The issue has intensified after Commonwealth Bank raised concerns about possible mortgage fraud, prompting lenders to undertake wider checks across their loan books. Fraudsters had reportedly applied for about $1 billion in loans using doctored documentation.
AUSTRAC, the financial crimes agency, is assessing how widespread such conduct may be across the banking system. The reviews are unfolding against concern that artificial intelligence is making forged material harder to detect, including the use of synthetic documents produced at speed.
According to ACCC commissioner Ian Oppermann, the data-sharing system could reduce the scope for manipulation where decisions are based on uploaded files. “If I’m clever, I could manipulate a PDF any way I want, so the bank can’t tell whether that document is what it purports to be,” he told The Australian Financial Review. “[The CDR] essentially removes the possibility for me to act as the middleman and change something for my own benefit.”
Banks and industry bodies have asked the Treasurer, Jim Chalmers, to allow ATO-held income information to be shared through the CDR, arguing that it would strengthen verification at the point of assessment. The signatories include the Australian Banking Association, the Mortgage and Finance Association of Australia, the Customer Owned Banking Association, the Australian Finance Industry Association and FinTech Australia.
The same group has also sought access to company registry information held by the Australian Securities and Investments Commission, contending it would help lenders confirm business details and manage fraud risks when assessing self-employed borrowers or complex income structures.