Three people believed to be part of a Ghanaian gang have been arrested on suspicion of using fraudulent credit cards to fund a half-a-million pound spending spree on Rolex watches, top-of-the-range computers and fine dining.

Two men, aged 34 and 35, and a woman, 34, were arrested in Croydon during dawn raids by City of London Police fraud squad this morning.

They have been arrested on suspicion of conspiracy to defraud and money laundering in Croydon and Beckenham.

Detectives believe the gang was running an elaborate identity fraud using fake passports and driving licenses to create fraudulent utility bills to buy companies that were already registered.

The gang then used the companies to apply for bank accounts and corporate credit cards with spending limits of up to £400,000 to fund their spending spree, according to police.

The City of London Police was notified of irregular spending on the credit cards in June 2015 by the credit card company.

Detective Inspector Jo Ferguson, from the City of London Police, said: “We believe this gang have been using sophisticated techniques to hide their true identity and commit fraud across the UK allowing them access to corporate card accounts with large spending limits.

“The reality for people like this is that it doesn’t matter how many layers of false identity they try to hide behind their actions will ultimately be exposed by the City of London Police.”

They are currently being held for questioning at a City of London police station.