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identity theft/money laundering risk

Diogenes
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I have a client who has been told by DWP that they have over £40.000 in various bank accounts. Client tells me this is all nonsense, she has no savings and no such accounts. DWP are putting the onus on my client to provide the ‘negative’ evidence of these accounts , in effect asking her to prove hey don’t exist. What is goin on here , any ideas ?????

[ Edited: 25 Aug 2021 at 12:07 pm by Diogenes ]
Elliot Kent
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I am not really quite sure what is being asked here but in broad terms what is important is what is actually going on in terms of the process.

If the DWP are asking for evidence which your client cannot provide; either because it doesn’t exist or they don’t have access to it then so be it; your client will just have to go back to them and say they don’t have it and they need to progress whatever it is without that evidence.

If DWP have made some sort of decision on the basis of some allegation about capital which your client says doesn’t exist, then she is going to need to challenge it. If DWP want to sustain the decision, they will have to explain why they say it does exist or they will not get very far.

Diogenes
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Elliot, sorry the post was gibberish, I have tidied it up. Yes DWP insist client has over £40.000 and have told her to get evidence to show she does not have these bank accounts. I suspect we will have to appeal eventually to force the DWP’s hand in the matter, the worry is they will suspend her ESA/IR in the meantime
I wonder if its money laundering/ID theft of some kind

UB40
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DWP Fraud and Compliance officers do not have access to account balances ( unless they have been granted a Court order ). What they are supplied with via the HMRC link is the list of financial institutions where the claimant has a deposit. The claimant is required to report the existence of all accounts at the start of the claim and then bank statements may be requested. DWP chief John Paul Marks has requested new powers for the DWP to see the actual balances. Though this will require new legislation which as far as I know is not in the pipeline. Other investments such as stocks and shares are on public registers. Hope this helps.

Elliot Kent
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Well the DWP can get the details from the bank direct in an appropriate case - see e.g. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/563273/code-of-practice-on-obtaining-Information-social-security-fraud-act-2001.pdf

But yes they do not have an automatic read across without making a specific request for information.

I suppose in an ordinary case it is sensible and proportionate to ask the claimant to provide the material voluntarily before requisitioning the information from the bank.

Have the DWP indicated which bank the funds are held with? If so I don’t see why your client can’t make enquiries with that bank. Otherwise all your client can do would be to go back to them explaining that they haven’t got any knowledge of it and give whatever information is appropriate about the accounts they do have.

I suppose some sort of identity theft is a possible explanation. I remember dealing with a case like this where the client had suffered a brain injury and had entirely forgotten about half a dozen substantial bank accounts he had squirrelled away in the distant past. DWP gave us enough information for him to eventually be able to track these funds down.

Diogenes
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Thank you both , well I have spoken to compliance now and am satisfied it is a legit’ DWP contact and not a scam, The client did get letters from all the banks saying no such accounts exist. This makes it all the more strange that DWP say they have evidence that they do exist. I have advised my client to comply with DWP by giving consent to contact the banks themselves. I have a suspicion that someone may have deposited money for my cl disabled son and not told anyone. Very odd though that the banks all deny knowledge of account in the son’s name and yet DWP has linked them to him via HMRC feedback of information. Maybe they are in trust for the son, its all a big fat mystery. At least DWP compliance are being reasonable and not suspending the ESA award [yet] .

[ Edited: 26 Aug 2021 at 11:52 am by Diogenes ]
Va1der
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Could be a case of mistaken identity, rather than anything more nefarious? I.e. DWP tying the client to someone with similar details? The banks would presumably not do this, and send the correct info to your client.

Diogenes
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Yes V, I am hoping it something along those lines, anyway its going to be interesting to see the outcome.