top of page

The Cost of Inaction: How Data Analytics Can Prevent Headline-Level Grant Fraud

  • Writer: Maribeth Vander Weele
    Maribeth Vander Weele
  • 5 days ago
  • 2 min read

The recent exposure of a massive SNAP fraud scheme in Massachusetts serves as a stark reminder: waiting for an audit is a failing strategy. State agencies must move toward proactive data analytics to catch irregularities before they become scandals.


AI robot inspects data stream


Red Flags Hidden in Plain Sight


In Boston, two small retail operators allegedly defrauded the SNAP program of $7 million. What began as $50,000 in monthly fraudulent claims eventually ballooned to $500,000 per month—a volume that inexplicably outpaced full-service supermarkets. Perhaps most egregious was the allegation that the defendants also sold donated food intended for starving children.


The fact that this fraud persisted for years before it was discovered raises a critical question: Why did the Massachusetts Department of Transitional Assistance (DTA) fail to see or act upon the red flags?



The Root of the Problem: Three Systemic Vulnerabilities


Research by the Vander Weele Group indicates that grant fraud and compliance failures are rarely isolated incidents. Instead, they are usually symptoms of three core systemic issues:

  1. High Staff Turnover & Insufficient Training: Persistent vacancies and a lack of cross-training leave remaining staff unprepared for complex compliance oversight.

  2. Lack of Formalized Documentation: Without written protocols for policies and procedures, reporting becomes inconsistent and inaccurate.

  3. Inadequate Supervisory Oversight: Weak review processes fail to catch errors early, leading to repeated control failures.


In the case of the Massachusetts DTA, prior audits had already flagged a lack of documented processes for detecting errors within the Electronic Benefit Transfer (EBT) mechanism. These unaddressed audit findings created the perfect environment for the million-dollar scheme to thrive.



From Detection to Prosecution: The AI Advantage


This is where artificial intelligence and data analytics become indispensable. Oversight activities that once took weeks can now be compressed into hours. By analyzing large datasets, AI can instantly flag:

  • Inexplicable spikes in transaction volume (like a small corner store out-earning a supermarket).

  • Geographic anomalies in benefit usage.

  • Suspicious patterns in EBT card processing times.


However, technology is only half the battle. Identifying a “problematic transaction” is just the starting point. To secure a conviction, agencies need a powerful combination of program and fraud investigation expertise that can translate data into evidence—gift-wrapping the information for prosecutors to ensure the case is strong and justice is ultimately served.



Take Control Before the Headlines Do


States are well-advised to find the fraud before the media does. The Vander Weele Group specializes in identifying these vulnerabilities and implementing the tools needed to close them.


Comments

bottom of page