In The News

Identity fraud 'costs more than $1bn a year'

Sydney Morning Herald
12 November 2003
AAP

Identity fraud is a growing threat that is costing Australia more than $1 billion a year, according to a federal government report.

Justice Minister Chris Ellison, who released the report today, said false and stolen identities were used for an increasing range of criminal and terrorist activity around the world.

The study, commissioned by Australia's financial intelligence agency AUSTRAC, found identity fraud cost Australia $1.1 billion in 2001-02.

Asked how that figure had been arrived at, Senator Ellison stated: "This report, compiled by the Securities Industry Research Centre of Asia-Pacific, uses established accounting, management and finance techniques to make a solid assessment of the impact of identity fraud."

"The use of false or stolen identities underpins fraudulent acts against governments, business and individuals and can also underpin terrorism, people smuggling rackets and illegal migration," Senator Ellison said.

"False identities lend anonymity to the perpetrators of crime, which makes tackling identity fraud a major ongoing challenge for governments and law enforcement agencies."

He said globalisation and e-business had fuelled the problem as an international one.

"For example, a Federal Trade Commission survey in the US calculated the cost to business and financial institutions to be $US48 billion last year, with consumers losing $US5 billion, while the UK Cabinet Office estimates the cost of identity fraud to the UK economy is at least £1.3 billion in 2000/01," he said.

Senator Ellison said the government had already announced measures to curb identity fraud.

These included developing a common set of proof-of-identity documents of higher integrity and an online document verification centre.

Senator Ellison said the Australian Crime Commission had set up a special unit to battle identity fraud while the Australian Federal Police was working with overseas agencies like the FBI's Cyber Crimes Division to investigate computer-related crimes like fake websites.

He said identity fraud was estimated to have cost the United States $US48 billion last year.