Detecting and Preventing Welfare Fraud

Abstract

This paper examines anti-fraud measures currently operating in Australia’s welfare system, administered by the government agency, Centrelink. Using official data, an examination is made of the operations and rationales of different strategies and their impacts, including estimated savings. The paper covers nine strategies, including data-matching, public tip-offs, media campaigns, stepped-up investigations and recovery action. The findings indicate that Centrelink has adopted international best practice measures to combat fraud and appears to be particularly successful at detecting and stopping fraud. At the same time, the main challenge appears to lie in the area of finding and demonstrating more effective primary prevention measures.