10,000 ‘innocent' benefits claimants could have bank accounts wrongly checked by DWP, MP warns
Thousands of people could be wrongly implicated for benefit fraud offences under government reforms that will see the Department for Work and Pensions (DWP) recover money directly from claimants' bank accounts, an MP has warned.
Former Tory minister David Davis is among a number of MPs to raise concerns about the scope and accuracy of the technology used to enforce the government's Fraud, Error and Recovery Bill, which will give the government the power to investigate benefit claimants' bank accounts by legally compelling banks to share account data, and take overdue payments.
The government and banks will use an algorithm to detect potential fraudsters, as well as to recover money directly from the bank accounts of people accused of committing benefit fraud. In serious cases, the government will suspend people's driving licences.
But with an algorithm error margin of just 1%, at least 10,000 innocent people will be "dragged through the system", Davis warned.
"If the banks use algorithms, they will have an error rate of at least 1%. That means 10,000 or more innocent people will be dragged through the system by this proposal," Davis said.
The bank account spying powers in today's Public Authorities (Fraud, Error and Recovery) Bill amount to a suspicionless surveillance tool impacting over 9 million innocent people's bank accounts.The Government must think again.I made this point today in the @HouseofCommons 👇🏻 pic.twitter.com/HTQkhrHiXa
— David Davis MP (@DavidDavisMP) April 29, 2025
He added: "Big Brother Watch, Age UK and a multitude of other charities have highlighted concerns about the bill, such as the breakdown in trust that it could cause and the risk of amplifying the challenges faced by people with disabilities."
Big Brother Watch told Yahoo News that "recruiting banks to investigate benefits recipients on behalf of the state for administrative error is an intrusive overreach."
Jasleen Chaggar, legal and policy officer at Big Brother Watch, said: "This law undermines the presumption of innocence and treats people as suspects by default."
"The use of algorithmic software to snoop on everyone's bank accounts will inevitably lead to devastating errors which will disproportionately impact elderly people, disabled people, carers, single parents and the poorest in our society."
"Despite 25 civil society groups and 237,775 members of the public calling on parliament to drop the mass bank spying powers, the government is still pushing ahead. It will now be up to the House of Lords to challenge the harmful and rights-eroding provisions in this bill."
Labour MP Neil Duncan-Jordan warned that a misuse of the technology could lead to another "Horizon-type scandal", referring to the error-ridden technology that saw hundreds of Post Office staff wrongly accused and convicted of fraud and false accounting.
Responding to Davis's remarks, Duncan-Jordan said: "The right honourable member brings me to my next point, which is the risk of a Horizon-style scandal on a massive scale, given the sheer volume of accounts that will be scanned.
"That is glaringly obvious."
The Labour MP for Poole proposed limiting the powers of the bill to when a welfare recipient is suspected of wrongdoing and not of error, adding that the benefits system "lends itself to errors" as it is "extremely difficult to navigate".
"Analysis of the bill has shown that where assessment deems that a financial deduction would cause hardship, the debtor can face losing their licence. That is not justice in my view, but a penalty for being poor," Duncan-Jones said.
"Our welfare state needs to provide support for those who need it, and the change that we promised as a government must lead to a more compassionate and caring society – one that enables rather than penalises.
"These are the values that make us different from the last government, and we should not forget that."
Fellow Labour MP and former shadow chancellor John McDonnell added: "Time and again, when we have introduced legislation like this in the past that has short-circuited the traditional protective constitutional and legal mechanisms, it has led to debacles and miscarriages.
"I warn ministers that that is exactly what we are facing here. Reference has been made to issues with regard to the use of computers, models and algorithms. We seem to have learned nothing from where we have made those errors."
Work and pensions spokesperson for the Liberal Democrats, Steve Darling, branded the legislation "Orwellian", and said that the government needs to publish a best-practice document to give claimants' peace of mind.
The government said the bill, which has now progressed to the House of Lords, could recover £1.5bn over the next five years by "targeting the bank accounts of fraudsters who can repay but are wilfully gaming the system".
It will also appoint an annual reviewer to look at the bill.
However, Darling said that as the government is allowed to appoint its own reviewer, it defeats the object of the inspection.
"We do not welcome the secretary of state effectively marking their own homework by making the appointment themselves," he added.
The government has been approached for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Artist speaks out after client scammed by fraudulent tattoo page
ST. JOSEPH, Mo. (News-Press NOW) — A local tattoo shop is warning the public about fraudulent social media accounts after a client was scammed out of money for tattoo services. Jeff Zuptich, owner of The Tat Shack Tattoo in St. Joseph, recently discovered that someone had been using his tattoo artwork online under the name of another artist. I don't have much of a social media presence," Zuptich said. 'I just post pictures of my tattoos. I don't have a ton of followers, so I'm not sure why they picked me, but maybe that's exactly why." A Facebook user operating under the name "Ink By Davis," with multiple accounts using variations of the name in different text fonts, has been targeting potential clients and scamming them out of money by falsely claiming to work out of The Tat Shack's address. Using these fake accounts, the individual has reportedly scammed several people across the metro area and beyond. Dozens of confirmed victims, including some from Topeka, Kansas, have left online reviews describing their experience with the fraudulent service. "This specific page that targeted my client has also gone after people from Pennsylvania to Joplin." Zuptich said. "The scam seems to originate from this 'Ink By Davis' page in Potosi, Missouri. He even shows a Colorado tattoo license to appear legitimate and convince people to send deposits." Zuptich was alerted to the scam by a Platte County officer who had sent a deposit to the scammer and then followed up to confirm whether the individual worked at The Tat Shack. "This person is telling clients that they'll either work at my shop or do tattoos at their house, but to my knowledge, no one's actually received a tattoo from them yet," Zuptich said. Feeling frustrated by the lack of recourse, Zuptich reached out to the media to raise awareness, stating that law enforcement options appear limited in cases like this. "There doesn't seem to be much law enforcement can do with these types of crimes," he said. "At least by speaking out to the media, it might do more good. If we can keep people from falling for their tricks, maybe they'll just stop." Digital Payment Apps Add Complexity to Internet Fraud News-Press NOW spoke with Buchanan County Sheriff Bill Puett about the complexities of prosecuting internet scams. He explained that payment methods such as Venmo and Cash App make it especially difficult to recover funds or catch the perpetrators. "That's the problem with things like Venmo, Cash App, and other applications,' Puett said. "It's really easy for someone to pose as a legitimate business, take payments through those apps, and then disappear. Once the money's sent, it can be extremely difficult to recover or trace, especially if the person is in another country." With scams continuing to evolve, Puett emphasized the importance of vigilance. "Going forward, we all have to do our due diligence," he said. "Just because something appears on social media doesn't mean it's trustworthy. Do your research before you type in any account numbers or send money." How to Protect Yourself from Tattoo Scams Zuptich advises potential clients to verify the identity of any artist before sending payments, and ideally, to choose tattoo artists through trusted referrals. "Get referrals from family members, friends, or people who someone has tattooed," Zuptich said. "Before giving any money, try to schedule an in-person consultation. I personally like to see exactly what arm or leg I'm tattooing. That's a good sign that you're working with a legitimate artist.
Yahoo
6 hours ago
- Yahoo
Inside the Trump administration's decision to deploy the National Guard to California
Tensions between the Trump administration and California intensified this weekend as President Donald Trump decided to deploy 2,000 National Guard members to the Los Angeles area, a move the state's Democratic leaders cast as an unnecessary escalation amid protests over the administration's immigration policies. Trump campaigned on aggressive mass deportations, and there has been enormous pressure on his administration to boost those efforts as the first months of his second term have fallen far short of his stated goals. The aggressive enforcement push, in addition to long-simmering tensions between Trump and California, contributed to a fraught weekend in Los Angeles, where protests became violent at times. As protests escalated Friday, Homeland Security Department officials began preparing to augment resources and personnel on the ground to provide force protection for Immigration and Customs Enforcement agents who were conducting a previously planned operation. In calls that stretched into Friday evening, officials prepared for what one source described as a Portland-type incident, harking back to protests that erupted in that Oregon city in 2020, as protesters surrounded a federal building in Los Angeles. The Department of Homeland Security prepared to surge resources to Los Angeles, including armored vehicles and less-lethal munitions like gas and pepper balls, and to deploy hundreds more personnel from across the department, according to two sources familiar with the calls. During those discussions, officials considered whether they needed to cancel the operation, but eventually, the overall assessment among officials was that the ICE operation — focused on targeting businesses and migrants with criminal records — was ongoing and needed to proceed, according to sources with knowledge of the talks. The decision: send more resources and agents to the area to provide protection for ICE agents and to guard one of the federal buildings where the protests had consolidated. Over the course of the day Saturday, DHS and White House officials were in near constant communication about the situation on the ground, as resources and personnel continued to arrive in the city. By Saturday evening, when it was clear the administration couldn't keep adding federal authorities without pulling from elsewhere, the White House decided to pull the trigger and bring in the National Guard, according to one of the sources. 'Administration officials were briefed on escalating attacks on law enforcement, such as rocks being thrown at their vehicles by rioters,' a White House official said. The official added, 'It was abundantly clear federal law enforcement were not allowed to do their jobs and were being attacked.' Trump signed a presidential memorandum authorizing the deployment of National Guard members on Saturday night, and his press secretary announced the decision as the president made his way to a UFC fight in Newark, New Jersey. The overwhelming message from Trump, his top aides and congressional allies: The decision was made because Californian leaders were not doing their job. 'California's feckless Democrat leaders have completely abdicated their responsibility to protect their citizens. That is why President Trump has signed a Presidential Memorandum deploying 2,000 National Guardsmen to address the lawlessness that has been allowed to fester,' White House press secretary Karoline Leavitt said in the statement announcing the deployment. California Gov. Gavin Newsom pushed back strongly, warning the deployment would only fan the flames. 'That move is purposefully inflammatory and will only escalate tensions. LA authorities are able to access law enforcement assistance at a moment's notice. We are in close coordination with the city and county, and there is currently no unmet need,' the Democratic governor wrote on social media. He later said Trump was trying to 'manufacture a crisis.' During his first term, Trump mused on several occasions about deploying US troops on domestic soil, either to crush protests or tamp down on crime. Aides at the time talked Trump out of the move, which would amount to a dramatic step without recent precedent. Now, however, the president is less encumbered by aides who seek to restrain his more extreme impulses. And after a campaign during which Trump promised crackdowns on crime and illegal immigration, he appears eager to demonstrate a willingness to use maximalist actions to follow through on his pledges. One senior law enforcement source involved in responding to the unrest said they saw the deployment of the National Guard as an overreaction that may backfire and only provoke additional agitators. That source noted that potentially violent demonstrators observed by law enforcement around Los Angeles as of early Saturday evening numbered in the dozens and law enforcement officers were actively working to bring them under control. Homeland Security Secretary Kristi Noem defended the move Sunday as a matter of security. The National Guard, she said during an appearance on CBS News' 'Face the Nation,' is expected to 'use their special skill set to keep peace.' 'National Guard soldiers are there to provide security for operations and to make sure that we have peaceful protests,' Noem said. The immigration crackdown in Los Angeles comes amid a renewed push by the White House to increase immigration arrests. Deputy chief of staff Stephen Miller, a top Trump aide and architect of the administration's most hardline immigration policies, communicated that urgency in a meeting last month with senior ICE officials, pushing agents to significantly increase arrests. In the weeks that followed, ICE has significantly ramped up its enforcement efforts. According to a senior DHS official, ICE's 'enhanced enforcement operations … have resulted in a significant increase in arrests, reaching a new daily record of 2,368' arrests on June 4. The daily arrest average during Trump's first 100 days in office was approximately 1,000. The deployment also comes as the Trump administration has threatened major cuts to federal spending in California. CNN reported Friday that the administration is preparing to cancel a large swath of federal funding for the state, according to multiple sources. Agencies are being told to start identifying grants the administration can withhold from California, and sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems. Trump has repeatedly publicly lambasted Newsom, with whom he has long had a contentious relationship that only deteriorated amid the state's handling of devastating wildfires earlier this year. The two men spoke by phone for approximately 40 minutes on Friday, Newsom's office said in a statement. During that call, the White House official said, Trump 'told Newsom to get the police in gear because it was getting out of control.' It is unclear how long the National Guard could be present, but the memorandum signed by Trump states that the guard's service will last 60 days at the discretion of Defense Secretary Pete Hegseth. FBI Deputy Director Dan Bongino made clear that the protests would not deter immigration enforcement efforts, saying in a post to social media, 'We are not stopping or slowing down. We are not intimidated or apprehensive. Illegal immigration operations will continue and anyone using violence to obstruct and impede these operations will be investigated and prosecuted.' Hegseth, for his part, posted Saturday that active-duty Marines stationed at nearby Camp Pendleton were on 'high alert' to support the National Guard. Trump told reporters Sunday that he was not prepared at this time to invoke the Insurrection Act of 1807, which authorizes presidents to deploy US military domestically. Asked whether he was prepared to invoke the law, Trump told reporters in New Jersey it 'depends whether or not there is an insurrection.' Pressed on whether he believed there was one happening in Los Angeles, he said, 'No, but you have violent people and we're not going to let them get away with it.' Trump was asked his definition of an insurrection, and said, 'You really just have to look at the site and see what's happening. Last night in Los Angeles, we watched it very closely. There was a lot of violence there.' Still, he kept the option open. 'We're going to see what we need. We'll send whatever we need to make sure there is law and order,' Trump said as he prepared to depart for Camp David, the presidential retreat in Maryland. Just over an hour later, he claimed on social media that 'violent, insurrectionist mobs are swarming and attacking' federal agents in Los Angeles to halt deportation efforts by his administration. Trump, for his part, is expected to huddle with Hegseth and other top officials, including Vice President JD Vance and Secretary of State Marco Rubio, Sunday evening at Camp David for what the White House says will become a regular off-campus retreat to address a number of issues and topics.
CBS News
9 hours ago
- CBS News
Kevin Hassett says if Senate finds Medicare abuse, then "we would look at it" in Trump bill
Kevin Hassett says if Senate finds Medicare abuse, then "we would look at it" in Trump bill White House National Economic Council director Kevin Hassett said Sunday the Trump administration is not targeting Medicare in its sweeping budget proposal, but signaled the administration would be open to changes if senators uncover fraud or abuse as they look at the bill. "If somebody finds waste, fraud and abuse in Medicare, then of course we would look at it," Hassett said on "Face the Nation with Margaret Brennan." "But there have been a lot of false stories about Medicare being on the table, and it's totally not on the table." Senate Republicans this week are working on the House-passed budget bill, dubbed the "One Big Beautiful Bill" by President Trump, which includes deep tax cuts, border security measures, and changes to Medicaid and food assistance programs. Hassett on Sunday pushed back against the idea that Republicans are targeting Medicare for cuts. "That story that got out last week was covered as our intent to go after Medicare," Hassett said bluntly. "And it was just a big fake news story." National Economic Council director Kevin Hassett on "Face the Nation with Margaret Brennan," June 2, 2025. CBS News Asked whether the administration would revisit the Medicare provision if the Senate identifies abuse, Hassett said they would. "I've seen a massive amount of waste, fraud and abuse in Medicaid, and I've not been briefed on Medicare waste, fraud and abuse. But if they find something then, of course, we would look at it," he said. The nonpartisan Congressional Budget Office estimated earlier this week that the bill will add $2.4 trillion to the national debt over the next decade. Sen. Thom Tillis told Charlotte's WCNC on Thursday that he supports legislation that would address waste in the Medicare Advantage Program. This addition, he said, would not touch beneficiaries but would focus on "eliminating waste, fraud, and abuse of the Medicare Advantage program, including costly government overpayments to insurance companies." To pay for some of Mr. Trump's tax reforms, such as extending his 2017 tax cuts and eliminating tax on tips, there are cuts to several programs. Republicans have insisted they are not cutting Medicaid, and reductions in the low-income entitlement program have become one of the most charged parts of the bill. In a closed-door session with members of the Republican conference days before the bill's passage, sources in the room told CBS News Mr. Trump said, "Don't f*** around with Medicaid." House Republicans passed the bill late last month on a 215–214 vote, sending it to the Senate where GOP leaders are weighing revisions to secure enough votes under budget reconciliation rules. "What we want to see done now is we want the Senate to pass the bill, and then we want the House and Senate to work out their differences," Hassett said. "So right now, the Senate has to get the votes they need to pass the bill, and we're supporting them in that process." Some Republican senators, including Susan Collins of Maine, Lisa Murkowski of Alaska, and Josh Hawley of Missouri, have voiced concerns about Medicaid provisions in the bill, particularly new monthly premium requirements for low-income recipients. Their opposition highlights ongoing uncertainty as Senate GOP leaders work to secure enough votes. The bill can't afford to lose more than four votes in the Senate, granted that all Democrats vote against it. Hawley has called the Medicaid work requirements "both morally wrong and politically suicidal." When asked about Hawley's concerns, Hassett said, "I'd have to go see what he has and talk to him about it. And I also would want to talk to the president about the specific matter. So I can't speak to that one." The administration has repeatedly argued that failure to pass the legislation could hurt the broader economy. "If we don't pass this bill, then we lose 6 to 7 million jobs and 4% GDP," Hassett said Sunday. "If we create the jobs that we have in the bill, then we're going to create a heck of a lot more insurance than what we're talking about in waste, fraud and abuse." Senate Republicans are expected to release their version of the bill in the coming days. If there are significant changes, it will then have to go back to the House for final passage before landing on Mr. Trump's desk.
