Child Care Subsidy (CCS) fraud is a growing risk. An estimated $484 million was lost in 2023-24 alone. Our money laundering national risk assessment identifies fraud against government-funded programs as a rising money laundering risk, often linked to organised crime networks.
AUSTRAC launched a taskforce with the Department of Education to combat serious CCS fraud. One of its first investigations focused on a Queensland child care provider and several teachers suspected of making false claims.
Using transaction reports and details from reporting entities, we identified links across the network and more than $13 million in suspected fraudulent subsidy payments. Many claims were for alleged child care sessions that had never happened.
The investigation resulted in:
- the provider losing its licence
- criminal charges being pursued
- disruption of a fraud network.
What to look for
Indicators of possible CCS fraud include:
- rapid funds movement between accounts
- large cash withdrawals or structured deposits
- transfers to third-party or overseas accounts
- financial ‘layering’ through business and personal accounts
- unexplained wealth or spending patterns
- not many business expenses.
Report to us
If these indicators raise suspicion, submit a suspicious matter report (SMR) to us and include the reference ‘CCS fraud.’ Provide as much relevant information as possible to explain your suspicion. You can learn more about submitting a high-quality SMR.
Your reporting is critical. In this case, it helped identify, investigate and disrupt an alleged $13 million fraud scheme. This is helping protect public programs from misuse by organised criminals.