The Homeland Security Act of 2002 created the office of the Citizenship  and Immigration Services Ombudsman. Fraud Is A Serious Problem, But Its Full Extent Is Unknown

Fraudulent schemes used in several high-profile immigration benefit fraud  cases sheds light on some aspects of the nature of immigration benefit  fraud—particularly that it is accomplished by submitting fraudulent  documents, that it can be committed by organized white-collar and other  criminals, and that it has the potential to result in large profits for these  criminals. Although the full extent of immigration benefit fraud is unknown, available  USCIS data indicate that it is a serious problem. According to USCIS PAS  data, in fiscal year 2005, USCIS denied just over 20,000 applications  because USCIS staff detected fraudulent application information or  supporting evidence during the course of adjudicating the benefit request. Specifically, it has established an internal unit  to act as its focal point for addressing immigration benefit fraud, outlined  a strategy for detecting immigration benefit fraud, and is undertaking a  series of fraud assessments to identify the extent and nature of fraud for  certain immigration benefits. However, USCIS has not applied some  aspects of internal control standards and fraud control best practices that  could further enhance its ability to detect fraud. Specifically, it lacks (1) a comprehensive approach for managing risk, (2) a  monitoring mechanism to ensure that knowledge arising from routine  operations informs the assessment of policies and procedures, (3) clear  communication regarding how to balance multiple agency objectives, (4) a  mechanism to help ensure that adjudicators staff have access to important  information, and (5) performance goals related to fraud prevention. Most Benefit Fraud Is Not Criminally Prosecuted, but DHS Does Not Have an Administrative Sanctions Program

Although best practice guidance suggests that sanctions for those who  commit benefit fraud are central to a strong fraud control environment,  and the INA provides for criminal and administrative sanctioning, DHS  does not currently actively use the administrative sanctions available to it. Fraud control best practices advise that a credible sanctions program,  which incorporates a mechanism for evaluating its effectiveness, including  the wider value of deterrence, is an integral part of fraud control. Therefore, the principal means of imposing  sanctions on most immigration benefit fraud would be through  administrative penalties. Therefore, according to  the director, ICE does not consider implementing the administrative  penalties for document fraud to be cost-effective. Attorneys within the Department of Justice.
Why GAO Did This Study

In 2002, GAO reported that immigration benefit fraud was pervasive and significant and the approach to controlling it was fragmented. Experts believe that individuals ineligible for these benefits, including terrorists and criminals, could use fraudulent means to enter or remain in the U.S. You asked that GAO evaluate U.S. Citizenship and Immigration Service's (USCIS) anti-fraud efforts. This report addresses the questions: (1) What do available data and information indicate regarding the nature and extent of fraud? (2) What actions has USCIS taken to improve its ability to detect fraud? (3) What actions does the Department of Homeland Security (DHS) take to sanction those who commit fraud?

What GAO Found

Although the full extent of benefit fraud is unknown, available evidence suggests that it is a serious problem. Several high-profile immigration benefit fraud cases shed light on aspects of its nature--particularly that it is accomplished by submitting fraudulent documents and can be facilitated by white collar and other criminals, with the potential for large profits. USCIS staff denied about 20,000 applications for fraud in fiscal year 2005. USCIS has established a focal point for immigration fraud, outlined a fraud control strategy that relies on the use of automation to detect fraud, and is performing risk assessments to identify the extent and nature of fraud for certain benefits. However, USCIS has not implemented important aspects of internal control standards established by GAO and fraud control best practices identified by leading audit organizations--particularly a comprehensive risk management approach, a mechanism to ensure ongoing monitoring during the course of normal activities, clear communication regarding how to balance multiple objectives, mechanisms to help ensure that staff have access to key information, and performance goals for fraud prevention. DHS does not have a strategy for sanctioning fraud. Best practices advise that a credible sanctions program, which includes a mechanism for evaluating effectiveness, is an integral part of fraud control. Because most immigration benefit fraud is not prosecuted criminally, the principal means of sanctioning it would be administrative penalties. Although immigration law gives DHS the authority to levy administrative penalties, the component of DHS that administers them does not consider them to be cost-effective and does not routinely impose them. However, DHS has not evaluated the costs and benefits of sanctions, including the value of potential deterrence. Without a credible sanctions program, DHS's efforts to deter fraud may be less effective, when applicants perceive little threat of punishment.