HMRC has issued an urgent warning to thousands on benefits over an easy mistake which could see them lose cash.
It comes as 300,000 households on tax credits still need to renew their claim before the deadline on July 31.
HMRC is warning tax credit claimants that phone scams are on the rise
Households on tax credits should have been sent an official renewal pack in the post from HMRC between May 2 and June 15.
If they don’t fill it in and return it, they risk losing up to £3,685 a year, as the benefit will be stopped.
But HMRC is warning these households to stay on the lookout for scams.
If you were to accidentally share your personal details with a scammer, they could use this information to empty your bank account.
It said that criminals use deadlines – like the tax credits renewal deadline on 31 July – to target their victims.
Typical scams can include emails or texts claiming that a claimant’s details aren’t up to date and that they risk losing out on payments.
Other examples of HMRC scams include:
Emails or texts claiming that a direct debit payment hasn’t gone throughPhone calls threatening arrest if people don’t immediately pay fake tax owedClaims that the victim’s national insurance number has been used in fraudEmails or texts offering spurious tax rebates or bogus grants or support
Myrtle Lloyd, HMRC’s director general for customer services, said: “Tax scams come in many forms and we’re urging customers to be alert to the tactics used by fraudsters and never to let yourselves be rushed.
“If someone contacts you saying they’re from HMRC and asks you to give personal information or urgently transfer money, be on your guard.”
HMRC will never ask you to give personal information over the phone or email.
How do I report suspicious messages and calls?
If you’ve received a suspect message or call and haven’t acted upon it, you can still flag it to HMRC or organisations so they can check it out.
If you’re unsure about a text claiming to be from HMRC forward it to 60599, or an email to [email protected].
The Suspicious Email Reporting Scheme (SERS) also allows people who’ve received scam emails and texts to forward or send screenshots to [email protected].
If you notice a website that doesn’t look quite right, you can also report it to the National Cyber Security Centre on its website.
Customers can also report a tax scam phone call to Gov.UK.
What should I do if I’ve been scammed?
If you’ve been asked to share confidential information over the phone including bank details – it’s likely a scam.
And if you think you’ve fallen victim to a scam or have shared confidential information with a nuisance caller you should end all further contact with the caller immediately.
If money has been taken from a bank account or credit card call the provider straight away and ask to speak to their fraud department to ensure that any future payment requests are cancelled.
After you’ve ended communication and spoken to your bank or lender report that you’ve been a victim of a scam to Action Fraud.
Report the scam by calling 0300 123 2040 or by filling in a form on the Action Fraud website.
If you live in Scotland, you’ll need to report the scam to Advice Direct Scotland by calling 0808 164 6000 or by visiting its website.
How can I reduce the risk of being scammed?
If you find that you’re receiving unwanted calls sign up to the Telephone Preference Service.
Once your mobile and landline numbers are on this register, any firms that call without your permission are flouting the law.
Sign up at tpsonline.org.uk, by phoning 0345 070 0707 or register your mobile by texting “TPS” and your email address to 85095.
You can also ask your phone provider to set up call blocking features.
BT, Sky, Talk Talk and Virgin Media all offer services to help filter out unwanted sales calls and block the numbers of known scammers.
For landlines, you can also buy handsets with built-in nuisance call blockers.