SkillsFuture beefs up fraud detection capabilities after major scam case
After being scammed in what is the biggest case of a government agency being defrauded to date, SkillsFuture Singapore (SSG) announced on Thursday (29 November) that it has implemented a series of measures to better detect and act against suspected fraudulent claims.
Between May and October last year, a syndicate used a network of dormant entities to submit more than 8,386 fraudulent course fee grant applications and a corresponding 8,391 claims to SSG. The agency disbursed S$39.9 million in course fee subsidies as a result.
On Tuesday, the first of five individuals in the syndicate, 32-year-old Lee Chi Wai, was jailed five years and eight months after pleading guilty to three charges under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
Changes to systems and processes
SSG said in a media release that it has made several changes to its systems and processes, after setting up a task force last November to review its grant administration and fraud mitigation capabilities. The changes are:
Setting up a dedicated fraud and enforcement division to manage fraud risk and enforcement.
Incorporating of data analytics capabilities in its fraud detection system. With data analytics, SSG is able to detect bogus claims more quickly using historical claim patterns. To sharpen the system’s ability and detection speed, confirmed fraudulent claims are also fed back into the system’s algorithm. Data will also be verified with other government agencies such as the Accounting and Corporate Regulatory Authority to ensure its integrity.
Adopting enforcement strategies such as conducting inquiries or site visits, withholding disbursement via immediate administrative actions during the investigations, and termination of funding for training providers as soon as fraud or abuse is established.
SSG chief executive Ng Cher Pong said, “With fraudsters devising increasingly elaborate scams, our fraud risk management system is evolving to better safeguard the funds earmarked for the skills development of our workforce.
“Specifically, we are making better use of technology and data to enhance our capabilities. Coupled with a firm enforcement stance, these measures will serve as a strong deterrent against potential abuse.
“We will not tolerate individuals and companies that abuse this system, and they will be severely dealt with.”
The public may help to report suspicious individuals, training providers or organisations via SSG’s whistleblowing channels. These reports can be submitted at ssg.gov.sg/feedback.
SkillsFuture scams on the rise
Aside from this high-profile case, scams involving SkillsFuture credits have also been on the rise.
In February this year, the police warned the public of scammers who have been approaching Singaporeans to sign up for courses using their SkillsFuture credits. These individuals have been telling residents that their credits will expire, and that they will not be eligible for top-ups later.
The agency clarified that there is no expiry date for SkillsFuture credits, and that these credits can be used for any course in the training exchange in myskillsfuture.sg.
The SkillsFuture Credit scheme, which gives Singaporeans aged 25 and above a S$500 credit to attend courses by approved training providers, was started in 2016.
Related story:
Man jailed 5 years and 8 months for role in $40 million SkillsFuture scam
