Please don’t confuse this question.
Shae is not asking “what should I do”, in which case you can post your opinions and recommendations as much as you like.
Shae is asking “what am I morally obliged to do”, which means that you should post church teaching on this.
For all I know, Shae might appreciate your suggestions. But I know that for me, when I ask about a moral right or wrong, I don’t always like all the opinions and suggestions I get, I just want to know what the rules are!
I had a look in the CCC, under the bit about the 7th commandment.
**2431 **The responsibility of the state. “Economic activity, especially the activity of a market economy, cannot be conducted in an institutional, juridical, or political vacuum. On the contrary, it presupposes sure guarantees of individual freedom and private property, as well as a stable currency and efficient public services. Hence the principal task of the state is to guarantee this security, so that those who work and produce can enjoy the fruits of their labors and thus feel encouraged to work efficiently and honestly. . . . Another task of the state is that of overseeing and directing the exercise of human rights in the economic sector. However, primary responsibility in this area belongs not to the state but to individuals and to the various groups and associations which make up society.”
Hmm. So one way of looking at this is that it is the state’s responsibility to make sure that welfare works correctly (ie, making sure no-one is cheating so that money is distributed fairly). This would mean it’s not really your problem. But having a look at the last 2 sentences there, says that if this is a matter of human rights, then responsibility does belong to individuals making up society (such as you).
Well, is it a human rights issue? Has anyone had their rights violated? These people are just cheating the state, not denying someone their rights. So I think that if you really didn’t want to report them, you woudln’t have a responsibility to do so - unless there’s something I missed (I’m no theologian or moral expert, I haven’t read much apart from bits of the catechism and the bible).
Having said that, I’m pretty sure that if you did want to report them, and stop them from cheating on the state, there would be nothing wrong with that. I think, speak or stay silent, from what I’ve read it appears to be your choice.