8 Billion Yen in Fraudulent Disability Welfare Claims; 936 Administrative Sanctions Issued from FY2020–2024

From Kyodo via Yahoo! Japan

June 6 2026

TOKYO – Fraudulent claims for public disability welfare payments by operators providing services to support the daily lives and employment of people with disabilities totaled approximately ¥8 billion nationwide over the five years from fiscal 2020 to fiscal 2024, it was revealed on the 6th. The figure was obtained by Kyodo News through an information disclosure request for data held by the Ministry of Health, Labour and Welfare. During the same five-year period, 936 cases of administrative sanctions were imposed in connection with fraudulent claims and related misconduct. Both the total amount fraudulently claimed and the number of sanctions have shown an upward trend, with fiscal 2024 appearing to have recorded the highest figures on record.

The findings highlight how operators with poor ethical standards have entered the sector and exploited the disability welfare system. The national government and local authorities are likely to face growing pressure to implement effective countermeasures.

Common methods of fraud include falsifying the number of service users and concealing violations of staffing requirements. According to the ministry’s data, the amount of fraudulent claims rose from approximately ¥1.42 billion in fiscal 2020 to around ¥2.38 billion in fiscal 2024.

Breaking down the five-year total by type of service, after-school day services for children with disabilities accounted for the largest amount, at approximately ¥2.96 billion. This was followed by Type B continuous employment support services, which provide vocational training and production activities, at around ¥1.09 billion, and group homes at approximately ¥990 million.