Two men have been arrested in east London on suspicion of orchestrating a massive tax fraud scheme via TikTok, involving fraudulent claims worth £153 million. The suspects, aged 22 and 25, allegedly used the popular social media platform to trick users into revealing their personal tax information by promising financial rewards.
How the Scam Worked
According to investigators, the duo then exploited the stolen details to submit fraudulent tax repayment claims totaling tens of millions of pounds. However, HM Revenue and Customs (HMRC) managed to block these claims before any payouts were made. HMRC is now warning social media users to be wary of posts that offer "risk-free" cash in exchange for personal tax details.
Warning from HMRC
Simon Grunwell, HMRC's head of cybercrime investigations, emphasized the importance of safeguarding personal information. "Protect your personal tax details in the same way you protect your bank details," he said. "Claims of quick, risk-free cash in return for sharing your personal information are a scam. They aim to defraud you and the taxpayer."
HMRC noted that similar scams are also prevalent on other apps like Instagram and Snapchat. The tax authority cautioned that victims whose details are used may ultimately be held liable for the fraudulent repayments, as the criminals hide their identities.
Arrests and Charges
The two Romanian men were arrested in Newham on April 23 on suspicion of offenses under the Fraud Act, the Serious Crime Act, the Computer Misuse Act, and the Proceeds of Crime Act. They have been released on bail while the investigation continues.
