Warning over 'HMRC tax refund' offer with four signs you're about to be scammed

A concerned young woman looking at smartphone
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People are being warned they may be targeted by fraudsters as they submit tax forms to HMRC. Self-assessment forms must be sent in by January 31, but it can mean the days and weeks immediately before and after the deadline are a key time for crooks to spring into action.

Bogus texts, emails, and phone calls are claiming to be from HMRC and asking people to follow a link to claim a refund, update their details, or pay money they owe to the taxman. But advisors say these are likely to be scams.

Finance expert John Clark said: "A recent report by NatWest found that tax rebate scams were one of the fastest growing scam types during 2024. HMRC received more than 150,000 reports about tax scams during 2024 (an increase of 16.7 per cent compared to 2023), of which 71,832 were offering fake tax rebates.

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"In fact, HMRC scams have become so prevalent that the Government has been forced to put out an official scam warning for the 5.4 million people in the UK still expected to submit a self-assessment tax return before the deadline."

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He added: "Multiple scam texts, emails and phishing calls have been doing the rounds recently, claiming to be from HMRC. The fake messages claim the respondent either owes money, is owed a refund from HMRC or needs to update their details to avoid being accused of tax evasion. The messages invite you to click a link with the aim of extracting personal information to steal money."

Four clues that could indicate a tax scam

Mr Clark, who is product manager for digital payment solutions business takepayments, said there were four key signs to watch out for. These are

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  • Unsolicited messages regarding refunds – Texts regarding any form of financial payment or action should always be considered suspicious, especially if the language encourages urgency. HMRC will never ask for your bank details or personal information over text.

  • Spelling and grammar mistakes – Scammers often use broken English or grammatical mistakes within their texts. This could be a giveaway that a message or email isn't legitimate.

  • Unknown mobile numbers – Trusted bodies like HMRC won't usually send official communication from a personal mobile number. Always check the number the message has come from and if in doubt, use a phone number lookup service online. If the number begins with 07 or is withheld, treat it as suspicious and don’t open any included links. Be aware that the number 60263 has been closely linked to fraudsters impersonating HMRC.

  • Background noise that sounds artificial on calls – There have been reports of an automated phone call claiming to be HMRC filing a lawsuit against you for tax evasion doing the rounds. Some fraudsters are using AI to produce these automated calls. Scammers often use background sounds to give the impression they are calling from a specific location, like a busy call centre. However, if these sounds seem looped, overly consistent, or don't match the context of the call, they could be artificially added to lend authenticity to the scam. Genuine calls usually have clear sound quality without inconsistent or intrusive background noises.

An example of a bogus text purporting to be from HMRC and promising the recipient a tax refund
An example of a bogus text purporting to be from HMRC and promising the recipient a tax refund if they follow a fraudulent link -Credit:takepayments

How to avoid being scammed

  • Never send money via bank transfer to unknown sources – Many scammers request tax rebate payment by bank or wire transfer, or through a peer-to-peer (P2P) app like PayPal. These methods are designed for sending money to people that you know, like family and friends. They are not intended to be used for trusted organisation transactions and do not have protection in place to recover lost funds from fraud.

  • Look for two-factor authentication – Also known as 3D Secure Authentication (3DS), two-factor authentication is a key security feature when making online payments. Secure sites that use 3DS will have a Visa Secure, MasterCard SecureCode, or American Express SafeKey logo on them.

  • Never share personal details or information – Although HMRC does use text communication it will never request payment details over text or email. Links included in these messages are likely to lead to fraudulent websites. Unsecure payment gateways do not ask for four-digit card PINs or online banking information, including passwords.

  • Protect your information online – Having personal details such as your phone number and email address publicly available on social media or websites make you a much easier target for hackers. Ensure that this information is hidden so that you can better protect yourself.

If you think a message seems dubious, do not reply to it as you may be providing scammers with your personal data. Suspicious text messages that appears to be from HMRC can be forwarded to the organisation on 60599 to report it as a potential scam, or email phishing@hmrc.gov.uk

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