AUSTRAC uncovers coordinated mortgage fraud across ten major Australian banks

Operation Claw, a joint effort by AUSTRAC, the ATO, NSW Police, the NSW Crime Commission, the Australian Criminal Intelligence Commission, APRA and ASIC, uncovered coordinated mortgage fraud at ten major Australian banks. The scheme relied on falsified income statements, misrepresented employment and offshore funds to secure loans, predominantly for properties in Sydney. AUSTRAC chief Brendan Thomas warned that the pattern of warning signs was common across lenders and urged tighter pre-approval controls.

The banking sector, represented by Australian Banking Association chief Simon Birmingham, welcomed the investigation and highlighted ongoing intelligence sharing through the Fintel Alliance. Banks are also lobbying for direct access to verified ATO income data to prevent future fraudulent applications. The operation has already led to referrals for possible prosecution, underscoring the need for stronger detection before funds are disbursed.