ID proofing systems key to NDIS fraud crackdown

A crackdown on identity fraud and smarter IT systems that catch rip offs in real time will be at the centre of a two-year injection of $84m into improving the integrity of the NDIS.

A crackdown on identity fraud and smarter IT systems that catch rip offs in real time will be at the centre of a two-year injection of $84m into improving the integrity of the NDIS.

The “Crack Down on Fraud” scheme to be launched today by NDIS Minister Bill Shorten will improve identity proofing systems for participants and their carers to improve their safety.

The money will also go towards improving NDIS mobile apps and online interfaces and to create IT systems that will allow the NDIS to gather information from other agencies, providers and banks.

Mr Shorten said this will cut fraud as well improving the speed at which legitimate claims can be paid.

He said the new money would make it easier for the agency to get it right, and harder to get it wrong.

NDIS Minister Bill Shorten said a crackdown will cut fraud as well improve the speed at which legitimate claims can be paid. Picture: NCA NewsWire/Martin Ollman

“This investment is not only about catching criminals who may target Australians living with disability, but also enhancing the systems we have in place to detect and prevent fraud and non-compliant activity,” he said.

“The Crack Down on Fraud program represents significant further progress in safeguarding the scheme’s integrity, and will not only optimise NDIS resources, but will also ensure that honest participants who depend on the scheme can be better supported into the ­future.”

Bill Shorten said the $84m would make it easier for the NDIS to get it right, and harder to get it wrong. Picture: iStock

Since it launched a crackdown on fraud at the end of 2022, the NDIS has investigated more than 100 cases involving over $1bn in disability funding.

There are 184 active investigations for fraud against the NDIS with $800m in NDIS claims under scrutiny.

Recent cases uncovered include a large-scale fraud in Sydney involving suspensions, revocations of registration and a large number of banning orders.

An alleged NDIS fraud worth $300,000 in Melbourne is under investigation.

Approximately $600,000 allegedly misappropriated by a number of NDIS participants in Queensland is also under ­investigation.

Mr Shorten was at pains to stress there would be ­collaboration between the NDIS and its participants, their carers and families, and others in the disability sector about the new program’s design.

“We have already started consulting with the disability community and will continue to do so, to ensure that participants are fully supported in transitioning to the improved systems”, he said.

He said one of the key findings of the recent NDIS review was concerns around the integrity of the scheme.

“This is a critical area of ­reform because it is our fellow Australians with a disability who suffer most from any fraud and exploitation in the NDIS,” he said.

“We know we still have a way to go, but this investment is another step in the right direction in protecting the scheme’s integrity and sustainability, and ensuring the NDIS reaches its full potential.”

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Originally published as ID proofing systems key to NDIS fraud crackdown