Alleged organised fraud against the Family Day Care Program
Date published
September 2019
Relevant impacts: Industry impact, financial impact and government outcomes impact
A well-organised child care fraud syndicate allegedly defrauded the Commonwealth Government’s Family Day Care Program of $4 million over a 10 month period. The Australian Federal Police stated that “They had accountants, they had facilitators, and then they had a number of carers underneath which were allegedly caring for kids that were never cared for”. Initially 17 people were arrested but more have been arrested as the case unfolds. A number of parents were also arrested for allegedly handing their children's details over to a sham Family Day Care provider so it could use the information.
Related fraudster personas
Related countermeasures
Assess the integrity of new employees, contractors or third parties such as by having entry level checks, probationary periods, suitability assessments or security vetting.
Collaborate with strategic partners such as other government entities, committees, working groups and taskforces. This allows you to share capability, information and intelligence and to prevent and disrupt fraud.
Verify any requests or claim information you receive with an independent and credible source.
Analyse data to improve processes and controls, increase payment accuracy and find and prevent non-compliance, fraud and corruption.
Internal or external audits or reviews evaluate the process, purpose and outcome of activities. Clients, public officials or contractors can take advantage of weaknesses in government programs and systems to commit fraud, act corruptly, and avoid exposure.
Coordinate disruption activities across multiple programs or entities to strengthen processes and identify serious and organised criminals targeting multiple programs. It can also include referrals to law enforcement agencies for those groups that reach the threshold for complex criminal investigations.
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