Sixteen people have been arrested and charged following a police investigation into a cash-for-demerit-points scam in Melbourne.

Unnamed people were allegedly offered cash for accepting an infringement notice and the related demerit points.

Under the scam, a driver could make a declaration that another person was driving the car at the time of the offence and that the nominated driver would incur the demerit points.

Drivers can lose their licences if they accumulate more than 12 demerit points in any three-year period.

Police found 75 allegedly false declarations for penalty notices dating back to March 2008.

Fifteen people were arrested by police from Frankston, Mornington and Rosebud for making false documents, obtaining financial advantage by deception and making a false nomination.

Police believe the value of the redirected fines to be worth almost $7,000 and 40 demerit points.

Police also allege a 48-year-old Frankston man was responsible for 24 instances of fine redirection worth $7,182 and 55 demerit points.

All of them have been summonsed or bailed to appear in the Melbourne Magistrates Court on December 11.