If you ever have the misfortune to work near or in social services, then you realize yes they exist and are not an urban myth. Sadly, some government programs encourage the behavior (e.g. "free" cellphones).
You would be surprised about how many people don't realize that or who choose to ignore it.
My aunt for example really doesn't understand that the government has any limits on their funds at all. She proposed to me that shopaholics should be given money by the government to found their addiction.
