The Department for Work and Pensions (DWP) is facing warnings that its new bank account checks on three benefits risk breaking 'public trust'. Under new powers, the DWP will monitor bank accounts for signs of fraud, targeting Universal Credit, Employment and Support Allowance, and Pension Credit due to their higher fraud rates.
Expert Concerns Over Automation
Stuart Morris, chief technology officer at Smart Search, cautioned that the DWP's anti-fraud powers should focus on 'accuracy, proportionality and public trust' during the testing phase. He warned that heavy reliance on automation or AI could lead to 'false positives', where legitimate claimants are incorrectly flagged for investigation.
'The key focus of the test and learn phase should be accuracy, proportionality, and public trust,' Morris said. 'The DWP needs to test how effectively eligibility verification systems identify genuine fraud without creating unnecessary false positives.'
Impact on Claimants
Morris added that some claimants may feel anxious about the new powers, even if they have provided accurate information. 'Any system involving increased monitoring or automated checks can create concern if people don't fully understand how decisions are made,' he explained.
He suggested that advanced fraud detection tools, including AI-driven risk analysis and multi-bureau verification, could improve accuracy while reducing false positives.
Industry Statistics
Smart Search found that 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. Additionally, 68 per cent of compliance professionals spend half their time on tasks that could be automated.
Morris emphasised that the DWP should prioritise 'smarter verification' rather than simply giving authorities broader powers.
