The DWP will check bank accounts for signs of fraud.
DWP crackdown on three benefits risks breaking ‘public trust’ – full list
New Department for Work and Pensions (DWP) bank account checks on THREE benefits risk breaking “public trust”, it has been warned. Under new powers, the DWP will check bank accounts for signs of fraud.
The new powers, which have proved controversial, have sparked warnings from privacy and tech experts. Under the DWP’s plans, Universal Credit, Employment and Support Allowance, and Pension Credit will be targeted.
This is because the three have the highest rate of fraud. But Stuart Morris, chief technology officer at Smart Search, said the DWP’s new anti-fraud powers should focus on “accuracy, proportionality and public trust” as ministers test new systems designed to identify suspicious claims.
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He warned that systems relying heavily on automation or AI could create “false positives”. This could be where legitimate claimants are incorrectly flagged for investigation.
He added “The key focus of the ‘test and learn’ phase should be accuracy, proportionality, and public trust.
“The DWP needs to test how effectively eligibility verification systems identify genuine fraud without creating unnecessary false positives.”
He said: “There is a risk that some claimants could feel anxious about the introduction of these powers, even when they have provided accurate information, because any system involving increased monitoring or automated checks can create concern if people don’t fully understand how decisions are made.”
“Advanced fraud detection tools, including AI-driven risk analysis and multi-bureau verification, could also improve accuracy while reducing false positives,” the tech expert said.
Smart Search found 54 per cent of organisations still carry out identity checks manually and 24 per cent say AI-generated fraud and deepfakes are now their biggest emerging threat.
68 per cent of compliance professionals spend half their time on tasks that could be automated.
Mr Morris said the DWP should prioritise “smarter verification” rather than simply giving authorities broader powers.
