Fraud & Scams
AUSTRAC uncovers hundreds of millions in suspected mortgage fraud across major banks
An intelligence probe into 10 major Australian lenders has revealed suspected fraudulent home loans concentrated across Sydney properties.
Reported from austrac.gov.au→ — read the original alongside this account.
AUSTRAC's Fintel Alliance has identified potentially hundreds of millions of dollars in suspected fraudulent home loans after analysing data from 10 major Australian banks.
Most of the suspect loans were linked to properties in Sydney, according to findings from an intelligence operation codenamed Operation Claw.
The operation identified loan applications supported by inflated incomes, misrepresented employment and fabricated or unverifiable business activity. In several cases, borrowers used offshore or third-party funds to complete property settlements and meet mortgage repayments.
Investigators found the activity spanned multiple institutions and borrower groups. Recurring patterns included falsified paperwork and the repeated use of specific mortgage brokers, accountants and law firms across different loan applications.
AUSTRAC chief executive Brendan Thomas said the findings showed systemic weaknesses across lenders that cover the vast majority of the mortgage market.
"While this project did not identify evidence of widespread money laundering, the weaknesses it exposed could be exploited by criminals seeking to abuse Australia's financial system," Mr Thomas said.
Fintel Alliance has referred names of individuals and entities suspected of submitting false documents to the Australian Securities and Investments Commission, the Australian Taxation Office and the Tax Practitioners Board.
Participating banks have cut ties with some customers and made further referrals to authorities, AUSTRAC said.
The operation involved Australian banks alongside the ATO, the NSW Police Force, the NSW Crime Commission, the Australian Criminal Intelligence Commission, APRA and ASIC.