Government Devises New Anti-Fraud IT Strategy
The government has devised a new IT strategy aimed at putting a stop to the £21 billion per year fraud in the public sector.
Sophisticated analytical tools for identifying fraud and improper payments are soon to be deployed to add to the £12 million in savings that have already been made by the Cabinet Office Counter Fraud Taskforce, which held its first meeting in December 2010.
The taskforce's zero-tolerance approach is demonstrating how seriously the government takes fraud, the Cabinet Office said.
It is seeking to use data analytics to screen applications for tax credits, and use behavioural science's 'nudge theory' to encourage late taxpayers to pay on time via text message reminders.
Commissioning credit reference agencies to verify the circumstances of 20,000 benefit and tax credit claimants has already saved £1.5 million, while the Department for Transport has used data analysis to identify £0.5 million of overpayments.
Francis Maude, minister for the Cabinet Office, commented that fraud is theft of taxpayers' money.
"I'm really pleased to see our zero-tolerance approach to tackling fraud is working. We will no longer allow a culture of ignoring or accepting fraud," he stated.
"It is time to turn the tide on fraudsters and stop government being seen as a soft touch by criminals. Every pound defrauded from the government means that there is less to spend on frontline services like healthcare, education, policing and defence."
Maude said the taskforce had made a very promising start; savings can be made from doing fairly simple common sense checks. Putting these new technologies in place will set the government on a new, positive path.
This announcement follows Chancellor George Osborne announcement last year on plans to reduce public spending by £81 billion between 2010 and 2014.
June 2011
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