Motorists, when caught on speed cameras, may claim that someone else was behind the wheel at the time to avoid points or lose their licence. People then also often use internet chat forums to collude with other drivers. The scam has led to the New South Wales Roads and Traffic Authority (RTA) launching an investigation.
A spokesman for the RTA told Australian media that anyone caught perpetrating the scam could face huge fines and prison.
"Already anyone convicted of falsely nominating runs the risk of a fine up to $550," the spokesman told Australia's ABC News. "But more than that, they can also be charged with fraud offenses and that's a fine of up to $22,000 and jail terms of up to two years."
He also said the authority was considering increasing penalties for drivers who use the internet to trade points.