Strengthening fraud prevention and debt recovery

We have strengthened our approach to fraud prevention and debt recovery in order to ensure that social assistance goes only to those who are eligible and that people understand their obligations.

The Social Security (Fraud Measures and Debt Recovery) Amendment Act 2014 came into force in July 2014. The Act strengthens our ability to prevent and detect welfare fraud.

Information sharing with Inland Revenue

We have been working with the Inland Revenue Department to share income and employer information in real time for working-age people receiving benefits. This allows us to be more responsive to changes in client circumstances and to detect overpayments and fraud sooner.

Since the programme began in 2013, it has led to:

• 970 successful prosecutions
• 10,213 benefit cancellations
• the recovery of $9.1 million of overpaid benefits and allowances.

Debt Collection Strategy

Operational enhancements have contributed to significant increases in the value of debt collected in the last few years, from $80.7 million in 2012/2013 to $93.5 million in 2014/2015.

An important enhancement this year has been the extension of operating hours in the Auckland collection site so clients can contact us at a more convenient time.

Welfare Fraud Collaborative Action Plan

We continue to work with ACC, Housing New Zealand Corporation, Inland Revenue and the New Zealand Police to investigate suspected fraud. 

Through this programme, agencies can jointly prosecute serious offenders. This reduces court time and administration and other costs, and ensures the system is fair.

Since the programme started in 2013, 38 joint investigations have identified $4.5 million of overpayments across the participating organisations, resulting in the direct cancellation of 24 benefits.  The programme has led to seven successful prosecutions to date.