Feb 11 • 15:17 UTC 🇬🇧 UK Mirror

DWP fraud crackdown expert alert over bank accounts being 'flagged indefinitely'

Experts are warning that new fraud investigation powers by the UK Department for Work and Pensions (DWP) could lead to indefinite flagging of bank accounts associated with certain benefits.

The UK Department for Work and Pensions (DWP) is introducing new anti-fraud measures aimed at examining bank accounts of individuals receiving certain benefits. This initiative is part of the government's ongoing efforts to tackle fraud and rectify erroneous payments within the benefits system. Specifically, investigators will check the bank account details of recipients of three designated benefits to assess their eligibility through the Eligibility Verification Measure. This measure involves instructing financial institutions to review accounts linked to how benefits are distributed.

Concerns have been raised, particularly among online security experts, regarding the potential implications of these checks. While the DWP has assured that it will not directly access personal bank accounts and that only 'limited data' will be shared by banks, critics argue that such measures could still result in accounts being flagged indefinitely, creating undue stress for those affected. As the DWP steps up its fraud prevention efforts, the balance between ensuring the integrity of the benefits system and respecting individual privacy rights is increasingly coming under scrutiny.

The impact of these new provisions could be significant, leading to potential delays or interruptions in benefit payments for individuals whose accounts are flagged during the review process. As the DWP embarks on this crackdown, it emphasizes the importance of maintaining the integrity of the benefits system, which is critical for supporting thousands of vulnerable individuals across the UK. However, the effectiveness of this strategy will depend on how transparently it is implemented and whether it prioritizes the privacy and rights of benefit recipients.

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