Protect Yourself from Tax Fraud Scams
Protect Yourself from Tax Fraud Scams: What You Need to Know
As tax season approaches, so do the scammers. These fraudsters are becoming increasingly sophisticated, preying on unsuspecting taxpayers by exploiting their personal data and using clever tricks to steal money. One of the tax fraud scams targeting myGov accounts has left many Australians vulnerable, and it’s important to stay informed and vigilant.
In this article, we will dive into the most common tax fraud scams, how to spot them, and what to do if you’ve been scammed.
The Rising Threat of Tax Fraud Scams
Picture this: you log into your myGov account only to find that your activity statements for the past year have been amended, resulting in $100,000 in GST credits issued. However, you didn’t make these changes, nor did you receive the refund in your bank account. Welcome to the new era of tax fraud.
Scammers are accessing myGov accounts to make fraudulent adjustments, triggering refunds under your name. This scam, affecting thousands of Australians, is rapidly becoming one of the most common forms of tax fraud.
According to the Australian Taxation Office (ATO), this scam has been particularly insidious because it involves gaining access to your personal information—information you may have unknowingly provided to the scammers yourself.
How Scammers Access Your myGov Account
Scammers employ various techniques to trick individuals into sharing personal details, often using fake emails or SMS messages. According to the ATO, 78.9% of reported tax-related scams in the last 12 months involved fraudulent emails, while 18.4% involved SMS messages.
Some common methods include:
- Fake warnings about attempted attacks on your account, prompting you to click a link and confirm your details.
- Baiting tactics, such as claiming you’re owed a tax refund and providing a link to access it.
- Mimicking ATO notifications, with scammers creating fake messages that direct you to a malicious website.
Once scammers have access to your myGov account, they can change your bank details, lodge fraudulent GST returns, and even alter PAYG instalments, generating refunds in the process. Their knowledge of Australia’s tax and social security systems is alarming, making it difficult to spot a scam unless you’re aware of the signs.
How to Spot a Tax Fraud Scam
Identifying a tax fraud scam isn’t always easy, especially when scammers mimic legitimate communications from myGov, Centrelink, or the ATO. However, there are a few tell-tale signs:
- The ATO doesn’t use hyperlinks in emails or messages. If you receive a message with a link, it’s likely a scam.
- The ATO won’t ask for your tax file number (TFN), bank account details, or myGov login over social media. Avoid sharing these details through direct messages, even if the account appears legitimate.
- The ATO won’t use QR codes as a method to access your account.
- If you receive a pre-recorded message about an outstanding tax debt, it’s fake. The ATO doesn’t use pre-recorded messages to inform taxpayers about debts.
- Your TFN can’t be suspended. Some scammers claim that your TFN has been cancelled due to criminal activity, and they demand a fee to reactivate it. This is a scam.
Who is Being Targeted?
There’s a common misconception that older Australians are the primary targets of tax fraud scams. However, recent data shows that younger Australians are increasingly falling victim. According to the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3), those aged 25 to 34 reported the highest number of scams involving personal information.
Investment scams are also on the rise, with Australians losing $382 million to fraudulent schemes in the 2023-24 financial year. Surprisingly, people under the age of 50 are now more frequently victimised, especially through cryptocurrency-related scams. In fact, nearly half of all investment scam losses involved cryptocurrency.
Other Scams to Watch Out For
While tax fraud scams are on the rise, scammers are always evolving. Here are some other common scams to be aware of:
1. Investment Scams
Scammers build trust over time, especially on social media or messaging apps, before encouraging you to invest in shares or cryptocurrency. They may even create fake trading platforms that appear legitimate, only to disappear with your money once they’ve earned your trust. Known as pig butchering, these scams can result in significant financial loss.
2. Deepfake Scams
Using advanced AI technology, scammers create lifelike videos of trusted public figures promoting fake investment schemes. These deepfakes are hard to spot but may include subtle irregularities in the person’s speech or facial movements. If something seems off, it’s best to avoid engaging.
3. Invoice Scams
Legitimate businesses are also targeted. Scammers send fake invoices that seem real, using the names and details of your regular suppliers. Be sure to verify any unexpected invoices with the source directly before making payments.
4. Bank Scams
You might receive a phone call claiming to be from your bank, stating there’s a problem with your account and advising you to transfer your money to a “safe” account. Banks will never ask for your personal details or transfer requests via email or phone. If in doubt, hang up and call your bank directly.
Protecting Yourself from Scams
With scams on the rise, it’s crucial to stay one step ahead. Here’s how you can protect yourself:
- Never click on unsolicited links. Whether it’s in an email or SMS, always log in directly through official websites.
- Enable two-factor authentication on your myGov account for an extra layer of security.
- Avoid logging into myGov on public Wi-Fi. These networks are often less secure, making it easier for scammers to intercept your data.
- Regularly check your myGov activity for any changes or suspicious activity.
- Contact the ATO directly if you receive any unusual messages or requests. The ATO’s Scam Helpdesk is available at 1800 008 540.
What to Do if You’ve Been Scammed
If you suspect that your myGov account has been compromised, or you’ve clicked on a suspicious link, act quickly. Contact Services Australia Scams and Identity Theft Helpdesk on 1800 941 126.
For tax-related scams, it’s best to contact the ATO directly to report or verify any suspicious activity. The earlier you act, the easier it will be to prevent further damage.
Conclusion
As scammers continue to evolve, protecting yourself from tax fraud scams requires staying vigilant. With phishing emails and fake ATO notifications on the rise, it’s more important than ever to understand the warning signs and act fast if something seems off.
By following the advice above, you can protect your myGov account and ensure that you stay safe from the increasing threat of scammers. Always remember to verify suspicious activity and seek help if needed—staying informed is the first step to staying safe.