Tag: fraud

Just one week to go to the tax credits deadline – don’t miss out

The deadline for tax credits renewals is 31 July 2022. With just over a week to go, customers are being urged to renew their claim using HMRC’s online services.

With just over a week to go, HM Revenue and Customs (HMRC) is urging more than 222,600 tax credits customers to renew their claims before the 31 July 2022 deadline.

Customers are being warned not to leave their renewal until the last minute and risk their payments being stopped. They can do it any time – day or night – through HMRC’s online services, including the HMRC App.

Tax credits help working families with targeted financial support and more than 363,000 customers have already renewed ahead of the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The 31 July deadline is fast approaching and renewing your tax credits is too important to forget. HMRC support is available at all times of the day and night via GOV.UK and the smartphone app to help customers get their renewals right.

“It’s great to see so many customers have already renewed their tax credits. I urge those who are yet to renew to do so as soon as possible, in order to avoid having their payments stopped.”

Customers can manage their tax credits quickly and easily online. Once tax credits customers have completed their renewal, they can use their online account to check its progress and find out when they will hear back from HMRC.

If there is a change in a customer’s circumstances that could affect their tax credits, they must report the changes to HMRC. These include changes to:

  • living arrangements
  • childcare
  • working hours, or
  • income (increase or decrease).

Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • make changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

As part of the UK government’s package to support households with the rising cost of living, a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, has been introduced.

For eligible customers receiving tax credits only and no other eligible benefits, HMRC will contact them to let them know they’re eligible and will issue payments automatically, with the first being made in the autumn. Customers do not need to contact HMRC or apply for the payment. More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

As the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers. 

HMRC is warning that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. 

HMRC is also urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. The department urges people to take their time and check HMRC’s advice about scams on GOV.UK.

Customers can download the HMRC app for free from their smartphone app store.

Phone scams reported to HMRC fall in Scotland

Phone scam reports have fallen by 84 pent cent in Scotland over the last year, new regional data from HM Revenue and Customs (HMRC) has revealed. 

In the Scotland, 384 phone scams were reported to HMRC in June this year compared to 2432 in June 2021.  

People aged between 25 and 34 appear to be most affected by scams in the region, with 94 reporting phone scams in Scotland in June. 

HMRC has made significant efforts to tackle the problem and protect the public. Scam call reports from across all regions peaked in March 2021 with almost 76,000 reports. This was slashed to just over 5,000 in March this year.  

To fight phone scams, HMRC has worked with the telecoms industry and Ofcom to stop HMRC’s helpline numbers from being spoofed by fraudsters, who can no longer appear to be calling from an HMRC number. HMRC also has a dedicated customer protection team working on cyber and phone phishing scams around the clock. 

The drop in reported phone scams is a testament to the work of teams across HMRC in tackling fraud. HMRC’s phishing referral tools and innovative technology all play a part in the department’s efforts to combat fraud, which has resulted in fewer people falling victim to and reporting tax scams.  

Kelly Paterson, HMRC’s Chief Information and Security Officer, said: 

“We work tirelessly to tackle scams and protect hard-working taxpayers from becoming victims of fraud. 

“Never let yourself be rushed. If someone contacts you saying that they are from HMRC, wanting you to urgently transfer money or give personal information, be on your guard. HMRC will never ring out of the blue threatening arrest. 

“To help us fight these crimes, forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls to us on GOV.UK.” 

HMRC received over 212,500 reports in total of all kinds of scams, by email, text message and phone, over the past year, nationally. 

Phone scammers often call people threatening immediate arrest for fictitious tax owed.  Sometimes they claim that the victim’s National Insurance number has been used in a fraud or offer a fake tax rebate as a way of stealing personal and banking information.   

In addition to warning the public about phishing scams, HMRC urges people never to share their HMRC login details. Criminals using the logins could steal from the customer or make a fraudulent claim in their name. 

HMRC’s phishing scam advice is:

Stop:

  • take a moment to think before parting with your money or information
  • if a phone call, text or email is unexpected, don’t give out private information or reply, and don’t download attachments or click on links before checking on GOV.UK that the contact is genuine
  • do not trust caller ID on phones. Numbers can be spoofed

Challenge:

Protect:

  • forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls on GOV.UK
  • contact your bank immediately if you think you’ve fallen victim to a scam, and report it to Action Fraud (in Scotland, contact the police on 101).

The numbers in this release refer only to phone scam reports to HMRC using a GOV.UK form introduced in 2020 and do not reflect all of the phone phishing reports that the department has received through email and other channels.

HMRC phishing scams – how to spot and avoid bogus communications

Fake emails, calls and messages suggesting they are from Her Majesty’s Revenue & Customs (HMRC) have grown exponentially in the last five years with many people falling foul to fraudsters.

Here, Perrys Chartered Accountants discusses the latest HMRC cyber scams doing the rounds and how to spot bogus communications:

In 2021, HMRC received more than 670,000 calls from individuals reporting tax scams. Despite a significant drop in reports to HMRC in recent months, statistics show that tax-related scams doubled during the pandemic and HMRC is still advising caution of any correspondence – particularly via text or email – implying it is from the tax authority.

Scams can come in many forms. However, the most common tactic used by fraudsters is contacting potential victims via automated messages. So, what should you look out for?

HMRC email scams

Phishing attacks aren’t new, but the tactics employed by fraudsters have become increasingly sophisticated over the years with many able to replicate email addresses from authorities, such as HMRC, that on first glance look bona fide.

These attacks aim to extract personal information and data from an individual that enables fraudsters to steal identities, bank details and more.

One such campaign doing the rounds is an email telling customers that they are eligible to receive an employment income support scheme credit during the COVID-19 pandemic. If you receive such an email, you should not reply to it, click on any links in the email or open any attachments. You should also avoid disclosing any personal or payment information. Instead, report it immediately to HMRC by emailing it to phishing@hmrc.gov.uk.

Fake tax rebates

Another common scam is the offer of a tax rebate either via text or email. HMRC will never contact anyone by text or email about tax rebates, so any messages received offering a refund will certainly be fake. If you receive any such message, do not reply but report it to HMRC and then delete it.

Be wary of website links and malicious web pages

HMRC will never ask you to click on a link to complete your details online to receive a rebate.

Web pages can also be dangerous with many fake sites cloning or copying official pages from HMRC’s website or claiming to be officially affiliated with the tax authority. To avoid being fooled by a fake website, always visit HMRC directly by typing the government’s official URL https://www.gov.uk/ into your browser.

HMRC text scams

HMRC will never ask for any personal or financial information when sending out texts. If you receive such a text, do not reply to it or open any links contained in the message. Instead, you can send any phishing text messages to HMRC using the text number 60599 or by emailing it to phishing@hmrc.gov.uk.

HMRC phone scams

Phone scams are performed using a variety of methods and are often used to target elderly and vulnerable people.

A popular way for fraudsters to target potential victims is by using an automated message. HMRC is aware of a scam which tells the receiver that they are the subject of a lawsuit and to press 1 to speak to a caseworker to make a payment. This is false. If you receive such a call, you should end it immediately.

Other similar scams might refer to National Insurance number fraud or tax refunds and will ask you to supply bank or credit card information. If you are at all unsure, or you cannot verify the caller, hang up and report it to Action Fraud.

When reporting phone scams, you should include the date of the call, the phone number used to contact you and what the call was about. You can also contact HMRC directly on its phone number 0300 200 3310 to verify the legitimacy of any calls you receive alleging to be from the authority.

HMRC WhatsApp scams

HMRC will never use WhatsApp to contact customers about a tax refund. If you receive any such communication via WhatsApp saying it is from HMRC, you should report it immediately by emailing HMRC and then delete it.

HMRC social media scams

One of the most recent social media scams being used to con people is the distribution of direct messages via Twitter offering a tax refund. These messages are not genuine and HMRC will never use social media platforms, such as Twitter, Instagram, Facebook and LinkedIn, to offer tax rebates or request personal information. Ignore all such messages and report them to HMRC straight away.

HMRC refund companies

Refund companies that send emails or texts advertising their services and offering to apply for a tax rebate on your behalf in return for a fee are not connected with HMRC in any way. Before using any such service, you should read the company’s terms and conditions or disclaimers and think carefully before instructing them to assist you. If in doubt, contact a professional accountant for advice.

HMRC customs duty scams

Changes officially introduced by HMRC on 1 January 2021 mean that some UK consumers buying goods from EU businesses might need to pay customs charges when their goods are delivered. This change in regulations has resulted in a surge of associated email and text scams asking for customs duty payments.

Customers are contacted via false emails or texts and told they must pay customs duty to receive a valuable parcel which doesn’t exist. If you are not expecting any parcel or if you are in any doubt as to the authenticity of such messages, then do not reply. Instead, you should report any suspicious activity to HMRC immediately by emailing phishing@hmrc.gov.uk.

University students taking part-time jobs

According to HMRC, undergraduates taking part-time jobs are at increased risk of falling victim to scams – particularly if they are new to interacting with the tax authority and unfamiliar with its processes.

Between April and May 2021, more than 5,000 phone scams were reported to HMRC by 18 to 24 year olds. The advice is to be wary if you are contacted out of the blue by someone asking for money or personal information.

Mike Fell, Head of Cyber Security Operations of HMRC, said: “We see high numbers of fraudsters contacting people claiming to be from HMRC. If in doubt, our advice is – do not reply directly to anything suspicious, but contact HMRC through GOV.UK straight away and search GOV.UK for ‘HMRC scams’.

For further information and guidance about HMRC phishing scams, visit HMRC’s official web page https://www.gov.uk/topic/dealing-with-hmrc/phishing-scams.

Fraudster to appear in court

A 40-year-old man has been arrested and charged in connection with a large scale fraud in Edinburgh, Lothians & Fife which happened between January 2018 and April 2022.

Following an investigation by Drylaw Initiative Team, it was established that the man defrauded 21 victims out of £25,000.

He is expected to appear at Edinburgh Sheriff Court today (Friday, 8 July, 2022).

The Little Book of Big Scams

Nobody, whether a business or individual, wants to be a victim of a scam and suffer the financial loss, frustration and worry that it causes.

The information contained in this booklet can provide you with enough knowledge to have confidence in going about your daily business without the fear of falling foul of a scam.

You can view the booklet here ⬇️

https://www.sbrcentre.co.uk/…/Little-Book-of-Big-Scams…

Little-Book-of-Big-Scams-Scottish-Business-Resilience-CentreDownload

Social media sites rife with scam car insurance ‘ghost brokers’, says Which?

Social media sites are rife with dodgy companies offering car insurance that is either non-existent or missing key details, resulting in tens of thousands of drivers being potentially left uninsured on the roads, Which? research has found.

‘Ghost broking’ is a scam that cost its average victim £1,950 last year. It involves ‘brokers’ forging insurance paperwork completely or more commonly selling victims a ‘real’ policy at a reduced price, by changing some of the victim’s details in the application, such as their address or claims record. It leaves those affected potentially liable for fraud and at risk of penalties for driving uninsured.

Ghost brokers mainly operate online, particularly on social media. In May, Which? searched on social media platforms for profiles and pages that showed signs of being run by scammers.

Which? analysed the first 50 pages returned from a search for ‘cheap car insurance’ on Facebook, Instagram and TikTok. Of the 47 profiles that matched Which?’s search on Instagram, more than half, 25, appeared to be offering quotes or cover to UK drivers, while showing no signs of being authorised by the Financial Conduct Authority (FCA).

In a separate search, Which? found one Instagram profile that boasted it could save customers ‘up to 50%’ on their premium – it also offered ‘NCB (no-claims bonus) Documents’ and ‘Speeding Ticket Removal’. It had 45,900 followers – more than the five biggest insurers combined – and claimed to have ‘over six years experience in [its] field’. It also had a sister profile with an additional 15,200 followers. Which? flagged these to Instagram, and both have since been taken down.

On Facebook, seven pages of the 50 profiles were dubious. On video-sharing site TikTok, two of the 50 profiles analysed were suspect.

Experts Which? spoke with in the police and insurance industry seem to agree that ghost brokers generally operate most prolifically on Facebook and Instagram.

According to the Insurance Fraud Bureau, last year insurers collectively reported more than 21,000 policies that could be connected to the scam.

Some victims will not report being scammed because they are too embarrassed. Others might be aware their quotes have been manipulated, but ghost brokers can be persuasive in downplaying the significance of this.

Some ghost brokers also put real effort into creating a positive word-of-mouth buzz, which helps them seem trustworthy.

Some 517 cases of ghost broking – with losses totalling £1 million – were reported to Action Fraud in 2021. However, this will only be people who make a report to Action Fraud and actually know that they have bought a fraudulent policy. The true numbers are likely to be much higher.

Many of these losses, unsurprisingly, were from young drivers, who face the steepest premiums. Ghost brokers also heavily target non-native English speakers.

People who have not even bought a policy can also be affected by the scam through having their address or other details used as part of forged insurance paperwork.

To test how social media platforms are vetting unregulated insurance middlemen, Which? set up six accounts of its own on Facebook, Instagram and TikTok, claiming to be car insurance brokers.

Which? promised cheap quotes and asked interested drivers to contact via a mobile phone number or directly message through the website.

The two profiles Which? set up on Facebook were taken down by the site within a few days, as was an Instagram profile linked to an email address containing the word ‘ghostbrokerscammer’. However, a second Instagram profile, connected to a less conspicuous email with a ‘normal’ name (e.g. ‘johnsmith’), stayed up for 35 days until Which? took it down.

The two TikTok profiles, one linked to a ‘ghostbrokerscammer’ email, also stayed up for the same period.

Which? believes social media companies should have stronger processes in place to protect consumers from fraudulent pages offering financial services.

When the Online Safety Bill comes into force, platforms should be required to prevent this kind of activity. To ensure this is the case, Which? is calling on the government to amend the Bill to ensure its definition of fraud does not allow some scammers to slip through the net and to guarantee that Ofcom has appropriate powers to adequately enforce the Bill when it becomes law.

Meanwhile, consumers should be wary of insurance brokers selling their services on social media and carry out other basic background checks to ensure they are not buying a fraudulent or misleading insurance policy – and are dealing with a company that is actually authorised by the FCA.

Jenny Ross, Which? Money Editor, said: “Ghost broking is a really nasty kind of fraud, where scammers operate by stealth and typically take advantage of those who feel locked out of, or bewildered by, the car insurance market.

“Social media sites must do much more to crack down on car insurance scammers that are infiltrating their sites and harming consumers, and should address these problems now, ahead of the Online Safety Bill becoming law.

“The Online Safety Bill should require platforms to tackle this type of fraudulent content. The government must ensure this happens by amending the Bill so that its definition of fraud does not allow some scammers to slip through the net and guaranteeing Ofcom is ready to enforce these new laws when they come into force.”

Tax credits customers warned about scammers posing as HMRC

HM Revenue and Customs (HMRC) is warning tax credits customers to be aware of scams and fraudsters who imitate the department in an attempt to steal their personal information or money.

About 2.1 million tax credits customers are expected to renew their annual claims by 31 July 2022 and could be more susceptible to the tactics used by criminals who mimic government messages to make them appear authentic.

In the 12 months, to April 2022, HMRC responded to nearly 277,000 referrals of suspicious contact received from the public. Fraudsters use phone calls, text messages and emails to try and dupe individuals – often trying to rush them to make decisions. HMRC will not ring anyone out of the blue threatening arrest – only criminals do that.

Typical scam examples include:

·         phone calls threatening arrest if people don’t immediately pay fictitious tax owed. Sometimes they claim that the victim’s National Insurance number has been used fraudulently

·         emails or texts offering spurious tax rebates, bogus COVID-19 grants or claiming that a direct debit payment has failed

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.

“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If you have any doubts, we suggest you don’t reply directly, and contact us straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”

HMRC does not charge tax credits customers to renew their annual claims and is also urging them to be alert to misleading websites or adverts designed to make them pay for government services that should be free, often charging for a connection to HMRC phone helplines.

Customers can renew their tax credits for free via GOV.UK or the HMRC app and are advised to search GOV.UK to get the genuine information and guidance.

Renewing online is quick and easy. Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • update changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check.

If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

“Money Mule Man” takes to the streets of Edinbugh

Comedian Paul Black has been out and about in Edinburgh as the “money mule man” to raise awareness of the fraudulent activity.

Money muleing is on the up since the pandemic and sees criminals recruit individuals – predominantly young people – to channel illicit funds via their bank accounts to create a fake paper trail.

Download the video to find out here: https://we.tl/t-iO0oehdLJB

Members of the public who stuck to their guns and said no were rewarded with £100, while those who fell for temptation and took the quick cash fix went home empty handed.

The consequences of acting as a money mule are severe, with those involved facing a prison sentence of up to 14 years and banned from having a bank account.

Public warned of police impersonation bank fraud scam

Police Scotland is urging the public to remain vigilant for an ongoing fraudulent banking scam involving people impersonating police officers.

Between October 2021 and January 2022, over 30 reports have been received from members of the public, who have either been visited or contacted by individuals claiming to be Police Scotland officers.

On each occasion, the victim was contacted by telephone from someone claiming to be from a bank fraud department and advised that their bank account had been compromised. They were then requested to either transfer money remotely to another account online or attend at a bank and remove cash, which would later be collected by a police officer. 

While not every attempt to extort money was successful, those responsible defrauded a number of victims across Forth Valley, Fife, Lanarkshire, Dumfries and Galloway, Tayside, Ayrshire and the Scottish Borders.

More than £300,000 has been defrauded from victims and inquiries to identify those responsible are ongoing. Anyone with information is asked to come forward.

In the meantime, police are offering advice to stop people falling victim to this scam and will be leafleting across Scotland to help educate communities on how police will engage with the public in person, over the phone and online.

Superintendent Hilary Sloan from Partnerships, Prevention and Community Wellbeing Division said: “While there are a number of ways police officers may look to contact you, please be mindful of this scam and always be suspicious of any unexpected contact.

“If you receive such a call, or visit, ask for the officer’s details and which department they work for. If the contact is by telephone, hang up and if possible use a different phone to contact the police service via 101, where you will speak to genuine members of Police Scotland and can request police officer verification. 

“We began a national roll-out of new identification cards, which feature an up-to-date picture of the officer, along with other key information and various security enhancements that make them extremely difficult to replicate. This roll-out was started in October 2021 and all police officers should be able to provide this identification when carrying out legitimate police business.

“If you receive an email claiming to be from Police Scotland with a link to an external site to make a payment, this may also be fraudulent. Be aware of phishing scams and verify that any link provided is genuine. If you receive something claiming to be from us requesting any form of payment, contact us via 101 to investigate this matter before parting with your money.

“We are treating this ongoing scam with the utmost seriousness and have officers around the country pursuing various lines of inquiry.”

Those with information can contact Police Scotland via 101. Alternatively, an anonymous report can be made to the charity Crimestoppers on 0800 555 111.

Scam HMRC phone call reports drop by 97%

Reports of scam HMRC phone calls have fallen by 97% over the last 12 months, latest HM Revenue and Customs (HMRC) figures show, which display a downward trend in reports overall throughout the past year.

Reports of scammers impersonating HMRC in phone calls peaked at 79,477 in March 2021 and fell to just 2,491 in December 2021.

The fall in scam call reports to HMRC has also been seen elsewhere with an 92% drop in phishing email reports and a 97% drop in scam text reports over the last year.

These significant results are testament to some of the work of teams across HMRC in tackling these attempts to defraud people, including dedicated customer protection teams and helplines, tools to refer scams, and use of innovative technologies. It also signals that the public is more aware of cyber criminals and the methods they use to trick people, in part thanks to HMRC’s awareness raising efforts, meaning fewer members of the public have been the subject of scammers and attempts to steal their money.

All of HMRC’s work to protect the public and make people aware of scams and the advice available on GOV.UK, has helped move HMRC from third most phished brand globally to outside the top 100.

Mike Fell, HMRC’s Head of Cyber Security Operations, said: “We work incredibly hard to protect the public from these criminals who ruin lives by stealing from people. It’s great news that fewer people are receiving and reporting these attempted frauds, but it is still important they continue to report suspicious contact to us. We will continue to do everything we can to protect the public from these cynical attempts to impersonate HMRC to steal from people.

“Our advice is – never let yourself be rushed. If someone contacts you saying they are from HMRC, wanting you to urgently transfer money or give personal information, be on your guard. HMRC will never ring up threatening arrest, only criminals do that. Contacts like these should set alarm bells ringing, so take your time and check HMRC scams advice on GOV.UK.”

Some HMRC-themed scams originate abroad. HMRC works closely with national and international law enforcement agencies to combat scams, including collaboration with India as a key international partner in tackling the organised crime groups that run these scams.

Work by the Indian authorities last year resulted in multiple arrests and the closure of criminal call centre operations. In June 2021, 51 people were arrested at two call centres in Delhi, India, that were dedicated to facilitating HMRC scams.

HMRC has a dedicated Customer Protection team working on cyber and phone crime around the clock, closing down scams and sharing intelligence with law enforcement agencies. HMRC also deploys innovative technologies to prevent misleading and malicious communications that impersonate its genuine e-mail channels, from ever reaching the public. Since 2017 these technical controls have allowed HMRC to prevent 500 million bogus emails reaching customers.

 More recently, new controls have prevented 90% of the most convincing text messages from reaching the public and joint working with industry partners has prevented the spoofing of most of HMRC’s helpline numbers.

In the last year, HMRC has responded to 670,793 referrals of suspicious contact from the public, with 283,157 of these cases offering bogus tax rebates. Others threaten arrest for tax evasion or offer fake financial support.

As part of HMRC’s action to combat voice scams, the department has set up a direct referral route on GOV.UK where people can report HMRC-related telephone phishing.

HMRC also works with the telecoms industry to remove phone numbers being used to commit HMRC-related phone scams. In December 2021, four phone numbers being used to commit HMRC-related phone scams were removed, which is likely to have prevented hundreds of scam calls being made.

HMRC uses a range of modern methods when communicating with its customers. Criminals will often then try to duplicate those methods to take advantage of people. HMRC is doing everything it can to stay one step ahead of the criminals to keep its customers and their information safe.

Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact and how to avoid scams. Forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls on GOV.UK.