From the newsrooms of the Sydney Morning Herald and The Age. This is the morning edition. I'm Samantha Salinger Morris. It's Tuesday, February 18th. Did the nation's biggest taxi company fail to stem the rampant rorting of passengers? Leaked documents to investigative journalist Nick McKenzie allege Australians are being ripped off by drivers at a massive scale. From everyday passengers going to and from work, to vulnerable people travelling from disability services and aged care homes. In one of the most shocking cases, a Cabcharge account belonging to an elderly person who had died was charged dozens and dozens of times over just a few days. Today, Nick McKenzie, on his joint investigation with The Age, The Sydney Morning Herald and 60 minutes. And what happened when they sent someone undercover to expose the scam. So, Nick, perhaps the simplest way to illustrate this investigation is for you to tell us what happened when you sent someone in undercover to hop in a cab and and go around Melbourne in it.

From the newsrooms of the Sydney Morning Herald and The Age. This is the morning edition. I'm Samantha Salinger Morris. It's Tuesday, February 18th. Did the nation's biggest taxi company fail to stem the rampant rorting of passengers? Leaked documents to investigative journalist Nick McKenzie allege Australians are being ripped off by drivers at a massive scale. From everyday passengers going to and from work, to vulnerable people travelling from disability services and aged care homes. In one of the most shocking cases, a Cabcharge account belonging to an elderly person who had died was charged dozens and dozens of times over just a few days. Today, Nick McKenzie, on his joint investigation with The Age, The Sydney Morning Herald and 60 minutes. And what happened when they sent someone undercover to expose the scam. So, Nick, perhaps the simplest way to illustrate this investigation is for you to tell us what happened when you sent someone in undercover to hop in a cab and and go around Melbourne in it.

Well, we knew a to be the largest Australian taxi company would say, listen, we have frauds and significant frauds been a problem in the past, but everything's okay now. And we knew that wasn't the case. So what better way to test that than to, uh, hit the hit the ground running with somebody in cabs using the product or one of their products we know is being exploited. Cabcharge. So we got, uh, an elderly, uh, looking person, a person who could pass off as an elderly looking person, gave them a walking frame, effectively sent them in undercover with some cab charges. It's lunchtime on a Thursday in Melbourne, and a vulnerable looking passenger approaches the taxi rank. It's hardly an unusual Is your situation?

Well, we knew a to be the largest Australian taxi company would say, listen, we have frauds and significant frauds been a problem in the past, but everything's okay now. And we knew that wasn't the case. So what better way to test that than to, uh, hit the hit the ground running with somebody in cabs using the product or one of their products we know is being exploited. Cabcharge. So we got, uh, an elderly, uh, looking person, a person who could pass off as an elderly looking person, gave them a walking frame, effectively sent them in undercover with some cab charges. It's lunchtime on a Thursday in Melbourne, and a vulnerable looking passenger approaches the taxi rank. It's hardly an unusual Is your situation?

Are you free? Where are you going?

Are you free? Where are you going?

But what these drivers don't know is this man is working undercover. The cab ride is just a few minutes. It should have cost no more than about $15. This driver takes the cab charge before they even get in the car, and immediately turns the meter off when they start driving. He's handed her a receipt for $54. So he thinks I'm undercover. And we think initially. Well, that's the extent of the fraud. 15 bucks to 54. It's a decent whack. Uh, turns out the receipt is fraudulent. The actual fraud we discover by looking at the channel nine cab charge account. He was charged about $330. So we're talking about a $315 add on to a $15, uh, cab ride. That's an extraordinary fraud right there in a single case study. So if you times that by many hundreds of incidents every day, that that starts to really add up in terms of aged care facilities who send elderly out. Elderly people out with cab charges. Disabled people from NDIS facilities have cab charges. Corporates giving their staff cab charges. If you extrapolate that across the industry, you've got a significant systemic fraud going on and we know it is systemic and we know it is happening across Australia in many of the cabs associated with AtsB that this big taxi company.

But what these drivers don't know is this man is working undercover. The cab ride is just a few minutes. It should have cost no more than about $15. This driver takes the cab charge before they even get in the car, and immediately turns the meter off when they start driving. He's handed her a receipt for $54. So he thinks I'm undercover. And we think initially. Well, that's the extent of the fraud. 15 bucks to 54. It's a decent whack. Uh, turns out the receipt is fraudulent. The actual fraud we discover by looking at the channel nine cab charge account. He was charged about $330. So we're talking about a $315 add on to a $15, uh, cab ride. That's an extraordinary fraud right there in a single case study. So if you times that by many hundreds of incidents every day, that that starts to really add up in terms of aged care facilities who send elderly out. Elderly people out with cab charges. Disabled people from NDIS facilities have cab charges. Corporates giving their staff cab charges. If you extrapolate that across the industry, you've got a significant systemic fraud going on and we know it is systemic and we know it is happening across Australia in many of the cabs associated with AtsB that this big taxi company.

And like you say, there, this isn't an issue of just, you know, a couple cabbies ripping a few people off. It is systemic. That's what your investigation has found so far. So tell us, I guess, the most shocking cases.

And like you say, there, this isn't an issue of just, you know, a couple cabbies ripping a few people off. It is systemic. That's what your investigation has found so far. So tell us, I guess, the most shocking cases.

Well, mostly the level of fraud is such that you can live with it. It might be 20, 30, 40 bucks. It also might be that your employer is the one that's defrauded because they're ultimately paying for the cab. So you cop it on the chin, you don't mind too much, and you move on. Where it gets really disgusting and shocking is where you've got disabled people, sometimes profoundly disabled people. They're massive users of Cabs through state government federal government subsidized schemes. So in some cases the NDIS is paying for cabs. And we found a number of cases, including one in Sydney, where many disabled people from a disability service provider were getting ripped off over and over and over again. Uh, we're talking hundreds, uh, if not several thousand. In one case of rip offs of six disabled people from one facility, including a person who was dead. So their cab charge should obviously not have been charged. Their cab charge or travel account should not have been charged after they had died. I mean, that much is blatantly obvious. They are not the only dead person who had their cab charge continuously used after their death. If that sort of thing is going on, uh, it just shows how deep the problems are.

Well, mostly the level of fraud is such that you can live with it. It might be 20, 30, 40 bucks. It also might be that your employer is the one that's defrauded because they're ultimately paying for the cab. So you cop it on the chin, you don't mind too much, and you move on. Where it gets really disgusting and shocking is where you've got disabled people, sometimes profoundly disabled people. They're massive users of Cabs through state government federal government subsidized schemes. So in some cases the NDIS is paying for cabs. And we found a number of cases, including one in Sydney, where many disabled people from a disability service provider were getting ripped off over and over and over again. Uh, we're talking hundreds, uh, if not several thousand. In one case of rip offs of six disabled people from one facility, including a person who was dead. So their cab charge should obviously not have been charged. Their cab charge or travel account should not have been charged after they had died. I mean, that much is blatantly obvious. They are not the only dead person who had their cab charge continuously used after their death. If that sort of thing is going on, uh, it just shows how deep the problems are.

And can you tell us how this actually worked? Like how are clients being ripped off? How are all the different ways, I guess, that people were overcharged.

And can you tell us how this actually worked? Like how are clients being ripped off? How are all the different ways, I guess, that people were overcharged.

There's a range of ways As this occurs. And I think this is part of the problem, the technology that this massive cab company A to B, which as we know owns one three cabs, owns Silver Service, owns cab Charge and provides the payment terminals and most of the cabs around the country. Uh, the way the payment systems work is slightly complicated, which creates lots of opportunities for those who wish to game the payment system. And the payment system is also wide open for exploitation. Let me give you one example. A cab driver can add what's known as an other charge. It appears in the tax in your taxi receipt as an other charge. Now this on the surface looks reasonable. Let's just say you get sick in a cab. Uh, big night on the on the beers and someone vomits. One might want to charge another charge to pay for a clean up fee. Uh, so there's reasonable times that a cabbie can add on an extra charge. But what's actually happening over many years is these other charges are being used to defraud customers. Some internal analysis League from A to B to us over hundreds of thousands of cab rides. Uh, there was, uh, many, many thousands of others added on the suspicious charges. Uh, the quantum of the fraud was up to $2.4 million over six months. So just looking at this one way of ripping off a customer, that just one way. There's there's a multitude of other ways, uh, you can rip off customers, be it by taking a digital or or hard copy Cabcharge, uh, stealing its, its details, uh, and using it to create false, false fares and charging it down the track hoping you won't get caught. Uh, defrauding credit cards through payment terminals. Uh, adding on generic locations. So rather than using the GPS that's attached to or built into the meter, you override the meter. What's known as a meter flash. Uh, and you use a technological flaw to change the pick up and drop off drop off destinations to allow you to increase or add additional fees on to defraud your customer. Now, when that's happening in an entrenched fashion, it's a small amount, but over many millions of rides, it really does add up.

There's a range of ways As this occurs. And I think this is part of the problem, the technology that this massive cab company A to B, which as we know owns one three cabs, owns Silver Service, owns cab Charge and provides the payment terminals and most of the cabs around the country. Uh, the way the payment systems work is slightly complicated, which creates lots of opportunities for those who wish to game the payment system. And the payment system is also wide open for exploitation. Let me give you one example. A cab driver can add what's known as an other charge. It appears in the tax in your taxi receipt as an other charge. Now this on the surface looks reasonable. Let's just say you get sick in a cab. Uh, big night on the on the beers and someone vomits. One might want to charge another charge to pay for a clean up fee. Uh, so there's reasonable times that a cabbie can add on an extra charge. But what's actually happening over many years is these other charges are being used to defraud customers. Some internal analysis League from A to B to us over hundreds of thousands of cab rides. Uh, there was, uh, many, many thousands of others added on the suspicious charges. Uh, the quantum of the fraud was up to $2.4 million over six months. So just looking at this one way of ripping off a customer, that just one way. There's there's a multitude of other ways, uh, you can rip off customers, be it by taking a digital or or hard copy Cabcharge, uh, stealing its, its details, uh, and using it to create false, false fares and charging it down the track hoping you won't get caught. Uh, defrauding credit cards through payment terminals. Uh, adding on generic locations. So rather than using the GPS that's attached to or built into the meter, you override the meter. What's known as a meter flash. Uh, and you use a technological flaw to change the pick up and drop off drop off destinations to allow you to increase or add additional fees on to defraud your customer. Now, when that's happening in an entrenched fashion, it's a small amount, but over many millions of rides, it really does add up.

We'll be right back. You've also found a shocking case of one taxi driver who was working for one three cabs, who assaulted profoundly disabled passengers.

We'll be right back. You've also found a shocking case of one taxi driver who was working for one three cabs, who assaulted profoundly disabled passengers.

In this case, we've had a taxi driver in Victoria working for one three cabs, which of course is owned by a to be the company at the center of this scandal, not only over hundreds of occasions stealing from disabled people through those gaping holes in the technology and systems that AtsB provides, but also manhandling them, whacking them, uh, prodding them, not securing these disabled passengers in his cab. So they had terrifying rides, uh, injuring them, really, to a hellish experience. When Liam gets into a taxi or an Uber. How vulnerable is he?

In this case, we've had a taxi driver in Victoria working for one three cabs, which of course is owned by a to be the company at the center of this scandal, not only over hundreds of occasions stealing from disabled people through those gaping holes in the technology and systems that AtsB provides, but also manhandling them, whacking them, uh, prodding them, not securing these disabled passengers in his cab. So they had terrifying rides, uh, injuring them, really, to a hellish experience. When Liam gets into a taxi or an Uber. How vulnerable is he?

He's 100% vulnerable because he cannot communicate in any way if he's being mistreated. Um, he if he's being abused or mistreated in any way, he cannot tell anyone he trusts what is what has happened to him. So he's, uh, a sitting duck. Really.

He's 100% vulnerable because he cannot communicate in any way if he's being mistreated. Um, he if he's being abused or mistreated in any way, he cannot tell anyone he trusts what is what has happened to him. So he's, uh, a sitting duck. Really.

And the most disturbing thing about this case is this driver was found by accident. Only because he was busted drink driving while on the job, fairing disabled passengers around. His misconduct in terms of physical abuse and defrauding his passengers is likely, according to the police, have gone on for much longer than the two weeks they discovered on the CCTV. Which in and of itself is shocking.

And the most disturbing thing about this case is this driver was found by accident. Only because he was busted drink driving while on the job, fairing disabled passengers around. His misconduct in terms of physical abuse and defrauding his passengers is likely, according to the police, have gone on for much longer than the two weeks they discovered on the CCTV. Which in and of itself is shocking.

He was treated like an animal. Our beloved Liam was treated like an animal. And I'll live with that for the rest of my life.

He was treated like an animal. Our beloved Liam was treated like an animal. And I'll live with that for the rest of my life.

It's a really powerful case study of how these systems should be in place to protect passengers. Especially vulnerable passengers are failing.

It's a really powerful case study of how these systems should be in place to protect passengers. Especially vulnerable passengers are failing.

I mean, it really is. You know, we heard further testimony from Liam's mother, Sandy, in your 60 minutes episode on this, and she said that she is still feeling trauma from when she thinks about what, you know, her son might have experienced at the hands of that cab driver. And you mentioned that this cab driver did face court. So what sentence did he receive?

I mean, it really is. You know, we heard further testimony from Liam's mother, Sandy, in your 60 minutes episode on this, and she said that she is still feeling trauma from when she thinks about what, you know, her son might have experienced at the hands of that cab driver. And you mentioned that this cab driver did face court. So what sentence did he receive?

Well, the taxi driver got really the equivalent of a slap on the wrist of $20,000. Fine. He avoided a jail sentence with a two year community corrections order, was given a criminal conviction. That means he won't be driving again. Uh, but really significantly, the magistrate said the law needs to be changed to give the courts the option to send drivers to jail in cases such or similar to this, we need to make sure people are protected in cabs and Ubers, and the courts are saying, well, this is a real issue. This is not the level of protection that the community should expect. Uh, something needs to change.

Well, the taxi driver got really the equivalent of a slap on the wrist of $20,000. Fine. He avoided a jail sentence with a two year community corrections order, was given a criminal conviction. That means he won't be driving again. Uh, but really significantly, the magistrate said the law needs to be changed to give the courts the option to send drivers to jail in cases such or similar to this, we need to make sure people are protected in cabs and Ubers, and the courts are saying, well, this is a real issue. This is not the level of protection that the community should expect. Uh, something needs to change.

Okay. And so how exactly was it that all of this behavior was allowed to continue for so long, because you've identified in your investigation that there was actually warnings to senior management in Adobe as early as 2022. So what's happening there?

Okay. And so how exactly was it that all of this behavior was allowed to continue for so long, because you've identified in your investigation that there was actually warnings to senior management in Adobe as early as 2022. So what's happening there?

Well, the warnings actually date, uh, much further back than that. And the systems, the compliance systems that HIV has aren't up to scratch. Why has it been allowed to happen? That's a complicated set of answers. Regulation is a hit and miss across the country. It's state regulation, state and territory regulation. Sometimes in some jurisdictions, it's okay. Other times it's very poor. Victoria is extraordinarily under resourced when it comes to regulating the Throughout in the industry, uh, New South Wales does better, but there's still significant problems. The laws are too weak. Some say. Well, regulation has never been the answer to the tax industry. We need the corporates to occupy this space, uh, to take charge, to take responsibility. But when it comes to ATV, we say that's not the case. So we've got a corporate responsibility and accountability out the door. It's another factor there. We've seen the impact of rideshare. Most noticeably Uber really changing up consumer habits, making it much tougher for cabbies to make a decent living as people have flocked to Uber. There's a whole multitude of problems that when you boil it right down, what we do know is a fact is that fraud is wide scale. It's happening relatively unchecked, and something has to change.

Well, the warnings actually date, uh, much further back than that. And the systems, the compliance systems that HIV has aren't up to scratch. Why has it been allowed to happen? That's a complicated set of answers. Regulation is a hit and miss across the country. It's state regulation, state and territory regulation. Sometimes in some jurisdictions, it's okay. Other times it's very poor. Victoria is extraordinarily under resourced when it comes to regulating the Throughout in the industry, uh, New South Wales does better, but there's still significant problems. The laws are too weak. Some say. Well, regulation has never been the answer to the tax industry. We need the corporates to occupy this space, uh, to take charge, to take responsibility. But when it comes to ATV, we say that's not the case. So we've got a corporate responsibility and accountability out the door. It's another factor there. We've seen the impact of rideshare. Most noticeably Uber really changing up consumer habits, making it much tougher for cabbies to make a decent living as people have flocked to Uber. There's a whole multitude of problems that when you boil it right down, what we do know is a fact is that fraud is wide scale. It's happening relatively unchecked, and something has to change.

And so just to wrap up, Nick, I mean, what happens from here, particularly with regards to the rorting of passengers like what will be done, if anything, to prevent it from happening?

And so just to wrap up, Nick, I mean, what happens from here, particularly with regards to the rorting of passengers like what will be done, if anything, to prevent it from happening?

Well, unless there's accountability for misbehaviour. And that includes corporate accountability. So we're A to B has enabled fraud not done enough to get rid of it. It needs to be held to account. Let's think of the casinos or the banks that we had directors of casinos saying, well, we're not the money launderers, they're the ones coming in to use our facilities. It's not our fault that's going on. And we've seen now the corporate regulator, we've seen commissions of inquiry say no. As a casino, if your systems are being manipulated by wrongdoers, you are responsible. The same can be said of the taxi industry. We look to the corporate watchdog ASIC, we look to the consumer protection watchdog, the AUC. We look to the regulators that are meant to be doing a job. That's clearly not been a good enough job. There's a lot that can yet happen. You know, we've we've shown a big light on the problems. Now it's over to regulators, government and the industry itself to clean itself up.

Well, unless there's accountability for misbehaviour. And that includes corporate accountability. So we're A to B has enabled fraud not done enough to get rid of it. It needs to be held to account. Let's think of the casinos or the banks that we had directors of casinos saying, well, we're not the money launderers, they're the ones coming in to use our facilities. It's not our fault that's going on. And we've seen now the corporate regulator, we've seen commissions of inquiry say no. As a casino, if your systems are being manipulated by wrongdoers, you are responsible. The same can be said of the taxi industry. We look to the corporate watchdog ASIC, we look to the consumer protection watchdog, the AUC. We look to the regulators that are meant to be doing a job. That's clearly not been a good enough job. There's a lot that can yet happen. You know, we've we've shown a big light on the problems. Now it's over to regulators, government and the industry itself to clean itself up.

Well, thank you so much for your time.

Well, thank you so much for your time.

Thanks for having me.

Thanks for having me.

Today's episode of The Morning Edition was produced by Tammy Mills with technical assistance by Josh towers. Our executive producer is Tammy Mills. Tom McKendrick is our head of audio. The Morning Edition is a production of The Age and The Sydney Morning Herald. If you enjoy the show and want more of our journalism, subscribe to our newspapers today. It's the best way to support what we do. Search the Age or Smh.com.au. Subscribe and sign up for our Morning Edition newsletter to receive a comprehensive summary of the day's most important news, analysis and insights in your inbox every day. Links are in the show. Notes. I'm Samantha Selinger. Morris. This is the morning edition. Thanks for listening.

Today's episode of The Morning Edition was produced by Tammy Mills with technical assistance by Josh towers. Our executive producer is Tammy Mills. Tom McKendrick is our head of audio. The Morning Edition is a production of The Age and The Sydney Morning Herald. If you enjoy the show and want more of our journalism, subscribe to our newspapers today. It's the best way to support what we do. Search the Age or Smh.com.au. Subscribe and sign up for our Morning Edition newsletter to receive a comprehensive summary of the day's most important news, analysis and insights in your inbox every day. Links are in the show. Notes. I'm Samantha Selinger. Morris. This is the morning edition. Thanks for listening.