Tax time scams
As tax time approaches, Aussies are preparing for tax returns, and already planning how to splash the cash.
But while you are dreaming of that new gadget or getaway, there is a less exciting group also gearing up – scammers. These scammers see tax time as their prime opportunity to pull the wool over unsuspecting taxpayers’ eyes.
So, as you dive into your tax preparation, it is essential to keep your guard up and stay savvy.
Here’s a rundown of some of the most common tax time scams and tips on how to protect yourself against them:
A common tactic being used by tax scammers is to contact taxpayers through e-mail, phone, text message, or even social media and claim to represent the ATO.
Around 75% of the email scams reported to the ATO in the last six months have directed users to fake myGov sign in pages. However, ATO impersonation scams have also made their way onto social media, with scammers setting up fake accounts posing as ATO officials.
Scammers use fake myGov websites to steal your sign in credentials and gain access to your myGov account. Once a scammer has access, they can make fraudulent lodgements in your name and change bank details so that any payments are redirected to a scammers account.
The phrases used to trick people into opening links include, ‘You have a new message in your myGov inbox – click here to view”, ‘You need to update your details to allow your Tax return to be processed’, or ‘We need to verify your incoming tax deposit’.
Scammers often promise hefty tax refunds through text messages or emails. They lure victims with the prospect of a large sum of money, asking for personal or financial details to process the refund. Once they have this information, they can commit identity theft or drain bank accounts.
Be wary of unsolicited messages offering tax refunds, especially if they ask for personal or financial information. If you are worried you may have fallen victim to this scam, contact your bank immediately and assess whether you need to block your accounts.
Some scammers take it a step further by setting up elaborate traps—fake tax preparation services or websites that look eerily similar to the real deal. They dangle tempting offers of lightning-fast refunds or promise to handle your taxes hassle-free, for a small fee, of course. Instead of diligently filing your return, these scammers are after something far more valuable—your personal information. By falling for their scheme, you might inadvertently give away your personal information, leaving yourself vulnerable to identity theft and financial harm.
To avoid falling victim to this scam – do your homework. Research tax preparation services thoroughly before providing any personal information or payment. Avoid clicking on links in unsolicited emails or advertisements and instead navigate directly to the official website of the tax service.
Scammers sometimes resort to intimidation tactics, threatening victims with legal action or arrest if they don’t pay supposed outstanding taxes immediately. They may use official-sounding language and provide fake case numbers or arrest warrants to instil fear and coerce victims into compliance.
If you receive emails, texts or calls with legal threats, remain calm and remember that government agencies do not communicate legal threats via phone calls or emails. If you receive such a threat, do not engage with the scammer. Instead, report the incident to Scamwatch.
For more information
For more assistance, you can refer to the ATO website. Report any suspicious contact claiming to be from the ATO to [email protected].
