3 Types Of Benefit Fraud

It is commonly known that a lot of people report falsely on their income, properties and claims in a bid to get more benefit claims or pay less taxes on their different assets. When this happens, the person who does this is said to have committed benefit fraud. The number of benefit frauds reported and spotted by the welfare services or social security department has increased drastically in the last few years. In fact, as a result of the recession, many people are increasingly resorting to it in a bid to get more money for their daily spending.

While some people do this intentionally, others do it unintentionally. If it is done unintentionally, the tax authorities are likely to overlook it and see it as an error or mistake. If on the other hand it is done intentionally, and it is noticed by the authorities, the culprits often face some painful consequences. Some of which include repayment of all funds falsely claimed, jail and strong reprimand.
There are different types of benefit fraud.

1. Landlord Benefit Fraud

This is commonly perpetrated by landlords or house owners who still cash the checks sent by the welfare boards to their non-existent tenants who were initially living there and receiving the claims. This often happens when the tenant refuses to correct his or her address with the welfare services for the purpose of either increasing his chances of collecting the pay checks or during the period in which the new address notification is being processed.

2. False Address

This is also synonymous with not declaring the new address or place an individual has moved to in order to avoid tax or stop receiving the checks. For example, if someone was living in a slum and moves to a better place, and doesn't send in a notification to the required authorities, what he is doing benefit fraud. Another form of this is when an individual declares or includes a false address - usually places where people are paid welfare checks - all for the purpose of receiving the checks.

3. Intentional Negligence

This is common among family members whose partner or ward's status has changed. The typical scenario involves a man collecting some money from the government to be able to feed his wife and children because they are not working. But when the wife gets a job and the children become mature enough to take care of themselves, he simply refuses to inform the welfare services that his wife has secured a job. So, the welfare services continue to mail the checks to him for his wife.

The same also applies to erstwhile job seekers who simply do not file or send a notification about their change in status. Since the government has a job seekers allowance program, the person who has now found a job still collects the pay check sent by the welfare services, which have no idea of the recent occurrence. This way, he gets to still receive the money while he goes to work.