Tuesday, November 29, 2011

Fraud rate of 76% in "Free" Phone Program for Poor

Who would have expected it?

Link
In most states, the companies that offer the phones are also responsible for overseeing the program, leading to charges that the government is letting the foxes guard the henhouse. Considering that these companies are paid as much as $10 per month for each person in the program, some critics say it’s actually to their benefit if customers sign up more than once.

The results of a Government Accountability Office fraud investigation reinforce that point of view. Only 5% of Lifeline providers have been audited so far, but 76% of those audits have already discovered fraud.