HMRC Admits Using AI to Monitor Taxpayers’ Social Media in Fraud Investigations

HMRC has confirmed it uses artificial intelligence (AI) to monitor taxpayers' social media posts as part of criminal investigations into tax fraud, focusing on evidence such as large purchases or expensive holidays that may indicate undeclared income. This AI-driven surveillance is employed alongside traditional financial data analysis systems like Connect, which cross-references billions of data points to detect tax evasion. Chancellor Rachel Reeves aims to recover £7 billion from the UK’s £47 billion tax gap, with plans to embed AI more extensively in routine tax procedures, including sending automated prompts to suspected evaders. While HMRC insists robust safeguards and human oversight remain in place, Conservative MPs including Bob Blackman and Sir John Hayes have expressed serious concerns about potential errors and the risks of relying heavily on AI without sufficient human checks, citing past scandals like the Post Office Horizon case. The government maintains that AI tools are legally compliant and used responsibly, but the expansion of AI's role has sparked debate over privacy and the balance between technological efficiency and fair enforcement.