Tip-offs on suspect welfare fraud increase by 60%

Tip-offs on suspected social welfare fraud to the Department of Social Protection increased by 60 per cent last year.

Details of how €669 million in savings were achieved through control measures to find those wrongly claiming payments in 2012 were released yesterday.

There were 28,000 reports of suspected fraud by members of the public last year, up from 16,900 in 2011.

Most reports of suspected fraud related to people working and claiming benefits (42 per cent), followed by people cohabiting (25 per cent) and working outside the State (5 per cent).

Minister for Social Protection Joan Burton said the outcome from such tip-offs had been significant and there had been a “change in culture”.

Some 16 per cent of data analysed in a sample resulted in savings, but this was conservative due to ongoing investigations.

More than 18,000 tip-offs were investigated while the rest were not examined further due to lack of information, no claim being made or the information not having an impact on entitlement.

Ahead of target

The department’s savings through such measures in 2012 were €24 million ahead of target. A figure of €710 million is set for 2013.

Savings relate to money that would have been paid had it not been for the control measures. Although these steps do not address errors or inefficiencies, they do “deal with situations where people are wrongly claiming”, said Ms Burton.

Examples include getting welfare recipients to confirm they meet conditions; medical recertification; and anti-fraud investigations.

One-parent family payments and pensions each made up a quarter of the control and fraud savings, followed by jobseeker payments (14 per cent), illness payments (13 per cent) and child benefit (8 per cent).

Reviews of social welfare claims reached one million, or 15,000 ahead of target.

Among the problems on the rise were “people taking on multiple identities and making different claims in different parts of the country”, and Irish people going to live abroad but continuing to claim social welfare, Ms Burton told RTÉ radio.

Investigations into false identities yielded some €550,000, with 36 stopped payments in 2012. The department’s special investigation unit yielded €63 million from fraud control activities.

It detected some 466 people suspected of no longer being resident in the State. For the first time last year social welfare inspectors were allowed to operate at airports to catch so-called welfare tourists.

Last year 161 cases of fraud were referred for prosecution and an additional 84 cases were referred to the Garda. At the end of 2012, 675 welfare cases were in the courts system.

The figures showed the department’s commitment to stamping out welfare fraud and abuse because the State’s limited resources should go to those most in need, said Ms Burton.

Case studies

Examples of how the Department of Social Protection made savings, as published in its report for last year:

Intention to marry

A newlywed’s honeymoon was over swiftly after a visit from social protection officers investigating the woman’s one-parent family allowance.

They detected her through an intention-to-marry notification sent to the General Register’s Office. The bride said she thought she could still claim the allowance if she was not living with her new husband. She withdrew her allowance claim.

Working while claiming

Illness payments to one man were stopped after he was caught driving a food delivery van. The man told social protection officers he was doing a favour for a relative . However, an invoice book showed a number of deliveries by him and his claim was suspended.

Fraudulent identities

A social welfare claimant using a false Dutch national identity to receive rent and jobseeker’s allowances was caught. He married using the false identity, giving his non-EU wife permission to stay. He was arrested and a file was sent to the DPP in this joint Garda operation with help from the Dutch. Some €550,000 was saved and 36 payments were stopped after similar investigations.

Lifestyles and assets

More than €200,000 was saved through investigating people whose lifestyles did not match with social welfare. Properties paid for in cash were among “significant” undisclosed assets found in this joint Revenue operation .

Recovery after death

The department was refunded €56,000 fro m the estate of a person who received the pension since 1986. After their 2009 death undisclosed capital of €110,000 was discovered and a refund requested.

Jailed for fraud

A repeat social welfare offender was jailed for six months after he worked and signed on over four years and was overpaid €34,500.