Fraud

What fraud is

Fraud is when someone acts dishonestly to make a gain for themselves or another person.

People who commit fraud may be:

  • telling us false information
  • failing to tell us about changes in their circumstances
  • abusing their position.

Fraud has a direct impact on the community. Losses to us can mean cuts in services or increases in Council Tax to maintain services.

Our Counter-Fraud and Corruption Strategy aims to prevent this by promoting detection and supporting investigation.

Types of fraud

Find out more about:

Council Tax and business rates fraud

Council Tax and business rates fraud can include falsely claiming:

  • a single person discount
  • student exemptions
  • empty property reductions
  • charity relief.

It's also fraud if you do not tell us about a change in circumstances that affect your Council Tax reduction. This includes if you've failed to tell us:

  • if you're working
  • about other benefits or occupational pensions
  • if you own other properties or land
  • about any savings and bank accounts
  • about partners or other people living with you
  • if other adults live at the property.

We can issue civil penalties between £70 and £280 if you do not tell about a change of circumstances.

We can prosecute serious cases of Council Tax and business rate fraud.

Find out more about Council Tax fraud.

Find out how to report fraud to us.

Housing benefit fraud

Housing benefit fraud can start when a claim is made and you either provide made-up information or fail to tell us all the information needed to assess your claim accurately.

It is a criminal offence for you to make false statements to get benefits that you would not otherwise be entitled to.

Fraud can also happen during the life of a benefit claim when you fail to tell us of a change in circumstances that may affect your entitlement to benefit.

Housing Benefit fraud can be committed if you:

  • fail to tell us you're working
  • fail to declare other benefits or occupational pensions
  • are claiming benefit for an address you do not live at
  • are claiming benefit for houses you own
  • fail to tell us you own other properties or land
  • fail to tell us of savings and bank accounts you have
  • fail to tell us about partners or other people living in your home
  • are claiming benefits when living abroad.

Report Housing Benefit fraud to the Department for Work and Pensions (DWP)

You can also contact the DWP fraud helpline to report fraud by:

  • phone: 0800 854 4400
  • SMS: 0800 320 0512
  • post: NBFH, PO Box 224, Preston, PR1 1GP. 

Housing tenancy fraud

Housing tenancy fraud includes: 

  • a council tenant not living in their property as their main or only home
  • a council tenant renting out their property and not living there. It is a criminal offence to sublet a council tenancy without our permission
  • if someone tries to take over a tenancy after the tenant's death if they're not eligible. This is usually when someone claims to have lived in a property before the tenant's death
  • a tenant providing false information or failing to disclose information when applying to buy a property under the Right to Buy scheme
  • attempting to get social housing based on false information. For example, failing to tell us if you already have a property.

We investigate fraudulent assignment and mutual exchange applications.

The action we take against housing and tenancy fraud depends on the type and scale of the fraud committed. We can:

  • issue a possession order to recover the property and evict the tenant who has committed fraud
  • pursue a criminal prosecution under the Fraud Act 2006 or the Prevention of Social Housing Fraud Act 2013. This can result in a prison sentence of 2 years
  • issue money orders, including unlawful profit orders, to recover profits made from fraud
  • issue compensation orders to recover money lost by us as a result of tenancy fraud.

We can choose to pursue more than one of these options.

Find out how to report fraud to us.

Employee or member fraud

Corporate employee or member fraud includes:

  • abuse of your position
  • procurement fraud
  • bribery
  • manipulation of records
  • creating false claims.

If you're caught committing any of these actions, it can lead to dismissal and in serious cases, a criminal prosecution.

Find out how to report fraud to us.

Insurance fraud

Insurance fraud includes:

  • making up or exaggerating claims against the council
  • staged incidents
  • motor-related fraud.

Insurance fraud can lead to criminal prosecution and recovery of losses.

Find out how to report fraud to us.

Parking permit and Blue Badge fraud

Parking permit and Blue Badge fraud includes:

  • using forged, stolen, or altered permits
  • misusing a genuine Blue Badge.

If you commit parking permit or Blue Badge fraud, we can:

  • pursue a conviction, leading to a criminal record
  • issue a fine of up to £1,000, plus court costs and victim surcharges if applicable. Higher fines and prison sentences can apply for more serious or organised cases of fraud
  • issue Penalty Charge Notices (PCNs) for parking violations.

Find out how to report fraud to us.

Right to Buy fraud

Right to Buy fraud happens when you apply for a discount to purchase your council home and you:

  • give false information
  • have unlawfully applied for the discount where the property has been subject to tenancy fraud such as subletting or not using the property as your main and principal home
  • have entered into an agreement with a third party to buy the property on your behalf for a cash incentive.

There are companies and individuals that offer tenants money or an incentive to apply to buy your council property on their behalf. You must not enter into this deal. You may be evicted and have no home as a result. You will not be rehoused and will have to pay the discount back to us.

If you commit fraud in your application, it could result in eviction and criminal prosecution.

Find out how to report fraud to us.

School admission fraud

School admission fraud is when someone lies or provides misleading information to get their child into a school they would not normally qualify for.

This is fraud because it takes a school place away from a child who should have been offered it.

If you're caught committing school admission fraud, we can:

  • withdraw the school place even if your child has started
  • retract offers under the School Admissions Code
  • remove your younger children's priority for future applications
  • refer the case for investigation or prosecution.

Find out how to report fraud to us.

Social care fraud

Social care fraud is when you lie, hide information, or misuse money to get care services you're not entitled to.

Social care is funded by taxpayers. When you commit social care fraud, you're reducing the money available for people who need support.

If you're caught committing social care fraud, we can:

  • make you repay the money spent
  • end or reduce your support
  • stop direct payments
  • contact the police and prosecute you. 

Penalties range from community service to fines. In some cases, this can lead to a prison sentence.

Find out how to report fraud to us.

Bribery and corruption

Our officers are not permitted to accept bribes.

Bribing a council officer is fraud and is a serious criminal offence.

If you know of anyone at the council who has accepted a bribe or who has asked for money or other personal benefits to make a particular decision, please tell us about it.

Find out how to report fraud to us.

View our whistleblowing policy.

Grant fraud

Grant fraud is when individuals, organisations (such as businesses or charities) or organised criminal groups claim public funding or grants that they're not eligible for.

If public funding has been awarded due to an error, misrepresentation or incorrect information provided to us, we'll look to recover the amount in full. You could face prosecution as a result.

Find out how to report fraud to us.

Cyber fraud

There are many types of cyber fraud you can be exposed to. Find out more about:

All of these are sent with deception and intend on obtaining your money.

For more advice about cyber fraud, visit:

Phishing

Phishing is an email that attempts to steal your money or identity.

They work by getting you to reveal personal information such:

  • credit card numbers
  • bank details
  • passwords. 

The websites they appear on can appear to be legitimate.

Vishing

Vishing is a phone call or voicemail that attempts to steal your money or identity.

They work by pretending to be from reputable companies so you reveal personal information such as:

  • credit card numbers
  • bank details
  • passwords.

Some attackers use Artificial Intelligence (AI) to analyse voice samples and recreate this in real time. They can create convincing speech that might sound like someone you trust, such as a family member or colleague.

Whishing

Whishing uses WhatsApp to attempt to steal your money or identity.

It works by tricking you into revealing personal information or downloading malware onto your phone.

Whishing often involves sending messages that target you. For example, you might receive a message like this:

  • 'Mum, I've got a new phone number. Send me money'

Smishing

Smishing uses SMS text messages.

They work by pretending to be from reputable companies to encourage you to reveal personal information or click on links that can steal your information.

Quishing

Quishing involves scammers covering legitimate QR codes with fake stickers. 

Scanning these fake stickers can lead to your personal data, login details, or money being stolen.

These fake QR codes are often found in public places, such as car parks or restaurants.