Fraud is a crime committed with the intention of benefiting oneself or others through dishonesty. It is more than mere mistakes or carelessness. Non-compliance refers to the unintentional wrongdoings.
There are several ways that people commit fraud against the NDIS, such as providing false information, using fake documents, misusing funds, making claims for products or services not provided, and unlawfully obtaining restricted data. The NDIA has zero-tolerance for fraud against the NDIS and its participants, and any criminal behaviour will be investigated, and perpetrators will be prosecuted.
Case Study – Hijacking
A case study demonstrates the extent of fraud, such as hijacking businesses, where a criminal network hijacked Australian Business Number (ABN) details of businesses and registered them as NDIS providers, resulting in fraudulent claims against the NDIS. The perpetrators were charged by the Australian Federal Police, and approximately $650,000 was refunded to the NDIS.
Case Study – Phoenixing
Another case study reveals illegal phoenix activity, where a company is liquidated to avoid paying its debts, and a new company is started to continue the same business activities without the debt. Supportglow was fraudulently claiming supports they had not provided to participants, which led to the NDIA placing a claiming lock on them. It was discovered that the people involved with Supportglow had already registered other NDIS providers and started claiming under the new provider name.
The NDIA works in partnership with the NDIS Quality and Safeguards Commission, and together they closely monitor phoenixing activity to prevent further impacts on participants. The NDIA is also a member of the NDIS Fraud Taskforce, a partnership with the Australian Federal Police (AFP) and Services Australia, focusing on high-risk and serious criminal activity targeting the NDIS.
NDIS Fraud Taskforce
The NDIS Fraud Taskforce investigates and successfully prosecutes serious and organised fraud, which involves crimes punishable by imprisonment and collaboration between several parties. Fraud cases that are not considered serious and organised are referred to the NDIA for further investigation.
NDIS Fraud Matters
Currently, there are 4,098 NDIS participants potentially affected by fraud, with 28 fraud investigations in progress, seven matters being evaluated for possible investigation, and nine matters before the courts. The estimated value of NDIS funds is $118.2m. The successful NDIS fraud prosecutions are five, with a total value of NDIS funds at >$2.5m and a total value of assets seized at $8.5m. The total jail sentences and other penalties given are 30 years.
Suspect NDIS Fraud?
If you suspect someone is committing fraud against the NDIS funds, you can report it to the NDIS Fraud Reporting and Scams Helpline by calling 1800 650 717 or emailing fraudreporting@ndis.gov.au. When making your report, you should provide as much information as possible, such as who is involved, when it occurred, what happened, where it occurred, why it seems suspicious, and how you learned about it. Depending on the information provided, the NDIA may start a formal investigation or undertake compliance. All allegations are taken seriously and assessed.
