Fraud Control
Overview
The Fraud Control Unit works with the Department of Law’s welfare fraud section to prevent welfare fraud.
Recipient Fraud Control
The Fraud Control Unit looks into claims of fraud by people receiving ATAP, Food Stamps, and Medicaid benefits. Many cases are handled by disqualifying people from the programs and getting back the money that was wrongly spent. More serious cases, like those involving large amounts of money or clear fraud, are sent to the Department of Law for criminal prosecution.
Fraud Penalties
Individuals suspected of fraud may face criminal prosecution. The penalties for fraud may include jail time, fines up to $250,000, disqualification from the involved program(s) and a requirement to repay all overpaid benefits.
Individuals may be given the option of accepting program disqualification and repaying the debt or facing an Administrative Disqualification Hearing to determine if fraud occurred. Individuals who intentionally violate program rules are disqualified from the program for a specified time, must pay back benefits, and can face jail time.
- 1st Offense ATAP: 6-month disqualification
- 1st Offense SNAP: 12-month disqualification
- 2nd Offense ATAP: 12-month disqualification
- 2nd Offense SNAP: 24-month disqualification
- 3rd Offense ATAP/SNAP: Permanent disqualification
Note: Individuals who misrepresent residency or identity in order to receive duplicate benefits face 10-year disqualifications.
Cases may be handled by disqualifying people from the programs and recouping benefits that were overpaid. Cases may be handled administratively or via criminal prosecution.
Overpayment Collection
The division sets up claims for fraud losses and recovers these debts. The recovery methods include garnishing permanent fund dividends, reduction of current benefits, federal income tax refund interception, garnishing wages and the filing of small claims.