Password-stealing scam hits self-assessment taxpayers

Date: 7th August 2009

The tax authority has issued a new warning on fraudsters currently targeting self assessment tax returns.

HM Revenue & Customs (HMRC) said that criminals were impersonating members of the public in order to make illegal claims, the BBC reports.

These frauds are perpetrated through passwords sent out by HMRC so that the taxpayer can fill in their return online being intercepted.

Often, this involves the thief sending out official-looking messages aimed at fooling their victims into giving up personal details.

Another approach is for gangs to go through large amounts of rubbish in the hope of turning up ID-sensitive documents including the passwords.

The fraudulent claims themselves generally ask HMRC to divert funds to bank accounts held by the criminal.

A spokesman for the taxation authority was quoted by the broadcaster as saying: "They should treat [the passwords] as carefully as they would a pin for their bank account."

Almost ten million Britons - one in six of the total population - fills in a self assessment tax return of some kind.

This figure includes sole traders and other small business owners.