Solutions to Poverty: First, End Welfare Fraud

"Lottery winners in Michigan State have been arrested for felony welfare fraud" - Melissa Anders - Poverty is a problem in the United States and it is becoming an increasing problem. It may not necessarily be a concern for today's society, but it is a problem that should be solved, especially during the difficult economic situation that we are currently experiencing. For many people money has become tight, but some people have problems in meeting their daily needs.

Welfare fraud is common, but in most cases it is done by people who can not make a living. In the 2012 survey, 30 out of 34 beneficiaries who received the interview admitted fraud tolerance. In a survey of 50 women's welfare workers held in Chicago in 1988, 80% of women work full-time or part-time, but no one reports their income to the welfare office Absent. A survey conducted in Seattle and Denver in the 1970s showed that 50% of respondents acknowledged "fraud" in order to gain economic benefits. In an interview with the Chicago Tribune, a former IDPA fraud investigator presumed that 25% to 50% of welfare recipients committed a certain amount of fraud. I surveyed 450 welfare recipients at Orange County, California, and found that 45% of them had committed fraud. Between 1970 and 1979, the number of fraud cases initiated nationwide increased by 729%.

There are many critics about the welfare system, and the documented welfare fraud case stimulated many of their arguments. As we all know, it is difficult to obtain accurate statistics on the extent and cost of welfare fraud, and at least it is estimated that 1 to 2 percent of all claims are fraudulent. Fraud is usually not totally stolen but to fraud an individual, company, or government agency through false statements or false excuses. A typical welfare fraud program involves submitting false or misleading information to government agencies to receive benefits. From a specific planning and policy point of view, welfare fraud is similar to insurance fraud

Two different kinds of welfare fraud constitute crime against taxpayers and legitimate recipients of government interests. Welfare benefit "recipient fraud" occurs when you provide mistaken or inaccurate information to obtain benefits, food stamps, or other public interest not entitled to rights. "Internal" welfare fraud occurs when a government agency employee knows that one or more beneficiaries are not eligible, but still assign or distribute benefits.

As everyone knows, it is very difficult to obtain reliable evidence of welfare fraud. Official data on prevalence of welfare fraud based on government survey tends to be low - percentage of total welfare expenditure. On the other hand, an interview with a welfare recipient with high confidence of the interviewer indicates that, if not many, many people were unable to report income. Likewise, in the survey of the general population, we found that if audit risk is only 1/6, over 80% of people are ready to fraud the benefits. In most cases, welfare fraud is done with moderate amount by people who fight poverty, but once it begins, there is a tendency to continue even after financial stability is achieved.