CCM2200 - Compliance Strategy: Error & Fraud Analysis Programme

In addition to using the risk rules to select cases for enquiries and examinations a small number of cases will be chosen at random each year for enquiry. These are randomly selected by the computer from all claims received. The aims of the Error & Fraud Analysis programme (EFAP) are to:

• deter people from making incorrect claims because they may be selected for EFAP,
• monitor levels of non compliance and
• produce management information about areas of risk assist our risk based selection techniques.

At the end of each year the computer will select the EFAP enquiry cases and teams will be told which cases need an enquiry. Once the award has been finalised an enquiry will be opened into all aspects of that claim. The results of the enquiry are then used to produce the Fraud and Error statistics which are published each year.

For example, if 10% of the cases selected for EFAP enquiry are found to be incorrect for one particular reason we will assume that if we looked at every tax credit claim we would find that 10% included this error. If the average losses prevented for the 10% of incorrect EFAP enquiry cases is £600 we are then able to estimate the total value of all fraud and error in tax credit claims.

Although the EFAP enquiry figures helps us to predict the total number of incorrect claims that are likely to be in the system, it does not tell us which cases they are. However, we use the results to refine our risk rules to improve our ability to detect incorrect claims and to target our enabling activities at those who need most help.