The DWP has been given new powers to clamp down on fraud in the benefits system, but security experts have warned that legitimate claimants could be wrongly targeted
Security specialists are raising alarm bells over fresh Department for Work and Pensions ( DWP ) powers designed to tackle fraud, warning they could mistakenly target legitimate claimants. Sweeping powers have recently been enacted into law, aimed at cracking down on improper and fraudulent benefit payments.
The new legislation grants authorities the ability to directly seize money from individuals’ bank accounts when they owe the DWP funds and refuse to repay the debt. Under separate provisions within the new laws, officials will conduct eligibility reviews requiring bank information from people receiving specific benefits.
These measures will initially focus on verifying details for those receiving Universal Credit, Employment and Support Allowance, and Pension Credit, ensuring recipients meet the criteria for their payments, reports the Mirror.
Authorities intend to begin implementing these powers from 2026, with scope for extending the measures to additional benefits.
Compliance firm SmartSearch’s security specialists have expressed unease about the powers, highlighting the risk of wrongfully targeting claimants.
Chief customer officer Collette Smith explained: “There are always risks in any system that relies on data checks, whether manual or automated. False positives can arise if data is incomplete, outdated, inputted incorrectly or misinterpreted.”
She cautioned that adequate protections must be established, saying that “otherwise people could end up having legitimate benefits suspended or be wrongly suspected of fraud”.
Legitimate claimants risk inadvertently triggering alerts. She outlined how a claimant making a minor adjustment could be incorrectly identified as suspect.
Ms Smith stated: “For example, a temporary change in income, shared household accounts, or the way transactions are categorised could trigger an alert without any wrongdoing. This is why proportionality and context matter.”
Under the new legislation, an independent individual will be designated to monitor the implementation of these powers. They will ensure the measures fulfil their intended purpose and are deployed only when justified.
The DWP has also assured that it will not gain direct access to personal bank accounts during eligibility assessments. When using these provisions, officials will liaise with banking institutions to obtain particular details about accounts connected to benefit payments.
Officials will be unable to view how claimants are spending their funds.
Enhanced powers to tackle DWP fraud
When questioned whether the DWP should receive additional authority to combat benefit system fraud, Ms Smith cautioned: “There’s a danger in assuming that more powers automatically lead to better outcomes. The focus should be on smarter, not broader, authority.”
She argued that data-matching and digital verification checks could prove more effective than expanded powers to investigate suspected fraud. The expert explained: “For example, the ability to securely match claimant details with HMRC payroll data, immigration and residency records, and banks through regulated digital identity services could prevent fraud before payments are made. Stronger digital ID frameworks, backed by independent oversight, would reduce reliance on manual checks that are prone to error.”
The SmartSearch team employs ‘triple-bureau verification’, obtaining authoritative data from Experian, TransUnion and Equifax, to prevent false matches. Ms Smith noted: “Powers that allow the DWP to use verified sources will be more transformative than blanket access to personal data.”
Under the new legislation, fraud investigators have also been granted expanded powers to compel individuals to surrender information, where officials are examining a suspected case of benefit fraud. Previously, the department could only require people from a restricted list to hand over details, but now they can order any third party connected to the suspect to provide them with the information they need.
