People use TikTok for all manner of things in this day in age –they even use it as a front for their tax scams it would seem.
In fact, two men have recently been arrested in East London after allegedly running a TikTok tax scam leading HMRC to block £153 million in repayment claims.
The pair involved were arrested under suspicion of various offences, including fraud by false representation, unauthorised offences with intent and money laundering.
This case comes after the discovery by HMRC of a suspected £153 million fraud scam on TikTok.
Investigators believe the troublesome twosome used TikTok to post adverts promising users easy financial rewards in exchange for sensitive tax information including business VAT registration details or personal self-assessment credentials.
Those details were then used allegedly used to submit false tax repayment claims to HMRC on their behalf.
The investigation is ongoing into the alleged scam with the pair being released on bail pending further investigation.
However, HMRC’s fraud detection system has already blocked a staggering £153 million of repayment claims relating to the alleged scam.
Victims of the scam risk being held liable to repay the money they owe to HMRC or even face fines or prosecution, according to HMRC.
Since the dawn of time there have been scammers, as more people interact with HMRC through digital channels these scams are beginning to rise in scale and complexity.
Scammers often use social media platforms to reach out directly to victims. Since the invention of direct messaging on platforms scammers can now reach out directly to their victims with claims of easy money or a loophole tax rebate.
These profiles will claim they can process large tax refunds in exchange for Government Gateway logins and then split the profits with you.
Unfortunately, in reality the scammers steal the fraudulent refund and then make their victims an accessory to the crime.
All the while you remain legally liable to HMRC for the fraudulent claim and any associated penalties whether that is repayment or legal action.
Some of the more common scams are text and phone. Fraudsters will get information out of victims using spoof phone numbers claiming to be HMRC.
They may claim that you owe HMRC a lumpsum of unpaid tax money and that court proceedings are imminent unless you pay there and then.
HMRC will never threaten arrest, demand immediate payments over the phone or insist on payment via gift cards, bank transfer or cryptocurrency.
You are able to refuse, reject or ignore any requests for money or information that is being pressured. Afterall it is only criminals that will rush or panic you into sharing information or money.
You must never share personal tax information online with anybody but an accountant or on the official HMRC website.
There is a dedicated page on HMRC’s website with current information on popular phishing and scams which encourages taxpayers to report anything suspicious.
If you are unsure about any communication from HMRC it is best practice to seek professional advice immediately.
Tax is something that should be left to qualified accountants or a chartered tax advisor to figure out, not your TikTok for you page.
If you receive any communication you believe to be fraudulent it is imperative that you report it to HMRC. If you believe you have fallen for victim to a scam, report it to Action Fraud immediately.
Get in touch today for expert tax advice.
