There are two certainties in life: death and taxes. We all have to file a tax return, and this is something scammers are well aware of.
According to University of Canberra Associate Professor of Information Technology and Systems, Dr Abu Barkat ullah, tax time scams are always prevalent, and revolve around accessing the victim’s personal information and money.
Individuals are most often the victim, with tax agents and businesses are also targeted.
Generally active from June/July and toward the 31 October tax return lodgement due date, scammers will contact their victims over the course of the year, sending multiple messages in attempts to gather personal information.
In February, people received calls alleging their Tax File Number (TFN) had been suspended, and then in May an email scam told recipients to update their myGovID details.
“If I’m targeting a person, I have asked them for their TFN and MyGov login, it’s given me a good opportunity to confuse them for a tax scam,” Dr Barkat ullah said. “Now they will have your person identification information on them.”
From there, Dr Barkat ullah said, scammers will contact their victims demanding payment, often in cryptocurrency or gift card form.
“Usually they do not prefer internet bank transfer because we can catch them,” he said. “The ATO (Australian Taxation Office) will never ask you to pay in gift cards or bitcoin.”
After people have begun lodging their tax returns, scammers will send emails saying ‘you made a mistake on your lodgement and are entitled to a bigger refund’ and include a link to update your details.
Another date pencilled into scammers’ calendars is the 31 October lodgement due date.
“People will be rushing,” Dr Barkat ullah said.
“They’ll see that and go ‘oh, they’re in a rush’ and have a go.”
While the ATO does call taxpayers, they will never: send unsolicited pre-recorded phone messages; use aggressive or rude behaviour, or threaten you with immediate arrest, jail or deportation; suspend your TFN; request direct transfers of money to a personal bank account; or project their number onto caller ID.
If you receive a call, email or SMS and aren’t sure, you’re advised to hang up and phone the ATO’s dedicated scam line on 1800 008 540 to check.
For more information, visit ato.gov.au/scams
Dr Barkat ullah’s top tax time scam tips:
- The ATO will never use a recorded message or ask someone to pay or threaten with arrest. If you hear this over the phone, it is a scam.
- Instead of clicking links from emails, texts or social media, manually enter my.gov.au into your browser.
- If in doubt, call the ATO’s dedicated scam line 1800 008 540.
- If someone has attempted to scam you or you’ve fallen victim, report it to the ATO or Scamwatch.
- Men lose more money to scams than women but report less; there’s no shame in filing a report.
Online scams keep growing in Australia
Despite general awareness raising, Australians continue to lose more money to online scams year-on-year.
Scamwatch reported $175.6 million was lost to scams in 2020. By June 2021, we have already crossed $107 million.
“There is a big rise,” Dr Barkat ullah said. “We are pretty close to double, so you can see the skill, and more scammers are trying to scam.”
Most victims are targeted over the phone, followed by email, internet and social media networks.
Men lose 58% of total money, but women report more despite losing less money.
“Women are doing great, but men need to pick up,” Dr Barkat ullah said.
Age-wise, the 65+ group are most vulnerable, and losing the most of all age groups. However, Dr Barkat ullah says at tax time, scammers “will attack everybody”.
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