Groups who dishonestly gain a benefit by using any combination of the other methods in a planned, coordinated and sophisticated way.
Organised crime groups in Australia can range from localised community groups to transnational syndicates based offshore. They are diverse and flexible, capable, resourceful and resilient. They evolve and adapt to changes in the environment, looking for vulnerabilities to exploit for criminal gain. They are also increasingly using professional facilitators and service providers to help or 'facilitate' their criminal activities.
Recent case studies
- Five members of an organised criminal syndicate were charged with fraudulently claiming more than $1.1 million in National Disability Insurance Scheme (NDIS) payments. The syndicate created three entities, which appeared to be genuine NDIS providers, to make fraudulent claims from more than 70 people on disability plans, or those managing their affairs. The three providers are believed to have taken more than $2.6 million in NDIS payments since December 2017, with authorities yet to determine whether these payments are legitimate or fraudulent. The five members were all charged with fraud related offences under the Criminal Code 1995 (Cth).
- More than 30 people were arrested or charged in connection to a fake family daycare provider. It is alleged the criminal syndicate used the front company to receive about $4 million in fraudulent childcare rebates over eight months. The investigation revealed that the business existed on paper but no child ever went into care at any of the properties. The syndicate operating the scam also collaborated with over a dozen co-conspirators, who handed their children's details over to the syndicate to perpetrate the fraud.
The methods of the organised are countered by measures that support information sharing and strategic collaboration.
Key countermeasures include:
- Governance, accountability and oversight
- Integrity checks and suitability reviews
- Collaboration with strategic partners
- Mandatory information is required to complete the request or claim
- Information is verified
- Data matching
- Data analytics
- Staff are trained and supported to identify and report fraud and corruption
- Tip-offs and Public Interest Disclosures
- Fraud detection programs
- Incident response plans
- Fraud investigations
- Coordinated disruption activity
- Penalties for fraud and non-compliance with rules, processes and expectations are enforced.
Other countermeasures include:
- Managerial, independent or expert oversight
- Self-disclosure and reporting mechanisms
- System or physical access controls
- Sensitive information controls
- Evidence must be provided to confirm identity
- Identity is authenticated for each interaction
- Requests, claims or processes are limited by parameters
- Requests or claims are processed by a limited number of staff
- Requests, claims or activities are approved by the appropriate decision-maker
- Ongoing compliance, performance and contract reviews
- Data loss protections
- Quality assurance checks
- Automatic notification of high-risk activities and transactions
- Complaints about poor or anomalous outcomes
- Reconciliation (accounting)
- Activity reporting
- Exception reporting
- Incident reporting
- Internal or external audits or reviews
- Documentation and evidence storage
- Audit logging
- Video or electronic surveillance
- Trained fraud analysts and investigators
- Coordinated disruption activity
- Separation and termination processes.
Download an A3 printable summary of the fraudster personas. If you require these documents in a different accessible format please contact firstname.lastname@example.org.