NSW Government Introduces New Laws to Protect Residents from Identity Fraud

The New South Wales government is set to introduce major reforms to protect residents from identity fraud, following a year where Australians lost over $2 billion to cyber scams.

On Wednesday, the government will present the Identity Protection and Recovery Bill to Parliament. The new legislation aims to establish a fraud check service that allows government and accredited agencies to verify if someone’s identity details have been stolen or compromised.

This move is part of a broader effort to prevent criminals from using stolen personal information to apply for grants, loans, or credit. It will also strengthen the support offered by ID Support NSW, which assists residents in securing their identity and avoiding scams.

Digital Government Minister Jihad Dib said the bill is designed to protect vulnerable citizens from identity theft and online fraud.

“These new laws will help safeguard NSW residents against cyber criminals and the scourge of identity theft,” Mr Dib said. “By alerting people quickly and supporting them to secure their identity and replace compromised ID documents, NSW residents will be better protected from impersonation, scams and fraud.”

A key feature of the bill is the creation of a Compromised Credential Register. This register will alert individuals and agencies if someone tries to use an ID document that has been reported as stolen or compromised. It will include details such as driver’s licence numbers and personal data suspected to be circulating on the dark web.

ID Support NSW, first launched in 2021, will become the lead agency for identity protection and recovery services under the new law. It currently helps residents affected by data breaches to replace government documents and also provides community education on identity theft and cyber safety.

The legislation comes in response to over 67,000 scam reports submitted to ScamWatch across Australia in 2024.

If passed, the new law will make NSW one of the first states in Australia to create a dedicated system for early fraud detection and identity recovery support.