Am +1 on this too...
Surely, when one accepts SW, for each benefit, they should have to sign a form etc.. saying that if they are caught defrauding SW, all monies will have to be paid back, plus 10% interest per year, plus a 50% fine or something like that. If you can't pay then it should be dedecuted out of future welfare payments if you make it, or put as a tax liability against you.
Some really high stakes need to be put in place, and if you want to roll the dice, you do so at your pearl.
Leaving these systems open to fraud, promotes fraud, as there are little to no consequences.