NAO investigates forged identities cases

Audit watchdog the National Audit Office is investigating 40 cases of alleged
organised tax credit fraud worth a total of £5m following the theft of 8,800
identities from staff from the Department of Work & Pensions.

This was confirmed by NAO chief Sir John Bourn in a letter to Conservative MP
Richard Bacon.

Bourn said the cases involved multiple forged or false identities.

The HMRC tax credits online portal was closed in December after Department of
Work & Pensions staff had their identities hijacked, the BBC reported.

Of the 8,800 identities stolen, some 6,800 were used to make fraudulent
claims, resulting in a loss of £15m.

The tax credit system was designed to help families on low incomes by
supplementing their pay.

Related reading