The Australian Federal Police Commissioner confirmed up to 150 people had been victim to fraudsters who had tried illegally accessing $120,000 in early super payments.
More than 1 million Australians have now accessed their superannuation early, as part of a Government measure to help them get through the coronavirus crisis.
But the new measures prompted fraudsters to misuse information to try and access tens of thousands of dollars for themselves.
It comes as the Australian Tax Office revealed it had received 1,160 tip-offs of perceived fraud across the Government’s various COVID-19 support programs, and a further 2,000 “calls of concern”.
What’s the early superannuation access scheme?
To make sure people aren’t left in the lurch during the coronavirus crisis, the Government announced a $30 billion scheme that would allow them to access their super early.
This doesn’t allow for people to dive into all of their superannuation savings, with the program only allowing for $10,000 to be withdrawn
How did fraudsters access the money?
Like many instances of fraud of financial systems, this one took place by criminals “misusing” information to illegally access people’s super.
How exactly did they “misuse” information? By getting access to people’s personal details, allowing them to pose as someone else and try to gain access to their super – i.e. fraud.
The incidences prompted the ATO commissioner to urge Australians to “keep their information secure and private” now more than ever.
What is being done about it?
The AFP are responding to the latest suite of reports, with the commissioner confirming five search warrants have so far been executed but no arrests yet made.
Affected bank accounts have also been frozen.
However, in the long-term Federal Labor is urging the Government to consider how they can prevent people rorting the system and committing fraud as they rush through such support measures.
Shadow Finance Minister Katie Gallagher said the Government and ATO had fallen short in such protections.
“We urged the government to actually have a look at their systems, particularly the ATO, and really strengthen them,: she said.
“Part of the problem with the early access super one is that it is a self-verification process. There is no testing done by the ATO to verify that document. You sign it and therefore they believe you. Obviously that has fallen short and I think they should get right across it before it extended to
other programs.”
Other instances of fraud
AFP commissioner Reece Kershaw confirmed people had been attempting to rort Government measures, assuming false identities to try and get support packages.
One man had used 53 fictitious identities to submit almost 70 different claims for various support programs to the tune of more than $70,000, Mr Kershaw confirmed.
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