Fraud awareness
Overview
Adult social care fraud is thought to be one of the highest risk areas of fraud, costing councils across the UK millions of pounds every year. According to CIPFA’s latest fraud and corruption tracker, social care fraud costs the public purse an estimated £8.2 million a year – with the average case worth £18k.
Knowledge of social care fraud is generally improving within the public sector with high profile cases helping to raise that awareness across the country but there is always more that can be done. More details about a recent case can be found on the Cheshire Police website.
Financial abuse fraud in social care
This is the most common type of social care fraud. Financial abuse is where a person in receipt of care services has their money stolen or misappropriated.
This is often committed by someone close to the person, who might hold power of attorney or be an appointee for benefits, and as such have access to the persons finances. When funds have been abused or misused, individuals may no longer able to pay for their care services. This can have an impact on Council finances, as well as having a detrimental impact on the person receiving care. The losses to both the individual and the Council can be high in these types of cases.
Direct payment fraud
Direct payments are Council funds given to people to buy their own care and support. This can give people more flexibility and control in how their assessed needs are met. For instance, people use direct payments to employ their own personal assistants.
Direct payments can be managed by the person in receipt of care, or if they are not able to do this they can nominate a suitable person to do this on their behalf. More information can be found on our direct payments page.
When funds intended to pay for care and support are spent on other things other, this may constitute fraud.
- carer's submitting false timesheets or expense claims order to receive more wages from the person in receipt of direct payments
- exaggerating a disability or illness to receive more support
- creating a fictitious, unregistered care provider and subsequently making fraudulent payments
- submitting false receipts as evidence of care expenses
- using the money to pay for goods and services not related to meeting care needs
- using the direct payment account for money laundering
Undeclared or deprivation of capital fraud
Deprivation of capital is where a person deliberately reduces their savings or disposes of their assets with the intention of avoiding paying for care and support. More information can be found on our deprivation of assets page.
Failing to disclose your assets as part of the financial assessment process, with the intention of paying a lesser amount for care services could also be considered as fraudulent.
