Beware, don't fall victim: Fraudulent HMRC letters targeting businesses

Simon Boxall, Tax Simon Boxall, Tax Director at Ward Williams, warns of a sophisticated new scam targeting business owners. A fraudulent letter, masquerading as official HMRC correspondence, is circulating and demanding confidential business information and bank statements.

The Scam Letter

The fraudulent letter bears a fake HMRC letterhead and claims to be from the 'Indv and Small Business Compliance' team. It requests recipients to verify their financial information by submitting various documents, allegedly as part of a government initiative to prevent tax evasion and fraud.

Red Flags

The most obvious giveaway is the email address provided for responses. Legitimate HMRC email addresses always end with @hmrc.gov.uk.

Other suspicious elements include:

• Requests for sensitive documents like bank statements, VAT returns, and full profit and loss accounts
• Demands for digital copies of passports or driving licenses
• Insistence on digital copies only, rejecting paper copies and screenshots
• Slightly off grammatical constructions, such as "information you have provided us"

 

Potential Consequences

Complying with these requests could lead to identity theft of both the company and its directors. This could potentially result in cleared bank accounts and increased vulnerability to VAT fraud.

 

HMRC's Actual Practices

It's important to note that HMRC rarely requests information via email. Their default communication methods are letters or through their online portal and digital tax accounts.

 

Staying Safe

To protect yourself and your business:

• Always verify the email address of any purported HMRC communication
• Be wary of unexpected requests for sensitive information
• When in doubt, contact HMRC directly through official channels to confirm the legitimacy of any communication

While web-savvy individuals might immediately spot the fraudulent email address, many others could fall victim to this sophisticated scam. Stay vigilant and prioritize the security of your business information.

Reporting Suspicious Communications

If you receive a suspicious letter claiming to be from HMRC, you can report it by contacting the relevant HMRC team. For dodgy mail that you suspect might be from fraudsters, you can send it to Royal Mail at: Freepost Royal Mail Customer Services.

Royal Mail also provides a form for reporting scam letters, which you can submit online or send to Freepost Scam Mail along with the letter you received. Reporting scams helps authorities investigate and prevent further fraud attempts.

Remember, HMRC will never ask for personal or financial details in emails. If you're ever unsure about the authenticity of an HMRC communication, you can check the list of genuine HMRC contacts on the official government website.