Set up to flush out criminals defrauding the national scheme, the taskforce has investigated more than 100 cases – and it’s far from finished.
A special national taskforce set up to crack down on NDIS fraudsters has marked its first birthday with the release of some impressive data showing what it has been up to the for the past 12 months.
But the so-called Fraud Fusion Taskforce (FFT) is far from finished. And it seems the community is joining the cause, with the data revealing the number tip-offs of potential NDIS fraud was up 78% on the previous year.
“The Taskforce is achieving encouraging results, investigating more than 100 cases in the past 12 months with over $1 billion of NDIS funding under investigation over that time,” said federal NDIS Minister Bill Shorten.
“There has been a significant rise in the number of investigations, prosecutions and providers being banned or issued with compliance notices.”
The taskforce, co-led by the National Disability Insurance Agency (NDIA) and Services Australia, comprises 16 government agencies working together to stop criminals from defrauding NDIS.
Recent FFT data showed that as of 31 October:
- $356.5 million in NDIS payments was under investigation.
- There were 43 active NDIS fraud cases (up from 28 in September 2021) with an estimated fraud value of $35 million.
- 18 NDIS prosecutions were in progress with an alleged fraud value of $18.3 million.
The NDIS Quality and Safeguards Commission took 92 compliance actions against providers and individuals, including the issuing of 43 banning orders, and Services Australia has 35 active investigations underway, according to the taskforce.
But Mr Shorten said “those numbers only tell part of the story”.
“By establishing this Taskforce, there is now increased sharing of information across government, which means more eyes looking for and catching any crook looking to earn a quick buck from the NDIS, while better protecting the funding of our participants,” he said.
“Putting criminals in prison is one thing, but by sharing intelligence the FFT is increasing government capability to disrupt the actions of more serious and organised crime networks.
“We can identify patterns of unethical behaviour and then put mechanisms in place to stop those actions occurring in the future, making it harder to do the wrong thing and easier to do the right thing – which will future-proof the integrity of the Scheme and help ensure it is here for generations to come.”
A total of 17,207 tip-offs were received in the most recent financial year, up 78% (9673) from the same period in the previous year.
“The Government has made the issue of fraud against the NDIS a focus, and what that has done is increase the level of conversation on the issue,” said Mr Shorten.
“We’re seeing participants, their families and supporters, as well as Agency staff all being more aware of potentially suspect provider behaviour and they are reporting it – knowing that every tip-off received by the agency is assessed.
“Anyone looking to exploit the scheme – at the expense of Australians living with disability – should be warned. We have cracked down on fraud so if you run the gauntlet, you will be caught.”
Anyone with information about suspected fraud involving the NDIS can contact the NDIS fraud helpline on 1800 650 717, or email fraudreporting@ndis.gov.au
Mr Shorten also released details of a number of key taskforce cases from the past 12 months.
December 2022 – Operation Pegasus
More than 50 partner agency members, including forensic specialists and personnel from the NDIA, disbanded a Western Sydney crime syndicate alleged to have fraudulently claimed more than $10 million in NDIS funding since 2017.
January/February 2023
The NDIS Commission executed seven banning orders, two suspensions and one revocation of registration against five NDIS providers and five individuals operating in Melbourne.
February 2023
An investigation by the Fraud Fusion Taskforce led to the execution of three search warrants in Western Sydney. The activity led to the arrest and charging of one man, and two other men issued with Court Attendance Notices relating to fraudulent activity totalling more than $3.3 million.
June 2023 – Operation Ivory
A multi-agency investigation resulted in four search warrants being executed across the Western Sydney premises of four NDIS service providers, alleged to have defrauded the Scheme of in excess of $1.5 million. The NDIS Commission also undertook a number of other enforcement activities on the day.
Details of compliance actions taken by the NDIS Commission are published here.
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