Six councils have signed up to a fraud and error review service provided by the technology company CapacityGrid.
The company said that the deal would help the councils identify savings worth a combined total of more than £1 million.
The latest councils to take on the service include Burnley, Redcar and Cleveland and Boston.
The service aims to help councils identify fraud and errors in housing benefit and council tax reduction claims by matching commercial and open source data sets.
Vijay Chandiramani, chief operating officer of CapacityGrid, said that the idea of the service was to offer councils a joined up approach to data and process automation in order to identify fraud more accurately.
If errors are identified, CapacityGrid says that it will carry out an intervention on those cases. It will then provide the councils with the relevant electronic data for their own records and auditing purposes.
The company’s website says that there is an average saving of £550 per claim, and that by June this year the 12 local authorities signed up should achieve savings of £2.5m.