Money Laundering Mayhem: The Day a Scam Nearly Destroyed My TATTOO Business

Here in Australia, it’s critical to understand that “cleaning money” through laundering, no matter the circumstances, is a serious crime that will land you in Jail. Let me share a quick story, and I’ll wrap it up with some crucial takeaways at the end.

@fuellingtomorrow

A few years after the Bondi housing scam, I launched my own Tattoo business. We often received leads from interested parties who emailed us for quotes or service bookings. So, when an email arrived from an older lady claiming to be in the hospital—saying she needed to book a day session for the bride and groom, their granddaughter, and the new-to-be partner—I didn’t find it unusual. She explained that she was about to undergo surgery and would have someone call on her behalf. The email even included design ideas for both parties and specific dates. No red flags were raised, especially after I received a call from the Australian relay service confirming the details. Convinced by the story of a caring grandmother wanting to give a special couple a memorable gift, I happily provided a quotation and arranged for our services.

I had my receptionist send out a detailed quotation for two of our artists, including extras like pick-up and drop-off from a nearby hotel in a classic hot-rod, and even catering to ensure a truly unforgettable experience for the couple. I requested a 50% booking deposit. Unbeknown to me the receptionist processed the full amount via multiple credit card payments, confirming the booking, all through the relay phone service.

That weekend, while attending a friend’s children’s footy game, I received a call from the Australian Fraud Squad. At first, I thought it was a mistake, but then the realization hit—I had processed a fraudulent credit card payment. I assured them that I had all the receipts and documentation in my CRM and accounting system. I promised to meet with my business banker, Emma, at my local bank on Monday morning to sort things out.

Monday arrived, and I rushed to Westpac with all the corresponding evidence and EFTPOS receipts before 9 am. I even treated Emma to a coffee at a local café and headed back to the bank. Standing in the branch with my chihuahua, I was startled to see a swarm of police cars and officers, armed and in tactical gear, gathering outside. Then, to my shock, the branch shutters began to close.

I turned to Emma and asked, “Is this for me?” Neither of us knew why the branch was empty or why the police were there. I was quickly ushered into a secluded area of the branch. Three armed officers surrounded us, clearly aware that I was not involved in money laundering—but they needed my help tracking down the real culprits. The situation felt like a heavy-handed overreaction; a simple phone call might have sufficed instead of this intimidating display.

Then came the twist that made my blood boil: the Fraud Squad instructed me to refund the money back to the credit cards.

However, the police wanted me to hold the funds and transfer them to a bank account they would provide.

Here’s where it got truly sticky—transferring the money anywhere other than back onto those cards would mean I’d be complicit in money laundering. To be crystal clear: if I had moved the money to any other account under anyone else’s instructions, I would have been arrested for money laundering.

I told Emma I needed time to think and consult my lawyer on the best way forward. I left the bank after that dramatic showdown, got in my car, and headed back to work, still reeling from the events. I was shaking uncontrollably, trying to appear normal despite feeling utterly overwhelmed.

Eventually, I called Emma again and requested that we refund all the transactions directly back to the cards. She arranged for a representative from the card team to guide me through the process. I completed every refund, printed out all the receipts, and sent copies via email to the police, with Emma and my lawyer copied in. I assured them that I would cooperate fully and provide all available information.

The police later informed me that I would receive a request to cancel the booking and refund the amount paid, and that a different account would be provided for the transfer. I complied, though the entire ordeal left me furious. What frustrated me most was the Australian Relay Service, which did not collect any information on the parties they represented, leaving both the police and me in the dark.

Please, take one critical lesson away from this story:

If I had transferred that money to any account other than back onto the credit cards, I would have been charged with money laundering.

2015

I eventually traced the fraudsters' bank account to a Bateau Bay location, yet neither the banking system nor anyone else was able to help me recover the funds or bring the right perpetrator to justice.

Stay vigilant—protect your transactions, and know your rights.

If my perspective resonates with you or you have a story to share, I’d love to hear from you. Visit my YouTube channel @fuellingtomorrow or reach out via the contact page.

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Erika B Armstrong