The Social Welfare Department will hire four retired police inspectors as fraud investigation advisors to help combat Comprehensive Social Security Assistance abuses, Secretary for Health, Welfare & Food Dr York Chow says.

Dr Chow told lawmakers today there are 120 officers in the department's special investigation section specialising in preventing and investigating CSSA fraud and abuse cases.

A Police superintendent had been seconded to the department earlier to advise on ways to improve the handling of fraud and abuse cases. Based on the recommendations, the department is collecting and analysing relevant case details.

Dr Chow said the department conducts analysis on CSSA cases to adjust the review intervals, to ensure public resources are effectively used to help those in genuine need.

From April 1, 2003 to the end of February, the department received a total of 13,210 reports of suspected CSSA fraud cases. Investigations substantiated 1,801 of those cases, involving a total of about $110 million.

Conviction lands one fraudster 18 months in jail

Of the substantiated fraud cases, 527 were referred to the Police for follow-up and 207 people were subsequently convicted. Penalties included jail terms - the heaviest being 18 months, community service orders, and fines.

Dr Chow said the department has issued warnings to those involved in the remaining 1,274 cases and taken action to recover overpayments from the fraud claimants.