As tax season arrives in Australia, it brings not only the task of filing returns but also an increased risk of online scams. Cybercriminals see this period as an opportunity to exploit unsuspecting taxpayers and businesses. Besides Dropbox phishing scams, several other types of online scams are prevalent during tax time. Here’s a guide to help you recognise and protect yourself from these threats.
Common Online Scams During Tax Season
1. ATO Impersonation Scams
One of the most common tax-season scams involves criminals posing as agents from the Australian Taxation Office (ATO). These scams typically occur via email, phone calls, or text messages. The scammers may claim that you owe back taxes and threaten legal action if you don’t pay immediately.
Protection Tips:
- The ATO will never contact you via email or text message to request personal or financial information.
- If you receive a suspicious call, do not provide any information. Hang up and contact the ATO directly using the contact information on their official website.
2. Tax Preparation Scams
Fraudulent tax agents may promise large refunds or pose as legitimate tax services to steal your personal information. They may charge high fees and disappear after filing erroneous returns, leaving you to deal with the consequences.
Protection Tips:
- Verify the credentials of your tax agent.
- Avoid agents who base their fee on a percentage of your refund.
- Ensure that your tax agent signs your return and includes their Tax Agent Number (TAN).
3. Refund Fraud Scams
Scammers may use stolen personal information to file fraudulent tax returns and claim refunds in your name. You might only discover the fraud when you try to file your own return and find that one has already been filed using your Tax File Number (TFN).
Protection Tips:
- File your tax return early to reduce the chance of a fraudulent return being filed in your name.
- Use a secure connection and reputable tax software when filing online.
- Monitor your credit report for any unusual activity.
4. Phishing Scams
Phishing scams increase during tax season, with criminals attempting to steal your personal information through fraudulent emails, text messages, and websites. These scams may appear to be from the ATO, tax preparation companies, or financial institutions.
Protection Tips:
- Be skeptical of unsolicited emails or messages requesting personal information.
- Verify the legitimacy of any website before entering sensitive information.
- Use strong, unique passwords for your online accounts and enable two-factor authentication where possible.
5. Identity Theft
Identity theft is a significant risk during tax season, as criminals can use your stolen personal information to commit various types of fraud, including filing fake tax returns.
Protection Tips:
- Shred any documents containing personal information before disposing of them.
- Keep sensitive documents secure, whether stored physically or digitally.
- Monitor your financial accounts regularly for any suspicious activity.
6. Phone Scams
Scammers may call, claiming to be ATO agents, demanding immediate payment for owed taxes, or offering unexpected tax refunds. They often use aggressive tactics to pressure you into making quick decisions.
Protection Tips:
- The ATO will never demand immediate payment over the phone or threaten you with arrest.
- Hang up on suspicious calls and verify the claims by contacting the ATO directly.
- Be cautious of any caller asking for payment through unusual methods, such as gift cards or cryptocurrency.
What to Do If You Suspect a Scam
- Do Not Click on Any Links or Provide Information: If you suspect an email or message is a phishing attempt, do not click on any links or download any attachments. If you receive a suspicious call, do not provide any personal information.
- Report the Scam: Report suspicious emails, messages, or phone calls to the ATO through their official channels. You can also report scams to the Australian Cyber Security Centre (ACSC) at cyber.gov.au/report.
- Change Your Passwords: If you think you may have entered your credentials on a fake site, change your passwords immediately and check your accounts for any unauthorised activity.
- Alert Your Contacts: If you suspect your email or phone number has been compromised, inform your contacts to be wary of any unexpected messages from you.
Tax season is a prime time for cybercriminals to strike. Protecting yourself involves staying alert, educating yourself and your team, and taking proactive security measures. These small efforts can significantly reduce the risk of falling victim to online scams.
Talk to TechPath’s cyber experts about securing your business against today’s online threats.
