Q&A

HOW DOES THE SCAM WORK?

Victims usually receive an automated call informing them that they face a legal case for non-payment of tax. Phone numbers are selected at random from the online BT directory. Those that call back are threatened with immediate arrest and prosecution unless they repay the money. The fraudsters often trick victims into making four or more payments on the same call. Some victims are also cold called directly.

HOW MANY PEOPLE ARE TARGETED?

Fraudsters hit up to 10,000 UK households a day with the recorded message. Other scammers operating from India run computer software service frauds and bogus calls claiming to be about loans and PPI refunds.

HOW TO PROTECT YOURSELF:

Be alert. HMRC says it only calls people for payment of debts they are already aware of. However, some victims receive calls from scammers when they are expecting a genuine call from HMRC. If you are in any doubt about an incoming call, end the conversation and contact HMRC using one of the numbers or online services available from its website. Report any suspicious calls to Action Fraud on 0300 123 2040 or on its website.

CAN VICTIMS GET THEIR MONEY BACK?

Currently, banks often refuse to refund victims of these scams because the customer has authorised the online payment into the criminal’s account, usually using their card reader. However, thanks to Money Mail’s Stop the Bank Scammers campaign, major banks including Barclays, HSBC, Lloyds and Santander have pledged to offer compensation to victims when the loss is neither side’s fault. Details of this are still being finalised.