£47 Million Phishing Scam Hits HMRC, 100,000 Accounts Affected | Winter Fuel Payment Reinstated | Property Market Enters Adjustment Phase
- TBA
- Jun 9
- 5 min read
100,000 HMRC accounts hit as scammers steal £47m in phishing attack
According to the latest disclosure from the UK Parliament’s Treasury Committee, HM Revenue & Customs (HMRC) has recently confirmed a serious phishing scam affecting approximately 100,000 taxpayers, resulting in around £47 million in tax fraud losses.
HMRC Chief Executive Max told MPs that the incident occurred last year and was an “organized criminal activity,” not a random act. Attackers obtained personal identity information via phishing or other means, then used this data to create fake PAYE (Pay As You Earn) accounts or accessed existing accounts to fraudulently claim tax refunds.
HMRC stated: “The accounts targeted were all personal accounts, not company accounts. We have notified or are in the process of notifying about 100,000 affected accounts, which represents 0.2% of all PAYE taxpayers.” They emphasized that no individuals have suffered any financial loss.
Additionally, HMRC clarified that this incident was not a cyberattack — a true cyberattack would involve system breaches, data extraction, or ransomware. This case was different: HMRC’s systems were not hacked, and no data was leaked. The core of the attack was “off-system data phishing,” meaning attackers obtained user information outside HMRC’s systems and then used this data to fraudulently carry out tax operations.
HMRC has locked all affected accounts and removed login credentials to prevent further misuse. They have also deleted false tax records and checked to ensure no other information was altered. The investigation has extended beyond the UK’s jurisdiction, with some arrests already made last year.
A spokesperson said HMRC will send letters to affected users within the next three weeks, informing them their accounts have been secured and no funds were lost.
Whether in the UK or elsewhere, vigilance against phishing and protection of personal information remain the first line of defense against financial fraud. Never trust requests for identity details in unsolicited emails or messages — verify through official channels if in doubt.
If you suspect your tax account has been accessed fraudulently, please contact the relevant authorities promptly for investigation and resolution.
Winter fuel payments to be reinstated this year
After public pressure and policy reversals, UK Chancellor Rachel Reeves recently confirmed that part of the winter heating fuel subsidy will be restored this year. Previously, about 10 million pensioners were affected by the government’s cancellation of this subsidy, sparking widespread dissatisfaction.
In addition, because Reeves firmly stated that she will not relax the already announced fiscal rules, multiple key departments remain deadlocked in budget negotiations with the Treasury ahead of the upcoming spending review.
On July 29, 2024, the UK Labour Party stated that starting from the winter of 2024/25, the winter fuel subsidy will no longer be universally distributed but will only be given to pension credit recipients or other targeted eligible groups—only 1.5 million people (1.3 million households) will continue to receive the subsidy.
Although this change is expected to save about £1.3 billion in 2024/25 and about £1.5 billion annually thereafter, public opinion widely criticizes the policy as “the harshest attack on the elderly generation”—it is estimated that this move will push around 100,000 pensioners into poverty by 2026, and even cause thousands to die from the cold winter.
In Reeves’s latest speech last week, she already indicated that the winter fuel subsidy will be restored, but the focus of this policy adjustment is to raise the income threshold—previously, pensioners with incomes above £11,500 were ineligible. She said: “We have listened to public concerns about the income assessment threshold being too high, so adjustments will be made to ensure pensioners can receive the subsidy this winter.”
It is reported that the government is considering a “pay first, reclaim later” approach—distributing the subsidy to everyone initially, then reclaiming funds through tax returns from high-income groups. This method has precedent in the child benefits system and is operationally feasible.
Although the Chancellor is pushing a fiscal tightening agenda, sources say three key Whitehall departments have yet to reach multi-year budget agreements with the Treasury. According to The Guardian, Home Secretary Yvette Cooper, Energy Secretary Ed Miliband, and Housing Secretary Angela Rayner continue to insist on their budget demands.
Reeves also made it clear that fiscal rules will not be relaxed for convenience. According to the new fiscal rules established by the Starmer government in October last year, by the 2029-30 financial year, the national budget must be balanced or in surplus, and government debt relative to the economy must decline. In addition, welfare spending is also restricted.
First-time buyers typically borrowing for 31 years
As UK house prices continue to rise, first-time buyers are facing significant financial pressure and are forced to choose longer mortgage terms to reduce their monthly repayments. Data from UK Finance shows that the average mortgage term for first-time buyers has now extended to 31 years, compared to just 28 years ten years ago.
Lenders generally allow a maximum mortgage term of 40 years. Many first-time buyers in their 30s are using these “ultra-long” loans to achieve their homeownership goals. While longer loan terms reduce monthly payment pressure, they result in higher overall interest costs. As incomes grow or if buyers move, some may choose to shorten their mortgage term later.
Higher mortgage interest rates are a key factor driving the extension of loan terms. On April 1 this year, the temporary stamp duty relief threshold for England and Northern Ireland returned to pre-adjustment levels, reducing the first-time buyer exemption threshold back to £300,000.
Due to policy changes, first-time buyer transactions surged 113% year-on-year in March, but mortgage approvals have declined for four consecutive months through April, reflecting ongoing affordability pressures. Despite this, the UK housing market remains somewhat resilient. Data from the National House Building Council shows house prices rose 0.5% month-on-month in May, with a 3.5% increase over the past year, and the average house price reaching £273,427.
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