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| Version 3 | Version 4 |
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| Covid: 'My name was stolen to claim a government grant' | |
| (about 1 hour later) | |
| Self-employed environmental consultant Andy Charles has no idea how fraudsters were able to claim thousands of pounds from a government scheme in his name. | Self-employed environmental consultant Andy Charles has no idea how fraudsters were able to claim thousands of pounds from a government scheme in his name. |
| But his case is just the tip of the iceberg, the BBC's Money Box has found. | But his case is just the tip of the iceberg, the BBC's Money Box has found. |
| HM Revenue and Customs (HMRC) says up to £258m in grants for the self-employed could have been fraudulent or paid in error. | HM Revenue and Customs (HMRC) says up to £258m in grants for the self-employed could have been fraudulent or paid in error. |
| Mr Charles, from Exeter, only found out about the fraudulent claim when he put in a genuine one. | Mr Charles, from Exeter, only found out about the fraudulent claim when he put in a genuine one. |
| "My initial reaction was just complete shock really," he told the BBC. "The application process is quite long and includes a lot of personal details, so to come to the end and be told this payment had already been applied for was quite shocking... the mind boggles really." | "My initial reaction was just complete shock really," he told the BBC. "The application process is quite long and includes a lot of personal details, so to come to the end and be told this payment had already been applied for was quite shocking... the mind boggles really." |
| Despite two fraudulent claims being made in his name, Andy was eventually able to get two grants from the Self-Employment Income Support Scheme (SEISS) paid out, which has helped him get through the tough economic times caused by the coronavirus pandemic. | Despite two fraudulent claims being made in his name, Andy was eventually able to get two grants from the Self-Employment Income Support Scheme (SEISS) paid out, which has helped him get through the tough economic times caused by the coronavirus pandemic. |
| However, he still has concerns about how his personal details were used by criminals to make the fraudulent claims. | However, he still has concerns about how his personal details were used by criminals to make the fraudulent claims. |
| "I'm still, in the background of my mind, a little bit worried about what else people can get into. So can they just get into my personal tax details, [or] is there anything else I'm not aware of?" he said. | "I'm still, in the background of my mind, a little bit worried about what else people can get into. So can they just get into my personal tax details, [or] is there anything else I'm not aware of?" he said. |
| "So some real big questions about how the online system works and how HMRC are dealing with this type of stuff at their end." | "So some real big questions about how the online system works and how HMRC are dealing with this type of stuff at their end." |
| Criminal claims | Criminal claims |
| In documents seen by Radio 4's Money Box programme, HMRC says it estimates that 1-2% of all cases are bogus. | In documents seen by Radio 4's Money Box programme, HMRC says it estimates that 1-2% of all cases are bogus. |
| With £12.9bn allocated in 4.7 million grants, that would mean £258m could have been paid out in error or fraud. | With £12.9bn allocated in 4.7 million grants, that would mean £258m could have been paid out in error or fraud. |
| HMRC says the system was designed to prevent large-scale fraud and is confident it has done so. | HMRC says the system was designed to prevent large-scale fraud and is confident it has done so. |
| SEISS is significantly smaller than its counterpart, the Job Retention Scheme, which placed millions of people on furlough. | SEISS is significantly smaller than its counterpart, the Job Retention Scheme, which placed millions of people on furlough. |
| It has faced criticism for excluding too many self-employed workers, but with the first grant alone worth up to £7,500, for many the scheme has been a lifeline. | It has faced criticism for excluding too many self-employed workers, but with the first grant alone worth up to £7,500, for many the scheme has been a lifeline. |
| But accidental overpayments or fraudulent claims made by criminals using someone else's name are thought to be two examples of how incorrect payments may have been made. | But accidental overpayments or fraudulent claims made by criminals using someone else's name are thought to be two examples of how incorrect payments may have been made. |
| Fraud prevention | Fraud prevention |
| HMRC does say the figure is an estimate and should be treated with caution: "We built controls into the application process, including limiting eligibility for the scheme to those who already had a tax footprint with HMRC, to stop fraudulent claims and we're confident that we've prevented large amounts of fraud. | HMRC does say the figure is an estimate and should be treated with caution: "We built controls into the application process, including limiting eligibility for the scheme to those who already had a tax footprint with HMRC, to stop fraudulent claims and we're confident that we've prevented large amounts of fraud. |
| "Our post-payment compliance checks to recover money paid out are set to begin, with the focus on those who claimed despite having no active business." | "Our post-payment compliance checks to recover money paid out are set to begin, with the focus on those who claimed despite having no active business." |
| Andrew Chamberlain from the Association of Independent Professionals and the Self-Employed, says the misallocation of government funds is always a serious matter. | Andrew Chamberlain from the Association of Independent Professionals and the Self-Employed, says the misallocation of government funds is always a serious matter. |
| "Here it's particularly concerning because this is grant money that could be helping the more than a million struggling self-employed people who are excluded from government support," he told the BBC. | "Here it's particularly concerning because this is grant money that could be helping the more than a million struggling self-employed people who are excluded from government support," he told the BBC. |
| "It's important to put this in context, however. When compared to the Bounce Back Loan Scheme, where £26bn has been lost from fraud or default, or the Job Retention Scheme, which has lost £3.5bn through default or error, these numbers are comparatively low." | "It's important to put this in context, however. When compared to the Bounce Back Loan Scheme, where £26bn has been lost from fraud or default, or the Job Retention Scheme, which has lost £3.5bn through default or error, these numbers are comparatively low." |
| He added that it was "clear" the government needed to address fraudulent SEISS claims. | He added that it was "clear" the government needed to address fraudulent SEISS claims. |
| "Doing so, and plugging the leaks particularly in the BBLS and JRS schemes, would allow it to divert much-needed support to the UK's forgotten freelancers and self-employed." | "Doing so, and plugging the leaks particularly in the BBLS and JRS schemes, would allow it to divert much-needed support to the UK's forgotten freelancers and self-employed." |
| You can hear more on BBC Radio 4's Money Box programme by listening again here. | You can hear more on BBC Radio 4's Money Box programme by listening again here. |
| Follow Money Box and Dan on Twitter. | Follow Money Box and Dan on Twitter. |