Almost 30 benefit fraudsters were convicted in Wanganui last year.
New figures from Statistics New Zealand show 29 people were convicted in the Whanganui District Court for obtaining a benefit by deception - an increase from 24 who were convicted in 2013.
Whanganui People's Centre manager and advocate Gary Reid said people committed benefit fraud for all sorts of reasons.
"Some people are just dishonest, some find it really hard to live on a benefit and some people dig themselves into a hole and can't get out of it," he said.
"For example, when people get into relationships, and don't tell Winz, then further on the track they find themselves in trouble."
Mr Reid said his organisation hadn't seen an increase in people seeking advice for paying back debt from fraud.
"We don't see it come through our office that much.
"I have probably only supported about half a dozen people who are in trouble for fraud," he said.
Mr Reid said data sharing among Government agencies may have led to an increase in those being caught.
Associate Minister for Social Development Jo Goodhew confirmed the ministry had stepped up efforts to reduce benefit fraud.
"Over the past two-and-a-half years, around 9500 benefits have been cancelled after fraudulent and illegitimate payments were discovered.
"These changes hold people to account for their actions, and make it difficult to defraud the welfare system," she said.
A vast majority of the fraud has been identified through increased information sharing with Inland Revenue - making it easier for the Social Development Ministry to identify clients who under-declared their incomes, which would have affected benefit payments.
Another key initiative was stricter monitoring of beneficiaries who had previously committed fraud.
Mrs Goodhew said monitoring was a success and thousands were being monitored to ensure they were receiving the correct benefits.
"We've identified around 3000 clients that fall into this category - and it's fantastic to see that since low-trust case management was introduced in October 2013, as at December 31 2014, none have re-offended.
"These reforms are about stopping people receiving benefits they aren't entitled to, and ensuring the benefit is available for those that genuinely need it," she said.
"We expect to see fewer cases of benefit fraud as our case officers continue working closely with clients to ensure they declare their income and any changes to their circumstances that may affect their entitlement."