Now comes the crackdown.
In Victoria most offences incur a 'Rectification Notice', allowing drivers a week to fix the problem. Only two offences have an on the spot fine - no properly functioning EFTPOS machine and not wearing a uniform.
The Taxi Directorate is carrying out raids daily.
"A drivers uniform is probably the biggest one - $143 dollars that one," Team Leader at the Victorian Taxi Directorate, Peter Masiac said.
"EFTPOS is very important to us, we've just introduced that they have to be logged on and that's trying to minimise fraud," Peter said.
Thousands of passengers using credit cards have been hit with "phantom fares" for rides never taken. The scam was first investigated by police in 2006, but the rogue drivers are at it again, telling passengers their EFTPOS machine is broken.
Instead they use manual machines and that way, the credit card details can be kept and re-used.
Neil Ronaldson who was taken for a ride even though he didn't take a cab.
"It came to us as a big surprise, to be honest," Neil said. "I was furious. It wasn't a big amount of money but I decided to investigate it."
Neil searched the name of the cab company that appeared on his credit card statement and found he was not alone.
"It came up as scam, scam, scam," Neil said.
A search of Arden Taxis Limo reveals hundreds of people have been stung and for travelers, the Lonely Planet even has a warning.Neil's wife checked her statement, finding she too had a charge from the fraudulent company.
The most recent survey on the state of Australian taxis has found cabs are a national embarrassment.
74 per cent of people believe most taxis fail on all counts, with many reporting that the taxi drivers do not know where they are going and that the taxis themselves were dirty, smelly and lacking air conditioning.
Cab Drivers' Association of Queensland secretary Lee Sims says the situation has never been so dire.
"As far as we're concerned, it has never been as bad as it is right now. People can't remember a set of circumstances where the standard of driving, the complaints from the customers, have been as bad as they have been."
In Melbourne one in three taxi drivers will refuse to take passengers short distances in the city's CBD at night. The situation is so bad, there are now websites warning potential passengers about the service - or lack thereof.
Queensland only started a complaint hotline in May and has already had 656 complaints, with 15 taxi licences suspended or cancelled.
NSW has had over five and a half thousand complaints, which shows few people complain when you consider the fact over 6000 licences have been cancelled or suspended. Victoria has had over 3000 complaints with 57 licences cancelled or suspended.
If you have a complaint visit the webisites at:www.support.transport.qld.gov.au