Preventing identity fraud in the 21st century

27 February 2003

Australia’s leading investment bank, Macquarie Bank, will today launch a major initiative to combat what has been described as the crime of the new millennium – Identity Fraud.

Identity fraud – involving the theft of one person’s identity or the creation of a false identity is estimated to cost more than $4 billion^[i] in Australia every year and accounts for more than a quarter of all white-collar crime.^[ii]

Approximately 40% of all crimes investigated by the Federal Police now involve some element of identity fraud. Some criminal groups now offer a false identity service where false documentation, which exceeds the 100 point verification system, can be bought for between $4000 and $6000.

In response to this growing crime, the Head of Macquarie Bank’s Banking and Property Group, Bill Moss will release a guide aimed at preventing Identity Fraud at a seminar in Sydney.

The “Macquarie Bank Lecture Series on Fraud” will feature four of Australia’s leading experts on identity fraud.

• Tony Roulston, Australia’s authority on identification using Biometric Technology (iris, fingerprint, face and palm scanning technology).
• Detective Superintendent Megan McGowan, the commander in charge of the NSW Fraud Squad and a major force behind fraud investigations.
• Federal Agent Adrian McKnight, Australian Federal Police, will talk about the role of identity fraud in counter terrorism, narcotics importation, people smuggling and money laundering.
• Brett Warfield, one of Australia’s most respected experts on fraud control and unethical conduct.

Mr Moss said the “Dos and Don’ts for Identity Fraud” guide was developed by Macquarie Bank in conjunction with the NSW Police as part of efforts to tackle a growing problem.

“It’s been reported that identity theft is the world’s fastest growing form of fraud, growing more than 50 percent annually in Australia and at similar rates in the US and Europe,” he said.^[iii]

“The prevalence and severity of the problem is on the rise and identity fraud has become a major concern for businesses and individuals,” he said.

“Experts say it will be the most serious white-collar crime in Australia this year.”

Mr Moss said today’s lecture will discuss how identity crime occurs, how it can be prevented and will showcase the latest in biometric technology including face-scanning and iris-recognition.

“Public awareness is a key factor in preventing this crime which is why we have developed the ‘Dos and Don’ts’ guide in conjunction with the NSW Police,” he said.

“The public, police and industry need to work together if we are to tackle and prevent identity theft.”

Commander of the NSW Fraud Squad, Detective Superintendent Megan McGowan agrees.

“Identity fraud is a world wide issue and one which we can not afford to ignore,” she said.

“Modern technology has made it so much easier to fake a person’s identity and use it for fraudulent purposes.

"With the increasing availability of equipment like scanners and colour photocopiers, there’s a much higher risk of identity documents being forgeries.

“Unless we put preventative measures in place to tackle identity fraud then we are going to continue to play catch up with the criminals.”

Detective McGowan says fraud is on the agenda for every national strategic body in the country, “In dealing with identity fraud we need to look at the vulnerabilities in the systems which allow fraudsters to steal a person’s identity.

“We also need to examine the way in which organizations store our personal details and ensure that this data is protected.

“This is crucial because the greatest risk in terms of identity theft comes from within an organization.”

Mr Moss said the Identity Fraud Lecture would be a forum for real debate on the issues that will emerge as we increasingly rely on biometric technology to prevent identity fraud.

“The fact is that this technology will become part of our everyday life, it is already being used in many situations across the world and it is here to stay.

“It is predicted that within five years every ATM in Australia will have iris-recognition technology.

“We need to embrace this technology but in doing so we have to ensure that there is a balance between our security and our freedom. In using this technology we have to weigh up our right to privacy versus our need for protection.

“In the meantime, there are a lot of simple things that we can all do to reduce the risk of identity fraud.

“We’ll be providing simple advice to individuals and businesses on some of the fundamentals of privacy protection.

“By working together we can have a major impact on preventing this type of crime.”

View the “Dos and Don’ts for Identity Fraud” Guide (pdf 400KB)

^[i] “Scooping Identity Fraud” Attorney General’s Department report, Sept 2001
^[ii] Australian Bureau of Intelligence Report, October 2002
^[iii] Australian Transactions and Analysis Centre Director, Sept 2002

For further information contact:

Robyn Turner
Senior Communications Manager
Macquarie Banking and Property Group
Tel: (612) 8232 6989