Question Period Note: PUBLIC ACCOUNTS OF CANADA 2025 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 2024-2025 is mainly attributed to
an increase in the number of investigations (cases) being completed.
Continued focus on operational and productivity improvements has resulted
in an increase in the number of completed cases representing an increase in
losses of money identified.

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 postpayment
verification plan.
 The Department did not report any losses during the 2024-2025 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 2024-2025 is mostly attributable to an increase
in the number of investigations being completed with a continued focus on operational and
productivity efficiencies.
Overpayment Information (directly attributed to deliberate fraud):
In fiscal year 2024-2025, the following information was ascertained:
Employment Insurance (EI)
 $279.2M in established fraudulent overpayments, of which $59.5M was recovered in the
current year.
 Fraudulent EI overpayments represent 1 % of the $23.3B total benefit expenses for 2024-
2025.
 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 crucial component of the Department’s integrity framework for the EI ERB was postpayment
verification of suspicious claims to confirm compliance with key benefit eligibility
criteria. Fiscal year 2024-25 was the final year of ESDC’s post-payment verification plan to
review these claims. ESDC completed its commitment to conduct post-payment verification
of EI ERB payments.
Old Age Security (OAS)
 $271.4K in established fraudulent overpayments, of which $2.0K was recovered in the
current year.
 Net benefit expenses totalled $80.2B in 2024-2025.
 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)
 $201.7K in established fraudulent overpayments, of which $19.3K was recovered in the
current year.
 2024-2025 pension and benefit expenses totalled $65.1B.
 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)
 $4.6M in established fraudulent overpayments, of which $548.2K was recovered in the
current year.
Year-over year comparisons:
 For the 2024-2025 fiscal year, the Department is reporting losses of public money due to an
offence, illegal act or accident totalling $284.2M (compared to $249.4M in 2023-2024) of
which fraudulent claims for EI benefits account for $279.2M.
CITATIONS | KEY QUOTES
Aucune / None
In thousands of dollars 2024/25 2023/24
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
279,152
0
4,612
271
202
0
0
0
284,237
242,595
0
6,353
61
66
0
356
0
249,431

In Volume III of the Public Accounts of Canada 2024-2025, Employment and
Social Development Canada reported an amount of $284.2 million ($249.4
million in 2023-2024) in losses of public money due to an offence, illegal act
or accident. The majority of this amount ($279,2 million) is related to
fraudulent claims for Employment Insurance.