Income Tax and Council Tax Fraudsters Hit The Uk

The Conscientious Burglar – Punch February 1920

Most of us have the savvy to avoid giving information to anyone who phones or emails asking for passwords, bank details or personal information including cold callers who begin with the jaunty “good morning, I’m pleased to let you know that you’ve won a prize.  I just need to check a few details …”.

However, it seems we now have a new breed of fraudster preying on unsuspecting folk here in the UK.

A year ago, many people across the UK received emails supposedly from their tax office claiming that the recipient was due a tax refund and asking for credit card or bank details to enable the refund to be paid to them direct.  These fraudsters cleverly arranged for the emails to be sent just following the 31 January 2010 online tax return deadline.  Unfortunately, for those poor tax payers who did indeed supply their details, they very soon found either their bank accounts empty or, if they gave their credit card number, that credit card was maxed out before too long.

This year, the fraudsters have hit upon a new idea.  Over here in the UK we pay a Council Tax, which in effect is an amount we’re expected to pay to our local councils for the supply of services such as bin emptying, street lighting, highway repairs, libraries, schools, policing and the like.  The amount of this tax is based on how big (or small!) your house is and where it’s situated.  For instance, when I lived in Norwich in a ground floor flat, Norwich City Council considered my tax should be based on the bottom band (Band A) and now I live in a small village, I now come under the auspices of Broadland District Council and my house is in Band C.   However, the tax for my larger house in the country is probably about the same as it was for my flat in the centre of the City as obviously I don’t receive the same level of amenities and services here as I did in Norwich due to its more remote location.

Most people pay their Council Tax by direct debit, i.e. they set up a system with their bank whereby the amount each year can be taken out automatically.  I choose to pay mine over 10 months but others prefer to set up the direct debit to pay out once a year.  The fraudsters are canny enough to realise that the majority of people pay by direct debit so they contact you either by telephone or email saying that you’re due a refund from your local council for paying by direct debit.  They claim to be from the Council Tax head office in London; they ask for the provision of personal details and bank account details in order that they can pay in this refund.  They then supply a telephone number you can call if you want any further information but this tends to be a premium rate number so, not only do they gain by clearing out your bank account or stealing your identity, but, if you telephone them to check they’re legitimate, the fraudsters make huge amounts of money from the phone call.

If you live in Enfield, Lewisham, Aberdeen, Brighton, Hove or the Wirral areas you may already have been warned but, with the new Council Tax demands due to come out shortly, please be take heed.  Don’t open any emails that claim you’re due a refund and, if you receive a phone call to that effect, just hang up and don’t ring back on any numbers you’re given. 

If you are due a refund, your local council will contact you by post but, if you’re at all uneasy that even this correspondence may not be legitimate, phone your local council – the telephone number will be on any previous Council Tax demand or can be found in the telephone directory or by Googling.