British Taxpayer Phishing Scam: Police Arrest 13 Suspects in Major Fraud Case

The British taxpayer phishing scam has led to a significant breakthrough after Romanian police arrested 13 suspects linked to a £47 million fraud scheme. The scam targeted over 100,000 UK taxpayers, illegally accessing HMRC accounts to claim fraudulent government payments. This joint investigation highlights the ongoing threat posed by organized cybercrime groups against national tax systems.

The Police Raids and Arrests

Romanian authorities conducted coordinated raids across Bucharest and surrounding counties, arresting thirteen suspects aged between 23 and 53. Authorities believe these individuals lead an organized crime group responsible for the phishing operation. Over 100 Romanian police officers took part in the raids, seizing luxury cars, large cash sums, and other physical evidence. The case also involves an additional 254 low-level members already under prosecution.

How the Scam Operated

Starting in September 2023, the criminal group executed sophisticated phishing attacks to steal login credentials and personal data of British taxpayers. By hacking into over 1,000 “Government Gateway” accounts, the fraudsters altered taxpayer details or created fake accounts under legitimate names and social security numbers.

To cover their tracks, the criminals registered bogus employers within the UK Revenue Agency and submitted false PAYE tax return applications. They used these phony accounts to claim fraudulent tax refunds, including income tax, VAT, and child benefits. The gang deposited the illicit payments into bank accounts they controlled and later laundered the money through transfers or ATM cash withdrawals.

Additional Arrests and Notifications

In a related operation in northwest England, a 38-year-old man was arrested, with electronic devices seized. Previously, two suspects were arrested in Bucharest for online fraud. The UK tax authority, HMRC, has sent notification letters to all 100,000 affected taxpayers between June 4 and June 25, warning them of the breach and steps to take.

Simon Grunwell, head of HMRC’s Fraud Investigation Service, confirmed ongoing efforts to protect affected individuals and prevent further fraudulent access.

Conclusion

This massive British taxpayer phishing scam exposes the vulnerabilities in digital tax systems and the increasing sophistication of cybercriminals. The arrests mark a critical step in dismantling a major fraud network and protecting public funds. Tax authorities and citizens alike must stay vigilant to combat evolving cyber threats targeting financial information.