Coronavirus: Access to super sees criminals move in

Australian Competition and Consumer Commission chair Rod Sims has warned of criminal cartels targeting COVID-19 support packages

The ACCC had received more than 3500 COVID-linked scam claims, reporting $2.2m in losses. Picture: iStock

Australian Competition & Consumer Commission chair Rod Sims has warned of criminal cartels targeting COVID-19 support packages, including cyber scammers attempting to defraud the Morrison government’s early access to superannuation scheme.

The consumer watchdog ­revealed more than 60 per cent of COVID-19 cyber scams were linked with phishing attacks, used to make fraudulent claims on government support measures, including early super ­access.

In his submission to a parliamentary inquiry into COVID-related criminal activity, Mr Sims confirmed “one of the high-risk issues has been the impersonation of legitimate government websites and communications”.

He said, historically, procurement “associated with economic stimulus packages has attached opportunists seeking to exploit the crisis”.

“The ACCC is concerned that during the COVID-19 pandemic there are real risks that expedited government spending processes and stimulus measures will be increasingly vulnerable to cartel conduct.”

Mr Sims said, as of July 22, the ACCC had received more than 3500 COVID-linked scam claims, reporting $2.2m in losses. “Over 60 per cent of COVID-19 scams reported to Scamwatch are phishing scams aimed at collecting identity information. This … may then be used to make fraudulent claims of government programs, including early access to super.

“The scam reports in some categories (phishing) increased significantly after the government announced changes to superannuation access … and the JobKeeper program. Reports to Scamwatch for the June 2020 quarter are 23 per cent higher than the June 2019 quarter.”

Mr Sims said the ACCC was working with the Department of Home Affairs, Australian Federal Police, Services Australia, the Australian Taxation Office and Austrac to combat scams.

“This work includes refining ­approaches to communications with the public that reduce the likelihood that scammers can impersonate government agencies,” he said.

Amid the growing threat of cyber attacks and online scams, the Cyber Security Cooperative Research Centre is pushing authorities to consider legislative changes allowing security agencies “lawful access to data and devices where appropriate”.

The submission, lodged by CSCRC chief executive Rachael Falk, said there was a “clear ­opportunity … to ensure domestic laws … are aligned with cyber and digitally perpetrated developments”. “The CSCRC contends that Australian law enforcement agencies should be equipped with the appropriate powers … to operate in a challenging threat environment … Cyber criminals … cannot be allowed to flourish because of a perceived principle that privacy of communications is paramount.”