Investigators will check the bank accounts of those on three benefits
Online security experts have voiced major concerns over new anti-fraud powers to be deployed by the DWP. Fresh legislation was recently introduced, to tackle fraud and erroneous payments within the benefits system.
The new provisions include eligibility checks to examine bank account details of people receiving certain benefits. Through the Eligibility Verification Measure, the DWP will instruct account providers to review accounts linked to three benefits, to identify any accounts that may not qualify for their payments. They will then supply the DWP with information about these accounts. The DWP has stated that it will not have access to people’s bank accounts as part of the checks and that the banks will only share “limited data” with their investigators.
These checks will initially look at the account information of those receiving Universal Credit, Pension Credit and Employment and Support Allowance. This measure may be expanded to additional benefits.
The recently approved legislation also permits officials to directly seize funds from someone’s bank account when they owe the DWP money and are refusing to repay their debt. These powers will target people who owe money and have left the benefits system.
DWP bosses claim the new powers will save the taxpayer £2.1billion over the next five years. However, critics warn that the wide-ranging new measures could unfairly put off claimants from checking their details are correct.
Phil Cotter, CEO at anti-fraud specialists SmartSearch, warned: “There is a real risk of that people will be put off contacting the DWP about changes to their circumstances if these new powers are not used carefully and communicated clearly. Most benefit claimants are honest and want to get things right, but if they feel that if they contact the DWP it could lead to their bank accounts being scrutinised or their case being flagged indefinitely, it could discourage exactly the kind of engagement the system relies on.”
The Public Accounts Committee, which monitors Government expenditure, recently demanded fresh safeguards around the use of these powers. The cross-party group of MPs wants the DWP to provide them with annual reports on how the measures are being used.
Mr Cotter added: “These new powers should be targeted at identifying complex, high-risk cases of organised or deliberate fraud, not creating a situation where genuine claimants are afraid to report changes in their circumstances. If the DWP is to maintain public trust it will need to ensure it is transparent about when bank checks are used and make it clear when it is conducting a routine claimant check and when it is investigating potential fraud.”
A risk of false positives
The security specialist said that bank account checks could prove an “incredibly useful tool” for identifying incorrect payments. However, he cautioned they must be implemented carefully to prevent innocent people being wrongly targeted.
Mr Cotter cautioned: “Acting on information from a bank account check alone could easily lead to false positives if taken out of context. The most effective use would be to use bank account checks alongside other checks, for example, on cases already flagged by multiple risk indicators.
“This would include things like identity inconsistencies, links to multiple accounts, or patterns associated with organised fraud. If you combine bank data with good digital identity verification and solid cross-checks with HMRC, DWP and other government data, you get a much clearer picture of eligibility, without wrongfully identifying legitimate claimants in the process.”
When the legislation was added to the books, DWP minister Andrew Western said: “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response. The powers granted through the bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer.
“A benefits system people can trust is essential for claimants and taxpayers alike – through this bill that’s exactly what we’ll deliver.”
