SOUTH NORFOLK MP Richard Bacon's fears over the scale of tax credit fraud using stolen personal data have been confirmed in a letter he has received from Comptroller and Auditor General and head of the National Audit Office, Sir John Bourn.

Mr Bacon wrote to Sir John Bourn last month, raising his concerns over the potential scale of fraud against the tax credits system using stolen personal data.  In his reply, Sir John Bourn confirmed that 40 separate organised tax credit fraud cases using stolen personal details are currently under investigation.

The investigations are being overseen by HM Revenue and Customs' Tax Credit Fraud Strategy Board. The majority involve multiple claims based on hijacked or false identities, stolen from large employers.

Mr Bacon, a member of the Commons public accounts committee said: "It looks as if the problems with the Department for Work and Pensions were just the tip of the iceberg.  Apparently, organised criminal gangs have been stealing confidential personal information on an industrial scale, from many different employers".

"The appalling design of the tax credits scheme then provides a perfect opportunity for criminal gangs to commit massive fraud.  It is quite sick-making and it calls into question the whole basis of the scheme".

You can read Mr Bacon's letter here and Sir John's reply by clicking here.

8 June 2006

See also:
PARLIAMENT: MP calls for investigation into identity theft
BBC NEWS: 'Revenue admits theft of staff IDs'
PARLIAMENT: MP wants Treasury to end secret deals