Benefit Fraud
From FraudWiki
This article focuses on benefit fraud in the UK
Contents |
Types of fraud
The following are examples of the types of fraud experienced:
- A person claims Benefit stating that they live alone, yet they actually have a partner living with them.
- A person, or their partner, have not declared that either of them are working, part-time or full-time.
- A person, or their partner fail to disclose that they or their partner own another property or land, or that they have Capital (Bank Accounts, Building Society Accounts, Stocks, Shares, Unit Trusts, National Savings Certificates, Income Bonds, Premium Bonds).
- A person, or their partner fail to disclose that they have other income such as a private pension, other state benefits, maintenance, etc.
- A person fails to disclose that they are no longer living at the house for which they have been claiming Housing or Council Tax Benefit.
- A person fails to disclose that someone else is living in the house, e.g. a lodger.
- A person claims Benefit to pay rent, but the tenancy or rent details are false.
- A person lives with the owner of that property and they are closely related.
- A person claims Benefits at a property that they have never lived in.
Systems used to combat Benefit Fraud
Central Government has set up several schemes. These are the main ones:
- National Fraud Initative (Audit Commision) – The NFI is a computerised data matching exercise (cf HBMS) to detect housing benefit, payroll and other frauds perpetrated upon local authorities, NHS bodies and other public and private sector organisations. System written and maintained by Synectics Solutions (see links)
- Verification Framework (DWP) – The VF defines strategies and procedures for both central and local government. The HBMS and HRR are tools used to deliver some of the VF goals. The VF is audited by the Benefit Fraud Inspectorate (BFI) which will advises LAs on how to implement the VF.
Local Authorities (LAs) use several strategies to combat fraud that are supported by these schemes:
Housing Benefit Matching Service (HBMS)
This is a system run by the DWP and written and supported by EDS. It is a rule based system that looks for discrepancies like:
- Failure to declare change of address
- Failure to declare cessation of JSA(IB)
- Failure to declare Construction Industry employment
- Failure to declare change of address
- Failure to declare cessation of JSA(C)
- Failure to declare cessation of Income Support
- Failure to declare employment
- Failure to declare Incapacity Benefit
- Failure to declare Carers Allowance
- Failure to declare Industrial Injuries Disablement Benefit
Once a week the DWP sends each LA a CD with the mis-matches. The LA then investigates where they think it is appropriate. The LA sends a report back to DWP telling them the results of any investigations so that the DWP can keep national statistics and also get feedback on the success of rules.
The High Risk Review System (HRR)
This is also a rule-based system that tries to determine risk based on criteria such as clients age, social-class, previous history, etc. It is a sub-system of the HBMS. A report is sent to LAs once a week on CD.
See Also
Detection Techniques Latest News
External Link
Benefits Fraud Inspectorate (BFI) The BFI is part of the Department of Works and Pensions
National Criminal Intelligence Service Benefit fraud section of National Criminal Intelligence Service report which describes organised benefit fraud.
