DWP warning indicators you might be being investigated for profit fraud

Benefit claimants are being warned of the red flags that could show they are being investigated for fraud. Millions are lost to benefit fraud each year, and now DWP eligibility crackdowns are putting pressure on some to prove their entitlement.

The DWP has the ability to halt payouts during this process. It has limited powers over who it can monitor – but they still come after some people.

If you’re suspected of benefit fraud, you should be told soon after the suspicions are reported, officials say. This is what typically causes an investigation.

The department may occasionally carry out a random check, but this is rare. Depending on the type of benefits you claim and the seriousness of the accusations, you will be contacted by either the DWP, HMRC, Defence Business Services or your local authority.

The big worry is that your benefits could be temporarily halted during this process. The DWP says you’ll receive a letter explaining this if you’re under review.

If that does happen, Citizen’s Advice suggests reaching out to an adviser who can guide you on potential payment options you might qualify for. But there’s more.

Those under the suspicion of benefit fraud may get a knock from a Fraud Investigations Officer or face a request to come to an “interview under caution”. Officials say these steps are primarily for information collection to flesh out more details about your situation.

But you can do something. It is recommended to seek guidance regarding your case from legal advisors, solicitors, or Citizen’s Advice.

JD Solicitors note that investigations typically last a few months. Yet they can vary greatly—in some extreme cases taking years, while others wrap up in weeks.

It’s important to remember, as pointed out by Citizen’s Advice, that having your benefits paused or being prompted for information doesn’t necessarily mean that you’re being investigated.

Regular checks by the DWP are standard procedure – so they say – to ensure claimants receive the appropriate benefit amounts. But their powers are being beefed up.

The DWP will soon get new authority to demand financial institutions collaborate with investigations by handing over certain details on claimants. This regulation doesn’t grant direct access for the DWP to view bank accounts.

But it allows banks to share specific information to verify eligibility. You might also be asked to provide information about any lifestyle changes that could have impacted your benefits.

You’ll likely need to provide evidence, such as a doctor’s letter if you’re trying to prove your condition hasn’t changed, or bills showing who lives in your house. If you’re claiming Universal Credit, you may be asked to provide copies of your passport, tenancy agreement, or even photos of yourself outside your home.

For more information on what happens if a person is suspected of carrying out benefit fraud, click here.