If you receive State Pension or other benefits from the Department for Work and Pensions (DWP), you could have your bank account and other financial activity monitored.
Currently more than 20 million people across the UK receive financial help to aid with the cost of living. And with bills rising, more people could soon be claiming.
However just recently the DWP have shared details of a new £613 million plan to stop an estimated £4 billion being lost in fraud and error over the next five years.
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According to the Daily Record, between 2021 and 2022, there have been 600 convictions for benefit fraud across the UK with the ‘Fighting Fraud in the Welfare System’ plan outlining how the department is creating a new 2,000-strong team dedicated to reviewing more than two million existing Universal Credit claims.
The team are set to review entitlements and circumstances of Universal Credit (UC) claims that the DWP deems are at risk of being incorrect, including suspicious cases which entered the system during the height of the pandemic - this review is expected to stop around £2 billion of losses due to fraud and error over the next five years.
The DWP state that the definition of benefit fraud is when an individual "obtains state benefit they are not entitled to or deliberately fails to report a change in their personal circumstances."
The also report that last year there was an estimated £6.3 billion of welfare fraud, up from £2.8 billion from the year before, coupled with £2.1 billion of error, the combined loss as a result of fraud and error was £8.4 billion or 3.9 per cent of benefit expenditure.
This can include failing to inform the state about a "change of circumstances", for example, that your partner is now living with you, or that you have moved house, or that a relative has died leaving you some money may also be seen as 'fraud by omission'.
If an investigation need to be carried out however, this can be done at any time - even over the festive season. In addition to this, investigators can wear plain clothing and show up at your home or work at any time.
So what does this mean? here's what you need to know...
Common examples of benefit fraud
Faking an illness or injury to get unemployment or disability benefits
Failing to report income from a business or employment to make income seem lower than it actually is
Living with someone who contributes to the household income without declaring that income to the authorities
Falsifying accounts to make it seem like a person has less money than they say they do
The DWP will need evidence that shows someone is receiving a benefit that they would not ordinarily be entitled to and can gather evidence in a number of ways. This includes surveillance, interviews and document tracing.
And under the latest plans, these powers will now include executing warrants, search and seizure of evidence and even making arrests - you can read more about these here.
Unfortunately, you won’t know the exact details of an investigation against you until you are told about it afterwards.
What happens during a DWP investigation?
If the DWP is going to start a formal investigation, you will be notified in writing, by telephone, or email - this is typically done through the post.
When this happens, you will also be told whether you are to receive a visit from a Fraud Investigation Officer (FIO), or whether they require you to attend an interview.
In the early stages of an investigation, you may not be told that one is underway until the DWP has assessed whether there is good reason to formally investigate a potential case of fraud. As soon as there is enough evidence of potential fraud, the DWP will launch an official investigation and you will be told.
Most common types of evidence
Inspector reports from surveillance activities
Photographs or videos
Audio recordings
Correspondence
Financial data, including bank statements
Interviews with you or people you know
Any evidence submitted by those who reported you
Another common form of benefit fraud is falsely reporting an income, or failure to report it altogether. If you are claiming unemployment benefits but are seen to attend a workplace, the DWP may talk to the owner or manager of the business to find out exactly why you are there, what work you are doing and how much you are being paid.
In addition to checking your bank account, they may also keep track of your social media activity for pictures, location check-ins, and other evidence which may be useful to them in order to piece together a picture of what the indivudal does on a daily basis and what their life looks like.
If this is not consistent with the details of that person’s claim for benefits, that evidence may end up being used against them.
What if I'm falsely reported to the DWP?
False reports of benefit fraud are common with some studies indicating there are around 140,000 made each year.
Until the DWP determines that there is no case against you, there isn't much that you can do other than let them investigate. Co-operate as best as you can and remember that those found to have reported falsely through malicious reasons may end up being prosecuted.
If you are concerned about a current or future DWP investigation against you or someone you care about, seeking advice from a legal expert could help.
Citizens Advice Scotland may also be able to offer free and impartial advice, you can contact them here.
You can report fraud by calling MyGov.Scot free on 0800 158 2071 or by post here.
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