# Commonwealth Bank refers about A$1bn of suspect home loans, some reportedly AI-forged, to police Source: https://www.bankingnewsai.com/ai-incidents/commonwealth-bank-2026-ai-forged-loan-documents Last updated: Oct 21, 2026 Commonwealth Bank of Australia · AI used against the institution · severity 3 of 5 The Australian Financial Review reported on 26 February 2026 that Commonwealth Bank of Australia (CBA) had referred itself to police and the corporate regulator over fears that about A$1 billion of home loans were obtained fraudulently amid a spike in doctored applications, "including documents created by artificial intelligence". According to Information Age, two whistleblowers had accused a mortgage broker and a lender in CBA's private bank of forging income statements, and neither the bank nor the authorities had disclosed how AI was used. CBA has not lost money because the loans are being repaid and are secured against property, news.com.au reported. A CBA spokesperson described attempted fraud through broker and referral channels as an industry-wide challenge. In March 2026 ASIC told a parliamentary committee it was making compliance inquiries. ## Key facts | | | | --- | --- | | Date | Feb 26, 2026 | | Institution | Commonwealth Bank of Australia | | Country | Australia | | AI system | Generative AI reportedly used by outsiders to create or doctor loan-application documents (method not disclosed) | | AI? | Machine-learning system (inferred from the record) — The sources describe a machine-learning model; nobody on the record labelled it AI. | | Category | Other (AI used against the institution) | | Status | Reported | | Severity | 3 of 5 — Material potential harm and regulatory attention: about A$1 billion of home loans under review, a police referral and ASIC compliance inquiries, although the bank is reported to have lost no money because the loans are secured and being repaid. | ## What happened? On 26 February 2026 the Australian Financial Review reported that CBA had reported itself to the police and the corporate regulator over fears that about A$1 billion in home loans had been obtained fraudulently, amid a spike in doctored applications that included documents created by artificial intelligence. According to the AFR, the referral followed a review of compliance practices and customer lending documents, and the bank was working with authorities to assess how many loans rested on fraudulent documents, suspect deposits or shell companies. [1] Information Age reported that the referral traced back to two whistleblower complaints lodged through CBA's SpeakUp platform, the first reportedly in February 2025, accusing a mortgage broker and a lender in CBA's private banking division of forging income statements; one whistleblower reportedly said the pair "engaged in document forgery in order to secure home lending approvals". Neither the bank nor the authorities have publicly disclosed how AI may have been used. The individuals have not been publicly named in connection with CBA's referral. [3] CBA had been reviewing its loan book since at least July 2025 and stepped up the work after an alleged A$150 million fraud against National Australia Bank by a group known as the Penthouse Syndicate, according to Information Age and news.com.au. news.com.au reported that the suspected CBA fraud was believed to be separate from that syndicate, although investigators had not ruled out some overlap. [2][3] A spokesperson for NSW Police told Information Age that the State Crime Command's Financial Crimes Squad would meet CBA representatives. On 6 March 2026 ASIC commissioner Kate O'Rourke told a parliamentary joint committee that ASIC had been given information on the matter and was "at the point of making compliance inquiries", The Adviser reported. [3][4] ## Timeline - Feb 2025 — The first of two whistleblower complaints about forged income statements is reportedly lodged through CBA's SpeakUp platform. [3] - Feb 26, 2026 — The AFR reports that CBA has referred about A$1 billion of suspect home loans, including some with documents reportedly created by AI, to police and the corporate regulator. [1] - Feb 27, 2026 — NSW Police say the Financial Crimes Squad will meet CBA representatives; CBA says it has invested to fight fraud and calls broker-channel fraud an industry-wide challenge. [2][3] - Mar 6, 2026 — ASIC tells a parliamentary joint committee it is making compliance inquiries into the matter. [4] - Sep 10, 2026 — NSW Police say a fraud syndicate obtained an estimated A$500 million of fraudulent loans from the four major banks, including CBA, and charge accountants alleged to have created fake financial documents; police do not describe AI use. [5] ## What was the impact? - Financial: About A$1 billion of home loans under review (suspected, not confirmed losses) - Customers: No customer harm reported - Other: CBA has not lost money because the mortgages are being paid down and are secured against properties, news.com.au reported; Information Age said the bank expects to recover a significant portion of the suspected fraud. [1][2][3] ## How did Commonwealth Bank of Australia respond? CBA has not issued a detailed public statement on the referral. A CBA spokesperson told news.com.au the industry was facing "sustained and increasing levels of attempted fraud, driven by criminals who actively evolve their methods", that "this is an industry-wide challenge, with fraud being attempted through mortgage broking and referral channels", and that the bank invested A$900 million in the previous financial year to protect customers from fraud, scams, cyber threats and financial crime. According to Information Age, CBA changed its loan referral program so it no longer accepts referrals from clients who have not held a loan with the bank for at least six months. [2][3] ## What was the outcome? As of 21 October 2026 ASIC has said it is making compliance inquiries, and NSW Police have met the bank. In September 2026 NSW Police said a syndicate had obtained an estimated A$500 million in fraudulent loans from CBA, NAB, ANZ and Westpac and charged three accountants alleged to have created fake financial documents; the police account did not mention AI and did not say whether those loans are the ones CBA referred. No regulator finding or penalty against CBA has been reported. [4][5] ## FAQ ### Did Commonwealth Bank lose money in the A$1 billion AI loan fraud case? According to news.com.au, CBA has not lost money because the suspect mortgages are being paid down and are secured against properties that could be sold. The A$1 billion figure is the value of loans under review for possible fraud, not a confirmed loss, and Information Age said the bank expects to recover much of it. ### How was AI used in the Commonwealth Bank loan fraud? It has not been disclosed. The Australian Financial Review reported that the doctored applications included documents created by artificial intelligence, but Information Age noted that neither CBA nor the authorities had said how AI was used. The whistleblower complaints described forged income statements submitted through a broker and a private-bank lender. ### Did a regulator or the police act on the Commonwealth Bank loan referral? ASIC told a parliamentary committee on 6 March 2026 that it was making compliance inquiries, and NSW Police's Financial Crimes Squad met the bank. In September 2026 police charged accountants in a syndicate that obtained loans from all four major banks, without linking those charges to AI. ### What did Commonwealth Bank change after the suspected loan fraud? According to Information Age, CBA changed its loan referral program so that it no longer accepts referrals from clients who have not held a loan with the bank for at least six months. The bank also said it invested A$900 million in the prior financial year to fight fraud, scams and financial crime. ## Sources 1. [CBA calls police to investigate $1b in suspected home loan fraud](https://www.afr.com/companies/financial-services/cba-probes-1b-in-suspected-fraudulent-home-loans-calls-in-police-20260223-p5o4mc) — Australian Financial Review, Feb 26, 2026 (news): "Commonwealth Bank has reported itself to the police and corporate regulator over fears that about $1 billion in home loans were obtained fraudulently amid a spike in doctored applications, including documents created by artificial intelligence." 2. [CBA calls in police, $1 billion in fraudulent loans as banks battle AI forgeries](https://www.news.com.au/finance/business/banking/cba-calls-in-police-1-billion-lost-in-suspected-fraud-as-banks-battle-ai-forgeries/news-story/5d14a3c8c8047fe0a747567d0d7d4449) — news.com.au, Feb 27, 2026 (news): "CBA has not lost money, however, because the mortgages are being paid down and are secured against properties that can be sold if required." 3. [AI heist: CBA calls police over $1b loan fraud](https://ia.acs.org.au/article/2026/ai-heist--cba-calls-police-over--1b-loan-fraud.html) — Information Age (ACS), Feb 27, 2026 (news): "Neither the bank or authorities have publicly disclosed how AI may have been used in the suspected fraud racket." 4. [ASIC confirms it is investigating CBA loan fraud](https://www.theadviser.com.au/compliance/48173-asic-confirms-it-is-investigating-cba-loan-fraud) — The Adviser, Mar 9, 2026 (news): "Speaking on Friday, ASIC commissioner Kate O'Rourke confirmed that ASIC had been provided with information on the matter and was "at the point of making compliance inquiries with respect to those issues"." 5. [Sydney crime syndicate allegedly defrauded banks of up to $600 million, police say](https://www.abc.net.au/news/2026-09-10/nsw-alleged-crime-syndicate-600-million-financial-fraud/107137362) — ABC News, Sep 10, 2026 (news): "Detective Superintendent Arbinja said an estimated $500 million in fraudulent loans were issued by Australia's "Big Four" banks: the Commonwealth Bank, National Australia Bank, ANZ and Westpac." ## Related incidents - [Commonwealth Bank reverses 45 job cuts it attributed to an AI voice bot](https://www.bankingnewsai.com/ai-incidents/commonwealth-bank-ai-voice-bot-job-cuts-reversed) All AI incidents at banks: https://www.bankingnewsai.com/ai-incidents --- Canonical page: https://www.bankingnewsai.com/ai-incidents/commonwealth-bank-2026-ai-forged-loan-documents Part of [BankingNewsAI](https://www.bankingnewsai.com/) — the register of AI incidents at banks: https://www.bankingnewsai.com/ai-incidents. 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