The Department of Work and Pensions (DWP) has issued a warning to people who may be trying to take advantage of a Universal Credit (UC) loophole which sees them receive an extra £1,500 reports BirminghamLive.
On up to three separate occasions, claimants have been able to gain advance payments of more than £1,000.
This is as a result of a glitch in the application process which meant that benefit claimants could receive several of these UC loans even though they were not eligible.
This came about as claimants were trying to find some extra money which led to them being approached by fraudsters.
The fraudsters were usually posing as staff from the JobCentre or personal loan advisors.
The scammers took some of the money from the advance payments in return for helping claimants put in false information.
This loophole was shared on social media and led to a number of fraudulent claims.
Speaking to Birmingham Live, a DWP spokesperson said: "The vast majority of claims to Universal Credit are legitimate and fraud and error in the benefits system remains very low with 96.5 per cent of benefits paid correctly.
"We continue to monitor and investigate emerging fraud threats and pursue those seeking to rip off the taxpayer using the full range of our powers, including prosecuting and tough financial penalties."
Dedicated investigative teams looking into specific types of fraud which include 600 trained fraud investigators have now been set up by the DWP and to reduce the risks the organisation has established an Enhanced Checking Service.
