In an effort to protect taxpayers from falling victim to fraudulent activities, HMRC has issued a scam warning to tax credits claimants. With scammers becoming increasingly sophisticated in their tactics, it is crucial to remain vigilant and informed about the potential threats they may encounter.

The Scam Warning

HMRC has recently observed a rise in scams targeting tax credits claimants. Fraudsters are employing various methods that aim to trick people into handing over money or personal information. These scams often involve phone calls, text messages, or emails that appear to be from HMRC or an official government entity, making them seem genuine and convincing. Criminals also often use deadlines – like the tax credits renewal deadline on 31 July – to target their victims and the department is warning around 1.5 million tax credits customers to be alert to scams.

Common Scam Techniques:

Phishing: Scammers use emails or text messages claiming to be from HMRC, claiming an individual’s details aren’t up to date and so request personal information such as bank account details, passwords, or National Insurance numbers. These messages may contain official-looking logos and language, making them difficult to distinguish from legitimate communications.

Spoofed Phone Calls: Fraudsters may impersonate HMRC officials and contact individuals via phone, insisting that tax credits claimants owe money or are entitled to a refund. They may use threats or false promises to manipulate victims into providing financial details or making immediate payments.

Bogus Websites: Scammers create fake websites resembling the official HMRC site, aiming to collect personal information when unsuspecting individuals enter their details. These sites can be highly convincing, but you can spot subtle discrepancies by carefully examining the web address and looking for security indicators.

Protecting Yourself:

To avoid falling victim to these scams, individuals should keep the following points in mind:

Be cautious with personal information: HMRC will never request sensitive information such as bank account details or passwords via email, text message, or phone. Avoid sharing such information unless you are certain of the recipient’s authenticity.

Verify the source: If you receive any communication claiming to be from HMRC, independently verify its legitimacy. Look up the official contact information for HMRC from trusted sources and contact them directly to confirm if the communication is genuine.

Stay alert for warning signs: Be wary of unsolicited messages or calls pressuring you to provide personal or financial information, especially when they convey a sense of urgency or threaten legal action. Genuine government agencies typically communicate important matters by post.

Keep software up to date: Ensure that your computer, smartphone, and any other devices you use for online activities are regularly updated with the latest security patches and antivirus software. This will help protect against malware or viruses that scammers may use to gain unauthorised access to your information.

Report any suspicious activity: If you believe you have been targeted or have fallen victim to a scam, report it to HMRC immediately. You can also report the incident to Action Fraud, the UK’s national reporting centre for fraud and cybercrime.

As scams targeting tax credits claimants continue to evolve, it is crucial for individuals to be proactive in protecting themselves. By familiarising yourself with HMRC’s scam warnings and adhering to best practices for online security, you can reduce your vulnerability to fraudsters. Remember, being cautious, verifying sources, and promptly reporting any suspicious activity are key steps towards safeguarding your personal and financial information from scammers.