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Identities ‘borrowed’ by fraudsters in return for tax refund cut

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
08/03/2022

People are being warned against handing over personal information to criminals who then ‘borrow’ identities to claim bogus self-assessment tax refunds.

HM Revenue & Customs (HMRC) is warning people not to share sensitive personal information online as it could be used to commit fraud.

It said it’s aware of cases where criminals are attempting to gain government gateway logins and other details, allowing them to register for income tax self-assessment to submit bogus tax refund claims.

They then pocket the repayment while the individual is inadvertently implicating themselves in tax fraud where they risk having to pay back the full value of the fraudulent claim.

HMRC said a range of people are being targeted on social media, from teenagers to pensioners, who are asked if their identity can be borrowed in return for a cut of the tax refund ‘risk-free’.

Last month four people aged between 16 and 33 were arrested as part of an investigation into suspected self-assessment repayment fraud and money laundering offences.

Simon Cubitt, head of cybercrime, HMRC said: “People need to think extremely carefully before they involve themselves in an arrangement like this, because if something looks too good to be true, then it almost certainly is.

“Those who get involved risk becoming the victim of blackmail, threats of violence and wider abuse of their personal information, as criminals seek to exploit them further.

“I urge anyone who may be aware of these dishonest attempts to recruit individuals into criminality, to report it to us by searching ‘Report Fraud HMRC’ on GOV.UK and completing our online form.”


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