HMRC have issued warnings to accountants, directors and business owners about a specific new fraud attempt using very convincing imitation HMRC branding and terminology.
The letters demand the recipient to send confidential business and financial information including bank statements.
The letter has a fake but similar letterhead with the HMRC logo and correct address and is from the “Indv and Small Business Compliance” team.
They ask them to verify their financial information by sending a selection of genuine documents to prove who their company actually is.
Without irony the letter states it is being sent to “prevent tax evasion and tax fraud” and is a result of a new “government initiative aimed at verifying declared income”.
They ask companies who receive the letter to supply digital copies of everything from PDF copies of business bank accounts and financial statements for the previous 13 months along with VAT returns and filed accounts.
Full profit and loss accounts are also requested which aren’t available on Companies House for smaller firms reporting under micro accounts or filleted accounts rules.
If this wasn’t enough then they are also asking for digital copies of directors passports and driving licences too.
They stress that “paper copies and screenshots will not be accepted” stating “once we have verified your information then we will let you know if we are satisfied with the information you have provided us or if we require further documents.”
Despite the efforts taken to make the demand, there was one telling mistake which proved it was fraudulent – the email address.
The bogus email being used was companies-review@hmrc-taxchecks.org which is a bit of a mouthful anyway but all HMRC email addresses end with @hmrc.gov.uk.
HMRC usually requests information through letters or their own secure online portal and digital tax accounts, not through email.
Chris Horner, insolvency director with BusinessRescueExpert, thinks it’s just the latest example of historic scams.
He said: “At first initial glance the letter could seem to be genuine as it is using the correct logo and address. They have found an actual HMRC department team and are using the correct technical language and legislation terms.
“If criminal fraudsters obtain these details then they could be able to perpetrate identity theft of both the company and the directors including stealing money from company and personal bank accounts as well as being able to pursue VAT fraud.
“The aim of the letter is to panic whoever receives it so they act without consulting colleagues or managers with more experience and knowledge. If anybody unwittingly divulges sensitive financial information, not only are their chances of being victims of fraud greatly increased in the immediate future but they would be vulnerable to further fraud attempts in future as fraudsters usually share victims details amongst the criminal community.
“If any director or business owner receives this letter or a similar one the first they should do is contact their accountant to verify the details. They will be able to contact HMRC relatively quickly and clear up any potential confusion.”
As many companies continue to find the economy tough going, business owners will continue to be harried on all sides.
Not just from crooks but also creditors, competitors and even suppliers or landlords wanting better terms.
This is why we offer a free initial consultation with an expert advisor to discuss what you can do to make your business more resilient.
They’ll be able to outline what options and strategies are available for you to pursue so you can look forward to the rest of 2024 with confidence that things could start to improve – starting with the moment you get in touch.