People in Leeds are being warned about a scam which claims to offer low-interest loans.
Trading Standards say scammers are contacting people across the country and claiming to offer loans.
Once the scammers collect someone's personal details they apply for Universal Credit in their name and request a substantial advanced payment.
They take a cut of the first payment and the victim's current benefits are stopped and replaced by Universal Credit.
The victim then has to pay back the so-called loan using future Universal Credit payments.
Personal information may also be leaked and the scammers will have access to their benefit account and banking information.
Universal Credit was fully rolled out across the city in October 2018 and Leeds City Council says thousands of people are struggling to make and manage claims because they find it difficult to use the online system.
Claimants, charities and politicians have made a number of complaints about the benefit, criticising penalty reductions of up to 40 per cent and six-week waiting periods.
There are now more than 10,000 people in Leeds claiming Universal Credit, which has replaced six benefits including Housing Benefit and Income Support.
Police are urging people to avoid giving out personal or banking information to people they don't know and report all scams to Action Fraud.
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