Some research I did with regards to NI numbers on Bank Statements/Identity theft

nattie

New Member
Sep 3, 2008
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On another forum, a poster insisted that the bank were at fault over Identity theft by leaving NI Numbers on the narrative that were sent to the Banks. I decided to investigate this.

My email went like this

Dear Mr Purnell

I am a member of a consumer website and I am asking for some clarification from your office. The issue is with regards to Direct Payments. Why does the DWP, when they are sending payments to a UK bank account quote, National Insurance numbers on the payments of Incapacity Benefit, Disability Living Allowance etc,etc, and yet for Working Tax Credit and Family Tax Credit, no such NI number is given? Would it not be more appropriate for simply the name of the benefit be given or is there a specific reason for this?

I look forward to your response and I hope the question was clear.

Yours sincerely

Nattie
 

nattie

New Member
Sep 3, 2008
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I received a response which follows....

Dear Nattie

Thank you for your e-mail to the Secretary of State concerning Identity fraud issues. I hope you will understand that Mr Purnell is unable to deal personally with the vast amounts of correspondence that are received each day. Therefore, since your letter falls under the remit of this Department, I have been asked to respond and I am sorry for the delay in replying.

All benefits and pensions administered by the Department for Work and Pensions (DWP) use the customer's National Insurance number (NINO) as a reference for payments made through the Bacs automated clearing system.

Many of the benefits administered by DWP provide customers with their only source of income and entitlements to these benefits frequently change according to peoples’ income and circumstances. This means that payments made to the banks frequently have to be recalled and re-issued to ensure the customer is paid the correct amount of benefit. Using the NINO as a payment reference provides a full audit trail of individual transactions so that returned payments can be quickly traced and customer enquiries dealt with effectively.

Tax credits which are administered by Her Majesty’s Revenue and Customs (HMRC) provide a top-up income, and whilst awards are updated as necessary to take account of changes of circumstance, payments are adjusted so that, where possible, HMRC pay the correct amount over the year. They do not have to recall and replace individual payments on the same scale as DWP.

I hope this explains why DWP presently has no alternative but to use the NINO as a payment reference. However, the Government is very much aware of customer concerns about NINOs appearing on their bank statements and whenever improvements in banking technology arise it will consider whether it can minimise the use of NINOs with the customer information it provides to the banks.

I hope that this is helpful.

Yours sincerely
 

Paul Carcone

Facilitator
Jun 22, 2008
141
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South Coast
www.carconeconsulting.com
I can't possibly beleive that the availability of the technology alluded to above is the main driver behind the need to use NINOs! This is just another very badly thought through service designed by civil servants who are too dim to work in the real world.

It's no wonder that the UK is going to the dogs when we have such ineptitude in governmental functions.
 

nattie

New Member
Sep 3, 2008
45
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I kinda agree with you but my initial thoughts were the issue of audit trailing the money was the reason. I don't agree that the UK is going to the dogs based on their answer. The question is really in need of a follow up I think.
 

nattie

New Member
Sep 3, 2008
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Paul on the back of what you said, I went back to the DWP and asked them about that point which they made because the technology is already there.
THis is what I wrote to them:

Thank you for your response to my initial question about National Insurance Numbers but my understanding of banking systems is that where the money is being sent from A to B bank and there is no errors in the application of the account number and sort code, the automated way BACS works means that the UK Banking system cannot tamper with the payment in any way.
Can I ask you to explain to me the improvements in Banking systems that would allow you to change the present system? From my understanding the DWP would need to either (a) change their reference numbers as that would be what counts or (b) simply change the narrative sent to the bank to say State Pension or Job Seekers Allowance. Is that something that the DWP would consider looking into because the problem of this is not about banking systems but how the payment is sent and referenced.
I look forward to your response

Nattie
 

nattie

New Member
Sep 3, 2008
45
5
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I received a further response:

Dear Nattie
Thank you for your further e-mail.

Your understanding of banking systems is quite correct. It is the way that DWP ‘banking’ systems operate that the Department would be looking to change in order to remove customers’ National Insurance Numbers (NINO) from the narrative it sends to the banks.

As previously explained, the Department currently has no option but to use the NINO as a reference for payments sent to Bacs. However, I can assure you that the Department is actively pursuing the use of an alternative reference in response to customer concerns about their NINOs appearing on their bank statements.

Yours sincerely