Beware of clever tax season scams—learn telltale signs now
- Replies 8
As autumn arrives and the financial year nears its end, Australians are not just focused on preparing their tax returns but also on anticipating the annual increase in scam attempts that accompany this period.
Annually, as individuals gather their financial records and get ready to file taxes, scammers ramp up their activities.
These deceptive individuals employ phone calls, text messages, and emails to impersonate trusted entities such as ATOs or financial institutions.
A recent study by YouGov, commissioned by the Commonwealth Bank, revealed a startling statistic: approximately one in four Australians have encountered a tax-related scam.
While we are confident that we can identify a scam when we see one, nearly a third of the population might still fall prey to these cunning con artists.
Phishing is the scammer's rod and reel. They send emails and texts designed to lure you in with requests for personal information such as bank details, passwords, and credit card numbers.
The National Anti Scam Centre's latest report highlights the prevalence of these scams, which often disguise themselves as communications from trusted sources like myGov or the ATO.
‘What we have seen are often robocalls or calls from people who are pretending to be from the tax office, calling on the basis of an urgent debt that needs to be paid or to request personal information from you in order to process a tax refund,’ Samantha Yorke from the Australian Communications and Media Authority warned.
‘Contact can also be made by email or SMS, often including links to follow to update or fix your personal information to receive a fake refund.’
These emails and texts frequently imitate the style of your bank or government agencies, making them appear quite convincing.
A particular concern is they can appear within a thread of legitimate messages from these organisations.
These messages contain a link to a counterfeit website that closely resembles the authentic one, and they prompt you to provide your card details or login credentials.
‘The major red flag for this type of scam is the link, which differs considerably from the official myGov and ATO website addresses,’ Commonwealth Bank’s General Manager of group fraud, James Robert, said.
Rob Thomson, an assistant commissioner at the ATO, advised caution when evaluating the authenticity of communications.
Firstly, he emphasised that the ATO will never send unexpected emails or SMS messages containing links or QR codes for accessing its online services or myGov.
Instead, you should always access these services by navigating directly through your own web browser.
Thomson also highlighted the ATO will never request passwords, account numbers, or other personal information via email, SMS, or unsolicited phone calls.
‘The other one is the ATO numbers actually come up as 'no caller ID', so they don't show a number,’ he said.
‘And we'll never threaten people with immediate arrest or demand that they stay on the phone until they've made a payment.’
Catriona Lowe, the acting chairwoman of the Australian Competition and Consumer Commission, advised relying on your instincts when something feels off.
‘Before you click on that link or make that transfer, think: “Do I really know who I'm dealing with?” Independently find the website and check that what sounds like a good opportunity is legitimate.’ she noted.
A sense of urgency and anxiety was frequently exploited by scammers to deceive individuals
Reputable organisations would never demand immediate sharing of personal details, so it was essential to avoid hasty actions.
In case of suspicion, contacting the organisation through an official phone number or its verified website or app is recommended.
If personal information had been disclosed to a scammer, it was vital to notify the bank or financial institution immediately and update any provided usernames and passwords.
Reporting scams is also critical, enabling banks and anti-fraud entities to stay updated on scammers' latest tactics.
The National Anti-Scam Centre's recent Targeting Scams report indicated Australians lost $2.74 billion to scams in 2023, with over 601,000 scams reported to major monitoring agencies.
Lowe highlighted that many people experience shame or embarrassment after being scammed.
Still, it’s essential to understand that ‘people from all walks of life, all ages [and] all demographics’ can fall victim to these schemes.
‘Secondly, you have been targeted by a financial criminal. It is a deliberate, sophisticated trap. Like any crime, it is not the fault of the victim, it is the fault of the criminal.’ she added.
Yorke stressed the significance of discussing scams openly with family, friends, and colleagues to help reduce the associated shame.
‘The more we talk about scams as a society, we kind of de-stigmatise them.’ she explained.
In related news, the ATO warned about scammers sending fraudulent emails and texts claiming to be from myGov.
These messages attempt to deceive individuals by promising tax refunds or sending new messages to capture login details. Read more about this story here.
If you suspect a scam or believe you may be a fraud victim, report it to Scamwatch here.
Do you have any tips on dodging tax season scams? We'd love to hear them in the comments below.
Annually, as individuals gather their financial records and get ready to file taxes, scammers ramp up their activities.
These deceptive individuals employ phone calls, text messages, and emails to impersonate trusted entities such as ATOs or financial institutions.
A recent study by YouGov, commissioned by the Commonwealth Bank, revealed a startling statistic: approximately one in four Australians have encountered a tax-related scam.
While we are confident that we can identify a scam when we see one, nearly a third of the population might still fall prey to these cunning con artists.
Phishing is the scammer's rod and reel. They send emails and texts designed to lure you in with requests for personal information such as bank details, passwords, and credit card numbers.
Personal details are increasingly targeted by scammers using sophisticated methods during tax time. Credit: Pexels
The National Anti Scam Centre's latest report highlights the prevalence of these scams, which often disguise themselves as communications from trusted sources like myGov or the ATO.
‘What we have seen are often robocalls or calls from people who are pretending to be from the tax office, calling on the basis of an urgent debt that needs to be paid or to request personal information from you in order to process a tax refund,’ Samantha Yorke from the Australian Communications and Media Authority warned.
‘Contact can also be made by email or SMS, often including links to follow to update or fix your personal information to receive a fake refund.’
These emails and texts frequently imitate the style of your bank or government agencies, making them appear quite convincing.
A particular concern is they can appear within a thread of legitimate messages from these organisations.
These messages contain a link to a counterfeit website that closely resembles the authentic one, and they prompt you to provide your card details or login credentials.
‘The major red flag for this type of scam is the link, which differs considerably from the official myGov and ATO website addresses,’ Commonwealth Bank’s General Manager of group fraud, James Robert, said.
Rob Thomson, an assistant commissioner at the ATO, advised caution when evaluating the authenticity of communications.
Firstly, he emphasised that the ATO will never send unexpected emails or SMS messages containing links or QR codes for accessing its online services or myGov.
Instead, you should always access these services by navigating directly through your own web browser.
Thomson also highlighted the ATO will never request passwords, account numbers, or other personal information via email, SMS, or unsolicited phone calls.
‘The other one is the ATO numbers actually come up as 'no caller ID', so they don't show a number,’ he said.
‘And we'll never threaten people with immediate arrest or demand that they stay on the phone until they've made a payment.’
Catriona Lowe, the acting chairwoman of the Australian Competition and Consumer Commission, advised relying on your instincts when something feels off.
‘Before you click on that link or make that transfer, think: “Do I really know who I'm dealing with?” Independently find the website and check that what sounds like a good opportunity is legitimate.’ she noted.
A sense of urgency and anxiety was frequently exploited by scammers to deceive individuals
Reputable organisations would never demand immediate sharing of personal details, so it was essential to avoid hasty actions.
In case of suspicion, contacting the organisation through an official phone number or its verified website or app is recommended.
If personal information had been disclosed to a scammer, it was vital to notify the bank or financial institution immediately and update any provided usernames and passwords.
Reporting scams is also critical, enabling banks and anti-fraud entities to stay updated on scammers' latest tactics.
The National Anti-Scam Centre's recent Targeting Scams report indicated Australians lost $2.74 billion to scams in 2023, with over 601,000 scams reported to major monitoring agencies.
Lowe highlighted that many people experience shame or embarrassment after being scammed.
Still, it’s essential to understand that ‘people from all walks of life, all ages [and] all demographics’ can fall victim to these schemes.
‘Secondly, you have been targeted by a financial criminal. It is a deliberate, sophisticated trap. Like any crime, it is not the fault of the victim, it is the fault of the criminal.’ she added.
Yorke stressed the significance of discussing scams openly with family, friends, and colleagues to help reduce the associated shame.
‘The more we talk about scams as a society, we kind of de-stigmatise them.’ she explained.
In related news, the ATO warned about scammers sending fraudulent emails and texts claiming to be from myGov.
These messages attempt to deceive individuals by promising tax refunds or sending new messages to capture login details. Read more about this story here.
If you suspect a scam or believe you may be a fraud victim, report it to Scamwatch here.
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