ORGANISED CRIME COSTS AUSTRALIA $36 BILLION ANNUALLY - FINANCIAL AND INSURANCE SECTORS HIT HARD
A recent report by the Australian Crime Commission has revealed the staggering cost of serious and organised crime to Australia’s economy: $36 billion every year. This figure is more than double earlier estimates and paints a stark picture of the impact of fraud, cybercrime, and related offences.
Fraud Bigger Than the Drug Trade
Organised fraud - including tax evasion, superannuation fraud, card fraud, and financial transaction fraud - accounts for $6.3 billion annually, making it a bigger financial drain than the illicit drug trade ($4.4 billion).
Other key findings from the report include:
$21 billion is spent on fighting crime.
A further $15 billion is allocated to prevention and response efforts.
The financial and insurance sectors spend $2.2 billion annually guarding against organised fraud and cybercrime - their biggest ongoing threats.
Cybercrime costs $1.1 billion annually.
Identity crime costs $1.2 billion annually.
A National Economic Threat
The report is the first time law enforcement has broken down the costs of serious and organised crime. It confirms what many in the private sector already know: organised crime is not only a law enforcement challenge, but also a business risk that directly impacts profitability, reputation, and consumer trust.
For insurers and financial institutions in particular, the costs are immense - and growing. With criminals using increasingly sophisticated methods, detection and prevention are more critical than ever.
Why Investigations Matter
For organisations in the financial and insurance sectors, the challenge lies not only in preventing fraud, but also in responding effectively when it occurs. Key measures include:
Independent investigations to verify facts and uncover hidden evidence.
Fraud risk assessments and policy reviews to strengthen internal systems.
Background checks on employees and third-party partners.
Cyber and identity theft investigations to mitigate digital risks.
The costs of inaction are clear. By failing to detect or prevent fraud, businesses expose themselves to significant financial loss and reputational damage - while fuelling the broader cycle of organised crime.
Final Thoughts
The $36 billion price tag of organised crime is a wake-up call. With fraud, cybercrime, and identity theft among the biggest threats, financial and insurance institutions must continue investing in prevention, response, and independent investigations.
At QNA Investigations, we support organisations with discreet, professional solutions to uncover fraud, minimise risk, and protect against loss. If you’d like to know more, contact us by phone on +61 2 9212 5000 or via email at mail@qnainvestigations.com.au.
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