Wherever there be money, you can be pretty sure that there will be dishonest people trying to get their mitts upon it.
So, yes we have the destitute living on our streets: there are holes in our system of support and security, through which they fall.
We also have those not in need, who choose to mimic them to divert funds into their own pockets: a form of fraud which they continue to get away with.
It is however, the same with the charities. There are those who perceive a need, and pitch in to help, and there are those who pose as helpers in order to get their hands upon your dosh. Some on here are singing the praises of their contributions to THE LATTER!
So, not much different from what you find elsewhere in life then.