Tax Identity Theft in UK

What is Tax Identity Theft : Have you heard of tax identity theft? It’s when someone gets a hold of your info, like your Social Security or National Insurance number. These numbers are used to file fake tax returns or make false claims. It’s something to watch out for. Tax identity theft can happen in different ways:

Stolen Personal Information happens through hacking, scam, and document theft. Lawbreakers can get important things like Social Security numbers.

False Tax Returns: Tax fraud happens when someone pretends to be you and submits a fake tax return to get a bigger refund. They make up income, deductions, and credits to increase the amount of money they receive.

Employment-related Fraud: Identity thieves can use stolen info and pretend to be you to get a job. They may also file taxes using your name and fake job income.

Tax Preparer Fraud: Be careful of tax preparers who might misuse your personal information. They may file fake tax returns and promise a bigger refund.

Actions to Take, if Face Tax Identity Theft

Suppose you face tax identity theft in the UK. Taking quick action to lower the damage is important in that case. Here are some steps you can take:

1. Contact HM Revenue and Customs (HMRC): Report the incident to HMRC You can call their helpline at 0300 200 3300 or contact them online through their official website. Inform them about the problem and provide any required details or documentation.
2. Report the Identity Theft to Action Fraud: It is the UK’s national reporting center for fraud and cybercrime. You should report the issue to them by calling 0300 123 2040 or using their online service. They will provide you with the crime reference number, which may be useful in the future.
3. Police Report: Visit your local police station and file a report about your problem. Getting a copy of the police report can be important for dealing with banks or other organizations involved in fraud.
4. Keep an Eye on Your Financial Accounts: Check your bank statements, credit card statements, and other financial accounts for any unusual activity. It may help to avoid such issues. If you find any transactions or accounts you didn’t authorize, report them immediately to your bank or financial institution.
5. Inform Credit Reference Agencies: Contact the UK’s four major credit reference agencies Experian, Equifax, Crediva, and TransUnion. Inform them about the issue and request a fraud alert. It would help to stop criminals from opening new accounts or obtaining credit in your name.
6. Passwords and Security: Change passwords for your online accounts and emails. Use strong, unique passwords. Also, enables two-factor authentication for security.
7. Keep Records: Record all the steps you take. It includes dates, times, and names of individuals you have contacted. Keep copies of all correspondence and records related to the case. It can be useful when dealing with HMRC, banks, or credit agencies.
8. Professional Advice: Talk with a legal professional or a specialist in identity theft to guide you through the process. They can provide expert advice and help resolve any issues. They can also ensure you have taken all necessary steps to protect your identity and money.

Finally, remember dealing with tax identity theft can be a real headache. Still, there are some general steps you can take to help resolve the issue. Ofcourse, every case is different, so it’s important to change your approach according to your situation. The key is to stay on top of things, watch for suspicious activity, and reach out to the right people for help.