Privacy fears on welfare offensive

[R. A. Hettinga]

Try not to laugh too hard, now, boys and girls...

Cheers,
RAH
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<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."

-- 
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R. A. Hettinga <mailto: rah at 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,
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