Fears food grant fraud on rise

"Help is available through Work and Income for people who have an immediate and essential need, with no other way to pay. There are safeguards to prevent anyone other than the person issued with the payment card from using it." Te Rehia Papesch, Ministry of Social Development

Authorities are investigating after a person trying to sell Government food grants on Facebook at a discounted rate angered website users.

On Wednesday, the seller offered a $150 food grant for $100, saying she would accompany the buyer to a supermarket to use the card.

One local business owner who observed the post in the Hutt Valley Facebook group said it made her ‘‘blood boil’’.

‘‘It’s too easy to defraud the department [Ministry of Social Development] and I wonder how many others are doing just this, but having it pre-arranged so they don’t need Facebook to sell it on,’’ she said.

‘‘It’s disgusting and please know when some of us get payment cards that we desperately need, we use them for what they were given for,’’ another person wrote.

By 8pm, two hours after the offer was put online, the post had received more than 400 comments. It has since been deleted, as has the profile of the user who posted it.

A Work and Income food grant is available to any person who has an immediate need for food and can meet an income and asset test.

The card, used like an eftpos card at supermarkets or stores, expires after three days. The ministry said it was investigating, and that it took fraudulent use of its payment cards seriously.

‘‘Unfortunately, we’ve found that a small number of clients have used payment cards in ways that they are not intended to be used,’’ acting national commissioner Te Rehia Papesch said.

‘‘Help is available through Work and Income for people who have an immediate and essential need, with no other way to pay.

‘‘There are safeguards to prevent anyone other than the person issued with the payment card from using it.’’

Papesch said clients must sign for the intended goods or services when using the card, and the supplier must be satisfied as to the client’s identity. Anybody who received money they were not entitled to would need to pay it back.

Legitimate uses of the cards are for food and essential grocery items, including toiletries. Alcohol, cigarettes, gift cards, and vouchers cannot be bought with the grant.

Police said the ‘‘buy, sell, swap’’ Facebook group involved was being monitored.

‘‘As with any technological change, it is likely some criminal groups will adapt and use the internet and others will continue with traditional methods to engage in illegal activity,’’ a spokeswoman said.

‘‘Police will continue to monitor and target both in our efforts to prevent crime.’’

- Fairfax NZ