iscoverAn identity, tax and welfare fraud syndicate in Western Sydney has been exposed by the ATO, Australian Federal Police and Services Australia.
Alleged ‘money mule’ fraud syndicate busted in ATO-led investigation
01 August 2025
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8 minute read
On Wednesday, 20 July, the ATO, Australian Federal Police (AFP) and Services Australia executed search warrants at four properties in Western Sydney associated with individuals allegedly involved in a major scam syndicate.
The investigation, which commenced in October 2024, was ATO-led and identified four people who were alleged to have engaged in various crimes such as tax fraud, identity fraud, welfare fraud and money laundering.
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According to the ATO, the alleged fraud targeted innocent and unsuspecting Australians and involved the distribution of scam emails containing links to websites that enabled the fraudsters to gather personal information and take over people’s identities.
John Ford, ATO deputy commissioner and Serious Financial Crime Taskforce (SFCT) chief, said this early intervention from the joint bodies would protect many more from having their personal information stolen and used to commit fraud.
“Through the warrant activity, we are sending a clear message to the community: our approach to fraud is unwavering and we will hold these individuals to account. Engaging in offences such as these carries a penalty of up to 20 years imprisonment,” Ford said.
“The information and capability sharing between our partner agencies means we are able to track down syndicates like this at the source, disrupt the activity and ensure they face the full force of the law.”
The ATO revealed that once it had identified the fraud pattern of the syndicate, its members allegedly turned to recruiting its victims to become “complicit money mules” to continue the fraudulent activities.
Ford noted the officers executing the search warrants found multiple devices containing personal identifiable information and documentation that belonged to unsuspecting people, allowing the fraudsters to illegally access taxpayers’ accounts.
“The syndicate didn’t confine its wrongdoing to Australians. The individuals are alleged to be part of a sophisticated offshore criminal syndicate that specialises in identity takeovers, romance scams and money laundering, through international money transfers and cryptocurrency transactions,” the Tax Office said.
Members of the community were reminded to be wary of what information they shared and to never click on links from a text or email asking for personal information.
“Once scammers have your personal information, they can access your bank account, sign in to your myGov account, steal money and commit fraud in your name.”
Ford noted the SFCT combined the knowledge, resources and experience of relevant law enforcement and regulatory agencies to identify and address serious and complex financial crime.
“Our message is clear to those who evade or cheat the tax system: there is no place to hide. We will not tolerate this behaviour.”
For this fraud to be uncovered, AUSTRAC provided crucial financial intelligence to the ATO to enable its investigation, according to Markus Erikson, acting national manager of AUSTRAC.
“AUSTRAC works with Commonwealth partners and law enforcement agencies providing financial intelligence to help identify and track down entities that are directly controlling money mule networks,” Erikson said.
“In this instance AUSTRAC also shared, with the ATO, additional mule account data observed in other crime types to assist with understanding the extent of fraudulent activity.”
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