Australian Federal Police investigating superannuation early access fraud scheme detected by Tax Office
The Australian Federal Police are investigating attempts to defraud the Federal Government’s early access to superannuation scheme.
Key points:
- The Australian Federal Police are investigating fraudulent activity related to the early superannuation scheme
- More than a million Australians are accessing their superannuation early
- Labor's financial services spokesman, Stephen Jones says the party will demand an explanation
In a statement, the Tax Office said it appeared people had their details used illegally in a bid to scam the program.
"This has been stopped and the impacted individuals are being contacted," the statement said.
"The ATO's online systems have not been compromised."
AFP Commissioner Reece Kershaw told a Senate inquiry into the Government's response to COVID-19 the AFP were investigating up to 150 potential victims.
Mr Kershaw said five search warrants had been executed and a number of bank accounts with a total of $120,000 in them frozen.
The Commissioner said it seemed a third party system storing the personal details had been "intruded" upon.
The committee heard the ATO was notified about the alleged fraud on April 30 and it was referred to the AFP the next day.
The scheme allows people financially affected by the coronavirus pandemic to access some of their retirement savings early.
The Australian Tax Commissioner said there had been about 1 million applications for early withdrawal approved, totalling more than $9 billion.
Labor's financial services spokesman, Stephen Jones, said he understood money had been paid out fraudulently.
"We're deeply concerned," Mr Jones said.
"Labor warned at the very beginning that there was plenty of potential for fraud in this scheme.
"We were concerned that it was going to be a honey pot for fraudsters.
"Over the last week or so we'd been getting reports of people receiving texts saying their claims had been approved and they said, 'Well, I haven't made a claim, how can anything be approved?'."
Mr Jones said Labor would demand an explanation when the COVID-19 Senate committee resumed on Thursday morning.
"The members of the fund deserve to know what's going on," he said.
"They need some guarantees that these frauds will be stopped and if anybody's been paid money out incorrectly that that will be chased down and victims will be compensated.
Mr Jones said the breach could also dent confidence in the Government's coronavirus tracing app, COVIDSafe.
The Treasurer Josh Frydenberg's office has been contacted for a comment.