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Tax Refund and QR Code Scams

In our ‘Insight’ on 16th February, we highlighted some advice from HMRC and the National Cyber Security Centre on Tax Scams and using online services.

This week, we look into their warnings regarding tax refund scams and the use of QR Codes to phish for business information.

HMRC warns about an increase in tax refund scams

HM Revenue and Customs (HMRC) are warning that fraudsters could focus on Self Assessment taxpayers.

With the tax return filing deadline having just passed at the end of January, an email, phone call or text message that offers a tax rebate may appear more believable than usual.

HMRC say that they have responded to 207,800 referrals in the year to January, with more than 79,000 relating to fake tax rebates. The total number of referrals has increased by 14% over the previous year, suggesting fraudsters are increasing their efforts.

Scammers are looking to get personal details that they can sell on to criminals, or to gain access to bank accounts and phish for these details using emails, phone calls or texts that appear to mimic an HMRC message.

To protect yourself, avoid rushing into anything and always protect your personal information.

HMRC have confirmed that they will not email, text or phone a customer to tell them that they are due a refund, or to ask them to request a refund. Repayments will be made automatically into the account chosen when filing the tax return. Alternatively repayment amounts can be seen and payment requested in your online HMRC account or in the HMRC app.

If you receive contact that you are suspicious of, you are encouraged to report it to HMRC. You can:

  • Forward emails to phishing@hmrc.gov.uk;
  • Report tax scam phone calls to HMRC on GOV.UK; or
  • Forward suspicious texts claiming to be from HMRC to 60599.

If you are in any doubt whether contact you have received is genuinely from HMRC, please do not hesitate to contact us and we will be pleased to help you!

For more information from HMRC CLICK HERE

What’s your policy on scanning QR codes?

Since the COVID lockdowns, QR codes have become increasingly commonplace as a quick way to direct people to websites, to log into online video services on smart TVs and TV boxes, or to order or pay for goods and services.

But is your business protected from the risks that may come from criminals using malicious QR codes? Do you have a policy for your staff in place? What issues do you need to consider?

The National Cyber Security Centre (NCSC) have provided some guidance on the subject in a recent blog post.

They advise that QR code related scams are relatively small compared to other types of cyber fraud. The majority of QR code-related fraud usually happens in stations, car parks or other open spaces and often feature an element of social engineering, such as a criminal posing as a bank employee calling to continue the deception.

QR codes are increasingly being used in phishing emails, sometimes called ‘quishing’. This is because people are more suspicious of links in emails and so QR codes may more easily disguise a link to a malicious website. Also, security tools that detect phishing emails may not scan images and so let a QR code through.

Criminals are also aware that a person is likely to use their personal phone to scan a QR code. Personal devices don’t usually have the same security protections as an employer-provided computer.

NCSC make the following recommendations that could be used as the basis for a work policy on use of QR codes:

  • QR codes used in pubs and restaurants are likely to be safe.
  • Scanning QR codes in stations, car parks and other open spaces is likely to be riskier. Whenever you are being asked to provide what feels like too much information you should be suspicious.
  • Exercise caution about scanning a QR code in an email. These types of quishing attacks are on the increase.
  • Use the QR scanner that comes with your phone rather than using an app downloaded from an app store.

For more information from the NCSC CLICK HERE

Folkes Worton LLP Chartered Accountants
Accounting for the Future