Authorities stop 3600 dodgy applications for $38m in flood relief

Scammers using fake photos have been caught trying to nab flood relief funds totalling $38 million. The applications included one computer-generated image of a flooded office… complete with floating rubber duck.

Thousands of fraudulent flood grant applications totalling more than $38 million have been intercepted by NSW authorities, with scammers using fake photos and documents, including one who submitted a computer-generated image of a flooded office complete with floating rubber duck.

As flood victims across the state await the assessment of their genuine claims, Service NSW has been dealing with more than 3600 fraudulent applications, the scale of which has been ­described as “next-level”.

Another scammer supplied a photograph that authorities later matched up with an image of a flooded room at a US air base, while another was from an air base in Turkey.

Other claimants used the same photograph of a flooded room featuring a mop and an Esky on 30 separate grant applications, while others lied about having recently moved to a flood-affected local government area or submitted altered lease documents.

One fake victim tried to be reimbursed thousands of dollars in accommodation costs at a Rydges hotel, including wine bar expenses, only to be busted after authorities determined the room number did not exist.

This computerised image of flooded room, complete with rubber duck, was supplied as part of a claim for a $50,000 Small Business Grant.

Customer Service Minister Victor Dominello said Service NSW had prevented payment of 98 per cent of suspected fraudulent applications. The suspect flood claims were being ­referred to NSW Police for further ­investigation.

The government has also warned that those providing false or misleading information could be required to repay the grants, or face prosecution. The maximum penalty for fraud is imprisonment for 10 years.

This image of flooded room is actually taken from inside a US air base …

… while this flooded office was inside a Turkey air base. Pictures: Supplied

“This is wretched fraud that slows down getting these grants to those who truly need them,” Mr Dominello said.

“It’s nothing less than a form of digital looting, with criminals seeking to take advantage of genuine hardship and heartbreak.

“Make no mistake, digital crime leaves a digital footprint and they will be brought to justice.”

Service NSW acting chief executive Laura Christie said fraudulent applications were taking valuable time away from assessors trying to help genuine victims in need of ­financial assistance.

Ms Christie warned that those submitting applications might be audited in the future.

“Service NSW has multiple checks and balances in place to ensure grant applications are properly reviewed, including the cross-matching of data which will flag suspicious claims for investigation,” she said.

This photograph, with mop and Esky, was used in 30 separate applications.

“Customers submitting grant ­applications may be audited in future, and are required to keep all documentary evidence related to their ­application for two years.

“Customers found to have submitted ineligible applications are required to repay the funds.”

The fraudulent claims were submitted as part of the 2022 flood grants program.

As at July 19, about 3600 cases of suspected fraud across the February-March 2022 flood grant programs had been blocked.

The value of the claims has been calculated at more than $38.6 million, with the Service NSW fraud team ­referring these applications to police.

The $50,000 Small Business Grant scheme, aimed at helping small businesses and not-for-profits to help pay for the costs of clean-up and ­resuming operations, attracted 668 applications, of which 47 were identified as potentially fraudulent.

The $10,000 Small Business Northern Rivers Grant, designed to cover operating costs to help small businesses survive during the immediate recovery per­iod, attracted 1498 applications worth a total of $15 million, of which 787 claims totalling $7.9m were approved.

Another 370 claims worth $3.7 million are being assessed, while 214 are awaiting further information from the claimant.

However, 341 applications to the Northern Rivers Grants scheme, totalling $3.4 million, have been declined, with the vast majority rejected due to fraudulent or insufficient evidence to support the claim.

A breakdown of the rejected claims shows 74 per cent were tossed out or referred to police because the submitted photographs or other evidence was either not provided or was taken from online channels or replicated in other applications.

Another 17 per cent of claims were withdrawn, while 7 per cent did not meet eligibility criteria.

Customer Service Minister Victor Dominello has slammed the scammers. Picture Gaye Gerard/NCA Newswire.

There was also evidence that some ­applicants were changing addresses to reflect flood-affected LGAs in an attempt to take advantage of the grant programs.

In the three weeks before the floods and storms of February, 54,668 change of address ­requests were made to Service NSW.

In the weeks after the storms and floods, change of address requests soared, with authorities recording 71,021 applications, an increase of 30 per cent compared with before February.

Another 144 applications are under active fraud review.

Documents of some of the rejected claims reveal the extraordinary lengths some people went to in their bid to fraudulently obtain grant money.

More than 30 claimants used the same address of a property they each alleged they were leasing.

The claimant who lodged a doctored “hotel bill” at Rydges had claimed an alleged stay for a family of six, with the amount totalling more than $15,000.

Authorities found the submitted room number “417” did not exist.

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