The suspect was arrested at an address in Enfield on Monday (January 27).
The Home Office alleged she helped men and women “gain an unfair advantage” in the Life in the UK Test.
She is alleged to have donned various wigs and disguises to pass herself off as the true applicants, both male and female, in an attempt to fraudulently obtain them leave to remain.
At the address in Enfield “several false documents and an array of wigs alleged to have been used in the fraudulent scheme” were found.
Officers acted on intelligence that between June 1, 2022 and August 14, 2023, the woman allegedly attended multiple test centres in the UK, disguising herself and doctoring ID documents to evade detection from authorities.
The Home Office said fraudsters completing the test for others could “lead to people wrongly being granted the right to remain in the country without the proper due diligence”.
Home Office immigration enforcement criminal and financial investigation inspector Phillip Parr said a “complex investigation” had “put a stop to this dangerous scheme”.
Mr Parr added: “This individual is believed to have orchestrated a pre-meditated plan to avoid detection, meticulously selecting disguises and test centre locations across the country to evade the authorities.
“As with many criminals who commit this type of crime, we believe her motive was financial gain.”
The Home Office said the woman remains in custody.
The Life in the UK Test is a requirement for anyone seeking to obtain indefinite leave to remain or naturalisation as a British citizen.
The Home Office said it consists of 24 questions aimed at “proving the applicant has sufficient knowledge of British values, history and society”.