroo Laundering Scandal
Blogs
30 Jul 2025
5 min
read

Cracking Down Under: How Australia Is Fighting Back Against Fraud

Fraud in Australia has moved beyond stolen credit cards, today’s threats are smarter, faster, and often one step ahead.

Australia is facing a new wave of financial fraud—complex scams, cyber-enabled deception, and social engineering techniques that prey on trust. From sophisticated investment frauds to deepfake impersonations, criminals are evolving rapidly. And so must our fraud prevention strategies.

This blog explores how fraud is impacting Australia, what new methods criminals are using, and how financial institutions, businesses, and individuals can stay ahead of the game. Whether you're in compliance, fintech, banking, or just a concerned citizen, fraud prevention is everyone’s business.

The Fraud Landscape in Australia: A Wake-Up Call

In 2024 alone, Australians lost over AUD 2.7 billion to scams, according to data from the Australian Competition and Consumer Commission (ACCC). The Scamwatch program reported an alarming rise in phishing, investment scams, identity theft, and fake billing.

A few alarming trends:

  • Investment scams accounted for over AUD 1.3 billion in losses.
  • Business email compromise (BEC) and invoice fraud targeted SMEs.
  • Romance and remote access scams exploited personal vulnerability.
  • Deepfake scams and AI-generated impersonations are on the rise, particularly targeting executives and finance teams.

The fraud threat has gone digital, cross-border, and real-time. Traditional controls alone are no longer enough.

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Why Fraud Prevention Is a National Priority

Fraud isn't just a financial issue—it’s a matter of public trust. When scams go undetected, victims don’t just lose money—they lose faith in financial institutions, government systems, and digital innovation.

Here’s why fraud prevention is now top of mind in Australia:

  • Real-time payments mean real-time risks: With the rise of the New Payments Platform (NPP), funds can move across banks instantly. This has increased the urgency to detect and prevent fraud in milliseconds—not days.
  • Rise in money mule networks: Criminal groups are exploiting students, gig workers, and the elderly to launder stolen funds.
  • Increased regulatory pressure: AUSTRAC and ASIC are putting more pressure on institutions to identify and report suspicious activities more proactively.

Common Fraud Techniques Seen in Australia

Understanding how fraud works is the first step to preventing it. Here are some of the most commonly observed fraud techniques:

a) Business Email Compromise (BEC)

Fraudsters impersonate vendors, CEOs, or finance officers to divert funds through fake invoices or urgent payment requests. This is especially dangerous for SMEs.

b) Investment Scams

Fake trading platforms, crypto Ponzi schemes, and fraudulent real estate investments have tricked thousands. Often, these scams use fake celebrity endorsements or “guaranteed returns” to lure victims.

c) Romance and Sextortion Scams

These scams manipulate victims emotionally, often over weeks or months, before asking for money. Some even involve blackmail using fake or stolen intimate content.

d) Deepfake Impersonation

Using AI-generated voice or video, scammers are impersonating real people to initiate fund transfers or manipulate staff into giving away sensitive information.

e) Synthetic Identity Fraud

Criminals use a blend of real and fake information to create a new, ‘clean’ identity that can bypass onboarding checks at banks and fintechs.

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Regulatory Push for Smarter Controls

Regulators in Australia are stepping up their efforts:

  • AUSTRAC has introduced updated guidance for transaction monitoring and suspicious matter reporting, pushing institutions to adopt more adaptive, risk-based approaches.
  • ASIC is cracking down on investment scams and calling for platforms to implement stricter identity and payment verification systems.
  • The ACCC’s National Anti-Scam Centre launched a multi-agency initiative to disrupt scam operations through intelligence sharing and faster response times.

But even regulators acknowledge: compliance alone won't stop fraud. Prevention needs smarter tools, better collaboration, and real-time intelligence.

A New Approach: Proactive, AI-Powered Fraud Prevention

The most forward-thinking banks and fintechs in Australia are moving from reactive to proactive fraud prevention. Here's what the shift looks like:

✅ Real-Time Transaction Monitoring

Instead of relying on static rules, modern systems use machine learning to flag suspicious behaviour—like unusual payment patterns, high-risk geographies, or rapid account-to-account transfers.

✅ Behavioural Analytics

Understanding what ‘normal’ looks like for each user helps detect anomalies fast—like a customer suddenly logging in from a new country or making a large transfer outside business hours.

✅ AI Copilots for Investigators

Tools like AI-powered investigation assistants can help analysts triage alerts faster, recommend next steps, and even generate narrative summaries for suspicious activity reports.

✅ Community Intelligence

Fraudsters often reuse tactics across institutions. Platforms like Tookitaki’s AFC Ecosystem allow banks to share anonymised fraud scenarios and red flags—so everyone can learn and defend together.

✅ Federated Learning Models

These models allow banks to collaborate on fraud detection algorithms without sharing customer data—bringing the power of collective intelligence without compromising privacy.

Fraud Prevention Best Practices for Australian Institutions

Whether you're a Tier-1 bank or a growing fintech, these best practices are critical:

  1. Prioritise real-time fraud detection tools that work across payment channels and digital platforms.
  2. Train your teams—fraudsters are exploiting human error more than technical flaws.
  3. Invest in explainable AI to build trust with regulators and internal stakeholders.
  4. Use layered defences: Combine transaction monitoring, device fingerprinting, behavioural analytics, and biometric verification.
  5. Collaborate across the ecosystem—join industry platforms, share intel, and learn from others.

How Tookitaki Supports Fraud Prevention in Australia

Tookitaki is helping Australian institutions stay ahead of fraud by combining advanced AI with collective intelligence. Our FinCense platform offers:

  • End-to-end fraud and AML detection across transactions, customers, and devices.
  • Federated learning that enables risk detection with insights contributed by a global network of financial crime experts.
  • Smart investigation tools to reduce alert fatigue and speed up response times.

The Role of Public Awareness in Prevention

It’s not just institutions—customers play a key role too. Public campaigns like Scamwatch, educational content from banks, and media coverage of fraud trends all contribute to prevention.

Simple actions like verifying sender details, avoiding suspicious links, and reporting scam attempts can go a long way. In the fight against fraud, awareness is the first line of defence.

Conclusion: Staying Ahead in a Smarter Fraud Era

Fraud prevention in Australia can no longer be treated as an afterthought. The threats are too advanced, too fast, and too costly.

With the right mix of technology, collaboration, and education, Australia can stay ahead of financial criminals—and turn the tide in favour of consumers, businesses, and institutions alike.

Whether it’s adopting AI tools, sharing threat insights, or empowering individuals, fraud prevention is no longer optional. It’s the new frontline of trust.

Cracking Down Under: How Australia Is Fighting Back Against Fraud