A lie detector which identifies benefit cheats as they talk on the telephone led to almost 160 investigations in Birmingham last year, the city council has revealed.
The system was used by housing benefit officials to assess whether claimants were telling the truth or not.
Of 2,656 calls checked by the technology, six per cent, around 160, were classified as "high risk", leading to further inquiries.
Birmingham was one of 14 authorities across the country testing Voice Risk Analysis for a Government pilot scheme.
A computer listens in on a telephone conversation between a claimant and officials and checks for changes in their voice frequency as they are asked questions, to determine whether they are telling the truth or not.
Staff also receive training in how to spot the signs that a claimant is not being entirely honest.
If they believe a caller is "high risk", based on the computer’s verdict and their own assessment, they can order an inquiry. Claimants may be visited at home by benefits officials, or asked to provide more details by post.
The city council said that the system also allowed claims to be processed far more quickly in the majority of cases, so that people received their housing benefit with less fuss.
The Government has judged the pilots to be a success and Work and Pensions Minister James Plaskitt, MP for Warwick & Leamington, announced that more councils are to be invited to test the technology, with a £1.5 million grant from the Government.
He said: "Overall, the huge majority of people who receive benefits are entitled to them. However, there is a minority who will still try to steal money from those people who are most vulnerable.
"We need to continue to do more to make sure that taxpayers’ money always goes to those who need it the most."
Paul Tilsley, Deputy Leader of Birmingham City Council, said claimants supported the use of the technology.
He said: "We were very pleased with the way this technology worked for us in Birmingham and so were our customers, 98 per cent of whom told us they were satisfied or very satisfied with the process.
"It was a win-win situation all round – customers get their claims dealt with much more quickly and accurately via a 20 minute phone call, there is very little or no form filling or bureaucracy and it is very much more efficient from a cost point of view.
"We will certainly be expressing our interest in continuing our involvement."
However, the technology has been criticised by trade unions and left-wing MPs, who claim it could prevent people from making legitimate claims.
Labour MP John McDonnell (Hayes and Harlington) said: "No-one condones fraud but people have a right to claim benefits that they have paid their taxes to fund without being treated like criminals."
A spokesman for the Child Poverty Action Group said: "It is deeply worrying that the Department for Work and Pensions does not appear to have made any evaluation of the pilots and has made the decision on what seems to be anecdotal evidence.
"Major concerns were expressed by disability and welfare rights organisations that this technology is unproven, stigmatising and could put off legitimate but vulnerable claimants from accessing welfare rights."
TUC General Secretary Brendan Barber said cheats could be accomplished liars who fool the system while the honest could sometimes fail.
"The danger is that the genuinely needy then have to wait while their claims are assessed or become so frightened they withdraw their application, meanwhile real fraud goes undetected because the cheats pass an unreliable test," he said.
"Of course the authorities must tackle fraud but this kind of short cut penalises some of the poorest and weakest." We need to continue to do more to make sure that taxpayers’ money always goes to those who need it the most Work and Pensions Minister James Plaskitt