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| Universal credit: Multi-million pound scam targets claimants | Universal credit: Multi-million pound scam targets claimants |
| (about 1 hour later) | |
| Tens of millions of pounds of public money is believed to have been stolen, with claimants left owing hundreds, after fraudsters targeted Britain's main welfare benefit, universal credit. | Tens of millions of pounds of public money is believed to have been stolen, with claimants left owing hundreds, after fraudsters targeted Britain's main welfare benefit, universal credit. |
| The BBC has been told of "money pouring out of the public purse" as criminals make "staggering" bogus online claims. | The BBC has been told of "money pouring out of the public purse" as criminals make "staggering" bogus online claims. |
| A loophole in the online system is exploited to make fraudulent applications and claim advance loans. | |
| The government says it is determined to bring fraudsters to justice. | The government says it is determined to bring fraudsters to justice. |
| A benefits official told the BBC that in one job centre more than a third of claims are currently suspected of being bogus, while £100,000 of fraudulent activity each month was recorded at another branch. | A benefits official told the BBC that in one job centre more than a third of claims are currently suspected of being bogus, while £100,000 of fraudulent activity each month was recorded at another branch. |
| Claims include one from "a 19-year-old with six blind children" and another saying "Harry Kane" (the name of the Tottenham and England footballer) was their landlord. | |
| Another official told the BBC that the Department for Work and Pensions estimates 10% of the 100,000 or more advances paid monthly are potentially bogus. | Another official told the BBC that the Department for Work and Pensions estimates 10% of the 100,000 or more advances paid monthly are potentially bogus. |
| This suggests that fraud rates on universal credit are about four times higher than on most other benefits. | This suggests that fraud rates on universal credit are about four times higher than on most other benefits. |
| Ironically, one of the original goals of universal credit was to save about a billion pounds in fraud and error. | Ironically, one of the original goals of universal credit was to save about a billion pounds in fraud and error. |
| Jade's story | Jade's story |
| Jade Thomas, 31, from Manchester, now owes more than £1,500 of a loan arranged for her by a fraudster, but she had to pay him £1,000 for setting it up - so received only £525 of it. | Jade Thomas, 31, from Manchester, now owes more than £1,500 of a loan arranged for her by a fraudster, but she had to pay him £1,000 for setting it up - so received only £525 of it. |
| "All he needed was my provisional licence and my bank card and a photo which he had to take there and then," she recalls. | "All he needed was my provisional licence and my bank card and a photo which he had to take there and then," she recalls. |
| "He had a badge from the Job Centre Plus... he was dressed smartly." | "He had a badge from the Job Centre Plus... he was dressed smartly." |
| Within two or three hours the money, which she had been led to believe was a type of grant, was in her account. | Within two or three hours the money, which she had been led to believe was a type of grant, was in her account. |
| She only realised it was a fraud, and that she would have to pay back the full amount, when her tax credits stopped and an official explained that she had been put on to universal credit. | She only realised it was a fraud, and that she would have to pay back the full amount, when her tax credits stopped and an official explained that she had been put on to universal credit. |
| The unexpected debt has pushed her into arrears with both her rent and council tax. | The unexpected debt has pushed her into arrears with both her rent and council tax. |
| How does the scam work? | How does the scam work? |
| Claimants tricked | Claimants tricked |
| Messages from dozens of officials on an internal DWP message board, seen by the BBC, show the extent of the scam: | Messages from dozens of officials on an internal DWP message board, seen by the BBC, show the extent of the scam: |
| The forum, which is open to operational staff within job centres, says the scam is particularly rife in the north-west of England. | The forum, which is open to operational staff within job centres, says the scam is particularly rife in the north-west of England. |
| "Around 200-300 new referrals every day" in the region are fictitious, wrote one official, and "at between £1,200 and £1,500 for each advance, the numbers are staggering". | "Around 200-300 new referrals every day" in the region are fictitious, wrote one official, and "at between £1,200 and £1,500 for each advance, the numbers are staggering". |
| Another official writes that "the loss of taxpayers' money could be in the region of £20m". | Another official writes that "the loss of taxpayers' money could be in the region of £20m". |
| The first the victim knows that it is actually a scam is often when the DWP writes to say they are now on universal credit, and that any other benefits they are on are being stopped immediately. | The first the victim knows that it is actually a scam is often when the DWP writes to say they are now on universal credit, and that any other benefits they are on are being stopped immediately. |
| The message board also shows the exasperation of staff that the senior leadership of the DWP are unable to stop the scam. | The message board also shows the exasperation of staff that the senior leadership of the DWP are unable to stop the scam. |
| "To say there is a risk around UC advances is possibly the understatement of the year," wrote one staff member, who added: "Money is pouring out of the public purse like lottery jackpots every day. | "To say there is a risk around UC advances is possibly the understatement of the year," wrote one staff member, who added: "Money is pouring out of the public purse like lottery jackpots every day. |
| "All of us 'on the shop floor' are screaming about it but nobody is listening who has any influence." | "All of us 'on the shop floor' are screaming about it but nobody is listening who has any influence." |
| Another employee wrote: "That such a loophole exists and we are receiving massive individual and organised attacks to our benefit system puts this department to shame. | Another employee wrote: "That such a loophole exists and we are receiving massive individual and organised attacks to our benefit system puts this department to shame. |
| "As taxpayers, I would imagine we are all incensed that even though the system is broken and being targeted, we are still allowing the abuse to happen." | "As taxpayers, I would imagine we are all incensed that even though the system is broken and being targeted, we are still allowing the abuse to happen." |
| The Department for Work and Pensions said it had already secured its first conviction for this type of fraud. | The Department for Work and Pensions said it had already secured its first conviction for this type of fraud. |
| DWP minister Baroness Buscombe added: "We're encouraging people to listen to their instincts. If someone offers you a low-cost loan from the government, they may be trying to steal your identity. | DWP minister Baroness Buscombe added: "We're encouraging people to listen to their instincts. If someone offers you a low-cost loan from the government, they may be trying to steal your identity. |
| "Treat your personal information for benefits in the same way you would for your bank. And if you think you've been targeted, we urge you to report it urgently." | "Treat your personal information for benefits in the same way you would for your bank. And if you think you've been targeted, we urge you to report it urgently." |
| How does universal credit work? | How does universal credit work? |
| Source: House of Commons Library | Source: House of Commons Library |
| Have you been affected by universal credit fraud? You can get in touch by emailing haveyoursay@bbc.co.uk | Have you been affected by universal credit fraud? You can get in touch by emailing haveyoursay@bbc.co.uk |
| You can also contact us in the following ways: | You can also contact us in the following ways: |
| Or use the form below | Or use the form below |