Fears over AI use to scan accounts for benefit fraud

THE Department for Work and Pensions (DWP) is planning to use a new AI system to scan millions of bank accounts in the hunt for fraudsters and benefit claimants who have been overpaid.

It’s part of a planned crackdown on people who mistakenly receive too much or deliberately deceive the authorities.

However, serious concerns have been raised about the proposals amid claims it is a “step too far”. Over 40 organisations including Age UK and Disability Rights UK are calling on the Government to abandon the plans.

The measures, part of the data protection and digital information bill, would cover all social security payments including the state pension.

They are particularly targeting Universal Credit following longstanding concerns about vast amounts of money being wasted through overpayments.

The changes would compel banks to monitor bank accounts and report anyone suspected of being involved in fraud.

Disability Rights UK said it has raised “serious concerns regarding extraordinary new financial surveillance powers introduced in the Data Protection and Digital Information Bill”.

However, the DWP responded and said: “This is not a surveillance power, and it does not allow DWP to access bank accounts or see how claimants or pensioners are spending their money.”

The joint letter from over 40 organisations said: “The proposed measures involve the use of mass algorithmic surveillance to scan bank and other third party accounts, ostensibly to detect potential flags for fraud and error in the welfare system.

“While we understand the importance of addressing fraudulent activities, these powers are disproportionate and raise significant concerns in the context of privacy, surveillance, data protection, and equalities. The scope of these new powers is extraordinary. They will compel third parties including banks, building societies, and transmission companies to trawl all customer accounts in search of ‘matching’ accounts without prior suspicion of fraudulent activity, setting a deeply concerning precedent for generalised, intrusive financial surveillance in the UK.”