News & Resources

Welfare fraud on the rise

Jan 31, 2013 Quinn Thomas

Welfare fraud on the rise

The rise in fraud is plaguing organizations across different industries, and based on a recent report by The Boston Globe, that includes welfare agencies.

"With this new team of technology-driven investigators, they'll be able to sort through mass amounts of state data," Christopher Thompson, spokesman for Auditor Suzanne Bump, recently told the news source.

Fraud detection has become essential for all types of organizations. According to the article, State Auditor investigators discovered that Massachusetts lost more than $1.3 million as the result of 246 cases of welfare fraud in the past year.

These fraudulent incidents ranged from the improper use of food stamps to healthcare benefits and cash assistance. Thompson told the news source that more than $5 million in fraud was detected throughout the United States in 2012.

Social Security is another area where fraud has seen a dramatic increase. In 2011, nearly half a million Social Security checks were stolen or misplaced, according to The Republican, which led to $70 million of losses in check fraud.

In Lynn, Massachusetts, one woman was able to scam the state for nearly $60,000 in fraudulent Social Security benefits, according to the Globe report.