Crackdown on fraud

PENALTIES for social security fraud are to get tougher this year. Work Minister Xavier Bertrand said he would present new initiatives this summer – notably “proper fines” for fraudsters and new ways for officials to track them down. This follows findings that social security fraud rose 19% last year, to €458 million.

At present most people caught cheating are simply made to reimburse sums they obtained fraudulently. Measures this year will include establishing a national database of all social security benefits paid to each registered person, allowing officials to spot more easily any unsuitable payments or suspicious doubling up.

The fraud problem is not helped by the fact that France has numerous different social security bodies and kinds of benefit. Checks by officials into the validity of sick leave in hospitals and councils will be trialled in the autumn, as is being done in central government and has long existed for private firms.

The detected fraud last year included €185 million because of employers not declaring employees, €90 million relating to benefits like RSA income support, housing benefit or family allowance, €156 million for healthcare reimbursements and €10 million for pensions. The total has doubled since 2006, though it is thought this reflects increased detection efforts. The Cour des Comptes, a state finance watchdog, believes the real figure could be as high as €12 billion.