Fraud detection scheme nets £4.5m

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Investigators have uncovered bogus claims and payments totalling £4.5m across the public sector in Wales.

The frauds were highlighted by the National Fraud Initiative (NFI), an exercise carried out every two years.

Publishing details of the latest NFI sweep, the auditor-general for Wales said public sector fraud had rocketed.

In Cardiff alone, cross-checking council tax discounts with the electoral roll identified attempts to defraud the public purse by £2.5m.

"Fraud is a serious issue," said auditor-general Jeremy Colman.

"It reduces the money available for public services and confidence in the bodies that provide them."

The NFI has been vital in identifying and combating fraud, its long term value for the public sector has become immeasurable Auditor-general Jeremy Colman

The NFI scheme brings together bodies such as councils, the emergency services, health trusts and the Welsh Assembly Government to compare data held on claims for benefits, rent, pension payments, student awards and death records.

By analysing individual payments and awards, investigators are able to identify suspicious activities and potential fraudulent claims.

According to the Wales Audit Office, the latest figures show a leap of 73% in dishonest claims and overpayments, from £2.6m in the last exercise for 2004 and 2005 to £4.5m in 2006 and 2007.

In total, 70 public bodies across Wales took part in the latest NFI check.

But while the level of fraud has increased overall, the scheme found that in the area of housing benefit, the value of overpayments has reduced.

Mr Colman's office said it believed that this reflected the impact of earlier initiatives in "eliminating many of the long running, and hence high value frauds".

"The NFI has been vital in identifying and combating fraud, its long term value for the public sector has become immeasurable," added Mr Colman.

Welsh Conservative finance spokeswoman Angela Burns called the scale of the fraud extremely worrying.

"Fraud is an extremely serious issue," she said.

"It reduces the public sector's ability to deliver the services people need and affects all those who access them.

"We welcome all efforts to combat public sector fraud and take appropriate action against those committing it."