An HMRC spokesman said more staff were in place to tackle error and fraud than ever before and that HMRC had have "massively expanded" the number of checks it carries out.
BBC: Margaret Hodge tells HMRC to 'get a grip' on tax credit fraud
This cutting edge forensic technology is at work today to detect and prevent fraud and error before it happens.
The government has set itself tough targets for reducing fraud and error: 25% by 2004, 50% by 2006.
Except for some fraud and error here and there, which is inevitable, all those five dollar charges are making their way to legal assistance to married domestic violence victims.
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Head of the NAO Amyas Morse - who last year declined to sign off HMRC's accounts because of tax credit fraud and error - said HMRC faced "significant" challenges.
BBC: Margaret Hodge tells HMRC to 'get a grip' on tax credit fraud
In 2009, HMRC set itself a target of halving the rate of tax credit fraud and error from 9% to 5% by March 2011 and diverted around 400 extra staff to help with the effort.
BBC: Margaret Hodge tells HMRC to 'get a grip' on tax credit fraud
These reviews will focus on seven states with high populations of fraud- and error-prone providers (FL, CA, MI, TX, NY, LA, IL) and four states with high claims volumes of short inpatient hospital stays (PA, OH, NC, MO) for a total of 11 states.
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As the Vice President announced in June 2010, we have expanded the use of cutting-edge fraud mapping tools to gather enormous quantities of information in real time, analyze the data, and connect the dots to identify indicators of possible fraud or error.
What started out as a simple error was compounded when the recipients decided to take the extra step and turn it into credit fraud.
Under cross-examination he said clerical error may have accounted for such a high figure and that only four people had "definitely" been tied to voter fraud.
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