Showing posts with label theft. Show all posts
Showing posts with label theft. Show all posts

Monday, 14 July 2025

HMRC’s £2 Million Blunder: A Scathing Indictment of Negligence and Incompetence


HM Revenue & Customs (HMRC) has once again proven itself to be a masterclass in bureaucratic ineptitude. According to a recent report by *The Telegraph*, HMRC employees have managed to lose or have stolen a staggering £2 million worth of taxpayer-funded laptops and mobile phones over the past five years. That’s right—£2 million of public money squandered on devices that have vanished into thin air, with roughly 10 mobile phones and two laptops disappearing every single week in the past year alone. This is not just a minor oversight; it’s a grotesque display of carelessness that demands accountability and exposes the rot at the heart of HMRC’s operations.

Let’s break this down. The replacement cost for these lost and stolen devices is estimated at £1.5 million, with an additional £386,000 spent on replacing stolen equipment. HMRC officials, in a feeble attempt to deflect blame, have suggested that these figures *might* be inflated because some equipment is “found at a later date.” Found where? Under a desk? In an employee’s living room? Or perhaps in the hands of someone exploiting sensitive taxpayer data? The vagueness of their excuse is as infuriating as it is unconvincing. Even if some devices miraculously reappear, the fact remains that thousands of gadgets—each potentially containing confidential information—have gone missing under HMRC’s watch. This isn’t just about money; it’s about the systemic failure to safeguard assets and data critical to the nation’s financial infrastructure.

The security implications are chilling. HMRC handles the personal and financial details of millions of UK taxpayers. A lost laptop or phone isn’t just a financial loss; it’s a potential gateway for cybercriminals to access sensitive information. The *Guardian* reported that across 18 Whitehall departments, including HMRC, over 2,000 devices worth £1.3 million annually have been lost or stolen, raising alarms about a “systemic risk” to cybersecurity. HMRC’s contribution to this debacle is particularly egregious, given its role as the steward of taxpayer data. How can an organisation tasked with collecting the funds that keep the UK running be so cavalier with equipment that could compromise national security? The answer, it seems, lies in a toxic cocktail of incompetence, understaffing, and a culture of indifference.

This scandal comes at a time when HMRC’s customer service is already in freefall. As *The Telegraph* noted, in 1995, HMRC answered 99% of calls within 15 minutes. Fast forward to 2024, and 63% of callers are left languishing for over 10 minutes before speaking to an advisor. This decline in service quality mirrors the agency’s apparent disregard for its own assets. Posts on X echo this sentiment, with former HMRC employees like @lizkenward lamenting the loss of resources, experienced staff, and local offices due to government cuts. @boblister_poole’s scathing remark that “most seem to work from home—who’s got them now, a relative?” captures the public’s growing suspicion that HMRC’s work-from-home policies may be exacerbating the problem. When devices are scattered across employees’ homes rather than secured in offices, the risk of loss or theft skyrockets.

But let’s not stop at the devices. HMRC’s track record is a litany of failures that compound this outrage. Just last year, the agency was defrauded of £47 million through phishing attacks that compromised 100,000 taxpayer accounts, as reported by *The Telegraph* and *BBC News*. HMRC insisted this wasn’t a “cyberattack” but rather “organised crime phishing,” as if that distinction absolves them of responsibility. Deputy Chief Executive Angela MacDonald called the loss “very unacceptable,” yet offered little in the way of concrete solutions. Meanwhile, @premnsikka on X has highlighted HMRC’s failure to collect between £500 billion and £1.4 trillion in taxes since 2010, alongside £38 billion in write-offs due to fraud and bad laws. The message is clear: HMRC is not just losing laptops; it’s losing control.

The root cause of this mess lies in a combination of chronic underfunding, poor management, and a lack of accountability. HMRC’s workforce has been gutted by years of government austerity, leaving it understaffed and undertrained, as @payling_trevor noted on X. The shift to remote work, while necessary during the pandemic, has exposed glaring weaknesses in asset management. Laptops and phones aren’t just handed out with a Post-it note saying “don’t lose me.” They require robust tracking systems, regular audits, and strict protocols—none of which HMRC seems capable of implementing. Instead, we’re left with a tax authority that treats taxpayer money like pocket change and sensitive data like an afterthought.

The public deserves better. HMRC must be held to account with immediate action: a comprehensive audit of all devices, mandatory encryption and remote-wipe capabilities for every piece of equipment, and severe penalties for employees who fail to secure assets. Heads should roll at the top—starting with those who allowed this culture of negligence to fester. The government, too, must answer for slashing HMRC’s resources to the bone while expecting it to function as a world-class institution. As @premnsikka rightly asked, why haven’t governments changed laws or improved enforcement to stem these losses? The silence is deafening.

In the end, HMRC’s £2 million device debacle is more than a financial misstep; it’s a symbol of an agency in disarray, stumbling from one scandal to the next while taxpayers foot the bill. The UK cannot afford to let this incompetence slide. It’s time for HMRC to stop losing laptops and start regaining the public’s trust. 


Tax does have to be taxing.



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 13 December 2024

HMRC Losing 2 Phones/Laptops Every Day!



HMRC has been plagued by a worrying trend of lost or stolen mobile phones and laptops, with an average of 12 devices going missing every week since April. This translates to a staggering 2.41 devices lost or stolen every working day.

The figures, obtained through a Freedom of Information request, reveal a concerning lack of security within the tax office. In the last three years alone, HMRC employees have reported losing 1,670 mobile phones and 334 laptops. A further 95 phones and 562 laptops have been recorded as stolen during this period.   

The sheer number of devices lost or stolen raises serious questions about HMRC's ability to safeguard sensitive taxpayer information. These devices often contain personal data, financial records, and confidential tax returns. The potential for data breaches and identity theft is significant. 

While HMRC claims to take "quick action" to deactivate lost or stolen devices and investigate all security incidents, the frequency of these occurrences suggests a systemic problem. The lax security measures and apparent carelessness of some employees are putting taxpayers' data at unnecessary risk.  

It is imperative that HMRC takes immediate steps to address this issue. This includes implementing stricter security protocols, providing adequate training to employees on data protection, and investing in robust security systems to safeguard sensitive information.

Taxpayers deserve to have their data protected from falling into the wrong hands. HMRC must take responsibility for this alarming trend and take decisive action to prevent further losses and protect the privacy of individuals and businesses.   

Tax does have to be taxing.

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Wednesday, 22 May 2024

HMRC's Costly Oversight: Work-from-Home Staff Lose £1 Million in Equipment


 

Introduction:

In a shocking revelation, HM Revenue & Customs (HMRC) has suffered a significant financial blow due to the carelessness of its work-from-home staff. Over the past three years, thousands of mobile phones, laptops, and other electronic devices have gone missing, resulting in an estimated loss of £1 million. Let's delve into the details and dissect the implications of this costly oversight.

The Numbers Don't Lie:

Last year alone, HMRC staff lost around 10 mobile phones and two laptops every week. Over the three-year period, a staggering 1,670 mobile phones and 334 laptops vanished into thin air. Additionally, 10 USB computer memory devices disappeared, further contributing to the mounting losses.

Stolen Goods:

Not only were items lost, but theft also played a role. During the same timeframe, 95 phones were reported stolen, along with 562 laptops and one memory device. If we assume an average replacement cost of £500 per device, the total bill for lost phones and laptops reaches £1 million. And that's not all—the stolen electronic equipment adds another £330,000 to the tally. Considering that many phones and laptops cost well above these estimates, the actual financial impact could be even higher.

HMRC's Troubling Track Record:

These revelations come amidst a series of negative stories about HMRC's operations. Delays in handling telephone enquiries, payroll blunders leading to overpayments, and a drop in overall performance have plagued the tax office. MPs have criticized HMRC's work-from-home policies, which they believe have contributed to the decline in efficiency since the pandemic began.

Security Implications:

Beyond the financial losses, there are serious security implications. Lost or stolen equipment can compromise sensitive data. HMRC claims that all devices are locked with a codeword and can be remotely wiped of data. However, cyber security experts emphasise the importance of robust encryption and passcodes to prevent data breaches.

Conclusion:

HMRC must address this issue urgently. Whether it's improving security protocols, implementing stricter accountability measures, or reevaluating work-from-home policies, the tax office cannot afford to lose more ground. The cost of negligence is steep, and taxpayers deserve better.


Tax does have to be taxing.

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 24 August 2012

The Dangers of Credit Cards



As the state and other organisations often warn, credit cards and the debt that their owners rack up can be dangerous.

It is not just ordinary members of the public that are tempted into debt by these little slithers of plastic, but also a manager within HMRC.

Accountancy Age reports that a member of HMRC's management was suspended last August and has now been sacked, following an investigation by the Independent Police Complaints Commission (IPCC).

It seems that she is alleged to have spent over £10K using HMRC corporate credit cards, both her own corporate card and those assigned to her team.

Allegations were put to her last year about the withdrawals, she claimed that some of the transactions were used to pay intelligence sources and others to maintain a petty cash float in her unit.

The IPCC was not impressed with her defence, and stated that her version of events was "inherently implausible" (ie bollocks).

The case was passed on to the Crown Prosecution Service. However, for reasons that are unclear, no criminal charges were ever brought. Instead a disciplinary hearing was held, and she was fired.

The IPCC reviewed procedures over the use of cards in the manager's unit, and expressed serious concerns credit cards could be used with such a frequency undetected over a 12-month period. The unit did not have adequate systems in place, the petty cash procedures were lax and there was no real audit process.

The IPCC has recommended regularly changing codes to room and cupboard locks, and ensuring all accounting within the unit could demonstrate a clear and accountable audit process. It also suggested HMRC "share learning" from the case with its other units.

I trust and assume that HMRC are equally understanding and supportive when they visit SME's that HMRC regard as having less than perfect financial controls and reporting!

Tax does have to be taxing.



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TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 24 June 2010

Fingers In The Till

Stand and DeliverFrom IFAonline:

"An HM Revenue & Customs (HMRC) debt collection officer has been jailed after pleading guilty to stealing almost £85,000 from taxpayers.

Geoffrey Eley, 44, who worked collecting overdue payments from taxpayers, has been sentenced to two-and-a-half years in prison at Hereford Crown Court, the Redditch Advertiser reports.

Between 2001 and 2007, Eley visited businesses and individuals door-to-door, taking cash payments from 15 taxpayers which he then pocketed.

He conned taxpayers with photocopies of official HMRC receipts, leading them to believe they had settled their debts with HMRC.

Eley, a serving HMRC officer of almost 27 years, stole a total of £84,950 while individual amounts taken from taxpayers ranged from £1,000 to £28,904.

He attempted to cover his tracks by crediting the duped taxpayers' accounts with cheque payments received from unconnected third party taxpayers.

Joff Parsons, head of HMRC's internal governance criminal investigations, says: "HMRC expects the highest standards of behaviour from its staff.

"Eley abused his position of trust for personal gain.

"We will relentlessly pursue anyone who attempts to steal from public funds and they will face criminal sanctions."

He says HMRC has taken steps to ensure similiar abuses can not take place.

"Corruption amongst our staff is rare and will not be tolerated."
"

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Friday, 12 March 2010

Handling Stolen Data

TheftHere's an interesting "little" story about some stolen data files, no not the "datagate" files of 25 million British citizens, but some stolen data files from HSBC Switzerland.

HSBC stated yesterday that a former IT employee had stolen information concerning 24,000 clients and former customers.

The Times reports that the French authorities have now acquired the data, and are examining data on the 3,000 French account holders on the list.

The question hanging in the air is whether HMRC will seek to acquire this ill gotten data (or at least the portion that covers British citizens who may, or may not, have been evading tax).

Switzerland has categorically stated that it will not co-operate with any attempt by foreign tax authorities to use the data. HSBC have also stated:

"We will not support any authorities seeking to use stolen data in pursuit of tax inquiries."

However, HMRC have "form" in this area as they acquired stolen data relating to Liechtenstein bank accounts three years ago.

Whilst the Swiss may not offer up any details, the French authorities who now have the data may well be less fussy.

Tax evasion is illegal.

However, should a government organ be using illegally acquired data to pursue suspected tax evaders?

Do two wrongs really make a right in this case?

In some countries, evidence acquired without due process (eg a warrant) is deemed inadmissible.

Doubtless there may be many who argue that tax evaders (remember it has to be proven first that they are evaders) don't deserve the protection of the law. Cut down one law and others will be exposed to an overzealous state seeking to prosecute those that it deems to have acted "illegally".

Would you be happy with state organs, eg the police, bursting into your homes without due process having been followed?

Will HMRC start to pay people to commit theft on its behalf?

That is where this may well lead.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Tuesday, 15 September 2009

Hackers Steal £1M From HMRC

Theft
In August I noted the following:

"Be warned there is a nasty fraud going on whereby agents' online details are being highjacked, and tax refunds diverted.

'There is no reason to believe that the users' security details that have been used fraudulently were obtained from HMRC.'

As per an HMRC statement quoted on Accounting Web

Given the security risks, is compulsory online filing such a good idea?
"

Last weekend This Is Money reported that £1M has been stolen from HMRC by hackers.

"The thieves filed returns online using the passwords of genuine self assessment taxpayers - then diverted the money to bogus accounts.

The sting prompted concern yesterday that the fraudsters may have obtained the passwords from one of the many Whitehall laptops stolen over the past few years
."

I wonder if this is in anyway part of the same fraud I warned about in August, that HMRC tried to blame the tax agents' "poor" poor in house security for?

Somewhat of a coincidence is it not?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Wednesday, 7 January 2009

Gone Phishing

Gone Phishing
Those of you who file your tax returns online, or who have received emails from an organisation claiming to be "HMRC", need to be aware that there is in fact a fake HMRC website in cyberspace that has been set up to "phish" bank details from the unwary.

The fake site uses the same graphics, fonts and styling as HMRC's site and gathers web users' names, addresses and credit card details.

The fake then redirects people to the real HMRC website.

The "phishing" emails claim that HMRC has conducted a review of the person's tax affairs, and has found that they are due a rebate of £70.

Under no circumstances reply to these emails, or click on the link.

HMRC will never send emails telling you that you have a rebate inviting you to verify your bank details on line.

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 21 August 2008

From Bad To Worse - The Sweet Smell of Bullshit

From Bad To Worse - The Sweet Smell of Bullshit
Congratulations to those running HMRC, for proving that they can make a bad situation worse!

It seems that security breaches at HMRC have risen dramatically since the data discs fiasco.

How the fark can that be?

HMRC and its political masters had promised to improve security, after last year's spectacular loss of 25 child benefit records. However, as we all know, the promises of politicians and bureaucrats are worse than worthless.

HMRC have clocked up a stunning ten security breaches a day since October last year, compared to eight per day the previous year.

The losses include physical theft of computers containing information about members of the public, and mobile phones with private numbers stored in them.

Since October 2007 there have been 1,993 incidents. On the assumption that this "stellar" performance continues, there will be more than 2,700 breaches by this October.

That's an increase of 28%!

Well done lads!

Those of you who are a tad worried about this need have no fear, Treasury Minister Jane Kennedy has an excuse:

"This high level of reporting reflects the increased awareness of staff following the child benefit data loss in October 2007."

Read that again, just to make sure that you fully understand what this daft woman just said.

She is implying that before the theft, HMRC staff hadn't got the wit/brains or practical knowledge to be able to recognise when something (eg a pc or mobile phone) had been stolen; or if they did recognise that something had been stolen, they hadn't the wit/brains or common sense to report the theft.

If it looks like bullshit and smells like bullshit, then the chances are it is bullshit!

I would like to hear what the members of staff of HMRC think about her "excuse", and the real reason that security breaches have increased.

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Thursday, 6 March 2008

Guilty

GuiltyOh dear oh dear, how embarrassing for HMRC and those that claim to run it!

It seems that HMRC are, as I have said before, indeed guilty of a criminal act in buying stolen Lichtenstein bank account details.

Under the Proceeds of Crime Act 2002, one of the definitions of Money Laundering is as follows:-

1. A person is involved in Money Laundering if he or she:
  • conceals, disguises,converts, transfers or removes from the UK criminal property


  • enters into or becomes concerned in an arrangement which they know or suspect


  • facilitates [by whatever means] the acquisition, use or control of criminal property by or on behalf of another person


  • acquires, uses, or has possession of criminal property
HMRC, and those running it, are guilty as charged.

So, who will bring the court case against them?

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com) is brought to you by www.kenfrost.com "The Living Brand"

Monday, 3 March 2008

HMRC Broke The Law

HMRC Broke The LawIt seems that I am not the only person who believes that HMRC broke the law, when it paid $100K for stolen information about bank accounts in Lichtenstein.

Harry Travers, partner at London law firm BCL Burton Copeland, said:

"HMRC shouldn't be buying stolen information any more than the police should be breaking into people's houses.

In criminal proceedings, it is almost inevitable that evidence obtained through conscious illegality will be excluded pursuant to the Police and Criminal Evidence Act
."

Are HMRC now above the law?

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com) is brought to you by www.kenfrost.com "The Living Brand"

Monday, 25 February 2008

HMRC Buys Stolen Goods

HMRC Buys Stolen GoodsSome rather interesting news emerged over the weekend, about HMRC buying a series of CDs containing the personal details (eg bank accounts) of a large number of British citizens.

Could this be the missing CDs that HMRC lost last year, containing the details of 25 million child benefit claimants?

Errrmmm......No.

These CDs apparently contain the details of a large number of wealthy people who hold bank accounts in Liechtenstein.

HMRC are so keen to track down every penny of tax, that they believe is owed to them, that they have now stooped to paying off nefarious characters in order to obtain information about suspected tax evaders.

HM Revenue & Customs paid £100K to Heinrich Kieber, for data that it will use to launch investigations of up to 100 British citizens who have accounts at Liechtenstein's biggest bank (LGT).

Now, you may well ask, how did Herr Kieber obtain this data?

Well, he seems to have nicked it.

In 2004 he was convicted of fraud for stealing sensitive information from his employer, LGT, the biggest bank in Liechtenstein, which is controlled by the principality's royal family.

Nice doing business with you Herr Kieber!

Maybe someone should remind HMRC that it is an offence to knowingly handle stolen goods?

Now that these CDs are in the hands of HMRC, given their lamentable track record with regard to information security, can we expect these CDs to be "lost" and then appear on the open market again for purchase at the highest price?

Of course HMRC would argue that none of this subterfuge, unpleasant dealings and costs (in terms of time, money and effort) would have to be undertaken if people didn't go to such extraordinary lengths to evade tax.

That in itself is true, up to a point. However, one of the prime motivations for tax evasion is the complexity of the tax system.

Simplify the tax system to resolve this problem, and cut the costs of collecting tax:

- increase the personal allowances to around £10K
- introduce a flat rate of tax of around 20%
- abolish all other perverse taxes such as; stamp duty, CGT, IHT, NI etc
- increase the rate of VAT to make up the shortfall

Do the above, and there will be a dramatic reduction in the amount of time, effort and money expended by both taxpayers and HMRC in trying to wade their way through the tax system.

Tax does have to be taxing.

HMRC Is Shite (www.hmrcisshite.com) is brought to you by www.kenfrost.com "The Living Brand"