The former Soul II Soul singer admitted that she is "outraged" after London's Islington Council launched an investigation into whether she has been cheating the system.
Bell claims disability and income support for her severe diabetes but has been accused of receiving money for performing at a number of gigs.
"I rang the council and they have admitted I am under suspicion of benefit fraud. I am absolutely outraged," Bell told Metro.
"The council can come and search me right now," she added.
The singer claims that she has not received any payment for professional gigs while she has received benefits and that any money she did receive was given to charity.
"Officials have looked online at all the places I have appeared and have contacted them all.
"But any money I have received I've given to the Kidney Patient Association. I am very mindful of the rules."