14 Hackers Arrested in Massive Tax Fraud Scheme, Authorities Confirm

Authorities have arrested 14 individuals in a coordinated international operation targeting a sophisticated tax fraud scheme that exploited stolen personal data to submit fraudulent claims worth over £1 million.

The arrests demonstrate the growing collaboration between UK and Romanian law enforcement agencies in combating cross-border cybercrime.

Thirteen suspects were apprehended in Romania across the counties of Ilfov, Giurgiu, and Calarasi, while a fourteenth individual was arrested in Preston, England.

The operation involved more than 100 Romanian police officers working alongside criminal investigators from HM Revenue and Customs (HMRC) in a carefully coordinated effort that highlights the international nature of modern tax fraud schemes.

The Romanian Police’s Economic Crimes Investigation Directorate led the arrests, with suspects ranging in age from 23 to 53 years old facing charges including computer fraud, money laundering, and illegal access to computer systems.

The coordinated nature of these arrests underscores the sophisticated organization behind the criminal enterprise.

Sophisticated Phishing Operations Target Tax Systems

The criminal network employed advanced phishing techniques to steal personal data, which was subsequently used to submit fraudulent PAYE claims, VAT repayments, and Child Benefit payments.

These attacks represent a significant escalation in the sophistication of tax fraud schemes, moving beyond traditional methods to exploit digital vulnerabilities in government systems.

A joint investigation team established earlier this year brought together Romanian Prosecutors, HMRC, and the Crown Prosecution Service (CPS), demonstrating the coordinated international response required to combat such complex criminal operations.

The 38-year-old man arrested in Preston remains under questioning by HMRC officers, who also seized electronic devices as part of their investigation.

Simon Grunwell, Operational Lead in HMRC’s Fraud Investigation Service, emphasized the international cooperation aspect of the operation, stating that “These arrests show we work across borders with our international partners to combat tax crime in all its forms”.

He confirmed that HMRC has multiple live criminal investigations ongoing and expressed gratitude for Romanian partnership in the effort.

The arrests build upon previous actions taken in November, when two additional suspects aged 27 and 36 were arrested in Bucharest on suspicion of cybercrime and fraud offenses.

These earlier arrests indicate that authorities have been tracking this criminal network for several months, gradually building cases against its members.

HMRC has implemented protective measures for customers after identifying attempts to access tax accounts, though officials note that only a very small minority of accounts were affected.

The agency continues working with law enforcement agencies both domestically and internationally to bring those responsible to justice.

Authorities encourage anyone with information about tax fraud to report it through official channels, emphasizing the importance of public cooperation in identifying and preventing such schemes.

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