Privacy concerns over bank account monitoring in benefit fraud crackdown

This week, we joined several privacy and disability rights groups in signing a letter urging the government not to bring back plans for monitoring UK bank accounts to fight welfare fraud.

As reported exclusively by the Guardian, the letter to Liz Kendall, the secretary of state for work and pensions, raises concerns about how vulnerable individuals could be affected by potential privacy violations.

What’s in the bill?

Under the fraud, error and debt bill announced by prime minister Keir Starmer, banks might be required to share data on customers who show signs of having been overpaid benefits.

The government claims this could save £1.6bn over five years, but we’re concerned these measures could lead to significant privacy intrusion for many, including pensioners and disabled individuals.

Increasing use of AI

The Department for Work and Pensions (DWP) said the government would not use artificial intelligence to look at account data, but it would be able to request data from banks on customers suspected of not meeting eligibility rules for benefits they’re claiming.

But we’re concerned the new bill could push banks to monitor the accounts of all individuals on welfare looking for any signs of benefit fraud.

The use of artificial intelligence is increasing in government departments - about 70% are believed to be piloting or planning to use AI, the National Audit Office spending watchdog estimates.

Welfare algorithms can go wrong – more than 200,000 have been wrongly flagged to be investigated for suspected fraud and error.

A climate of fear

The letter highlights how this kind of surveillance could create a climate of fear among vulnerable benefit recipients in particular:

“Pensioners, disabled people, and carers shouldn’t have to live in fear of the government prying into their finances.”

Referring to the wrongful imprisonment of post office operators due to computer system errors between 1999 and 2015, the letter adds:

“Imposing suspicionless algorithmic surveillance on the entire public has the makings of a Horizon-style scandal – with vulnerable people most likely to bear the brunt when these systems go wrong.”