14 Arrested in £47M UK Tax Fraud

A major international operation has resulted in the arrest of 14 people suspected of orchestrating a large-scale phishing scam that defrauded UK taxpayers of approximately £47 million.

The arrests, carried out mainly in Romania, were part of a joint effort between HMRC (Her Majesty’s Revenue and Customs) and over 100 Romanian police officers.

Operation Details

Coordinated raids across Romania led to the detention of 13 individuals, aged between 23 and 53. Additionally, a 38-year-old man was arrested in Preston, UK, for his alleged involvement in the same cybercrime ring. During the operation, authorities seized luxury vehicles and substantial amounts of cash. The suspects face charges including computer fraud, money laundering, and unauthorized access to computer systems.

These arrests follow earlier detentions in Bucharest in November, when two men, aged 27 and 36, were apprehended for similar offences. Romanian authorities also released footage of the police raids.

The criminal network reportedly used phishing schemes to trick victims into disclosing personal information, which was then exploited to file fraudulent tax claims — including PAYE (Pay As You Earn), VAT (Value Added Tax), and Child Benefit — by setting up fake online tax accounts in their names.

The Scale and Fallout

The fraud affected over 100,000 taxpayer accounts, sparking controversy after HMRC’s new chief executive, John-Paul Marks, and his deputy appeared before the Treasury Committee without disclosing the breach. Dame Meg Hillier, Chair of the Committee, later condemned this omission as “unacceptable” in a letter to HMRC.

Public Warning Issued

In response to the arrests, HMRC issued a warning to the public about tax-related scams. Simon Grunwell, from HMRC’s Fraud Investigation Service, highlighted the crucial role of international cooperation in tackling tax crime, thanked Romanian authorities, and assured that protective measures have already been put in place for affected customers.

William Wright, CEO of Closed Door Security, underscored the seriousness of phishing attacks, noting that while such schemes may seem unsophisticated, they are widespread and effective. He stressed the need for stronger efforts by both the government and the security industry to counter these threats.

Wright also advised taxpayers to stay vigilant against phishing texts, emails, and letters impersonating HMRC, particularly around tax deadlines such as the self-assessment period in January.