By Teon Hayes and Jesse Fairbanks
Harmful and false narratives about people who use basic needs programs emerged in the 1900s and continue to influence policymaking to this day, including the idea of “welfare fraud.” Policymakers interested in limiting government spending have long alleged that basic needs programs are riddled with “fraud.” In their view, “fraud” is perpetrated by people with low incomes who “take advantage” of programs that are funded with taxpayer dollars. These policymakers claim that people who use basic needs programs simply “don’t want to work,” implying that a family can afford housing, child care, food, and health insurance just by working one minimum-wage job.
Fraud is the willful misrepresentation of facts for personal gain, and it’s most often committed by people with institutional power.
Recent policy changes that have been proposed to address “fraud” in…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.