An alleged criminal syndicate used the names of real children to claim government childcare subsidies for children who weren't being cared for, police say.
Eighteen people have been arrested over an alleged highly-sophisticated family daycare fraud which police claim roped in millions in government rebates.
Three men - aged 24, 40 and 49 - and 15 women - aged between 21 and 44 - were arrested on Wednesday after NSW Police raided 23 properties throughout Western Sydney and Wollongong.
The criminal syndicate allegedly fraudulently claimed $4 million in commonwealth benefits under the federal government's child care subsidy schemes, police said.