Websites are selling fake state-of-the-art Australian passports for as little as $1250, boasting they'll pass the most rigorous border checks.
Australia's Department of Foreign Affairs and Trade (DFAT) says the sites are just another money-making scam but admit they are "the subject of ongoing discussions" with Australian Federal Police.
DFAT also warns that people who use such documents are guilty of a serious criminal offence.
Websites buyfakepassports.com and fakepassport.org are two sites offering false Australian documentation.
Buyfakepassports.com boasts it is a unique producer of quality fake documents.
"We offer only original high-quality fake passports, driver's licences, ID cards, stamps and other products for following countries: Australia, UK, USA," the site says.
Sample pictures of a blank Australian passport show where buyers' personal details will be entered after supplying a digital photo, signature and other particulars.
The site asks for 750 euros ($1500) to be sent in instalments to Chisinau, Moldova via money order services, Western Union or money gram.
Australian passports on another site cost $1250.
The anonymous operators of Buyfakepassports told AAP via email that their passports would "successfully pass all existing tests, like UV-test, MRZ (Machine Readable Zone) check, machine check and so on".
"In fact we haven't got any complaints from our customers on the problems with customs, airports or any other law authorities during travelling.
"We also provide (the ability) to affix almost all kind of stamps into the passports to make you feel more confident."
A DFAT spokesperson said making false or misleading statements in connection with Australian travel documents was a serious criminal offence.
The websites in question were the subject of ongoing discussions with Australian Federal Police.
"Websites that offer access to genuine Australian passports are typically scams, as all applications must be submitted through official channels and are subject to ... (a) highly secure issue integrity process," the spokesperson said.
"Australian passport documents are among the most technically advanced and secure in the world."
But as Australia's passport security measures improve so too do the scammers.
An Australian Immigration Department spokesperson said intercepting travellers using fraudulent passports was part of Australia's layered approach to border security.
"Effective document examination is a cornerstone of good border security," the spokesperson said.
"Knowing how to spot a fake passport is crucial to maintaining the integrity of Australia's border."
The number of improperly documented arrivals at Australian airports varies year to year.
In 2007-08, Australian officials overseas detected 128 improperly documented arrivals, while 143 were detected at Australia's entry points.
The figures were down 45 and 37 respectively on the previous year.
In 2005-06, 188 were detected in Australia and 144 overseas.
Between 2004 and 2008, the major claimed nationality of arrivals using fraudulent documents were Iraq (26 per cent), China (21 per cent) and Sri Lanka (15 per cent).
Locations where the major number of interdictions occurred were Bangkok (30 per cent), Hong Kong (23 per cent) and Kuala Lumpur (19 per cent), according to the Immigration Department.