Benefit fraud is nothing new, but it reached a new high during the pandemic with £8.4 billion being overpaid by the DWP.
In response to the increasing cases of benefit-related fraud, the DWP has begun to monitor social media and bank accounts of benefit claimants whom it deems to be suspicious.
When it comes to benefit fraud, the DWP has the power to investigate and gather evidence of the fraud by monitoring social media and bank accounts, surveillance, document tracing as well as interviews. Officials may even show up at a claimant’s work or home at any time in plain clothes.
With rising cases of fraud increasing, probes are likely to be conducted on thousands of claimants soon. Here are seven signs they will be looking for.
What signs of benefit fraud will DWP look for?
Benefit fraud can be committed in many ways, but two of the most common methods are deliberately claiming a benefit one is not entitled to or not reporting a change of circumstances affecting your entitlement.
There are seven types of overpayments that the DWP look for specifically when investigating potential benefits fraud. These are:
- Mistake by claimant - either not disclosing circumstances or submitting incomplete forms
- Deliberate fraud, when claimant fails to disclose a fast or making a deliberate misrepresentation
- Interim and advance payments that could not be recovered from the benefit they were paid, including short-term benefit advances
- Universal Credit recoverable hardship payments
- Overpayment due to late award of other benefits or income
- Overpayments due to how Direct Payment banking system works
- Official errors - applies only to Universal Credit, Jobseeker’s Allowance and Employment and Support Allowance claims made on or after April 29, 2013.
In terms of Universal Credit, hardship payments are considered an overpayment if the funds cannot be recovered from the benefit that was in place at the time of payment.
What happens if you commit benefit fraud?
Benefit frauds generally result in overpayment and fraudsters could be made to pay this back if they are caught in addition to other punishments.
The DWP can make efforts to get the money back under Social Security legislation. Those caught committing benefit fraud could also be taken to court where they might be issued a fine of up to £5,000.
They also run the risk of having their benefits cut for up to three years, but this is only applicable to sanctionable benefits, which include Employment and Support Allowance, Income Support, Jobseeker’s Allowance and Universal Credit.
A DWP spokesman warned that "any abuse of taxpayers' money" will be taken very seriously and claimants could face criminal prosecution.
He added: "We also have robust plans in place to recover fraudulent claims and drive fraud and error down to the lowest feasible level."
