Brits are being urged to remain vigilant against a scam circulating just days into 2026 that could potentially cost victims thousands of pounds. Thrifting expert Caroline Butler used TikTok to highlight what people should watch out for to avoid becoming victims of fraudulent activity. "This is a scam that explodes every single January and people have lost thousands of pounds in the past because of it," she warned in a video.

Caroline explained that fraudsters "play on the fact" that the New Year brings "new money worries" for some people. "These people may becoming aware of tax rebates and tax refunds around now - and scammers know about this," she said.

So what should you be aware of? "They [scammers] are sending text messages," Caroline cautioned, displaying a screenshot of a message encouraging recipients to click a link to purportedly claim an "outstanding tax refund".

Additionally, she alerted viewers that emails are being distributed under a bogus HMRC guise, also containing a link designed to deceive the unsuspecting. "These can look really legit so you have to be incredibly mindful and stay on your guard," Caroline acknowledged.

She emphasised that HMRC will "never send links in a text message" requesting personal information. "If you do click on the link and enter your details though, scammers can then get to your money - maybe even clear out your bank account or steal your identity," Caroline advised.

She further noted: "So don't reply to the message and don't click on the link. Only contact HMRC through the official portals - you can contact them via their website. They (HMRC) will only contact you via your online official tax account."

Caroline concluded by emphasising the need to be "extra vigilant" during this period.

Reacting to her advice, one TikTok user shared: "I've had these texts for months... all from a mobile number, which is a giveaway to start with. I report and block." While another person commented: "Usually they send a letter saying the previous tax year you overpaid or they just sent a receipt. I framed a check from them because I over paid by £6."

HMRC warns that any communication - be it a phone call, email or text message - that pressures you to act swiftly, seems threatening, or unexpectedly requests personal details such as banking information, could be a scam. Once fraudsters gain access to your data, they can use it to infiltrate your accounts and siphon off your funds.

HMRC discloses online: "Concerned customers reported more than 170,000 scam referrals to HMRC in the 12 months to July 31, 2025 - and while that is a 12 per cent reduction compared to the previous year, more than 47,000 of these reports still involved fake tax refund claims.

"If someone receives a communication claiming to be from HMRC that asks for personal details or offers a tax rebate, they should check the official HMRC scams guidance to verify its authenticity."