A major political and criminal scandal is unfolding in Australia after revelations that an organised group of immigration detainees awaiting deportation allegedly masterminded an $8 million Medicare fraud from within a Melbourne detention facility.
The sophisticated operation, uncovered through a joint investigation by Services Australia and the Australian Federal Police (AFP), is believed to have targeted vulnerable Australians by stealing their personal data and impersonating them to claim fraudulent Medicare rebates.
Authorities have confirmed multiple arrests and ongoing inquiries into the full extent of the scam. Investigators allege that detainees at the Melbourne Immigration Transit Accommodation complex in Broadmeadows used stolen identities—including driver’s licences, health cards, and tenancy documents—to reroute government payments into accounts they controlled.
According to Peter Timson, Services Australia’s General Manager of Fraud Control and Investigations, the scam’s total value has been estimated at around $8 million, though he cautioned that the investigation remains active. “Some of the funds have been recovered and frozen in bank accounts,” he said during Senate estimates hearings in Canberra.
Three people have been charged so far, including Manuele Ene—the brother of jailed Comanchero bikie Richard Ene—and Navreet Singh, both detainees awaiting deportation. Mobile devices and other electronic equipment were seized during raids, which authorities believe were used to facilitate the fraudulent activity.
The alleged ringleaders reportedly tricked Australians into providing login credentials and personal information, enabling them to impersonate both customers and Services Australia officials. They then directed Medicare payments into their own bank accounts.
Coalition acting Home Affairs spokesman James Paterson blasted the government over the scandal, describing it as “extraordinary” that such a scheme could occur inside a high-security government facility.
“The Coalition has campaigned relentlessly for stronger powers to confiscate devices in detention centres,” he said. “Yet under this government, vulnerable Australians have fallen victim to an $8 million scam that should never have been allowed to happen.”
Paterson demanded that Home Affairs Minister Tony Burke publicly explain how the fraud occurred and what safeguards will be implemented to prevent similar incidents.
Chris Birrer, Services Australia’s Deputy CEO for Payments and Integrity, said the fraud involved impersonation of both customers and the agency itself, with offenders using false identities to access systems and redirect payments.
He warned that the fallout from such scams extends beyond financial loss: “Identity theft causes significant inconvenience, stress, and long-term issues for victims trying to re-establish trust with government systems.”
The scandal has reignited debate over security and accountability within Australia’s immigration detention network, as well as the growing sophistication of cyber-enabled welfare fraud.
