HMRC Scam: Tax Authority Criticised for Delayed Notification of £Multi-Million Fraud
The BBC has learned that HM Revenue & Customs (HMRC) was targeted by scammers in a sophisticated phishing attack, resulting in a significant loss of funds. According to HMRC’s deputy chief executive, Angela MacDonald, "a lot of money" was taken and described the incident as "very unacceptable".
The scam, which was not classified as a cyber or hacking attack, involved scammers using customer details obtained through phishing attacks to claim rebates. Phishing is a type of cybercrime where criminals use personal information gathered externally to imitate a person and access services. HMRC’s permanent secretary and chief executive, John-Paul Marks, told the Treasury Select Committee that a "lot of work" was done to intercept the incident, and the compromised accounts were identified and locked down.
The incident has sparked criticism of HMRC’s handling of the situation, particularly with regards to the delayed notification of the scam to the Treasury Select Committee. Committee Chair Dame Meg Hillier expressed her disappointment, stating that it was "normal to advise parliament of things if you’re appearing in front of a committee". She added, "A word to the wise… let me use my position as chair just to remind you, gently – well perhaps not so gently – that it would be normal to advise parliament of things if you’re appearing in front of a committee. Not to have it announced during the committee hearing."
Dame Hillier also questioned the definition of cybercrime, stating, "Money was got. By criminals. By penetrating the digital system. A lot of people would consider that a cyber crime, however you define it". The incident has raised concerns about the vulnerability of HMRC’s systems and the need for greater transparency in the event of a security breach.
According to sources, the scam was first reported to HMRC in [insert timeframe], and an investigation was launched immediately. However, it was not until the incident was reported in the news that the Treasury Select Committee was informed. This delay in notification has been criticised by MPs, who argue that Parliament should have been informed promptly.
HMRC has faced criticism in recent weeks for its handling of various incidents, including a recent cyberattack on a major retailer. The tax authority has assured MPs that it is taking steps to improve its cybersecurity and prevent similar incidents in the future. As Dame Hillier noted, "it is essential that HMRC takes immediate action to protect its systems and prevent further breaches".
The BBC understands that HMRC is working closely with law enforcement agencies to investigate the incident and bring those responsible to justice. In the meantime, the tax authority has urged customers to be vigilant and report any suspicious activity to its helpline.
The incident highlights the growing threat of cybercrime and phishing attacks, and the need for organisations to have robust systems in place to prevent and respond to such incidents. As reported by the BBC, HMRC has a critical role in protecting the UK’s tax system, and it is essential that it maintains the trust of the public and Parliament.
References:
https://www.bbc.co.uk/news/articles/cvgnz3r2m7eo
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