Universal Credit Scam Alert

There’s a lot of confusion about the switch over to Universal Credit as it replaces other benefits. Only 1 million out of the expected 7 million people have switched over to it and the fraudsters are cashing in on the confusion. Fraudsters are offering “low cost government loans”, but all they do is to use the personal details to apply for Universal Credit and an advance payment. The fraudsters take a hefty admin fee, sometimes over £400, and the victims other benefits including housing, jobseekers’ allowance, income support, child and working tax credits all stop. The victims have also committed to paying back the loan despite losing all their benefits. Also, at this point the fraudsters have full access to their personal financial and benefit accounts.


Tips and Advice

  • Personal means private! – Do not divulge personal details unless you are certain who you are sharing it with, and certainly not PIN numbers!
  • Check – If like many you’re confused about Universal Credit call the Government helpline on 0800 328 5644
  • Too good to be true? It’s a scam!
  • Contact – your bank or credit card company if you have already given out financial details
  • ID Protection –  If you’re worried about identity fraud and would like to protect your identity contact CIFAS
  • Still Unsure? – Join Reassura 0800 888 6400 and one of our fraud advisor’s will help you to stay safe
  • To report a fraud – and receive a police crime reference number call Action Fraud on 0300 123 2040 or use theironline fraud reporting tool


Reassura is dedicated to helping raise awareness of scams and fraud along with the impact they have on their victims. Reassura’s team of specialist anti-fraud advisors are here to help members make better decisions and avoid falling victim to scams and fraud.

Join Reassura either as:

  • FREE member for scam alerts and newsletters to your inbox
  • PREMIUM member for only £24 a year for all the alerts and unlimited access to our phone-based Fraud Advisors

If you have found this article helpful please share it on Facebook or Twitter to help others stay safe from scams and fraud.