Major Fraud Scheme Uncovered in ACC’s MyApp System

A significant fraud scheme targeting New Zealand’s Accident Compensation Corporation (ACC) has been uncovered, with over $1.5 million in fake travel claims submitted through the ACC’s MyApp platform. The fraudulent activity, which occurred between November 1 and 17, 2023, involved more than 10,000 applications from 1,044 individuals, of which 4,266 were approved, resulting in a payout of $652,857.57.

ACC discovered the fraud in mid-November and was able to prevent the payment of an additional $919,717.96 before the reimbursements were processed. As a result of the incident, the MyACC app was temporarily shut down, which disrupted genuine users from submitting their legitimate claims.

The fraudulent scheme involved the use of fake travel addresses, fabricated reasons for travel, and the sharing of bank accounts among the perpetrators. ACC has identified four individuals—Jacqueline Whaanga, Ashleah Te Hira, Melody Haupokia-Kawerau, and Mohammed Zahed Hussain—who played key roles in the operation. Whaanga was found to be the most culpable and was sentenced to home detention for her involvement.

ACC has emphasized that this fraud not only undermines the integrity of the scheme but also harms those who genuinely need support. The organisation has announced plans to enhance its fraud detection and investigation capabilities in response to the scale of the incident.

This case highlights the ongoing challenges faced by public services in combating increasingly sophisticated fraud schemes. While the temporary shutdown of the MyApp platform was necessary to prevent further losses, it also exposed the vulnerability of digital systems to abuse. ACC is now working to restore user confidence and improve the security of its online platforms.

As the organisation moves forward, it will be crucial to continue investing in fraud prevention technologies and educating users about the risks of submitting false claims. The incident serves as a stark reminder of the importance of integrity and accountability in public services.