Stop Fraud
The Challenge

Between four percent and ten percent of states’ welfare spending has been found to be wasted or fraudulent.

Fraud and abuse in states’ welfare programs—Medicaid, food stamps, cash assistance, etc.—cost taxpayers millions and rob limited resources from the truly vulnerable who need targeted, temporary help.

To save taxpayer dollars and preserve taxpayer-funded welfare programs only for those in honest need of help, states need the three-step STOP THE SCAM solution.

The Solution

The STOP THE SCAM solution embraces advances in technology and e-verify software to allow states to verify applicants are truly eligible for welfare benefits, monitor welfare enrollees to ensure they are still eligible to receive benefits, and prosecute welfare fraudsters who steal from taxpayers.

This STOP THE SCAM solution saves Illinois taxpayers an estimated $350 million annually and saved Pennsylvania taxpayers more than $300 million in its first year.

FGA has also compiled best practices from around the country to help states fight fraud. Common sense practices such as: tracking welfare spending out-of-state, placing photos on EBT cards, verifying identity for all individuals and all expenses of those in a household applying for benefits, and mandating full cooperation with a fraud investigation.

If you would like to learn more about FGA’s larger welfare reform package, which Stop the Scam is part of, click here.


Enhanced data-matching technology that checks federal, state and commercial databases to confirm income, residency, identity, employment, citizenship status and more.


Regular and automatic reviews of current welfare rolls screened against updates to databases to ensure welfare recipients are still eligible.


Publicly prosecute individuals who knowingly abuse the welfare system to recover lost benefits, deter future abuse and change the culture of the welfare program.

Stop the Scam Has Proven Results

In one year alone, these four states saw combined savings that exceeded $1.3 billion.  If all states adopted Stop the Scam legislation, taxpayers could save up to $8 billion annually.

Fraud Prevention in the States - 2016

States with Stop The Scam legislation
States with Stop The Scam legislation introduced
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