What are the consequences of frauds Australia? There are serious penalties for frauds. Fraudsters must face punishment for their tricks. Whether it’s a phishing email from your bank or a high-pressure phone call about a non-existent tax issue, these scams are scary.
But fear not! By knowing the common tactics scammers use and how to spot the warning signs you can reduce your chances of being a victim of their fraudulent conduct. Fraud is generally defined as dishonestly gaining property or financial advantage. Each state and territory has its own laws for fraud but the core concept is the same. Here are two key elements of fraud offences:
- Dishonesty: This is one of the key elements, meaning the action is intended to deceive or mislead someone.
- Gaining an Advantage: This can be financial gain but also includes other benefits like getting someone to do something they wouldn’t normally do.
Examples of offences relating to fraud or a fraudulent act include:
- Stealing and using someone’s credit card
- Forging documents
- Identity theft
- Online scams
- Defrauding government benefits
In this article about penalties in Australia we’ll expose the tricks of the trade used by fraudsters and give you the knowledge to stay safe. Read on to learn more about penalties for fraud in Australia.
What Does the Law Say?
Commonwealth Criminal Code Act 1995 (Part 7.3, Division 134) lists several ways someone can commit Commonwealth fraud offences government. Here’s a breakdown of these categories:
What does a fraud offence constitute?
- Deception and Dishonesty: The core of the offence is getting something (property or financial advantage) from the Commonwealth government through deception and dishonesty.
- Commonwealth Entity: This law applies to situations where the victim is a government department or agency.
- Under Victorian criminal law, the offence of obtaining financial advantage by deception is outlined under section 82(1) of the Crimes Act 1958 (VIC). For South Australian fraud offences, these are outlined under section 139 of the Criminal Law Consolidation Act 1935 (SA).
Obtaining Property
- Different Ways to Obtain: The law about penalties for fraud in Australia defines “obtaining property” broadly. It includes taking ownership, possession or control of the property yourself or influencing someone else to transfer it to you or a third party.
- Dishonesty Persists: Even if you intend to pay for the property eventually, obtaining it dishonestly is still fraud.
Permanently Depriving the Commonwealth
The law looks at the intention behind taking property belonging to the Commonwealth. Even if you don’t plan to keep a property forever but intend to use it as your own regardless of the Commonwealth’s rights, it’s fraud. Moreover, borrowing something with no intention of returning it or returning it under conditions you can’t meet falls into this category.
Money Transfers
If you get someone to transfer money from their account to yours or a third party’s, it is to obtain property belonging to the Commonwealth (the transferred money) through deception.
General Deficiency
This section covers where a series of smaller actions like embezzlement or manipulating records result in a financial disadvantage or loss to the Commonwealth government.
Mistaken Identity – Theft vs. Fraud
The Court Decides: Sometimes the line between theft and fraud is blurred. The court will decide the charge (theft or fraud) based on the facts of the case.
Obtaining Financial Advantage
This section is about getting a financial benefit from a Commonwealth entity.
Consequences of Frauds in Australia: The Fraud Triangle
Have you ever wondered why ordinary people commit fraud? Criminologist Donald R. Cressey developed the “Fraud Triangle” to explain the three elements that can create a recipe for dishonesty:
- Pressure:
This pressure can come from many angles. Financial burdens like debt, gambling addiction or even wanting a luxurious lifestyle can push someone to fraud. Fear of losing a job, social status or not being able to provide for family can be big motivators.
- Opportunity:
Fraud needs a weakness in a system. This could be lack of oversight, poor security or no clear procedures in an organisation. Furthermore, fraud often starts small to test the waters and escalates when the opportunity looks ripe for the picking.
- Rationalisation:
Perhaps the most surprising thing is that most people who commit fraud have no criminal history. They tell themselves it’s justified. Common rationalisations include:
“I’ll pay it back eventually.” (This never happens)
“It’s just a small amount, nobody will be hurt.”
“They owe me anyway” (Sense of entitlement)
“I deserve this after all I’ve done.”
“I’m just taking back what I’ve already paid in.” (Justifying theft with taxes)
“I’m doing it for my family.” (Blame shifting)
All three of these can lead to severe consequences of fraud in Australia or any other country or state.
Understanding the Penalties
Fraud is a serious offence in New South Wales, Australia and the courts don’t take it lightly. Here’s what you can expect:
The maximum sentence depends on the type of fraud. It can be 2 to 10 years imprisonment. In addition to or instead of prison time you may receive a fined and may need to pay a large amount of money.
In some cases of fraud the court may order community corrections orders or intensive correction orders instead of prison time.
What are the maximum penalties and consequences of fraud in Australia for specific offences?
The severity of the fraud determines the maximum penalty. Here are some examples:
- 5 years imprisonment: Destroying or concealing records with intent (or to commit or facilitate indictable offence) to defraud.
- 7 years imprisonment: Intentionally deceiving members or creditors with a false statement.
- 10 years imprisonment: Dealing with identification information to commit a serious crime.
Identity Fraud, Forgery, Larceny
Identity theft and forgery are separate offences with their own maximum penalties which can be 10 years imprisonment. In some cases if you are charged with obtaining a benefit by deception (a type of fraud) but found guilty of larceny (theft) instead the same penalties may apply.
Seeking Legal Help Regarding Fraud
As we’ve seen fraud is such an offence with life changing consequences. Whether you’re facing fraud charges or think you’ve been a victim, seeking legal advice is key. JB Solicitors, a reputable law firm, can assist with NSW fraud offences or such offences in other states or territories. We can provide legal representation if the matter is escalated in the local, supreme, or district court.
Remember, the sooner you get a lawyer against a person guilty of fraud offences committed to anyone, the better.
