Identity Proofing: Government’s First Line of Defense Against Fraud and Improper Payments

In 2010, the U.S. federal government issued $125 billion in “improper payments” — defined as overpayments, underpayments, inadequately documented payments, and fraud. While these losses are attributable to many factors, government officials say the problem most often stems from administrative errors or inadequate documentation and verification of recipient information before starting the eligibility determination process.
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