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…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.