Let’s face it, most of us have felt that jolt of panic when a strange transaction pops up on our bank statement or a “password reset” email lands in our inbox out of the blue. Identity theft?
In 2024, a Melbourne man’s two-year prison sentence for cyber-enabled identity theft made headlines. But for many Australians, the story hit uncomfortably close to home. Why? Well, the digital world is making it easier than ever for criminals to steal identities, create fake profiles, and wreak havoc on people’s lives.
So, what happened in this case? What does it mean for you? Let’s break down the facts, the law, and most importantly how you can protect yourself in a world where your identity is more valuable than ever.
Read our case study about Hannah Grundy’s experience with online abuse and AI generated pornographic images. This case drew national attention and appeared on Australian Story: Betrayal, represented by our top Criminal Solicitor, Sidnie Sarang.
The Melbourne Case: A Snapshot of Modern Identity Crime
In June 2024, a 31-year-old man from Boronia, Melbourne, was sentenced to two years in prison (with a non-parole period of ten months) for a string of cyber-enabled identity theft offences. His crimes included using fraudulent driver licences—bearing his photo but the names and details of real victims—to open online cryptocurrency accounts.
The investigation, codenamed Operation Stonefish, uncovered a web of deceit that stretched across borders and digital platforms.
When police raided his home, they found:
- Blank and forged driver licences
- Lost passports
- Medicare and debit cards belonging to other individuals
- Cryptocurrency exchange cards
- An encrypted messaging app open, with chats referencing identity-based crime
- Instruction manuals on producing false identity documents
This wasn’t just opportunistic fraud, it was part of a larger, tech-enabled ecosystem. The man used stolen identities to build fake personas and exploit financial systems. His victims faced not just financial damage, but emotional trauma and the slow, frustrating process of reclaiming their lives.
Identity Theft in Australia: How Big Is the Problem?
Think identity theft is rare? Think again. The stats tell a different story:
- In 2023–24, about 1.2% of Australians aged 15+, roughly 255,000 people, experienced identity theft, up from 1.0% the year before.
- Around 433,000 people (2%) were impersonated online.
- 13% of Australians have experienced identity theft in their lifetime.
- In 2024 alone, Australia recorded 47 million data breaches, roughly one every second, ranking as the 11th most affected country globally.
Beyond the numbers, the human toll is enormous. Victims often spend weeks cleaning up the mess. One government report found:
- Around 33% of victims suffered direct financial loss
- 34% reported negative mental health impacts
- Nearly half spent significant time resolving issues
- Many experienced disrupted sleep, anxiety, and ongoing fear
How Do Criminals Steal and Use Your Identity?
Identity theft goes beyond hacked email accounts. Common tactics include:
- Phishing scams: Emails or texts designed to trick you into revealing personal information
- Data breaches: Sensitive details leaked from companies or government systems
- Forged documents: As seen in the Melbourne case, these are used to access financial platforms
- Social engineering: Manipulating you or your contacts to gain trust and extract data
- Fake profiles: Scammers impersonate you online to deceive others
Once criminals have your information, they may:
- Open bank or credit accounts
- Apply for government benefits
- Create fake identities for further fraud
- Access your superannuation or investment accounts
- Even use your identity to commit offences or apply for jobs
Why Is Identity Theft on the Rise?
Several factors are fuelling this sharp increase:
- Everything’s online — from banking to tax returns to dating. Convenience comes at a cost.
- Massive data breaches: With millions of leaked records, your personal info could already be on the dark web.
- Smarter cybercriminals: Many use AI tools to scale their operations or impersonate real people.
- Under-reporting: Some victims never realise they’ve been targeted. Others give up navigating the complex reporting process.
The Law: What Are the Penalties for Identity Theft and Fake Profiles?
Identity crime is a serious criminal offence in Australia. The man in the Melbourne case was charged under laws including the Criminal Code Act 1995 (Cth) and the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Charges included:
- Providing false or misleading information
- Dealing with proceeds of crime
- Possessing or producing false documents
- Refusing to comply with access orders (e.g. not handing over passwords)
These offences carry penalties of up to several years’ imprisonment, depending on the severity and extent of the crime. Even creating fake online profiles for fraudulent purposes is a criminal act, not just a violation of platform terms.
The Human Cost: What Happens to Victims?
It’s not just a financial hit — identity theft often leaves emotional scars. According to Norton’s 2023 report, victims experience:
- Financial losses — median losses are around $300, often unreimbursed
- Emotional strain — including anxiety, insomnia, and depression
- Administrative stress — time-consuming calls, forms, and disputes with banks
- Lingering fear — especially when stolen details circulate on the dark web
How Can You Protect Yourself Against Identity Theft?
You can’t eliminate the risk, but you can reduce your exposure:
- Use strong, unique passwords for each account
- Enable two-factor authentication wherever possible
- Be sceptical of unsolicited messages asking for personal information
- Shred sensitive documents before binning them
- Regularly monitor your accounts and credit report
- Keep software and devices up to date to prevent security gaps
- If you suspect a breach, act fast, contact your bank, ReportCyber, and consider placing a credit freeze
What Should You Do If You’re Targeted?
Quick action is key. Here’s what to do:
- Call your bank immediately to freeze accounts and flag suspicious activity
- Report to ReportCyber — Australia’s national cybercrime portal
- Contact the police if a crime has occurred
- Alert credit reporting agencies (Equifax, illion, Experian) to place a ban or alert on your file
- Document everything — save emails, log calls, and note timelines
What’s Next for Australia?
This case isn’t an anomaly — it’s a warning. Cybercriminals are growing bolder and more sophisticated, and Australia is responding.
The Office of the Australian Information Commissioner (OAIC) is pushing for stronger privacy protections, while the federal government has expanded funding for cybercrime taskforces and passed new digital identity laws.
But laws alone aren’t enough. It takes widespread awareness, smarter systems, and shared responsibility across government, business, and the community.
Empowering Yourself in a Digital World Against Identity Theft
Feeling uneasy after reading this? You’re not alone. But you’re also not helpless.
By staying informed, using smart digital habits, and knowing how to respond when something goes wrong, you can reduce your risk and reclaim your confidence.
If you’ve been affected by identity crime or feel vulnerable to cyber threats, O’Brien Criminal & Civil Solicitors can help. Our team understands the legal, emotional, and practical complexities involved — and we’re here to support you every step of the way.
Your identity is worth protecting. Start now — and safeguard your future.
Need a lawyer for identity theft?
If you or someone you know has been a victim, contact our legal team to discuss how we can help. Please call (02) 9261 4281, or email . In some cases, we can help arrange a free, confidential consultation for you.*
Or concerned about damage to your reputation?
If you’ve been defamed online, in the media, or by someone in your community, you don’t have to suffer in silence. At O’Brien Criminal & Civil Solicitors, we’ve helped clients across Australia clear their name and seek justice.
Explore real defamation case results and see how we can help you take back control of your reputation.
