A fraud squad of 100 officers is being created to catch people ripping off the National Disability Insurance Scheme (NDIS).

Key points: Squad will draw from AFP and local squads and departments involved in running NDIS

Squad will draw from AFP and local squads and departments involved in running NDIS Minister warns while known fraud has so far been minimal, the risk is large

Minister warns while known fraud has so far been minimal, the risk is large The Government is due to spend $22 billion a year on the NDIS by 2022

Social Services Minister Dan Tehan said the Government had spent $8 billion on the scheme last year that would grow to $22 billion by 2022.

"We want to ensure that that money goes to those people who need it, people with a disability," Mr Tehan said.

"We are putting criminals on notice, you come after the NDIS and we will come after you."

Recent figures showed there were up to 500 allegations of misappropriations or potentially criminal behaviour made since the beginning of the NDIS in 2016 to February this year.

Whilst it is not yet clear whether all of those allegations were correct, Mr Tehan warned "the risk there is quite large".

He said the move was to stop organised criminal gangs "getting a foot in".

The squad will draw from Australian Federal Police and local squads as well as a number of departments involved in running the NDIS.

"There is intelligence to suggest that there already has been some fraud that has taken place, but it is quite minimal," AFP Deputy Commissioner Neil Gaughan said.

Commissioner Gaughan noted previous examples of fraud in the government-funded family day care system.

"We know that they are sniffing around this particular newly-established scheme," he said.

He said part of the taskforce's job would be to try to plug holes and ensure criminals could not find a way to attack the NDIS.

Human Services Minister Michael Keenan said staff from his department had extensive experience in fraud detection and prevention.

"The Government knows that most people are honest and only claim what they are entitled to," Mr Keenan said in a statement.

"But there is always a minority who will seek to exploit the system and we must remain vigilant to ensure the NDIS remains viable and that taxpayer funds are only supporting those who genuinely need it."