Ms Davy, who did not condone any type of fraud, said illegally claimed welfare payments were relatively slight compared to other types of fraud.
"When you look at how much other fraud actually goes on and doesn't make the headlines, it's pretty disgusting really.
"They talk about taxpayers' money ... but beneficiaries pay tax as well."
A Victoria University tax lecturer last year estimated tax evaders cost the country between $1 billion and $6 billion in 2011, while welfare fraud totalled $39 million for the year.
About 3200 Wairarapa residents claimed benefits in March, down slightly from 3369 a year ago.
The number of unemployment benefit recipients increased slightly during the year, from 564 to 575.
Last month, Masterton woman Samantha Ashlie Jo-Anne Matiaha was ordered to do 300 hours' community work after receiving more than $40,000 in illegal benefit payments over two years.
Another Masterton woman, Jacqueline Ara Kopua, was sentenced to home detention and community work in November after fleecing $91,000 from Work and Income over an eight-year period.
Meanwhile, figures released by the Social Development Ministry indicate benefit fraud in Wairarapa is increasing - jumping from $57,388 in 2009/10 to $334,900 the following year.
Nationally, nearly 400 fraudsters were prosecuted between October and March for illegally claiming welfare payments that totalled just over $13.7 million.
Associate Minister for Social Development Chester Borrows said welfare fraud was a "crime of dishonesty", comparable to any other type of theft.
"The Government makes no apology for treating it as such. It is a crime which costs the taxpayer millions of dollars a year, money which could otherwise be spent on other important government services such as health, education, and supporting vulnerable children and families."
A breakdown by benefit type shows fraudulent cases relating to the domestic purposes benefit (DPB) racked up the largest amount in overpayments. Nearly $8.36 million was recorded for DPB-related prosecution cases.
Mr Borrows said the majority of beneficiaries were law-abiding citizens. About 300,000 Kiwis were receiving benefits at any given time.
"It is only a tiny minority who think it's okay to lie, break the rules and defraud the taxpayer," he said.
"Those who suggest people commit welfare fraud out of need are making half-hearted excuses for the greed of a few.
"In doing so, they belittle the vast majority of beneficiaries who follow the rules, even when times are tough."
The figures also show that fraud prosecutions relating to the invalid's benefit, unemployment benefit and accommodation supplement totalled more than $1 million each in overpayments during the six months to March 31.
Overpayments for the sickness benefit, extra help and "other assistance" - which includes disability allowances and special needs grants - and other main benefits such as NZ superannuation and the widow's benefit ranged between $248,000 and $877,000.
Earlier this year, Mr Borrows announced new measures targeting welfare fraudsters. These included a proposed law change enabling partners and spouses of beneficiaries illegally fleecing the system to be held accountable and increased data sharing.
