Online tax returns increasingly targeted by fraudsters

According to the Telegraph, in 2015 there were 17,000 fraudulent or incorrect repayment claims to HM Revenue and Customs, potentially worth up to GBP 100 million in total.

The reports come only a few months after HMRC launched online tax accounts and announced a plan to make all taxes digital by 2020. In 2016 a record 89% of people filed their tax returns online. More than a million taxpayers were directed to use the new online system for their self-assessment.

The e-mails contain a fake link that asks victims to enter their login details, which the fraudsters then use to gain access to their online HMRC account. Their bank details are then changed to the criminals, and a fraudulent application for a tax refund is submitted. The funds come from the public purse, rather than the victims accounts.

In 2014 almost 50% of HMRC consumers reported being targeted in a phishing scam. And in 2013 customers reported more than 91,000 phishing e-mails to the tax agency.