From Viral Hacks to Billion-Dollar Bust: The Untold Story of Australia's $4.6 Billion TikTok ...

Hackers, APT29, and which is also tracked under the monikers BlueBravo, Cloaked Ursa, Cozy Bear, Midnight Blizzard (formerly Nobelium), and The Dukes, with links to the Kremlin are suspected to have infiltrated information technology company Hewlett Packard Enterprise's (HPE) cloud email environment to exfiltrate mailbox data.

"The threat actor accessed and exfiltrated data beginning in May 2023 from a small percentage of HPE mailboxes belonging to individuals in our cybersecurity, go-to-market, business segments, and other functions," the company said in a regulatory filing with the U.S. Securities and Exchange Commission (SEC).

Tech Giant HP Enterprise Hacked by Russian Hackers Linked to DNC Breach

From Viral Hacks to Billion-Dollar Bust: The Untold Story of Australia's $4.6 Billion TikTok ...

In 2020, a seemingly harmless dance trend swept through TikTok. But beneath the catchy tunes and synchronized movements lurked a sinister scheme, one that would evolve into the biggest tax fraud in Australian history. This is the story of how a simple scam, amplified by the uncontrolled power of social media, defrauded the government of billions and left thousands facing the consequences for rest of their lives.

The Bait: Make Easy Money, Just Ask TikTok

The scam cantered around Goods and Services Tax (GST), a 10% levy on most goods and services in Australia. By registering a fictitious business and claiming bogus expenses, individuals could exploit the trust based self-assessment system and fraudulently claim GST refunds.

But, how did they do it?

Influencers on TikTok presented it as a “government loan,” a quick way to make easy money. This led to thousands of fake businesses propping up and claiming thousands of dollars in tax refunds. Before the authorities could realize, the claims surmounted up to $4.6 Billion and $1.6 Billion were already paid out to alleged beneficiaries!

The Spread: From “Genius Money Hack” to Fraudulent Claims

Fuelled by the fear of missing out (FOMO) and the allure of effortless cash during COVID-19 Pandemic, the trend went viral. Videos promising “free money” garnered millions of views, encouraging viewers to register for an Australian Business Number (ABN) and file for GST refunds. The ease of entry, combined with the persuasive power of social media, made it a perfect storm for fraud. Add the very nature of TikTok to promote anything that can harm the society, it was Category-5 hurricane!

The Cost: Millions Lost, Lives Impacted

The consequences were devastating. The Australian Tax Office (ATO) estimates the scam cost taxpayers a staggering $4.6 billion, with estimated $1.6 billion already paid out in fraudulent refunds. The ATO’s Operation Protego managed to stop $2.7 Billion worth of transections and $300 Millions in Penalties. Nearly a dozen arrest made so far and over 60,000 individuals are now facing serious repercussions, including hefty fines, criminal charges, and even jail time. The social and economic impact on communities, particularly vulnerable ones, is immense.

The Fallout: Lessons Learned and Challenges Remain

This incident exposed vulnerabilities in Australia’s tax system and the influence of social media in spreading misinformation. The ATO has since tightened regulations and implemented stricter verification processes. However, challenges remain. Detecting and deterring future scams requires proactive measures, including raising awareness about online disinformation and educating the public about responsible social media engagement.

Beyond the Numbers: A Story of Greed and Misinformation

The TikTok GST scam serves as a cautionary tale about the power of social media and the dangers of misinformation. It’s a reminder that not everything online is what it seems, and that even seemingly harmless trends can have serious consequences. As we navigate the ever-evolving digital landscape, it’s crucial to maintain a critical eye, verify information, and be wary of promises of easy money. Only then can we avoid becoming pawns in the next viral scam.

The Aussie Hustle: End of Road for Scammers

The ATO is now actively cracking down on the fraudsters, while TikTok has removed infringing content and partnered with authorities. Steps are being taken to tighten regulations and improve financial literacy. However, the scars of this saga remain, urging us to question the seemingly effortless paths to wealth peddled online, and emphasizing the importance of responsible social media engagement and financial awareness.

The Aussie hustle, in this case, took a dark turn. It’s a cautionary tale against falling for online quick fixes and a reminder that financial decisions, however tempting they may seem on a screen, deserve careful consideration and professional guidance. Let’s learn from this misstep, build resilience against online manipulation, and strive for a safer, more sustainable financial future for ourselves and our communities.

Directions issues by Australian Taxation Office (ATO): GST refund fraud attempts | Australian Taxation Office (ato.gov.au)

TikTok Bank on Government Official’s Devices: Australia-wide ban of TikTok on government devices announced as senior politicians quit the app | Australian politics | The Guardian

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