Criminal gangs steal people's details to apply for advance payments of universal credit. The money is paid to them but the person whose identity has been stolen gets the bill. If the money is not repaid voluntarily the DWP instructs employers to deduct the money directly from salaries. Many cases involve more than £1,000.
The DWP has apologised to victims who've struggled to get through on the phone numbers they provide to report frauds.
- Fraud risk warning: 'I was desperate for a job'
- Fraudsters 'caught me in a spider's web'
- 'Having my identity stolen cost me £10,000'
BBC Radio 4's Money Box programme has heard from several people affected in recent weeks. All of them received letters out of the blue demanding repayment and then struggled to report their concerns to the DWP.
Source: BBC Business