Government Fraud — How Criminals Impersonate Official Bodies

Criminals do not just target individuals. They target HMRC, DWP, local councils, and the NHS. Every pound stolen from the public purse is a pound that cannot fund schools, hospitals, and roads. This page exposes the scale of the problem and how to stop it.

📊 The Scale of the Problem

Sources: HMRC Annual Report & Accounts 2024, NAO COVID Fraud Report 2024, Cabinet Office Fraud Landscape 2025, UK Finance 2025.

📞 HMRC Impersonation Scams

This is the most common type of government fraud targeting the public. Criminals call, text, or email pretending to be from HMRC. They threaten arrest, court action, or a warrant if you do not pay fake tax debts immediately.

• ✅ HMRC will NEVER demand immediate payment by phone, text, or email.
• ✅ HMRC will NEVER ask for payment via iTunes, Google Play, or Bitcoin.
• ✅ HMRC will NEVER threaten immediate arrest or send police to your home.
• ✅ Hang up. Call HMRC directly on 0300 200 3300 to check if the call was genuine.

📧 HMRC Phishing & Text Scams

Fake HMRC emails and text messages claiming you are owed a tax refund or owe unpaid tax. They link to convincing fake websites that steal your personal and financial details.

• ❌ Do not click links in unexpected tax refund emails or texts.
• ❌ Do not reply to suspicious SMS claiming to be from HMRC.
• ✅ Forward suspicious emails to [email protected]
• ✅ Forward suspicious texts to 60599 (free)

🧾 Tax Fraud (Individuals & Businesses)

Tax fraud happens when individuals or businesses deliberately evade tax. This is not a victimless crime — every pound of tax lost means less money for the NHS, schools, roads, and policing.

Report tax fraud anonymously to HMRC: 0800 788 887.

🦠 COVID Fraud — The Biggest Heist

The UK Government spent £470 billion on COVID support schemes. Criminals exploited the rush to get money out the door. The National Audit Office estimates fraud and error in COVID schemes cost taxpayers between £4.8 billion and £7.3 billion.

• ⚫ Furlough fraud: Employers claimed for staff who were still working or did not exist.
• ⚫ SEISS fraud: Self-employed grants claimed by ineligible applicants.
• ⚫ Bounce Back Loan fraud: Loans taken out by fake companies, never repaid.
• ⚫ Procurement fraud: PPE contracts awarded without competition, overpriced or non-existent supplies.

Source: NAO, "Investigation into the Government response to COVID fraud," July 2024.

🏥 NHS & Public Sector Fraud

Fraud against the NHS alone is estimated at £1.27 billion per year. This includes fake prescriptions, false claims by healthcare professionals, procurement fraud, and payroll abuse.

• ⚫ Dental fraud: Claims for treatment not provided.
• ⚫ Pharmacy fraud: False prescriptions claimed against the NHS.
• ⚫ Council tax fraud: False single person discounts, hiding rental income.
• ⚫ Blue Badge fraud: Using or selling disabled parking badges fraudulently.

Report NHS fraud confidentially: 0800 028 4060 or online at nhsbsa.nhs.uk/report-fraud

👤 Impersonation of Government Officials

Criminals do not just impersonate HMRC. They also pretend to be from DWP, the Home Office, the police, or local councils. The aim is to intimidate victims into paying money or handing over personal information.

• ✅ Verify the caller. Ask for their name, department, and a reference number. Hang up and call the official number on the government website.
• ✅ Government will never: Demand gift card payments, request remote access to your computer, or threaten immediate arrest.
• ✅ Report impersonation calls to Action Fraud on 0300 123 2040.

Key Helplines

🛡 How You Can Help

• ✅ Report suspicious contact pretending to be from a government department — even if you did not fall for it. Your report helps track scam operations.
• ✅ Speak to elderly relatives about HMRC impersonation scams. Over-75s are disproportionately targeted and lose the most money.
• ✅ Suspicious of a business underpaying tax? Report anonymously to HMRC. You can do it online or by phone and do not have to give your name.
• ✅ Check government communications by logging directly into your HMRC account via GOV.UK. Never use links from emails or texts.

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