Changes have been made to the way people can apply for Universal Credit advanced payment after scammers made bogus claims.
The DWP says applicants will now have to have an appointment at the Jobcentre first, ahead of receiving any money.
Going forward, those who wish to make a claim will need to have their details verified by Jobcentre staff - whereas under the previous system, an advance payment application could have been approved online without further checks.
The DWP said applicants could have money cleared in their account on the same day of the meeting, should they be approved.
It comes after scammers made bogus claims for themselves or pretended to be from the Jobcentre, approaching vulnerable members of the public and enticing them to share personal details, the Express reports.
The fraudsters promised a cash windfall, before instead applying for Universal Credit and an advance loan in the victim’s name.
And, upon the victims receiving the money, the scammers insisted on taking a proportion of the money as a “fee”.
Guy Opperman, Minister for Pensions and Financial Inclusion, said: “I am pleased that those who need financial support quickly will continue to get it through Universal Credit.
“This change strikes the balance between allowing swift access to support for those who need it, while also protecting those same people’s money from fraudulent behaviour.
“This step will ensure vulnerable customers can no longer be conned out of vital money by scammers.”
The DWP said it will seek to recover the full amount of any overpaid advance.
However, where a claimant has been the victim of a scam and has not benefited from an advance in any way, they will not be asked to repay it.
Instead, the DWP said it would seek recovery from the scammer, adding that all cases are considered on their own merits.
