Bank accounts of welfare claimants may be scanned

SOCIAL welfare claimants could have their bank accounts scanned for suspicious transactions to guard against fraudulent welfare claims under plans being considered.

The head of the Department of Social Protection confirmed that a tough monitoring scheme linked to the banks — similar to one used in Australia — was being examined.

A “spike” in the bank accounts of welfare recipients would trigger an alert for department investigators monitoring claims under the proposals.

Bank chiefs last night confirmed discussions have been held with the department about sharing account details on possible fraudsters. But the privacy of welfare claimants and their personal finances and data protection laws are major difficulties surrounding the scheme being considered.

Department secretary general, Niamh O’Donoghue, told the Oireachtas Public Accounts Committee that the Australian scheme “will be considered in the context of framing legislation“.

Fine Gael TD Simon Harris had queried whether there would be a monitoring of the “shifting of cash” in welfare clients’ bank accounts.

Ms O’Donoghue told Labour’s Michael McCarthy that the scheme would need powers to be approved by TDs and specific changes to data protection laws.

Social Protection Minister Joan Burton has already held talks with Australian officials about the anti-fraud move.

The department is aiming to save €625 million next year through fraudulent control measures and is also under pressure from EU and IMF lenders to make savings.

Ms O’Donoghue admitted the target would be difficult to reach, conceding it was an “ambitious” amount.

“It certainly puts us to the pin of our collar to try and do that,” she told members.

More than 1.4 million people a week claim welfare payments. Estimates of fraud, depending on the type of claim, range from 1% to 3%, meaning tens of thousands of people could be abusing the system.

Last year saw 209 criminal cases for welfare fraud as well as nine civil cases, five employment actions and the referral of 132 cases to gardaí.