Victorian gangs are being accused of grooming children in care that are as young as 12 into prostitution.
Veteran child protection workers have said sexual exploitation of state wards was "endemic" and they were powerless to protect children in their care.
It is alleged older teens groom youngsters on behalf of predators in return for money and drugs, News Limited reports.
Police have set up a taskforce to investigate a gang of Afghans in Dandenong suspected of preying on teens in care.
Senior child protection workers have told News Limited the gang has sexually abused girls in care in Dandenong, Shepparton and Melbourne's west.
In a statement, Victoria Police said it worked closely with the Department of Human Services to prevent children in protection from being sexually exploited.
Since September 2012 a collaborative approach was established to respond to incidences of sexual exploitation and to train people who work with at risk adolescents.
"Since then there have been several successful investigations with offenders sentenced for child exploitation offences. There are a number of ongoing operations," the statement said.
