Audit: Benefits fraud cost state $6M

Fraudsters in Massachusetts pulled off a whopping $6,139,720 in public benefits fraud last fiscal year, according to a newly released report from State Auditor Suzanne Bump.

“While fraud represents a small portion of total public assistance spending, it has a disproportionate negative impact on public trust in these programs,” Bump said.

Despite the over $6 million in fraud, Bump noted that the fraud dropped from over $8 million last fiscal year “in part due to less agency referrals, backlogs, and delays in fraud calculations, all which coincided with the ongoing coronavirus pandemic.” She also highlighted the “strong social safety net” that exists in Massachusetts for groups like children, people with disabilities, low-income people and seniors.

Last year, the auditor’s Bureau of Special Investigations opened 3,224 new investigations and completed 3,404, including some carried over from the prior year. Of those, 479 identified fraud, with the average amount totaling $12,817.79.

MassHealth suffered the biggest losses last year, with 56% of the losses, or over $3.4 million. The Supplemental Nutrition Assistance Program, or SNAP, was also high, with 31% of the losses, or over $1.9 million. SNAP also had the largest share of cases, with 34% of the cases. Transitional Assistance to Families with Dependent Children, the Department of Early Education and Care, and Emergency Assistance for the Elderly and Dependent Children made up 5% or less of the pie, or $326,000 and under.

Bristol County, the sixth-most populous one out of 14, had the highest incidents of fraud, with 555, including 111 cases of employment fraud and 116 cases of personal care attendant fraud. Hampden County, the eighth-most populous county, had 509 cases.

These scams include a Cambridge woman who pleaded guilty in the U.S. District Court in Boston on two counts of theft of government benefits in September 2020.

The woman allegedly fraudulently received approximately $71,636 in Social Security benefits and $13,923 in Supplemental Nutrition Assistance Program (SNAP) benefits from December 2009 through September 2018 that were owed to her mother, who was deceased.

MassHealth suffered the biggest losses last year, with 56% of the losses, or over $3.4 million.