Bushfire, COVID grants scam: Taxpayers duped of $20m worth of funds by fraudsters
At least one police strike force has been set up to hunt down the huge number of con artists, some of whom have stolen the identities of devastated bushfire victims and people seeking COVID relief to score tens of thousands of dollars in grants.
Newcastle
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Hundreds of heartless fraudsters have duped NSW taxpayers out of nearly $20 million by conning their way into grant schemes set up to help struggling bushfire and coronavirus victims.
At least one police strike force has been set up to hunt down the huge number of con artists, some of whom have stolen the identities of devastated bushfire victims to score tens of thousands of dollars in grants.
Investigations have revealed some organised crime groups are among those who have taken advantage of the schemes, which had been set up to cut bureaucratic red tape and get money out fast for those struggling with massive financial losses following last summer’s bushfire disaster and the pandemic.
But sources have confirmed that instead of finding its way into the hands of the most vulnerable, almost $20 million has already been identified as being scammed by fraudsters, some of whom have simply clicked a few boxes on a website and given dodgy or stolen ABN numbers and bank account details.
Service NSW, which was handed the responsibility for ticking off the grants of up to $50,000, has employed a private investigation firm to help audit about 180,000 applications seeking assistance under the NSW Small Business Bushfire Support Grant and Small Business COVID-19 Support Grant.
More than 2000 successful applications have already been identified as being fraudulent. However, the size of the widespread fraud remains unclear as investigators chase complex money trails through dodgy bank accounts.
The frauds include some “targets’’ who have been found to have applied for more than 20 grants at $10,000 each and a couple who are being investigated for stealing $280,000 in a list of applications.
The Lake Macquarie-based Strike Force Roche, set up to investigate the growing number of grant fraud across the northern police region, has also identified one suburban address used by numerous people in an attempt to attract a total of almost $1 million in grants.
Other scammers have allegedly identified legitimate businesses lost in the bushfires, travelling hundreds of kilometres to take their own photographs of the ruins in successful attempts to take on the identities of the business owners and access tens of thousands of dollars.
Some of those who became victims of identity theft have been left to battle on alone after their own legitimate applications for relief were denied because Service NSW had already granted cash for their businesses to the fraudsters.
Lake Macquarie crime manager Detective Inspector Steve Benson confirmed Strike Force Roche, set up to investigate grant fraudsters across the Hunter, had already identified 25 “targets’’ who had successfully scammed $430,000.
Strike Force Roche could also expand to investigate a further 75 “targets’’ who may be responsible for almost $1 million in frauds.
“The most disappointing thing for us is that these people have preyed on a service that was set up for the good of the community in these hard times of bushfires and a pandemic,’’ Detective Inspector Benson said.
“They have taken advantage of some goodwill and really made it more difficult for the real victims to get their funds.
“It is really low act.’’
Service NSW failed to answer a list of questions about the size of the widespread fraud, instead stating it could not comment on “individual grant applications”.
“[The Department of Customer Service] is aware of some cases of possible fraud associated with the Small Business Grant Program,’’ a spokeswoman said in a statement.
“The anomalies were identified through the department working closely with the NSW Police and with financial institutions.
“Service NSW does not comment on the status of individual grant applications.
“Where applicants have been found to be ineligible for grants or lacking the required documentation to support an application, Service NSW works with applicants to remediate these issues and, where necessary, facilitate the repayment of incorrectly received funds.’’
“The Department is continuously working to strengthen its fraud detection and prevention systems. There are harsh penalties for fraud offences against government organisations. The Department is working closely with NSW Police in relation to cases of fraudulent activity.’’