TikTok doomscrolling may have lead to downright doom if you fell victim to the latest tax scam on the “for you page”.  

This comes after two men were arrested in East London for allegations of fraud by false misrepresentation, unauthorised offences with intent and money laundering after allegedly running a TikTok scam.  

HMRC have blocked £153 million in payments following the uncovering of the alleged scam.  

The suspected scam: what took place?  

TikTok users have been warned to never share tax details online after the discovery of a suspected £153 million fraud scam.  

The investigation is ongoing into the alleged scam. However, investigators believe the pair used TikTok to post adverts giving users false hope of financial rewards in exchange for sensitive tax information.  

This information includes business VAT registration details and Government Gateway logins.  

These details were then allegedly used to submit fraudulent tax repayment claims to HMRC on their behalf.  

HMRC’s fraud detection system has blocked £153 million of repayment claims related to the alleged scam.  

Scam victims risk being liable to repay the money they owe to HMRC, if not they may face fines or prosecution.  

The pair of alleged scammers have been released on bail pending investigation. 

Common tax scams to look out for 

Tax scams are continuing to grow in scale and complexity, as more people interact with HMRC through digital channels.  

Scammers aim to trick their victims in to revealing personal information that they can use for their own financial gain.  

Fraudsters may pretend to be from HMRC and claim that you owe tax and that court proceedings are imminent should you not hand over money or, as in this case, they may offer to reclaim tax payments on your behalf.  

Text and phone call scams are some of the most common ways fraudsters will get information out of victims, but as this case shows, their use of social media is on the rise.  

HMRC will never threaten arrest, demand immediate payments over the phone or insist on payment via gift cards, cryptocurrency or bank transfer.  

Scammers will often use social media platforms to reach out to victims directly. They can directly message you using the platforms own audience tools or post misleading videos claiming you can get easy money or offer a loophole tax rebate.  

These strangers will claim they can process large tax refunds in exchange for your Government Gateway login and then split the profits with you for the convenience. 

In reality, the scammers steal the refund and make victims an accessory to fraud, while you remain legally liable to HMRC for the fraudulent claim and any associated penalties.   

You must never share your tax information with anybody online unless it is on the official HMRC website or a registered accountant to avoid facing these issues.  

It is more than okay to refuse, reject or ignore any requests for money or information. Only criminals will panic or rush you into sharing financial information with them. 

HMRC has a dedicated page letting you know current information regarding phishing and scams and it encourages taxpayers to report anything suspicious.   

How we can help  

If you receive any communications 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. 

Tax is something that should be left to a qualified accountant or chartered tax adviser to figure out.  

Get in touch today for expert tax advice.