HMRC admits £47 million loss in breach of taxpayer accounts
Two senior civil servants at HM Revenue and Customs (HMRC) told the Treasury Committee that 100,000 people have been contacted, or are in the process of being contacted, after their accounts were locked down in what they said was an 'organised crime' incident which began last year.
Taxpayers who are being affected will suffer 'no financial loss', according to John-Paul Marks, the chief executive of HMRC, the UK's tax authority.
Mr Marks told the Committee: 'It's about 0.2% of the PAYE population, around 100,000 people, who we have written to, are writing to, to notify them that we detected activity on their PAYE account.'
Asked if this applied to individual working people's PAYE accounts, not companies, he replied: 'That's right, individuals. To be clear, no financial loss to those individuals.
Mr Marks added: 'This was organised crime phishing for identity data outwith of HMRC systems, so stuff that banks and others will also unfortunately experience, and then trying to use that data to create PAYE accounts to pay themselves a repayment and/or access an existing account.'
An investigation into the matter, which took place last year 'including jurisdictions outside the UK', led to 'some arrests last year,' Mr Marks told MPs.
Angela MacDonald, HMRC's deputy chief executive and second permanent secretary, added: 'At the moment, they've managed to extract repayments to the tune of £47 million.
'Now that is a lot of money, and it's very unacceptable.
'We have overall, in the last tax year, we actually protected £1.9 billion worth of money which sought to be taken from us by attacks.'
Get your tax return done early and find out sooner if you're owed money. ⏲️
We'll let you know if you've overpaid tax after you file your Self-Assessment tax return and refund you. 💷
File today. 👇 https://t.co/OIh3mAczQk pic.twitter.com/vbmz1AjfKK — HM Revenue & Customs (@HMRCgovuk) June 3, 2025
Ms MacDonald stressed the breach was 'not a cyber attack, we have not been hacked, we have not had data extracted from us'.
She later added: 'The ability for somebody to breach your systems and to extract data, to hold you to ransomware and all of those things, that is a cyber attack. That is not what has happened here.'
HMRC said it had locked down affected accounts and deleted log-in details to prevent future unauthorised access.
Any incorrect information has been removed from tax records and officials have checked to ensure no other details have been changed.
People affected will receive a letter from HMRC over the next three weeks.
Elsewhere, Mr Marks told MPs that HMRC phone lines were down on Wednesday afternoon, but said this was 'coincidental'.
They will be 'back up and available in the morning', he added.
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An HMRC spokesperson said: 'We've acted to protect customers after identifying attempts to access a very small minority of tax accounts, and we're working with other law enforcement agencies both in the UK and overseas to bring those responsible to justice.
'This was not a cyber-attack – it involved criminals using personal information from phishing activity or data obtained elsewhere to try to claim money from HMRC.
'We're writing to those customers affected to reassure them we've secured their accounts and that they haven't lost any money.'
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Western Telegraph
11 hours ago
- Western Telegraph
HMRC admits £47 million loss in breach of taxpayer accounts
Two senior civil servants at HM Revenue and Customs (HMRC) told the Treasury Committee that 100,000 people have been contacted, or are in the process of being contacted, after their accounts were locked down in what they said was an 'organised crime' incident which began last year. Taxpayers who are being affected will suffer 'no financial loss', according to John-Paul Marks, the chief executive of HMRC, the UK's tax authority. Mr Marks told the Committee: 'It's about 0.2% of the PAYE population, around 100,000 people, who we have written to, are writing to, to notify them that we detected activity on their PAYE account.' Asked if this applied to individual working people's PAYE accounts, not companies, he replied: 'That's right, individuals. To be clear, no financial loss to those individuals. Mr Marks added: 'This was organised crime phishing for identity data outwith of HMRC systems, so stuff that banks and others will also unfortunately experience, and then trying to use that data to create PAYE accounts to pay themselves a repayment and/or access an existing account.' An investigation into the matter, which took place last year 'including jurisdictions outside the UK', led to 'some arrests last year,' Mr Marks told MPs. Angela MacDonald, HMRC's deputy chief executive and second permanent secretary, added: 'At the moment, they've managed to extract repayments to the tune of £47 million. 'Now that is a lot of money, and it's very unacceptable. 'We have overall, in the last tax year, we actually protected £1.9 billion worth of money which sought to be taken from us by attacks.' Get your tax return done early and find out sooner if you're owed money. ⏲️ We'll let you know if you've overpaid tax after you file your Self-Assessment tax return and refund you. 💷 File today. 👇 — HM Revenue & Customs (@HMRCgovuk) June 3, 2025 Ms MacDonald stressed the breach was 'not a cyber attack, we have not been hacked, we have not had data extracted from us'. She later added: 'The ability for somebody to breach your systems and to extract data, to hold you to ransomware and all of those things, that is a cyber attack. That is not what has happened here.' HMRC said it had locked down affected accounts and deleted log-in details to prevent future unauthorised access. Any incorrect information has been removed from tax records and officials have checked to ensure no other details have been changed. People affected will receive a letter from HMRC over the next three weeks. Elsewhere, Mr Marks told MPs that HMRC phone lines were down on Wednesday afternoon, but said this was 'coincidental'. They will be 'back up and available in the morning', he added. Recommended reading: An HMRC spokesperson said: 'We've acted to protect customers after identifying attempts to access a very small minority of tax accounts, and we're working with other law enforcement agencies both in the UK and overseas to bring those responsible to justice. 'This was not a cyber-attack – it involved criminals using personal information from phishing activity or data obtained elsewhere to try to claim money from HMRC. 'We're writing to those customers affected to reassure them we've secured their accounts and that they haven't lost any money.'
Glasgow Times
14 hours ago
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HMRC scam warning on the tricks might catch you out
Ultimately, HMRC will never ask you for personal or financial info out of the blue. They don't contact people via WhatsApp, and they won't threaten you with arrest. If you receive anything suspicious, forward the message to phishing@ or text 60599 for scam texts. For full peace of mind, always log in directly to your tax account rather than trusting messages or emails. As always, the advice stands that if something looks too good to be true, it usually is, but Rebecca Bebbington, personal finance expert at NetVoucherCodes says there are detailed scams hitting inboxes and phones this summer and, looks at how taxpayers can protect themselves without losing a penny. 1. 'You're Due a Tax Rebate' Text or Email This one's an old favourite because it works unless you're wise to it. You get a message claiming you're owed a tax refund and need to click a link to claim it. That link usually takes you to a fake HMRC website that looks convincing enough to fool most people. From there, you'll be asked for personal info such as bank details, date of birth, and even your NI number, all under the guise of processing your refund. (Image: NetVoucherCodes) If you do get an email about a tax rebate from HMRC, make sure the address ends in If you get one of these, forward it to phishing@ so the authorities can track the scammers. To check if you're owed a refund, log into your personal tax account directly via – never through a link in a message. 2. Robocall Saying 'HMRC Is Filing a Lawsuit Against You' This is one of the nastier ones. You get a robotic call telling you HMRC is taking legal action or that a warrant is out for your arrest unless you press a number and speak to someone. It's designed to frighten you into paying a fake 'fine' or handing over sensitive details. HMRC does not call people this way. They don't send the police round if you miss a letter. If you get one of these calls, hang up immediately. Don't engage, don't press anything, and don't give them the satisfaction of a reply. If you're unsure, call HMRC yourself on 0300 200 3300. 3. 'Confirm Your Self-Assessment Details' Phishing Emails After the end of the self-assessment tax deadline, fraudsters switch tactics. Now it's all about convincing you there's an issue with your tax return and asking you to 'verify' your information to avoid penalties or delays. These emails often look legitimate, they might have the HMRC logo, some official-sounding language, and a link to a login page. But the page is fake, designed purely to capture your login and security answers. Once scammers have that, they can access your real tax account and commit fraud in your name. So don't click. If you're ever unsure whether something is real, go straight to the source: open a new browser tab and go directly to Never trust the links in emails unless you're absolutely certain where they came from. 4. Fake Tax Refund Services on Social Media There's a newer breed of scam doing the rounds and it's targeting people on TikTok, Instagram and even WhatsApp. So-called 'tax experts' or 'refund agents' claim they can unlock hidden rebates from HMRC, promising quick cash in exchange for a fee or a cut of your refund. But they're often unregulated, unqualified, and in some cases, outright fraudsters. Some will ask for your HMRC login details (a huge red flag), while others will file dodgy claims on your behalf, leaving you liable when HMRC comes knocking. Rule of thumb: if someone slides into your DMs offering a miracle refund, it's almost certainly a scam. Stick to registered tax agents listed on the website and never share your login credentials with anyone. 5. Fake Court Summons or Arrest Threats via Email or WhatsApp In this scam, you might get a WhatsApp message or email warning you that legal action has already been taken against you. 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You get a call, sometimes automated, sometimes a real person, claiming your National Insurance number has been compromised and is being used for fraudulent activity. They say unless you act quickly, your assets will be frozen or the police will get involved. What follows is a request for you to 'verify your identity' by giving personal information – NI number, date of birth, full name, even bank details. In some cases, they'll ask you to transfer money to a 'safe account' while they 'investigate.' Don't fall for it. Your NI number can't be 'suspended' or frozen. HMRC doesn't call people to talk about identity fraud like this, and they certainly won't ask you to move money. If you get a call like this, hang up immediately. If you're worried, contact HMRC or the National Insurance helpline directly using numbers from the site. Recommended reading: 7. Bogus 'Tax Overpayment' Letters Through the Post While we usually focus on digital scams, old-school postal scams haven't gone away – and they're starting to look more professional. Some people have reported receiving letters claiming they've overpaid tax and are due a refund. These letters sometimes come with fake HMRC letterheads and a reply form asking for your bank account info or even copies of ID to 'confirm your claim.' Because they arrive in the post and look official, people often trust them more than they should. But HMRC doesn't ask for this level of personal detail through the post, especially not copies of ID or full card details. If you receive something like this, compare it against real correspondence from HMRC. Still unsure? Ring HMRC directly to confirm whether the letter is genuine. And never, ever send bank or ID details to an address you can't verify.
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