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05 Dec 2005
HM Revenue and Customs (HMRC) has announced that it has shut down its online application website as a result of a £30m fraud.
The department said that it has identified and prevented attempts to defraud the Tax Credits system by making claims through the tax credits e-portal. As a result it has closed the site while it develops new checks to ensure greater security.
A criminal investigation has been launched into the possible misuse of a number of Department for Work and Pensions (DWP) staff identities in fraudulent tax credit claims. The fraud relates to internal information held about staff and not the external records held by the DWP.
HMRC stated that the problems do not relate to issues with the IT system supplied by EDS, which last week agreed to pay compensation of £71m over problems with the Tax Credits system.
HMRC has set up a dedicated helpline for any DWP staff who believe that they may have been affected.
David Laws, Liberal Democrat Shadow Work and Pensions Secretary, said that he suspected the level of fraud to be much higher than £30m and called on the government to make a statement.
"This complicated and chaotic system is wide open to fraud. Ministers have known for some time that organised criminals were using the internet to defraud the system," he said.
"Ministers must now make a statement, firstly as to why they have taken so long to deal with the problem and why such drastic action is necessary.
"Many perfectly honest families will be applying via the internet and will be forced to join the massive queue of people hoping to speak to an adviser on the tax credit helpline."
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Do you agree?
not government worker
got demand for payment of overpayment with 4days topay or court action very distressed went to tax offices = yes fraud= will they compensate me. also 2005
Posted by: JENNIFER FLEMING 26 Jan 2007
Not just DWP staff affected!
I claim job seekers allowance and have never claimed working tax credits. I have had my national insurance number stolen which has been used to collect tax credits from August 2005. I've had no advice from anyone just robotic responses "I can not give you any info about this matter". I've had to get the police involved as I haven't been offered any help from any where else.
Posted by: julie 04 Jan 2006
Urgent action required
I work for DWP and found out that I have a "live" claim (in payment) for tax credit. A bank account has been opened in my name for this payment. I am terrified of the potential amount of other claims that have been made using my details, and also disgusted by the complete lack of information by DWP!
Posted by: Brian Cumming 07 Dec 2005
lack of information
As a DWP employee,I am furious that all the care I take at home shredding all personal documents,heeding the government's advice, protecting myself from identity fraud, is now entirely compromised by this incident. News reports suggest than approx 1500 DWP employees are affected & I am one of those. Thankfully, I do not claim Tax Credits myself, therefore my case should be straightforward. However, I feel for my colleagues who are themselves legimitate claimants, yet now face the uncertainty of not knowing if their payments will be suspended pending a investigation. Great Xmas present that is! I would also like to see a dedicated helpline. The number I have been given is for the national Tax Credit Helpline, but we have today been asked not to phone, as we will clog the lines for other cusomters. I only wonder what else the fraudsters may try to gain with our stolen identities. Tax Credits may just be the beginning ........
Posted by: Anon 07 Dec 2005
Helpline number
There is no helpline number yet published for staff in DWP. Staff are not being kept up to date with what is happening or what action will be taken regarding the bank accounts that have also been set up in their name to receive WTCs.
Posted by: X 05 Dec 2005