Authorities are uncovering a worrying trend where organised crime networks are using the names of genuine small Australian businesses to sneak large amounts of illegal tobacco through major ports.
How the Scam Works
Smugglers have been attaching their shipments to the identities of trusted traders in a process known as “piggybacking”. These shipments often arrive disguised as regular manufactured goods and can weigh several tonnes. When cleared, they can be worth close to one million dollars on the street.
The businesses whose names are being used have no idea it is happening. Investigations show numerous attempts at both Sydney and Melbourne ports where overseas tobacco exporters falsely presented themselves as authorised representatives of Australian companies that have always maintained clean import records.
Gaps in the System
Some freight forwarders are unknowingly processing the fraudulent paperwork because the fake representatives appear convincing. Others simply miss the warning signs. Customs brokers say this is allowing organised crime to move huge quantities of illegal tobacco into the country while avoiding tax and prosecution.
A number of brokers say they are nervous about reporting suspicious activity because they are unsure whether the right people will take action. Others believe certain individuals in the logistics chain are deliberately ignoring suspicious activity because they do not want to lose commission or deal with extra paperwork.
Legitimate Traders Caught Up in the Process
Business owners impacted by these scams say they were shocked to learn their companies had been misused. Some also expressed frustration that they were not notified earlier, as their business reputations could be damaged if their names appear on illegal import documents.
Authorities Respond
The Australian Border Force says it is fully aware of the challenges created by piggybacking and insists strict integrity checks are in place for its officers. It also says criminal operations often distance themselves from the shipments, making investigations complex and prosecutions difficult.
Despite these challenges, the ABF reports that its teams are identifying offenders throughout the supply chain and are working alongside state and international partners to shut down these operations. A dedicated Illicit Tobacco National Disruption Group has been formed to improve intelligence sharing and crack down on the groups behind these schemes.
Technology Falling Behind Criminal Tactics
Industry experts note that while customs brokers and officers overwhelmingly act with integrity, the systems used to detect fraud are outdated. Modern organised crime groups are highly sophisticated and are using weaknesses in old technology to their advantage. There is a growing push for updated tools and better processes to reduce the opportunities for criminals to insert themselves unnoticed into Australia’s supply chains.
A Growing Challenge
Piggybacking has become common enough that many brokers treat it as an everyday issue. Some say they regularly receive offers of money in exchange for clearing suspicious shipments, though they refuse. Concerns have also been raised about personal safety for those who speak up, which may be contributing to underreporting.
The Bigger Picture
The illegal tobacco trade continues to fuel violent crime, reduce government revenue, and support organised crime across the country. Without improvements in border technology, better coordination between agencies, and stronger protections for brokers who report suspicious activity, criminals will continue to exploit Australia’s logistics network.
The ABF maintains that despite the growing sophistication of offenders, it is strengthening its approach and working to make Australia a far more difficult environment for the illegal tobacco market.
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