A BANK account holder paid a Universal Credit fraudster £500 each time he completed an online application which netted a £1,500 payout.

Blackburn magistrates heard Karen Brenda Dyer benefited three times from the loophole which has now been closed.

Dyer, 49, of Fleetwood Close, Blackburn, pleaded guilty to three charges of retaining a wrongful credit. She was remanded on bail for the preparation of a pre-sentence report.

Paul Sumner, prosecuting, said the fraud involved making an online claim for a person with no children, following it shortly after with a claim in the same name for a person with three children and a further claim involving housing benefits.

Because of a flaw in the system this triggered an advance payment of around £1,500 which was paid into the defendant’s bank account in October 2018, March 2019 and June 2019.

Jonathan Taylor, defending, said at one time the scam was all over facebook.

His client was approached by someone saying they could submit the claim for the defendant.

“That was done on three occasions and each time the other person expected £500,” said Mr Taylor. “She has to accept she knew something was wrong.

“She allowed her details to be used and has benefitted from that and stands to be punished.”