The Australian Transaction Reports and Analysis Centre’s Fintel Alliance has uncovered coordinated mortgage fraud and systemic control weaknesses through a joint analysis of data from 10 major Australian banks. Operation Claw identified potentially hundreds of millions in suspected fraudulent loans, mostly linked to Sydney properties, involving inflated incomes, misrepresented employment and fabricated or unverifiable business activity. It found no evidence of widespread money laundering, but warned that the vulnerabilities could be exploited by criminals. Recurring indicators included false or misleading documents, offshore or third-party funding for settlements and repayments, and repeated use of the same mortgage brokers, accountants and law firms across applications. Fintel Alliance referred potentially involved individuals and entities to law enforcement and regulatory agencies for intelligence purposes. Participating banks have investigated suspected fraud, strengthened controls, made further referrals and, in some cases, ended customer relationships. AUSTRAC urged all mortgage lenders to review their loan books, identify and report suspicious activity, and strengthen pre-approval controls. It has also issued threat alerts outlining mortgage fraud indicators and worked with participating banks to develop practical measures for preventing, detecting and disrupting the activity.
2026-08-19Australian Transaction Reports and Analysis Centre (AUSTRAC)
Australian Transaction Reports and Analysis Centre uncovers potentially hundreds of millions in suspected mortgage fraud across 10 major banks
AUSTRAC’s Fintel Alliance identified potentially hundreds of millions in suspected mortgage fraud through analysis of data from 10 major Australian banks. The activity involved false income and employment information, fabricated business activity and complex third-party funding, exposing systemic control weaknesses. AUSTRAC urged all mortgage lenders to review their books, strengthen controls and report suspicious activity.