Commonwealth Bank of Australia (ASX:CBA) has referred two mortgage brokers and a network of accountants to the NSW Police following the discovery of a sophisticated loan fraud scheme potentially worth $1 billion.
The investigation involves the use of artificial intelligence to create high-quality fake income statements, draft tax returns, and shell companies to illicitly procure finance.
Working alongside ASIC and AUSTRAC, the nation's largest lender identified anomalies within both its third-party broker channels and its internal "referrer program."
The scheme allegedly allowed accountants and other professionals to inflate client finances, with some borrowers holding an average of seven credit products across multiple institutions.
Authorities are particularly concerned that these inflated loans, often bolstered by international funds, are being used to launder "dirty money" into the Australian property market.
The scandal has reignited intense political scrutiny over the "referrer" model, which pays commissions to non-bank entities like real estate agents and lawyers.
While National Australia Bank and Macquarie previously scrapped similar programs following the 2019 Royal Commission, CBA, Westpac, and ANZ have continued the practice.
Labor Senator Deborah O'Neill expressed grave concerns regarding the lack of professional qualifications required for some individuals acting as accountants, noting that new anti-money-laundering regulations starting next month will finally mandate stricter due diligence for these sectors.
CBA CEO Matt Comyn confirmed the bank is spending $900 million annually to combat rapidly evolving "risk vectors" exacerbated by generative AI.