Question Period Note: 2024 PUBLIC ACCOUNTS OF CANADA FOR EMPLOYMENT AND SOCIAL DEVELOPMENT CANADA

Can you explain how
Employment and Social Development Canada (ESDC) is protecting public funds from
fraud?

The Department is committed to safeguarding public funds from fraud and
maintaining good stewardship of public funds.
• For our benefit programs, clients must fulfill entitlement conditions to qualify
and must provide supporting documentation when required.
• The Department employs a number of fraud detection programs which lead to
investigations into suspected abuse.
• Allegations of fraud or illegal acts are fully investigated. Charges may be laid,
and the Crown may choose to prosecute when evidence supports this course
of action. Debts are established and monetary penalties imposed when
allegations are founded.
• The increase in losses of money reported in 2023-2024 can be mainly
attributed to an increase in the number of investigations (cases) being
completed as a result of the resumption of integrity operations following the
pandemic. Several operational and productivity improvements to prioritize
the more recent cases has resulted in an increase in the dollar value of the
overpayments being identified.
• The EI Act provides for six years for the conduct of integrity activities and to
recover losses of public money.
Employment Insurance Emergency Response Benefit (EI-ERB)
• During the early stages of the pandemic, integrity actions focused on
detecting, disrupting, and addressing major fraud.
• The Department has put in place a comprehensive multi-year post-payment
verification plan and integrity activities are underway.
• The Department did not report any losses during the 2023-2024 fiscal year.

Ensuring that Canadians receive the benefits to which they are entitled is a priority for our
government.
• The Department is committed to ensuring excellence in the stewardship of ESDC’s major
social programs by making additional investments in program integrity measures to
effectively prevent, detect and address instances of error, fraud and abuse.
• Every loss of public money or property, whether through an offence, illegal act or accident,
is reported in the Public Accounts of Canada in the year in which the loss occurred or was
discovered.
• The total excludes monetary penalties, which are not considered “losses” to the Crown.
• The increase in losses of money reported in 2023-2024 demonstrates the prioritization of
resources toward key integrity activities in the wake of the pandemic.
En milliers de dollars 2023/24 2022/23
Pertes de fonds publics dues à une infraction, un acte
illégal ou un accident :
Réclamations frauduleuses - AE
Réclamations frauduleuses - PCU
Réclamations frauduleuses - PEC
Réclamations frauduleuses - SV
Réclamations frauduleuses - RPC
Réclamations frauduleuses - UCCB
Demande frauduleuse par un fournisseur
Perte, vol ou détournement de recette
242 595
0
6 353
61
66
0
356
0
249 431
95 779
0
1 636
568
102
0
0
9
98 094
Overpayment Information (directly attributed to deliberate fraud):
In fiscal year 2023-2024, the following information was ascertained:
Employment Insurance (EI)
• $242.6M in established fraudulent overpayments, of which $46.6M was recovered in the
current year.
• Fraudulent EI overpayments represent 1 % of the $21.3B total benefit expenses for 2023-
2024.
• Common types of misrepresentation for EI include: failing to declare work and earnings, not
declaring self-employment or training, not declaring periods when claimants are not
available for work, and failing to report absences outside of Canada.
Canada Emergency Response Benefit (CERB)
• No loss of public money identified this year.
Employment Insurance Emergency Response Benefit (EI-ERB)
• No loss of public money identified this year.
• A post-payment verification plan is in place to implement EI-ERB investigations and reviews.
Investigations are expected to be completed by March 31, 2025.
• ESDC has authorities to identify losses of money for this program until June 2027.
Old Age Security (OAS)
• $61.1K in established fraudulent overpayments, of which $33.5K was recovered in the
current year.
• 2023-2024 benefit expenses totalled $76.1B.
• Common types of misrepresentations for OAS include: payments received after death,
failing to declare marital status changes, unreported income, failing to declare complete
residence information.
Canada Pension Plan (CPP)
• $66.1K in established fraudulent overpayments, of which $3.4K was recovered in the
current year.
• 2023-2024 pension and benefit expenses totalled $60.8B.
• Common types of misrepresentations for CPP include: payments received after death,
failing to declare pension earnings, failing to declare return to work or become self-employed
and earn more than allowable earnings (disability), failure to report marital status changes,
failure to report school attendance (disability).
Canada Student Loans (CSLP)
• $6.4M in established fraudulent overpayments, of which $394.5K was recovered in the
current year.
Year-over year comparisons:
• For the 2023-2024 fiscal year, the Department is reporting losses of public money due to an
offence, illegal act or accident totalling $249.4M (compared to $98.1M in 2022-2023) of
which fraudulent claims for EI benefits account for $242.6M.

In thousands of dollars 2023/24 2022/23
Losses of public money due to offence, illegal act or
accident
Fraudulent claims – EI
Fraudulent claims – CERB
Fraudulent claims – CSLP
Fraudulent claims – OAS
Fraudulent claims – CPP
Fraudulent claims – UCCB
Fraudulent claim by supplier
Loss, theft or misappropriation of cash receipt
242,595
0
6,353
61
66
0
356
0

249,431
95,779
0
1,636
568
102
0
0
9

98,094

In Volume III of the Public Accounts of Canada 2023-2024, Employment and
Social Development Canada reported an amount of $249.4 million ($98.1 million in
2022-2023) in losses of public money due to an offence, illegal act or accident.
The majority of this amount ($242.6 million) is related to fraudulent claims for
Employment Insurance.