A major international scam syndicate linked to a sophisticated offshore criminal network has been hit by enforcement action, as authorities close in on the fraudsters accused of siphoning taxpayer funds overseas.
Officers from the Australian Taxation Office (ATO) and Services Australia, with assistance of the Australian Federal Police (AFP), executed a search warrant at a property in Western Sydney yesterday as part of Operation Falcata, a Serious Financial Crime Taskforce (SFCT) investigation into identity takeover being used to commit tax and welfare fraud.
The ATO-led operation has identified an alleged recruiter of the syndicate, suspected of recruiting money mules to help launder the proceeds of tax and welfare fraud.
ATO Assistant Commissioner Pennie Snowden said the ATO has a zero-tolerance approach to scams and fraud.
‘This behaviour has real victims and serious consequences, including penalties of up to 20 years’ imprisonment,’ Ms Snowden said.
The syndicate used phishing emails and fake impersonation websites designed to look legitimate, tricking unsuspecting Australians into handing over their personal details. Scammers used the information to hijack victims’ ATO Online accounts, lodging false tax returns, amending existing ones and creating fraudulent refunds. To avoid detection, the scammers redirected refunds into mule bank accounts controlled by the syndicate.
The alleged recruiters were convincing, telling mules that the use of their bank accounts was legitimate and that they were assisting local businesses who were having trouble transferring funds overseas.
Behind the scenes, the money was coming from fraudulent tax refunds and welfare payments.
‘These allegations demonstrate how scams often rely on deception, telling people their involvement is legitimate or for a good cause, when it is anything but,’ Ms Snowden said.
It is also alleged that some ATO and Services Australia funds were deposited into accounts held in the alleged recruiter’s own name. The funds were then transferred offshore or used to purchase cryptocurrency.
‘Using personal or third-party accounts to move suspected fraud proceeds does not place offenders beyond reach.’
‘We will pursue those involved, from the people at the top orchestrating these schemes to those unlawfully assisting with the movement of money.’
The ATO confirms its systems remain secure, with the fraud relying on stolen personal information rather than any compromise of ATO systems. The ATO urges individuals to download the ATO app, use myID when interacting with the ATO’s online services and to set up to the highest identity strength where possible to make it harder for fraudsters to exploit their identities.
‘These scammers don’t discriminate. The victims could be anyone, a stranger, your neighbour, a loved one or even yourself,’ Ms Snowden said.
The ATO app is the most secure way to interact with the ATO and gives users real-time control over their tax affairs through alerts and instant account locking to help stop fraudsters in their tracks.
‘The ATO app will send you real-time messages when changes are made to your ATO record, and you can quickly lock your account to prevent unauthorised access or fraudulent refunds,’ Ms Snowden said.
Before giving anyone your personal information it is important to Stop, Check and Protect:
- Stop – Don’t give money or your information to anyone if unsure.
- Check – Ask yourself if the message or call is fake.
- Protect – Act quickly if something feels wrong.
The ATO’s advice to taxpayers who are questioning if an ATO interaction is legitimate or not is to check their account on our online services through myGov or the ATO app, speak to their registered tax professional if they have one, or call 1800 008 540 to confirm the legitimacy of the interaction.
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. Our message is clear to those who evade or cheat the tax system: there is no place to hide. We will not tolerate this behaviour.
For more information about the SFCT, visit www.ato.gov.au/sfct.
For more information on protecting your ATO account from scams, read our media release.
Notes to journalists
Images from the warrant activity:
- Image 1 (JPEG, 397KB)This link will download a file
- Image 2 (JPEG, 348KB)This link will download a file
- Image 3 (JPEG, 377KB)This link will download a file
ATO stock footage and images are available for use in news bulletins from our media centre.