Don't get caught out by this tax credit scam

Taxman warns fraudsters are using the tax-credit renewal deadline as an opportunity to steal your personal details.

Tax credit claimants have been warned by HM Revenue & Customs about scam ‘phishing’ emails which will steal their personal details in the run-up to the renewal deadline on 31st July.

Last year, nearly 25,000 scam emails were reported to HMRC during the tax credits renewal period, which runs from April to July.

May this year saw a 131% increase in reports of phishing emails, with 11,219 recorded. While HMRC worked alongside other agencies to shut down 611 scam sites during last year’s renewal period, new sites pop up at an alarming rate.

1,740 illegal sites were closed down in 2013, most originating in Turkey, Spain and Bulgaria, but some phishing emails also came from the UK and USA.

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What is phishing?

Phishing emails will attempt to dupe you into providing personal information such as passwords, your credit or debit card details, or your National Insurance (NI) number.

They will attempt to gain your trust by pretending to be someone 'reputable' like HMRC. But the taxman will never ask for your bank account details, or other personal information like your address, NI number or date of birth via email.

An email might seem to be from HMRC, with the extension @hmrc.gov.uk, but if you click a link in the email you’ll be taken to a replica of the HMRC website which will try to maliciously extort your details. Similar emails may also contain viruses. Do not respond to phishing emails, and never open their attachments.

Read Eight ways to spot a phishing scam to know the tell-tale signs of a phishing scam.

If you think you have received an HMRC related phishing/bogus email, forward it to phishing@hmrc.gsi.gov.uk and then delete it.

Be careful with your details

Nick Lodge, Director General of Benefits and Credits, HMRC, said that HMRC is committed to protecting claimants’ details and making their experience of using HMRC online services safe, but that users must remain vigilant, because the “methods fraudsters use to get information are constantly changing.”

HMRC is making people aware of a specific email circulated from taxreturn[at]hmrc.gov.uk, which purports to inform people about a 2013 tax refund report. Do not open this email or its attachment. The attachment contains a virus. Recipients are urged not to respond but to delete it immediately.

For more advice on online security, read HMRC’s security advice and its page on recognising and reporting phishing/bogus emails.

Tax credit claimants are able to renew their claim by post and by phone, and those with no changes to report may be able to renew online using the official gov.uk website.

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