Rest has now paid 23,022 members $886.5 million, with a further 9,226 applications worth $63.9 million currently being processed.
Around two per cent of total applications – 2312 – are currently undergoing extra verification as part of Rest’s processes against fraud and money laundering.
“We continue to work closely with our administrator AAS to review and finalise these applications in the shortest-possible time to protect our members’ money,” said Rest CEO Vicki Doyle. “The ATO resumed sending applications to super funds yesterday after pausing last Friday. They will now be taking an extra day to complete additional security checks before sending approved applications to funds.
“While this will lead to the whole process taking slightly longer, we support any steps taken to make the process more secure for our members.”
Rest first voiced fraud fears last week, when it revealed that around 4440 applications had been flagged for extra verification. On 7 May, it was also revealed that the Australian Federal Police (AFP) were investigating an incident in which up to 150 super fund members may have been defrauded.
“When you have 650 times more requests, you have a heightened risk of fraud,” Ms Doyle said at the time. “We must be vigilant to this. Superannuation funds are targeted by criminal organisations and individuals looking to make fraudulent withdrawal attempts. Ultimately, our members will bear the cost of successful fraud attempts, so it’s critical we apply an appropriate level of security checks to transactions.”
But the number of applications Rest has been receiving has also “significantly declined” since the start of the scheme.
“At the end of the first week of the scheme, we had received around 65,000 applications. By the end of week two, we received about 40,000 applications,” Ms Doyle said. “Last week, we had received about 26,000 applications before the ATO paused the scheme on Friday. Even with these reducing volumes, we are still paying an average of 10,000 applications or $74 million per business day.”
APRA revealed that Rest was in the top ten funds with the highest number of applicants. Australian Super received the most applicants – 142, 475 – while Hostplus received 127,409.
