Fraud prevention – protecting yourself against fraud at the end of the tax year
Posted by Matthew Andrews on March 18th, 2025.
Your safety and the security of your money is our highest priority, and we implement stringent safeguarding measures to protect all our customers. However, it’s also important for you to take steps to shield yourself from fraud.
To assist you in identifying potential scams and staying secure, we are publishing a series of articles focused on fraud protection. This article specifically addresses how to protect yourself from fraud at the end of the tax year.
What fraud are you likely to encounter at the end of the tax year?
As the financial year draws to a close, many of us will be preoccupied with tax returns, paperwork and reviewing our financials. Unfortunately, in the rush to get everything finalised before 5 April, we can leave ourselves more vulnerable to fraudsters seeking to scam you out of your money and personal information.
Here are some common scams that tend to increase around this time:
- Tax refund scams
Perhaps the most common scam is fraudsters impersonating tax agencies, such as HMRC, and falsely claiming that you are due a tax refund. They will then send phishing emails or text messages with links to fake websites designed to steal personal and banking details.
- Fake tax demands
Some fraudsters take the opposite approach, posing as tax authorities and falsely claiming that you owe money. They use aggressive tactics, such as threats of fines, legal action, or even arrest, to pressure victims into making immediate payments.
- Invoice fraud
Companies settling outstanding payments before the tax year ends may receive fraudulent invoices. These fraudulent invoices often appear to be from legitimate suppliers or service providers but direct payments to the scammer’s account instead of the actual supplier.
- Investment scams
Fraudsters will also target those looking for last-minute investments. They promote fake investment opportunities promising high returns with little risk, often aimed at individuals seeking to maximise pension contributions or receive tax breaks.
- Payroll and HR fraud
Businesses may receive fraudulent requests from scammers impersonating employees, asking for payroll details to be updated. If successful, this can lead to wages being redirected to a fraudulent bank account.
An example of end of tax year fraud
James, a self-employed consultant, received an email claiming to be from HMRC, notifying him of a tax refund. The email looked official, even including a link to a website that closely resembled the government tax portal.
Believing it to be genuine, James followed the link and entered his banking details to claim the refund.
A few days later, he was shocked to find several unauthorised transactions on his bank account. Concerned, he contacted his bank, only to learn that scammers had used his details to carry out fraudulent purchases.
Five tips on how to protect yourself
- Verify any communications related to tax
If you receive an unexpected call, email, or text claiming to be from a tax authority, do not respond immediately. Scammers often use official-looking branding and urgent language to create a sense of panic.
Instead of clicking links or calling the numbers provided, visit the official tax authority website and log into your account to verify the claim. Remember, tax agencies will never ask for personal details, passwords, or payments via email or text.
- Double-check invoices and payment requests
During tax season, businesses often process a large number of invoices, which scammers exploit. Always verify invoices directly with the supplier before making payments, especially if there is a change in bank details.
If you receive a request to alter payment information, contact and confirm with the company using official contact details before proceeding with any transactions.
- Protect Your personal and financial information
Scammers are always on the lookout for ways to access your personal and financial data. Whether through phishing emails, fake customer support calls, or fraudulent websites, they can use this information to commit identity theft or make unauthorised financial transactions.
Be cautious when sharing sensitive information, particularly over the phone or via email. Enable two-factor authentication (2FA) on your financial accounts for added security, use strong and unique passwords, and regularly monitor your bank statements for suspicious transactions.
- Be wary of urgent payment requests
Fraudsters will often rely on creating a sense of urgency to pressure victims into making rash financial decisions. If you receive a demand for immediate payment related to taxes, business expenses, or overdue invoices, take a moment to assess.
Legitimate tax authorities and businesses will not demand instant payments or threaten legal action without prior communication. If you’re unsure, contact the organisation using the official contact details found on their website.
- Watch out for investment scams
Scammers will also target individuals looking for last-minute investments, and you should be wary of opportunities promising high returns with little to no risk.
Before investing, do your due diligence. Check their credentials of any investment firms you may be considering working with and ensure they are registered with a recognised financial authority. If something doesn’t feel right, seek independent financial advice before proceeding.
If someone targets you
If you suspect you’re being targeted or have fallen victim to a scam, take action immediately to prevent further losses.
Contact your bank, credit card provider, or other financial institutions to report the incident and secure your accounts. Monitoring your financial activity closely will help detect any further suspicious transactions.
You should also report the incident to Action Fraud, the UK’s national centre for reporting fraud and cybercrime, or the equivalent authority in your country.
If you need further assistance, organisations such as Victim Support offer free specialist help for fraud victims.
More information on end-of tax year fraud
Many scams that you are likely to encounter at the end of the tax year are variations of common fraud tactics, such as phishing, business scams, and identity theft. Explore our other fraud prevention guides for more detailed advice.
Several organisations and websites offer valuable resources and guidance. If you suspect you’ve clicked on a malicious link, use a domain checker like who.is to verify the site’s legitimacy. You can also report suspicious websites to the National Cyber Security Centre.
As well as checking the FCA’s Register and Warning List, you can also find other information for consumers and firms on the FCA website.
Lastly, if you’re sending money overseas with TorFX and have any security concerns, no matter how small, reach out to us. We’re always here to help and provide reassurance for safe, secure transfers.
Finally, if you’re worried that your TorFX account may be at risk, contact us as soon as possible and we’ll be happy to help. You can also download our app, or use our online platform, to keep an eye on your transfers.
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