Joint ATO, AFP and Services Australia operation exposes major scam syndicate

TODAY, officers from the Australian Taxation Office (ATO), Australian Federal Police (AFP) and Services Australia executed search warrants at four properties across Western Sydney associated with individuals allegedly involved in an identity, tax and welfare fraud syndicate targeting innocent Australians.

The ATO-led operation, which commenced in October 2024, has identified four individuals who are alleged to have engaged in an array of offences, including tax fraud, identity fraud, welfare fraud and money laundering. 

The alleged fraud involved the distribution of scam emails to unsuspecting Australians which contained links to websites that, when clicked on, enabled the fraudsters to gather their personal information and take over their identity. 

When the ATO’s systems identified the fraud pattern, the syndicate is alleged to have then turned to recruiting its victims to become complicit money mules, so that it could continue the fraud.

During the searches, officers found multiple devices containing personal identifiable information and documentation that did not belong to the offenders that could allow them to fraudulently access taxpayers accounts.

The syndicate didn’t confine its wrongdoing to Australians. The individuals are alleged to be part of a sophisticated offshore criminal syndicate that specialises in identity takeovers, romance scams and money laundering, through international money transfers and cryptocurrency transactions. 

ATO Deputy Commissioner and Serious Financial Crime Taskforce (SFCT) chief John Ford said this early intervention would protect many more Australians from having their personal information stolen and used by this syndicate to commit fraud in their names.

"Through the warrant activity today, we are sending a clear message to the community: our approach to fraud is unwavering and we will hold these individuals to account. Engaging in offences such as these carries a penalty of up to 20 years imprisonment," Mr Ford said.

"The information and capability sharing between our partner agencies means we are able to track down syndicates like this at the source, disrupt the activity and ensure they face the full force of the law.

"We have also bolstered the strength of our security systems and ATO online services to stop fraud before it happens."

AUSTRAC gets involved

AUSTRAC acting national manager for law enforcement, Markus Erikson, said AUSTRAC was able to provide crucial financial intelligence to the ATO so it could investigate fraudulent activity.

"AUSTRAC works with Commonwealth partners and law enforcement agencies providing financial intelligence to help identify and track down entities that are directly controlling money mule networks," Mr Erikson said. 

"In this instance AUSTRAC also shared, with the ATO, additional mule account data observed in other crime types to assist with understanding the extent of fraudulent activity."

ATO said people should be aware of what information they shared and to never click on a link from a text or email asking for personal information. Once the scammers have personal information, they can access bank accounts, sign in to myGov accounts, steal money and commit fraud in the victim's name.

The new protective features on the ATO app, such as real-time messages and quick account locking, are now an extra safeguard that people can add in keeping personal information safe. It can be downloaded from the app stores.

The SFCT brings together the knowledge, resources and experience of relevant law enforcement and regulatory agencies to identify and address the most serious and complex forms of financial crime. SFCT's message is clear to those who evade or cheat the tax system: there is no place to hide.

For more information about the SFCT, visit www.ato.gov.au/sfct.

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