The government's proposed Organised Crime Bill will contain a general power to allow the public and private sectors to share information on fraudsters and suspect fraudsters .
The legislation, expected before Christmas, will give ministers the power to name suitable datasharing gateways by order, but the role will almost certainly be designated to the fraud prevention service, CIFAS, in practice.
The Home Office says the plan is to move to a situation where all applicants for public services expect to have their details checked against a fraud prevention database.
Ministers also hope to work with Information Commissioner to develop acceptable codes of practice to govern datamining.
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