Universal Credit scam: Police raid addresses in Handsworth Wood and Highgate over £4 million scam

Five members of a Birmingham gang suspected of making making millions by conning the benefits system were arrested yesterday (1 December).

It’s alleged the gang used stolen identities to make thousands of bogus benefits claims – and laundered the money through cryptocurrency transactions.

Over 70 officers from the Department for Work and Pensions and West Midlands police took part in a series of warrants across the city yesterday morning at the homes of people believed to be part of the £4 million Universal Credit scam.

Many of the suspicious applications were made during the Covid-19 lockdown with claimants getting advance payments after suggesting they had families, their jobs were on hold, and were in immediate hardship.

However, it’s believed children were invented and housing payments vastly inflated in order to secure increased pay-outs.

Five men, aged between 21 and 53, were arrested during the simultaneous raids this morning in Birmingham and one address in London.

One 23-year-old man was arrested from an address in Long Street, in Highgate. He’s registered as unemployed and claiming benefits – but financial investigators have identified he’s linked to sizeable cryptocurrency crypto transactions.

Another man suspected of being a lead player in the gang was arrested in Hamstead Road in Handsworth Wood.

It’s believed the 28-year-old is linked to Bitcoin purchases funded through bogus Universal Credit claims.

What West Midlands police said following the arrests

The investigation is being run by the Department for Work & Pensions’ Serious Organised Crime Unit and is part of a nationwide offensive on fraud that’s been codenamed Operation Goliath.

David Rutley, Minister for Welfare Delivery at the Department for Work and Pensions, said: “Those committing these crimes should expect to be caught, and we use the full powers of the law to secure convictions and recoup money stolen.

“We are working with police forces across the country to track down and punish those who commit fraud. Together we are making sure benefit fraud does not pay.”

Jason Grove, from our ROCU and Government Agency Intelligence Network (GAIN) manager, added: “By working in partnership, sharing intelligence lawfully and efficiently, the GAIN aims to ensure that government agencies along with law enforcement will help reduce the risk, threat and harm from serious and organised crime, in the most cost effective way.

“Operation Goliath has involved months of collaborative hard work by the GAIN network of partners and police who are dedicated to disrupting and dismantling criminal enterprises. Today’s executive action is an excellent example of adopting a multi-agency approach.”

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