Lambeth Council helped identify more than 130 blue disability badge fraud offences during a joint crackdown with Croydon Council.
The pilot scheme which ran last year has now been extended, with Lambeth and Croydon councils working together to tackle the problem.
Since April 8, more than 40 new separate blue badge fraud offences have already been uncovered.
Councillor Pete Robbins, Cabinet Member for Neighbourhood Services, said: "By sharing our expertise with a neighbouring council we are stopping fraudsters in their tracks and tackling a problem that affects the whole of London."
Helen Dolphin, campaigns manager at Disabled Motoring UK, backed Lambeth’s work after visiting the borough.
She said: "Spending the day with Lambeth’s Parking Investigations Team and catching numerous Blue Badge abusers was a very satisfying experience.
"It made me appreciate how seriously Lambeth takes this crime."
Lambeth Council runs a White Badge scheme to combat the fraud problem.
The white badge allows holders to park in disabled bays overnight without having to display their blue badge.
They also show the vehicle registration number which means they are no use to anyone else, so are unlikely to be targeted by thieves.
To apply for a White Badge phone 020 7926 5555 or visit www.lambeth.gov.uk.