Massive Scam Targets UK’s Tax Service, Resulting in £47m in Losses

Romanian authorities, assisted by investigators from the UK’s tax service, HMRC, have arrested 13 individuals in connection with a massive phishing scam that targeted HMRC customers. The scam, which was revealed in June 2025, resulted in £47m in losses for the UK taxpayer.

According to HMRC, over 100,000 customers were victims of the phishing scam, which involved organized criminal gangs using stolen data to submit fraudulent PAYE claims, VAT repayments, and Child Benefit payments. The phishers, who were arrested in Romania, are suspected of computer fraud, money laundering, and illegal access to a computer system.

The investigation, which was a joint effort between HMRC and the Romanian Police, was sparked by a massive loss to phishing reported by HMRC in June 2025. HMRC officials told the UK government’s Treasury Committee that 100,000 customers were victims of the phishing scam, resulting in £47m in losses.

The phishers, who were arrested in the counties of Ilfov, Giurgiu, and Calarasi, are believed to have stolen data from HMRC customers, which they used to submit fraudulent claims. HMRC has confirmed that the phishers stole money from HMRC rather than its customers.

In a statement, Simon Grunwell, operational lead in HMRC’s fraud investigation service, said, “We have a number of live criminal investigations, and we are grateful to our Romanian partners for their support.” The completion of this investigation suggests that HMRC is actively working against other phishing campaigns and may well result in further operations against other phishers.

HMRC has also confirmed that it has written to affected customers, locked down their accounts, and deleted login credentials to prevent future unauthorized access. The phishing attacks have not involved a cyber attack against HMRC.

The arrest of the 13 individuals is seen as a significant blow to organized crime groups involved in phishing scams. The joint investigation between HMRC and the Romanian Police demonstrates the commitment of law enforcement agencies to tackling cybercrime and protecting taxpayers.

HMRC’s efforts to combat phishing scams have been ongoing, with the agency working closely with law enforcement agencies and other organizations to identify and disrupt phishing campaigns. In recent months, HMRC has seen a significant reduction in phishing attacks, with the number of reported incidents decreasing by over 50%.

The success of the joint investigation is a testament to the effectiveness of international cooperation in tackling cybercrime. The Romanian Police’s Economic Crimes Investigation Directorate played a key role in the investigation, working closely with HMRC to identify and apprehend the phishers.

The case highlights the importance of vigilance and awareness in preventing phishing scams. HMRC is urging customers to remain vigilant and report any suspicious activity to the agency immediately. Customers are also advised to be cautious when receiving emails or messages that ask for personal or financial information.

The UK government has pledged to continue its efforts to combat cybercrime, with a focus on protecting taxpayers and preventing phishing scams. The government has also committed to increasing funding for cybersecurity initiatives and improving international cooperation to tackle cybercrime.

As the threat of phishing scams continues to evolve, HMRC and law enforcement agencies will remain vigilant and proactive in identifying and disrupting phishing campaigns. The success of the joint investigation is a significant step forward in the fight against cybercrime, and it serves as a reminder of the importance of international cooperation and collaboration in protecting taxpayers and preventing phishing scams.