He said he believed fraudulent claims had led to more scrutiny of genuine applicants.

That's the neat part, there doesn't have to be widespread fraud for authorities to try their best to deny you what you are due. They will do it just to save money, out of hatred of poor people or for other nefarious reasons!

Just look at the claims by right wingers of widespread voter fraud, when confirmed cases are in less than double digits over decades.

Same sort of thing for benefits claimants. We make them go through so many, humiliating hoops that a not insignificant amount of them give up. The media then creates clickbait articles about isolated cases of fraud which makes people believe they are more widespread than in reality, and then you cause mistrust of people who need help.