Protecting yourself from fraud at the end of the financial year

Keeping you and your money safe is our top priority, and we have stringent safeguarding measures in place to help protect all our customers. But there are also steps you need to take to protect yourself from fraud.

To help you identify potential scams and stay safe, we’re publishing a series of articles on fraud protection. This article looks at how to protect yourself from fraud during the end of the financial year.

What scams should you watch out for at the end of the financial year?

At the end of the financial year, many of us will be busy finalising accounts, sorting through paperwork and submitting tax returns. Unfortunately, in the rush to get everything in order before 5 April can leave people and businesses vulnerable to fraudsters who will try to exploit this sense of urgency to scam you out of your money and personal information.

Some common scams you may encounter at the end of the financial year include:

• Tax refund scams

Fraudsters will impersonate tax authorities, such as HMRC, claiming that you are entitled to a tax refund. They will then send you phishing emails or texts directing you to fake websites in order to steal your personal and banking details.

• Fake tax demands

Scammers may also pretend to be reaching out from HMRC and threaten legal action, fines, or even arrests unless an immediate payment is made to them. They often use high-pressure tactics to make people panic and pay.

• Business invoice fraud

Companies settling accounts before the tax year ends may receive fake invoices from scammers posing as suppliers. These invoices appear legitimate, but request payments to fraudulent bank accounts.

• Investment scams

Scammers also take advantage of people looking for last-minute tax-efficient investments. They promote fake investment opportunities with promises of high returns, often targeting those seeking to maximise pension contributions.

• Payroll and HR scams

Fraudsters also target businesses by impersonating employees and requesting changes to their payroll details. This then leads to salaries being redirected to a fraudster’s account.

An example of an end of financial year scam

James, a self-employed consultant, received an email that appeared to be from HMRC, informing him that he was eligible for a tax refund. The message seemed official, and it even included a link to a website that closely resembled the real HMRC site.

Believing the email to be legitimate, James followed the link and was prompted to enter his bank details in order to receive the refund. Trusting the process, he provided his information without hesitation.

However, a few days later, he was shocked to find several unauthorised transactions on his bank account. Concerned, he immediately contacted his bank, only to learn that scammers had stolen his details and used them to make fraudulent purchases with his card.

Five tips to protect yourself from fraud at the end of the financial year

• Verify tax-related communications

If you receive an unexpected email, text, or phone call claiming to be from a tax authority, take a moment before responding. Scammers often use official-looking logos and urgent language to create a sense of panic. Instead of clicking on links or calling back using the contact details they have provided, visit the official website of the tax authority and log in to your account to verify if the message is legitimate. Remember, genuine tax agencies will never ask for personal details, passwords, or payments over email or text.

• Double-check invoices and payment requests

It’s easy to assume that an invoice or payment request is genuine, especially at the end of the tax year. However, fraudsters rely on this assumption to trick businesses and individuals into making payments to fraudulent accounts. Always verify invoices by checking directly with the supplier or service provider. If you receive an unexpected invoice or a request to change payment details, make a call to someone you trust at the company to confirm before proceeding with any transfers.

• Protect your personal and financial information

Scammers are constantly looking for ways to get their hands on your personal data. Whether it’s through phishing emails, fake customer support calls, or malicious websites, they can use this information to commit identity theft or access your finances. Always be mindful of what information you share, especially via email or over the phone. Set up two-factor authentication (2FA) wherever possible for added security, and use unique, strong passwords for different accounts. Also, make sure you regularly review your financial statements to spot any unusual transactions.

• Beware of urgent payment requests

Fraudsters know that a sense of urgency can cloud your judgement. If you receive an email or call demanding immediate payment for taxes, business expenses, or overdue invoices, take a step back and question the legitimacy. Government agencies and reputable businesses will never pressure you into making a payment on the spot. If in doubt, you should verify the claim by contacting the organisation using its official contact details. Taking a few extra minutes to double-check could save you from a costly mistake.

• Watch out for investment scams

The promise of a last-minute, tax-efficient investment can be tempting, but scammers often exploit this to commit fraud. Be particularly wary of investment opportunities that guarantee high returns with the promise of little or no risk. Before making any financial commitments, do your research. Check the credentials of the financial adviser or investment firm, read reviews, and ensure they are registered with a reputable financial authority. If in doubt, you can always seek advice from an independent financial adviser.

What to do if you’re targeted by a scam

If you think you’ve been targeted by a scam, it’s always best to act quickly. If you’ve given out your bank details, contact your bank or card provider immediately, even if you haven’t noticed any unauthorised charges.

You can also report the incident to the relevant legal authority. In the UK, this is Action Fraud.

If you’ve received a suspected scam email, you should forward it to report@phishing.gov.uk. Suspicious text messages or WhatsApp messages can also be reported by forwarding them to 7726. To report a suspicious call, text the word ‘call’ followed by the phone number to 7726.

More information on end of financial year fraud

Many scams you are likely to encounter at the end of the financial year are variations of other types of fraud, such as phishing, business fraud, or identity theft. Check out our other fraud prevention guides for more tailored advice on these other types of fraud.

Organisations like Victim Support can also provide additional resources and specialist help for fraud victims.

As a Currencies Direct customer, your security is our priority. If you ever have concerns about your currency transfers – whether you’ve spotted something suspicious or simply need reassurance – our team is always here to help!