Anti-fraud squad steps up work to crack down on benefit cheats

The project, which is thought to have been the first of its kind when it launched two years ago, is now due to be adopted by five district councils.

Concerns have been growing that the economic downturn is leading to many financially-stricken individuals to turn to benefit and housing fraud.

The team of investigators are also charged with pinpointing internal fraud committed by council employees, a task which has taken on an even greater significance as finances are increasingly tight amid the Government’s austerity measures.

The internal audit, counter fraud and information governance unit called Veritau was set up in 2009 by North Yorkshire County Council and York Council, and has since gleaned national recognition for its work.

The team of investigators is now due to start working with district councils covering Scarborough, Ryedale, Richmondshire, Hambleton and Selby from April next year.

The director of Veritau, Max Thomas, said: “The current economic climate obviously means that there is a heightened risk that people might be tempted to commit fraud.

“The more we can do to identify fraud in the system and to stop it before it actually occurs is obviously a huge bonus.

“Veritau has already been seen as a major success, and the five district authorities will now be able to utilise the experience and expertise of the unit.”

Figures from the Department for Work and Pensions have revealed a significant rise in the number of fraud prosecutions nationally.

The number of fraud cases accepted for prosecution increased by 11.5 per cent to 7,350 cases in the last quarter of 2010/11 compared to the same period in the previous financial year.

The Veritau unit will now be charged with carrying out internal audits at councils to trap rogue employees who are committing fraudulent activity by creating bogus invoices and orders.

The investigators will also tackle housing fraud, where council tenants are illegally sub-letting their properties.

The soaring cost of property in North Yorkshire has presented an ideal backdrop to exploit the huge demand for affordable housing.

While cases of benefit fraud will still be handled by each of the district authorities, Veritau’s investigators will be available to help with inquiries.

Veritau has scored a series of major successes in the last two years, including a case involving one of York’s worst ever benefit cheats.

Sarah Beattie, 33, of Water Lane, in Clifton, pleaded guilty during a hearing at York Crown Court in March to fraudulently claiming more than £30,000 in four years.

However, York Council believes the true figure was as high as £60,000, and Beattie was sentenced to 250 hours of community service.

The county council’s corporate director for finance and central services, John Moore, stressed that the expansion of the investigation unit will help tackle fraud which is being committed across the county.

He said: “By the very nature of the offences, fraudsters will always look to exploit the system wherever they can and this means that they could be operating in different locations within North Yorkshire.

“But by pooling knowledge across the county, it will allow us to target the offenders more successfully.”

Veritau Limited was formed as a stand-alone company by the county council and York Council – each with a 50 per cent share – in March 2009.

The new structure will see the launch of a new off-shoot firm which will be owned in partnership by the existing company and the five district councils, which will each have a 10 per cent share.