Council Tax Overpayment Scams: Spotting the Fake Refund Letter

You receive a letter, an email, or even a text message that seems to be from your local council. The tone is formal and exciting: 'Notice of Overpayment: You are eligible for a Council Tax refund of £342.15.' It explains that due to a recent re-banding of your home, you have been paying too much for years. To claim your 'government refund,' you just need to click a link or call a number and provide your bank details.

Take a deep breath. While the thought of a £300 windfall is great, you must be extremely cautious. You are likely being targeted by a council tax overpayment scam. This is a cruel variation of the hmrc scam text message that specifically targets homeowners and retirees who are conscientious about their bills.

How the Council Tax Scam Works

Scammers use publicly available data (from data brokers) to know where you live and which council area you fall under. They create fake websites that look like official council portals. When you enter your bank details to 'receive your refund,' you are actually giving them the ability to set up fraudulent direct debits or empty your savings account.

3 Ways to Verify a Refund

Don't let the professional-looking logos fool you. Use these fraud prevention tactics to stay safe:

• Check your council bill: Councils will typically apply any overpayment directly to your next bill, rather than sending you a random text message with a link.
• Ignore the pressure: If the message says you only have 24 hours to claim your refund, it is a scam. Real government money doesn't 'expire' in a day.
• Call the council yourself: Never use the phone number provided in the message. Look up your local council's number on an old paper bill and call them to ask if there is a real refund waiting for you.