UK councils are failing to deal with the public sector claims fraud, according to ALARM - The National Forum for Risk Management in the Public Sector.
A survey carried out by ALARM found that 100% of respondents have no anti-fraud strategy to deal with the growing issue.
In addition only 25% of said anti-fraud issues are taken seriously within their company.
Only a quarter of councils are taking the issue seriously, it found.
ALARM Chief Executive Sheila Boyce said: "The costs come not only from the money paid out to successful claimants but also the extensive investigations necessary in many cases."