NORWICH – Notwithstanding a popular notion held by many in the community that Chenango County is a haven for welfare recipients, it is a misconception, says Chenango Department of Social Services Bette Osborne - one that she and the fraud department staff at DSS are working to correct.
The DSS fraud investigation unit is responsible for investigating reports of fraud and verifying that applicants are eligible for services. Referrals come from department staff, law enforcement, and area residents.
In a recent report released to the county’s Health and Human Service Committee, the Chenango County Department of Social Services fraud unit estimates cost savings of nearly $736,000 in detected welfare fraud in 2012. Of those cost savings, most - $632,640 - comes as a result of the Front End Detection System (FEDS), which entails detecting fraud, and whether it is intentional or unintentional on the part of the beneficiary at the point of application, according to Osborne.
“For most of these people, fraud is not intentional,” she said, explaining that many recipients who undergo welfare fraud do so without realizing they have violated rules and guidelines established by the state.
Even so, the report highlights an estimated $12,606 in cost avoidance from the detection of unreported income (the most common source of fraud); and the county avoided paying out another $9,132 by detecting recipients who received duplicate benefits from a different state or have moved out of New York State. And another $66,564 was avoided through detection of recipients who are now incarcerated and thus ineligible for supplemental assistance.
In all, the fraud department reviewed a total 286 fraud reports in 2012, 97 of which led to denials, case closing, or grant reductions. Despite that, however, only five led to permanent disqualification of services because the individuals were found guilty by law to have violated sanctions. Those who were disqualified resulted in $15,228 estimated cost avoidance for the county, according to the report.
The process of proving fraud is grueling and - at times - impossible, said Lois LoPresti, staff development coordinator at DSS. LoPresti is one who helps lead the charge against fraud detection.
“In fraud, like anything that involved criminal charges, you have to show intent,” said LoPresti, citing two recent fraud investigations that did lead to convictions: one for $1,800 in supplemental nutrition assistance (food stamps), and another for nearly $12,000 in day care assistance.
“It exists but it is a very difficult thing for us to prove,” added Osborne. “The vast majority of referrals we go through do not go to law enforcement because we are able to sort them out.”
While the fraud investigations unit receives referrals almost on a daily basis, the number of tips received from concerned citizens often goes uninvestigated because little - if any - information is provided that calls for follow-up action.
“We receive a lot of calls from people who say someone is abusing their assistance but they don’t have any more information that they can give us,” said LoPresti. Another concern, she added, is that many confuse additional services with funds provided by social security.
“They are two completely different departments ... some people may qualify for food assistance, social security and still work a part-time job,” she said. “They are not breaking any rules. We can not dictate how they spend that money.”
The number of fraud reports received by DSS has actually declined in the last five years. In 2008, the DSS fraud unit received a total 315 fraud reports; 311 reports in 2009; 300 in 2010; 276 in 2011; and 286 in 2012.
“Most people in the community have a misconception of just how much fraud is in the county,” Osborne said, noting that most fraud investigations are dissolved quickly, without further action, and recipients are eligible to reapply. “But a vast majority of people we see are applicants who simply need the help.”