Internet giant Google has flat out denied claims from Communications Minister Stephen Conroy that its Street View Cars can capture people's personal banking details.

Senator Conroy on Monday said that cars of Google can collect private financial data through unsecured wireless networks. The data collection happens while the cars were roaming around gathering information for Google's mapping service.

“You were doing a banking transaction, or transmitting personal information, they could have hovered it up, sucked it up into their machine," he told a local media yesterday.

We want to know where it's stored, we want to know what the information is, and importantly we want to ensure that Google don't destroy this information."

However, Google Australia denied that banking details were collected since it could not detect information transmitted over secured networks like a financial website. Street View cars do not have any equipment to gather and store encrypted data.

"The way it works is that the equipment we use (which we bought from a third party) and our software will recognise encrypted transmissions, but immediately discards that encrypted data,” a Google spokeswoman said.

"If you have an open network, but are using a website that is itself protected by secure socket layer (security) or some other form of encryption, then the software may have stored that data, but we are not able to read it."

Google also explains that online banking uses encrypted data and they denied collecting data while traveling over secured wireless networks.

The company expressed its apology to the public despite the fact that they have not used encrypted data in any of their products.

It has also stopped its Street View cars operations in Australia.

Federal Attorney-General Robert McClelland on Sunday said the issue had been referred to the Australian Federal Police.