Welfare Fraud

Welfare fraud refers to various intentional misuses of state welfare systems by withholding information or giving false or inaccurate information. This may be done in small, uncoordinated efforts, or in larger, organized criminal rings. Some common types of welfare fraud are failing to report a household member, claiming one or more imaginary dependents, failure to report income, or providing false information about the "inability" to work. There have been cases of people feigning illness in conjunction with welfare fraud.

In practice fraud tends to involve acquiring welfare benefits that are undeserved. Either the recipient is collecting benefits under their own name but does not actually qualify for the benefits, or they are collecting the benefit on behalf of someone who is not actually going to receive the funds. Welfare fraud can be quite extensive. In every U.S. state, the penalty for extensive welfare fraud (fraud over a period of years) is prison. Some states offer large rewards for reporting those who are guilty of years of welfare fraud.

Welfare fraud is criticized by welfare advocates for making fewer funds available to those who were intended to receive them. Welfare fraud is criticized by opponents of welfare in general for creating situations where taxpayers subsidize instances of middle-class or even lavish living by criminals. The terms welfare queen and welfare Cadillac are pejoratives terms related to welfare fraud. (We all know them, we know 'someone' who is guilty of this crime, make no mistake they are a criminal and we tax paying citizens, foot their bill)

The punishment for welfare fraud varies by jurisdiction. In the United States, punishment for the first offense may be as mild as suspension of welfare privileges for a year, but can include fines and jail time. (Not nearly enough for knowing wanton robbery of the taxpayers)