Tax scams are increasing in number and sophistication, possibly aided by AI. HMRC has updated its guidance on how to spot them. What’s the full story?
Dodgy messages. Letters, emails, texts and even phone calls offering tax refunds or threats of dire consequences unless you click on a website link or make a call are now everyday events. Typically, the links take you to a bogus HMRC website which starts the process of hacking your computer, while returning a call will put you in touch with someone who’ll try to extract your bank and personal details. You might pride yourself on being able to spot a scam but it’s becoming increasingly difficult.
AI trouble. At one time tax scammers’ emails, letters etc. were unsophisticated and poorly written so the fakes were easy to spot. However, the fact that the number of tax scams continues to rise shows that people fall for them. What’s more, there are indications that scammers are now using AI to improve the look of authenticity. Equally concerning is that being able to spot a fake is being hampered by HMRC.
Lower standards. In our view the standard of HMRC communications is deteriorating and many accountants agree. Poorly written letters are commonplace. For example, on a recent online discussion group an accountant posted an image of a letter seemingly from HMRC regarding overdue tax. He asked if he should call the mobile number given. Not only was the use of a mobile a red flag but the grammar was so awful the letter was difficult to follow. Nearly all of the 50 accountants who responded said it was a scam – it was not! Failing to respond to the letter might have landed the taxpayer in hot water with HMRC.
Tip. Don’t be complacent; be sceptical of every communication purportedly from HMRC. If in doubt, first check HMRC’s webpage on how to spot fake communications and if you’re still unsure call the number provided (see The next step ). Equally, don’t ignore communications that seem fake, especially if they relate to overdue tax. Take the same steps to check the authenticity.
Scammers may be using AI to make fake communications difficult to spot. If in doubt visit HMRC’s website which includes details of latest known scams. Don’t ignore letters purportedly from HMRC just because they look dodgy.
The next step
Examples of phishing emails, suspicious phone calls and texts
Identify tax scam phone calls, emails and text messages
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.