Millions of benefit claimants could face increased monitoring under new anti-fraud powers being rolled out by the Department for Work and Pensions, with experts warning the system must avoid wrongly flagging innocent people.
The government is entering a “test and learn” phase of its new fraud crackdown, which could involve advanced digital checks, AI-driven risk analysis and wider data matching designed to spot suspicious claims faster.
But concerns have now been raised that some claimants may feel anxious about what critics have labelled “DWP snooping powers” - especially if automated systems make mistakes.
Experts have warned the Department for Work and Pensions must carefully balance fraud prevention with fairness as it expands efforts to crack down on benefit fraud using new technology and monitoring systems.
Full details of the new powers are detailed here.
Stuart Morris, chief technology officer at SmartSearch, 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.
The warning comes amid growing concern over how far the government could go in monitoring benefit claimants through automated checks and data matching.
Morris said there is a risk some people could become worried about increased monitoring even when they have done nothing wrong.
He warned that systems relying heavily on automation or AI could create “false positives” - where legitimate claimants are incorrectly flagged for investigation.
The government is increasingly looking at technology to tackle fraud and error in the welfare system, including digital identity checks, AI-driven risk analysis and cross-departmental data sharing between agencies such as the DWP and HM Revenue and Customs.
According to research from SmartSearch:
- 54% of organisations still carry out identity checks manually
- 24% say AI-generated fraud and deepfakes are now their biggest emerging threat
- 68% of compliance professionals spend half their time on tasks that could be automated
Morris warned fraudsters are becoming increasingly sophisticated, using fake bank statements, synthetic identities and AI-generated documents that traditional manual checks may fail to detect.
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He said the DWP should prioritise “smarter verification” rather than simply giving authorities broader powers.
Suggestions included:
- Faster cross-government data matching
- Stronger digital identity systems
- AI-powered fraud detection tools
- Improved appeals processes
- Greater transparency over how decisions are made
Morris also stressed the importance of independent oversight and clear communication with claimants to avoid damaging public confidence.
He said legitimate claimants must remain protected while deliberate fraud is targeted more effectively, adding “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.”
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