> A good system scrutinises everyone equally when handing out free money.

Good in what way? Cost-effective or fair? I grant you the second point.

> everyone who is poor and wants to be less grindingly poor has motivation to commit benefit fraud.

Sure. But being a small country with (what uses to be) a generous welfare system obvious leads to relatively many (fake) immigrants with fraudulent intentions. Just a numbers game. But I guess you could call it xenophobic to take that into consideration when semi-randomly selecting people for extra checking.