Try not to laugh too hard, now, boys and girls... Cheers, RAH ------- <http://australianit.news.com.au/common/print/0,7208,9982358%5E15319%5E%5Enbv%5E15306,00.html> Australian IT Privacy fears on welfare offensive Karen Dearne JUNE 29, 2004 THE crackdown on welfare cheats is hotting up as more federal police are assigned to help Centrelink track social security fraud identified by data matching. Centrelink gained access to AusTRAC's financial transactions database earlier this year and took on 46 specialists to deal with the increased cross-matching and analysis workload. Centrelink also does online matching with Australian Tax Office and Immigration Department databases. Justice Minister Chris Ellison and Children and Youth Affairs Minister Larry Anthony have agreed to more than double, from four to 10, the number of AFP agents posted to Centrelink's fraud investigation teams. They expect the move to result in 1200 extra investigations this year, rising to 3000 in 2006-07 with projected net savings of $60 million over four years. Centrelink's access to AusTRAC resources was aimed at cracking down on "high-end welfare cheats", they said. According to AusTRAC data, about 5 per cent of suspicious transaction reports concern social security fraud - about 400 cases a year. The Child Support Agency and the Department of Veterans' Affairs were also given access to AusTRAC data. "As techniques to perpetrate fraud against the social security system are becoming more sophisticated, the AFP and Centrelink are working more closely to put law enforcement one step ahead of criminals trying to defraud the system," Senator Ellison and Mr Anthony said. "Australia has a generous welfare system and the Government recognises that most people are honest. "However, there are always some people who take more than their share. "Taxpayers can rest assured that Centrelink and the Australian Federal Police (AFP) are making sure people are only paid their correct entitlement - no more, no less." The Australian Privacy Foundation has expressed concern about the large expansion of citizens' data-matching occurring between AusTRAC and other agencies, at a time when AusTRAC is taking on increased responsibilities for international money laundering and terrorist financing reform. "We objected very strongly to the extension of access to Centrelink, Child Support and Veterans' Affairs when the legislation went through late last year," APF convenor Nigel Waters said. "It was a major extension of the scheme. "We've also put in a very strong submission about the proposed extension of AusTRAC's operations under changes to the Financial Transactions Reporting Act. "We believe this is one of the most dangerous developments yet, because it basically extends that sort of spying routine that banks already do on their customers to other people, like real estate agents." Australian Consumers Association IT policy spokesman Charles Britton said AusTRAC appeared to be positioning itself as a manager of citizens' identity data, rather than a cash transactions manager. "It's a subtle change, but AusTRAC appears to be taking on that identity manager role, particularly as far as government agencies are concerned," Mr Britton said. "I'm sure it's within their charter, I'm not suggesting it's not, but they seem to be emphasising an aspect to their work that isn't exactly what springs to people's minds in relation to AusTRAC." Mr Waters said the APF was concerned that there was no independent oversight of AusTRAC's activities. "Part of the problem is that they don't claim to be exercising any independent judgment," he said. "AusTRAC says it is just a clearing house, so it can't be blamed for the way information is used. "That comes down to the law enforcement agencies, the Australian Tax office (ATO) and Centrelink. "We think that's totally inadequate." -- ----------------- R. A. Hettinga <mailto: rah@ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'