Reducing Fraud

See also information on Protection of Privacy; Information Security; Biometrics; and the Photograph, Card Number and Signature.

One of the primary reasons for introducing the access card is to reduce fraud and concession leakage.

Fraud savings through the introduction of the access card have been conservatively estimated by international accounting firm KPMG to be $3 billion over ten years. This estimation is based on the introduction of a card which has strengthened security features and which includes a photograph on the surface of the card.

A photograph on the card is a privacy and security enhancing feature. A visible photograph provides a link between a person’s name and their identity, reducing opportunities for fraud.

According to the Australian Federal Police’s Identity Crime Task Force (ICTF), documents without photographs or other biometric features are easily counterfeited and reproduced. The ICTF states that the existing Medicare card is used as a tool to establish a false identity and obtain other forms of ID. Medicare cards feature in 70 per cent of serious and organised crime identity investigations by the ICTF. (See information on the Photograph, Card Number and Signature and Information Security.)

The Australian Federal Police Commissioner has stated publicly that identity fraud costs Australians between $1 billion and $4 billion each year. In addition, recent operations by the ICTF have resulted in charges being laid in relation to $2.2 million in fraudulent activity against financial institutions in four states.

Replacing existing cards with a more secure and robust card will help reduce fraud against the private and public sector, and help protect the card holder’s identity.

A robust registration system will also help reduce fraud. People will be asked to provide proof of identity documents along with having their photograph taken, which will be compared to other photographs on the system to ensure one card is issued for each person. This process will help identify duplicate and fraudulent applications. (See information on the Protection of Privacy and Biometrics and the Access Card.)

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