Beware: Fraudsters posing as HMRC could target you!

Taxpayers are getting fake mail from fraudsters pretending to be the tax authority, HM Revenue and Customs (HMRC). The mailed letters that contain a fake letterhead pretend to be HMRC and demand confidential information, such as bank statements, VAT returns, and many more. People who fall victim to these letters have a high chance of being a victim of identity fraud.

How Is the Fraud Taking Place?

The fraudsters are pretending to be from the ‘Indv and Small Business Compliance’ team of HMRC. Also, they state that the letters are being sent out as a part of a government initiative aimed at verifying declared income to prevent tax evasion and tax fraud. Due to the new government’s initiative to crack down on tax evasion and fraud, many taxpayers are falling victim to this scam.

The fraudsters are demanding the following things in their fake HMRC letters:

• Bank statements of businesses for the last 13 months
• VAT Returns
• Filed Profit and Loss Accounts
• Passports
• Driving Licenses

All these documents are demanded in digital form by specifying that paper copies and screenshots will not be accepted.

What Do the Experts Say?

Experts are claiming that these fraudsters are very smart as they have used the UK tax language for the letter. A tax expert expressed that this is a very evil scam, and those who are familiar with the web will notice the dodgy email address right away, but many will not. A director of tax investigations said, “This is probably the best scam letter I have seen up until now. They have used the right technical legislation and language.”

The tax investigations experts went on to add, “If you provide the fraudsters with these details, there is a strong chance of identity theft taking place of both the company and directors in order to clear out bank accounts and open up the opportunity for VAT fraud.”

How to Prevent Being a Victim?

Here are some tips to prevent being a victim of such fraud:

• Verify the mail address – HMRC will always send mail through the government domain gov.uk. All emails sent by HMRC end at @hmrc.gov.uk. The fraudsters are using a fake email of companies-review@hmrc-taxchecks.org. So, even before opening the mail, please verify the mailing address.
• Check the grammar – Such fraudulent mail will contain either grammatical errors or non-UK tax language. So, check for any grammar or language errors.
• Report fake emails – You can forward suspicious emails to the tax authority’s phishing mail, which is phishing@hmrc.gov.uk. Also, you can report fraudulent texts and calls online through the HRMC portal.

Conclusion

Fraud letters pretending to be from the compliance team of HMRC and demanding bank statements and business information are being sent out. Experts believe this is one of the smartest scams they have witnessed. However, the mailed letters are being sent out from a fake email, so taxpayers must verify the mail address before sending out their confidential information.