Social Welfare Fraud.

Dáil Éireann Debate, Tuesday - 10 May 2005

Tuesday, 10 May 2005

Ceisteanna (224, 225)

David Stanton

Ceist:

275 Mr. Stanton asked the Minister for Social and Family Affairs if, in view of perceived risks that persons could emigrate while continuing to claim social welfare assistance payments and that such frauds could be facilitated by the adoption of EFT, he has considered an extension of An Post arrangements for unemployment payments whereby his Department could be enabled to receive precise and detailed information on the cashing or withdrawal patterns adopted by beneficiaries that would help identify potential fraudulent situations; and if he will make a statement on the matter. [15398/05]

Freagraí scríofa

Minister for Social and Family Affairs (Mr. Brennan)

Risk analysis is a key element of my Department's control strategy. That entails the identification of areas at high risk of fraud and abuse in the various schemes and putting in place appropriate measures to address them systematically. Any risks associated with each claim or payment type are addressed in that context.

Social welfare payments made by direct payment, or EFT, are paid directly into the customer's bank or building society account. My Department is empowered to seek information from claimants of social assistance payments regarding such accounts. Obtaining such information from financial institutions, however, would be subject to the confidentiality of relationships between customers and their bank or building society. The issue of access to account information is one of the matters kept under review in the context of developments in the Department's control strategy.

Previous EFT control projects undertaken regionally had identified that the risks associated with EFT as a payment method lie mainly in the criteria used for placing customers on EFT in the first instance. The Department plans to use the evaluation of the EFT control initiatives to develop such criteria, which may include the requirement for customers to demonstrate an attachment to their area of residence.

David Stanton

Ceist:

276 Mr. Stanton asked the Minister for Social and Family Affairs if estimates have been made of the administrative and agency services charge savings for printing, distribution, cashing and reconciling; if any estimates have been made of the potential losses that could occur under EFT systems using the Department’s own experience with equivalent systems and the experience of the private pensions industry that would seem to face similar risks; and if he will make a statement on the matter. [15400/05]

Minister for Social and Family Affairs (Mr. Brennan)

A strategic review of my Department's future payment requirements has commenced, with the aim of identifying payment solutions for the future which will be flexible, cost-effective, customer-focused, manageable and accountable.

The study will take account of current market offerings in the financial services sector and future advances in card-based technologies with a view to seeing how future needs might best be met. An inherent part of the study will be to identify the overheads of the different payment methods and to assess the potential savings arising from the adoption of the proposed payment solutions.

No estimate has been made of the potential losses that could occur under the EFT payment system compared with other payment methods. The potential losses associated with any claim are dictated more by the risks associated with a particular claim rather than by the payment method.

Risk analysis is a key element of my Department's control strategy. That entails the identification of areas of risk of fraud and abuse in the various schemes and putting in place appropriate measures to address them systematically. Any risks or losses arising in the context of payment by EFT would be addressed in that context.