Anti-fraud in Social Insurance Systems - Law and Society - British Council

Government and Policy Innovation

China-EU Public Administration Programme

HIV/AIDS project

EU-China Social Security Project

Unemployment Insurance Reform

Competition and regulation

Public Administration Visiting Lecture

	Anti-fraud in Social Insurance Systems

The current social security systems in China are under development and are relatively immature compared to the systems in place through Western Europe. The instances of fraud and abuse within the Chinese social insurance systems do not now constitute a major problem but it is anticipated that the potential for fraud, both internal and external, will being to grow with the increased pace of development of the Chinese systems and their wider coverage amongst the population.

The Ministry of Labour and Social Security is keen to understand present measures in place for prevention and detection of social security fraud and abuse, the legal underpinnings of any sanctions or punishments for proven offenders in this area in the UK and other western European countries.

We funded and organized a study visit for four officials (one Director-General and three Deputy Director-Generals) from the Ministry of Labour and Social Security to the UK and Germany in October 2006. The objective of the study tour is to examine the present measures for anti-fraud in social insurance system and to identify any areas of demonstrable best practice for consideration of adoption within the Chinese context. The study visit is arranged as a set of presentations and discussions mixed with visits to operational centres dealing with fraud and abuse. The participants look at the following issue specifically during the study visit.

fraud investigation in theory and practice, definition, organisational structures etc;
risk management techniques applied to prevention of monetary loss in social security schemes;
the legal frameworks underpinning response to proven scheme abuse, whether these be criminal punishments or benefit sanctions;
the management of debts owed to social security funds.

This study visit furthers our long-term cooperation with the Ministry of Labour and Social Security which has been established through the China-UK Unemployment Insurance project and our support to bilateral cooperation between the Ministry and the UK’s Department of Work and Pension.