The State of California has been persistent to mitigate welfare fraud by using early fraud prevention and best practices within the state and county agencies; however, outdated procedures and legislations has crippled the state to fight against fraud and abuse. As a result, millions of dollars is lost to fraud. The state's response to welfare fraud is sluggish; therefore, ineligible recipients are using benefits for their own personal extravagances. Welfare fraud has caused a financial turmoil in California. The state has made welfare fraud simple and convenient to fraudsters by not implementing an audit system. With the state being overloaded with thousands of welfare fraud cases, new benefit applications and referrals, several years can pass by until fraud, misrepresentation, or violation is detected. The inconsistency found within the state and county agencies is putting Californians at risk to losing more taxpayers' money to fraud. This paper examines several welfare cases committed by recipients and state and county employees. Education and training employees on welfare fraud procedures as well as updating current policies and best practices are recommended. Informing society to report fraud or wrong-doing is highly suggested. It was decided that further research should be implemented to determine the appropriate steps to prevent external and internal welfare fraud. Keywords: Economic Crime Management, Professor Suzanne Lynch, social service, public assistance, government program, food stamp, poverty.

Discusses the history and prevalence of welfare fraud using interviews and case studies.