Fraudsters are targeting foreign students, Ombudsman reveals
Criminals posing as foreign students are stealing university refunds worth up to $50,000 each in a fraud hitting Australia’s $51bn international education sector.
Criminals are impersonating foreign students to pocket refunds for university and training courses in Australia, defrauding them of up to $50,000 each, the National Student Ombudsman has revealed.
In evidence of fraud and rorting in Australia’s $51bn international education sector, the Ombudsman has told a Senate inquiry that some education agents have stolen from students by stealing their identities.
“I have received allegations of fraud, identity theft and/or people impersonating a student in order to obtain a refund intended for a student,’’ Ombudsman Iain Anderson told a Senate committee investigating the Albanese government’s crackdown on dodgy education agents, who match-make overseas students with Australian universities and private training colleges.
Mr Anderson said it was “often, but not always’’ an education agent who stole refunds supposed to be paid to students pulling out of a course.
“I have received complaints by international students claiming refunds are being paid by (education) providers to agents, which are then not received by the students,’’ his submission states.
“While my position is generally that providers are responsible for the conduct of their agents and are financially responsible, this has been challenged by providers.’’
Mr Anderson said 61 per cent of complaints to the National Student Ombudsman last financial year related to fees and refunds, with “mixed outcomes’’.
“Providers sometimes offer discretionary remedies to students like partial refunds or fee credit, while other providers decline to take any responsibility,’’ he wrote.
“My view is the risk of education agent misconduct is unfairly and disproportionately falling on international students.’’
The Ombudsman’s office has not revealed how much money has been stolen, but students robbed of their refunds could potentially lose $50,000 each – the annual tuition fee typically charged by elite universities.
Federal Education Minister Jason Clare has introduced legislation to clean up rorting in the international education sector, and force universities to reveal how much they are paying agents to recruit the foreign students that prop up their finances.
It follows a 2023 review by Christine Nixon, the former chief commissioner of Victoria Police, which identified that some education providers had formed business relationships with education agents purely for profit motives.
Mr Anderson has told the Senate inquiry into the bill that an existing code of practice for universities and training colleges that enrol international students “does not provide sufficient protection’’.
He called for tighter controls.
“If, for example, providers are made financially responsible for the conduct of their education agents, providers may take additional due diligence steps before engaging them, or monitor and audit education agent conduct,’’ he wrote.
In a statement to The Australian, the Ombudsman’s office said universities and training colleges could choose whether to reimburse victims of tuition fee fraud.
“There have been mixed outcomes in cases involving allegations of fraud, identity theft or persons impersonating a student in order to obtain a refund intended for a student,’’ it said.
“In some cases, education providers have offered assistance to the students and in other cases, they have not. It is currently up to the education provider’s discretion as to how they will respond to students seeking a refund.’’
The Ombudsman’s office said education providers sometimes offered to pay a full or partial refund to the student, or offered a credit to study a different course.
“We also encourage providers to end their relationship with these education agents,’’ it said. “In most cases, the education agent is offshore. If the education agent was based in Australia, we would consider directing these allegations to police.’’
The Ombudsman’s office said it had not come across cases of fraudsters stealing students’ identities through university data leaks.
“It is very common for education agents to handle student funds,’’ it said. “Education agents will often pay course fees on behalf of students and then when refunds are paid by providers, they will be paid to the same agent.
“Education agents also have access to a lot of student information because they will submit documents on their behalf, including copies of identity documents.’’
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