NSW government introduces new fraud check service laws to counter scams, fraud

Banks and credit card providers will be able to check if a resident’s identity details have been stolen or breached before granting loans in NSW under plans for a new fraud register. Here’s how it could affect you.

Banks, credit card providers and government agencies will be able to check if a resident’s identity details have been stolen or breached before granting loans in NSW under a new fraud check service.

According to legislation introduced into NSW parliament on Tuesday, the Minns government plans to establish a register of stolen and compromised identity documents.

If the legislation passes, authorised organisations will be able to call up the “Compromised Credential Register” to ensure identity documents such as drivers licences and photo cards aren’t being used fraudulently.

The Minns government said the register will help prevent criminals from misusing identities to apply for bank loans and credit.

It comes after Australians reported losing more than $2 billion to scams last year, with more than 67,000 scams reported by NSW residents alone according to ScamWatch.

If the laws pass, the register will help prevent criminals from misusing identities to apply for bank loans and credit.

Under the proposed laws, ID Support will operate as the core government provider of identity protection and recovery services, including the register.

In 2023-2024, it supported more than 40,000 customers impacted by identity misuse by notifying them when their details had been exposed in a data breach or found on the dark web.

The register will become part of accredited organisations’ verification process. Picture: NewsWire / Gaye Gerard

Banks will be able to use the service to check if a person’s identity has been stolen or compromised before approving loans. Picture: NewsWire / Gaye Gerard

Once it’s known an ID document has been potentially exposed in a data breach or found on the dark web it will be added to the register. ID Support will then notify the individual and the issuing authority to help them get a replacement.

NSW government agencies will also be able to share information with ID Support so they can alert individuals quickly.

Digital Government Minister Jihad Dib said the new laws are a key step forward under the NSW Digital Strategy to enhance cyber resilience, after ID Support secured a four-year $22.7m funding agreement in the 2024-2025 Budget.

“These new laws will help safeguard NSW residents against cyber criminals and the scourge of identity theft, especially when it targets our most vulnerable citizens who can least afford it,” Mr Dib said.

“By alerting people quickly and supporting them to secure their identity and replace compromised ID documents, NSW residents will be better protected from impersonation, scams and fraud.”

Originally published as NSW government introduces new fraud check service laws to counter scams, fraud