There is an unassuming suburban post office locker that is managed by a gambling syndicate accused of exploiting desperate young men.
For several years, these men have sent their signed bank cards there in return for $1,000. By doing so, they have risked identity theft, fraud and possible criminal conviction.
By sharing their identity documents, they have allowed the syndicate to create multiple bank and gambling accounts in their name – sometimes without them knowing.
Such syndicates are run by professional gamblers who say they have been banned or heavily restricted by bookmakers after winning too much money. Some say no laws have been broken and that they are just using creative ways to continue legitimate betting.
In this case, it is claimed that at least two major banks and several bookmakers have been deceived.
But the banks and bookies freely admit the real victims are those desperate enough to sell their identity.
As one bookmaker puts it, they have handed this syndicate “an absolutely terrifying potential to conduct the most serious financial crimes in their names”.
‘I feel guilt about profiting from this’
The promise of a quick financial fix was too much for Jackson*. He says he racked up an $11,000 debt on his credit card after the pandemic began and was on the hook for repayments.
He needed cash, fast.
When Jackson turned to a friend for help, he was told about a “no-risk, easy way to make money”. Jackson’s friend had sold his ID to the syndicate and received a $500 referral fee for each of his mates he recruited.
“When you’re strapped for cash, you get kind of reckless,” Jackson says.
“I can’t recall being told they would set up bank accounts in my name but, shortly after signing up, a bank card arrived at my house with instructions to sign it and send it to a PO box.”
Guardian Australia has confirmed two accounts were created at different banks in Jackson’s name. This was done to split the volume of gambling transactions. At least eight gambling accounts across different platforms were created.
Once the syndicate got control of his bank card, he was paid $250 a month to keep cooperating. The group promoted weekly raffles and a chance to earn reward points.
Jackson pocketed thousands of dollars before the group eventually dumped him. Once the bookies had restricted his accounts, he was of limited use. The syndicate still offered him $500 for future referrals.
He was never comfortable with the scheme. But he found a way to live with it.
He loathed the gambling industry and was willing to take a chance on people who “found a way to game a predatory industry”.
“I do feel guilt about profiting from an industry that creates such immense social harm,” Jackson says.
‘A complex, methodical operation’
For a long time after mailing his bank cards to the post office box, Jackson didn’t want to know what had been done in his name.
But this week he walked into a bank branch and asked for his records.
He says he discovered the syndicate had created email addresses in his name, without his knowledge, to run the accounts.
One bank supplied him with transaction data for a now closed account. It shows the syndicate placed bets with Tabcorp, Bet365, Sportsbet, Betdeluxe, Bossbet, PointsBet, Crossbet and The Real Bookie.
Money was added to Jackson’s account by cash deposits at ATMs, obscuring the source of funds. Money was also distributed to several people. Jackson recognised some names as contacts who had also sold their ID.
“In all of my interactions with them, the syndicate struck me as a well-organised outfit,” Jackson says. “The number of transactions with not just bookies, but also other client accounts, seems to suggest a complex, methodical operation.”
Jackson is unwilling to reveal the name of the syndicate. He is wary of retribution, given that they hold his ID documents and know his address.
Seasoned observers of the gambling industry believe that’s wise.
‘This makes me nervous’
Lauren Levin, from Financial Counselling Australia, has spent more than a decade helping clients who have fallen into trouble with gambling. When told of Jackson’s experience, she says “just hearing about this story makes me nervous”.
“Being party to anyone’s gambling fraud is never a good idea,” says Levin. “Not for $1,000, or $1m. Not only can accounts be opened in your name, but fraudsters could take out loans that the lender will hold you liable for repayments.”
Jackson doesn’t believe any loans have been taken out in his name but Levin warns the syndicate probably had enough information to do so if it wanted. Two money-laundering compliance officers at bookmakers who are not authorised to speak publicly agree.
“Some of the techniques used by these syndicates to avoid detection are very similar to those used by online fraudsters,” one says.
The other says: “Imagine if a group goes rogue – it not only has your ID documents but also bank accounts with credit facilities in your name. We have about 100 banks in Australia. You could really rack up some debt if a group starts credit forwarding.”
No one knows how many people have sold their identities to gamblers. But Michael Major, an anti-money laundering officer at BetRight, says: “It’s safe to assume thousands of people have done this.”
He adds: “Many of these groups also like to target international students on visas, who are more willing to hand over stuff if they are finishing courses and heading home soon.”
Martin Thomas, the chief executive of the Alliance for Gambling Reform, says some groups try to “exploit the desperate situation that some people find themselves in financially”.
But some within the gambling industry admit they too have played a role in creating these syndicates, citing intense competition between bookmakers that has fuelled a booming $50bn industry.
As bookies fight to secure loyalty from valuable customers – amateur punters without sophisticated knowledge of odds – they offer inducements like free bets or deposit matches otherwise unavailable to professional gamblers.
Some syndicates are created to harvest these inducements for a practice called matched betting. This involves using promotions to gamble on one outcome, while placing bets with other bookmakers to hedge all possible outcomes.
Banning these inducements was recommended by a bipartisan parliamentary inquiry led by the late Labor MP Peta Murphy, which focused on gambling harm. The report was tabled in June 2023. Murphy died from cancer six months later.
The government is yet to formally respond to the findings.
‘Easy money is seldom ever easy’
Like Jackson, many people who sell their ID to gamblers don’t realise the significance of what they’ve done for years to come.
He says no one ever told him he could be committing an offence by enabling the gamblers to open betting and bank accounts in his name.
So far, banks have not taken any action against him. But the industry body representing them, the Australian Banking Association, has a clear warning.
An ABA spokesperson told the Guardian that “it is an offence to knowingly allow another person to use your identity documents to impersonate you”.
Kathy Sundstrom, who works for the national identity support service IDcare, says there could be long-lasting consequences for selling ID documents.
“Unfortunately, they won’t know what other debit accounts may have been created as this isn’t reflected in credit reports and this could prove problematic in the future.”
“Easy money is seldom ever easy.”
* Name has been changes
• In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found via the NHS National Problem Gambling Clinic on 020 7381 7722, or GamCare on 0808 8020 133. In the US, call the National Council on Problem Gambling at 800-GAMBLER or text 800GAM
