To assist in program integrity efforts in the CalWORKs Stage 1 Child Care Program, the Los Angeles County Department of Public Social Services (DPSS) turned to SAS® Analytics to identify potential fraud, enhance investigations and prevent improper payments. The resulting Data Mining Solution (DMS) Application helps investigators identify and expedite suspicious cases much earlier than before.
Fraud cases can include false employment claims of nonexistent employees. In other cases, heads of fraud rings collude with recipients who falsely declare their children are attending nonexistent child care centers. Sometimes, criminals declare false, or shorter, work schedules than the time amount claimed. DMS detected conspiracy groups much earlier, significantly reducing the duration of fraudulent activities.
By proactively battling fraud, DPSS is helping the most vulnerable members of the community while protecting millions in taxpayer dollars. Since deploying DMS, LA County has significantly improved efficiencies, uncovered more fraud and accelerated investigations. Approximately 10-15 cases per month are referred, with more than 40 percent being positive for fraud. This has not only helped the county recover funds and prevent fraudulent payouts, it has also curtailed large collusive fraud rings before they ever got organized and did real damage. That cost avoidance is incalculable.