The Australia and New Zealand Banking Group is currently investigating a social networking site scandal involving debt collections staff who are tracking down people with outstanding personal loans and credit cards.

The bank said a fake Facebook account emerged for more than a year, claiming it have been approved by the management and used by several ANZ employees. The account was used to find people with outstanding personal loans and credit cards.

An insider of the bank told local media yesterday it was still too early to give statements regarding the outcome of the investigation.

''Our initial analysis suggests we are dealing with some grossly misplaced staff creativity rather than a venture which has produced any particular debt-collection outcomes,'' spokesman Stephen Ries said.

The fake profile, under the name of “Max Bourke” has attempted to gather information on bank customers with bank credit who left their previous residence without informing the bank. The false identity was made up by a member of the bank's unsecured debt collections team.

The fake profile was deleted on Tuesday after it was revealed by The Age that “Max Bourke” is not real. The profile shows a photo of a man running at the beach, with information such as enjoying watching movies and football.

Mr. Ries said that bank employees with “a business need” are provided internet access to social networking sites.

"While using publicly available information from internet sites as a research tool is a legitimate activity, it's important that the bank's dealings are transparent, consistent with our code of conduct and ethics policy and compliant with all appropriate regulations and laws,'' he said.

A spokesperson of Electronic Frontiers Australia comments the fake profile has breached the Federal Privacy Act because it was misleading.