Tax & Accounting News

Warning on password security

14/08/2009

HM Revenue and Customs (HMRC) has issued a warning to taxpayers following a series of attempts by organised gangs to fraudulently claim tax refunds using stolen passwords.

No figures have been released on the extent of the problem, but people have been urged to ensure the passwords sent to them by HMRC are kept secure.

“They should treat these details as carefully as they would a PIN for their bank account,” said a spokesperson for the department.

Over 9.5million taxpayers are in the self-assessment system, with two-thirds of details now submitted via the internet. When people apply to use the system they are sent a password by post, which is then used whenever they log on to the HMRC website over the following 30 days.

It is not known how the fraudsters obtained the passwords, but it could have been through stealing mail, tricking people into revealing the details or even finding the letters in people’s rubbish.

HMRC has said liability for any losses would be judged on a case-by-case basis.

 

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