That urgent email about recalculating your taxable income? The phone call claiming you owe immediate tax debt? The text message offering a “guaranteed refund” if you click the link? If any of these scenarios sound familiar, you’ve likely encountered an ATO impersonation scam, and you’re certainly not alone.
In July 2025, the ATO received 7,420 reports of impersonation scams, representing a 75% increase from June. Despite this alarming rise in scam attempts, the good news is that Australians are becoming more scam-aware: the amount of money actually paid to scammers decreased by 75% in the 2022–23 financial year, with only 28 people paying money to scammers.
Quick Summary: Your Scam Protection Checklist
The golden rule is simple: when in doubt, don’t engage. Legitimate ATO communications can always be verified through official channels.
Red flags to watch for:
- Unsolicited emails, texts, or calls demanding immediate action
- Requests for personal information like Tax File Numbers or Medicare details
- Threats of arrest, asset seizure, or immediate legal action
- Links or attachments in unexpected communications
- Demands for payment via gift cards, cryptocurrency, or wire transfers
Safe response protocol:
- Don’t click links, open attachments, or provide any information
- End the call or delete the message
- Contact the ATO directly on 1800 008 540 to verify
- Report the scam to help protect others
Bottom line: The ATO will never demand immediate payment or threaten arrest. They don’t send unsolicited messages with hyperlinks, and they’ll never ask you to pay with gift cards or cryptocurrency. When you’re unsure, verify first.
Current Scam Trends: What’s New in 2025
As tax professionals who’ve been helping Australians for over 50 years, we see firsthand how these scams are becoming increasingly sophisticated. Modern scammers leverage artificial intelligence, deepfake technology, and convincing government branding to create threats that can fool even cautious taxpayers. Understanding how to identify and respond to these scams isn’t just about protecting your money! It’s also about safeguarding your personal information and maintaining peace of mind during tax time.
With tax season bringing a “deluge of scam activity” and scammers taking advantage of any situation where people expect to hear from the ATO, staying informed about current threats has never been more crucial for your financial security.
Scammers continuously evolve their tactics, and 2025 has brought some particularly sophisticated approaches that have caught many taxpayers off-guard.
Email Scams Are Surging
Email has increased by 179% as scammers’ preferred contact method, with targeted phishing attempts becoming remarkably convincing. These scams often tell people their ‘2022 tax lodgment’ has been received and ask them to open an attachment to sign a document and complete their ‘to do list details’. Opening the attachment takes you to a fake Microsoft login page designed to steal your login details.
“The sender’s email address often looks legitimate, which is what catches people out,” explains ITP senior tax advisor Michael Roberts. “Scammers are getting better at spoofing official government email addresses and using language that sounds exactly like what you’d expect from the ATO.”
SMS Scams Have Exploded
SMS contact has increased by 414%, with scammers knowing that text messages often feel more urgent and personal than emails. However, there’s a key way to identify these immediately: the ATO no longer uses hyperlinks in outbound unsolicited SMS. If you receive a text claiming to be from the ATO with a clickable link, it’s definitely a scam.
The “Compensation” Scam
One of the most insidious current scams involves emails falsely telling people their taxable income has been recalculated and they are due to receive compensation. To claim the amount, recipients are asked to reply with personal identifying information such as payslips, TFN, driver’s licence and Medicare details.
Scammers use this information to:
- Commit refund fraud by filing false tax returns
- Access banking and credit facilities
- Sell personal information to other criminals
- Take over existing accounts and services
Artificial Intelligence and Deepfakes
Modern scammers now use AI-generated content and deepfake technology to create highly convincing voice calls and video messages. These can include realistic government branding, familiar voices, and professional presentation that makes them extremely difficult to identify as fraudulent.
How to Identify Legitimate ATO Communication
Understanding how the ATO actually communicates can protect you from sophisticated impersonation attempts.
Official ATO Communication Methods
Letters: The ATO sends official correspondence via Australia Post with clear branding and contact details for verification.
Phone: The ATO may call you, but they’ll never demand immediate payment or threaten arrest. They’ll provide their name, a contact number you can call back, and explain why they’re calling.
Email and SMS: The ATO may use email or SMS to ask you to contact them, but they will never send an unsolicited message asking you to return personal identifying information through these channels.
myGov Account: Legitimate electronic correspondence from the ATO can be found in your myGov account inbox.
What Legitimate ATO Communication Looks Like
“Real ATO communications are typically measured and professional,” notes Michael. “They don’t create false urgency, they don’t demand immediate action within hours, and they always provide multiple ways to verify the communication’s authenticity.”
Legitimate features include:
- Professional language without spelling errors
- Clear explanation of why you’re being contacted
- Reference numbers you can quote when calling back
- Multiple contact options for verification
- No requests for immediate payment or personal information via email/SMS
The ATO Will Never:
- Send unsolicited emails or texts with hyperlinks to sign in to services
- Threaten immediate arrest or asset seizure
- Demand payment via gift cards, cryptocurrency, or wire transfers
- Ask for passwords, PINs, or full credit card details over the phone
- Request Tax File Numbers or Medicare details via email or SMS
- Offer “guaranteed” refunds requiring immediate action
Types of Scams to Watch For
Understanding specific scam types helps you recognise threats before you become a victim.
Refund Scams
These promise large tax refunds in exchange for personal information or upfront fees. Variations include:
- “Unclaimed refund” emails requiring bank details to process
- Text messages about processing refunds with urgent deadlines
- Phone calls offering guaranteed refunds for a processing fee
Reality check: The ATO doesn’t offer refunds you haven’t legitimately earned, and they don’t require upfront fees to process refunds.
Debt Collection Impersonation
Sophisticated scams impersonate both the ATO and legitimate debt collection agencies like recoveriescorp. These typically:
- Threaten immediate legal action for alleged tax debts
- Demand payment within hours to avoid arrest
- Refuse to provide written confirmation of debts
- Insist on payment methods that can’t be traced
Red flag: Legitimate debt collection follows strict legal processes and always provides written confirmation of debts.
Tax Scheme Promotion
These aren’t traditional scams but unlawful tax schemes that promise easy wins but lead to financial loss, legal action, and hefty penalties. Warning signs include:
- Promises of huge tax savings that seem too good to be true
- Zero-risk guarantees on tax minimisation strategies
- Schemes that promise you can avoid tax obligations entirely
- Complex structures designed to hide income or inflate deductions
“In some instances, cases will be pursued as criminal matters with the worst cases resulting in imprisonment,” warns Deputy Commissioner Hoa Wood. “Those who participate in unlawful tax schemes will not only have to pay back the tax, but potentially face significant penalties in the range of 10 to 90 per cent of the tax avoided, plus interest.”
Social Media Misinformation
Bad social media advice continues to be a growing concern, with incorrect tax information circulating that can mislead honest taxpayers. This includes:
- TikTok videos sharing wildly inaccurate tax advice
- Posts urging people to misuse common tax documents like Form W-2
- “Secret” tax strategies that are actually illegal
- Influencer promotion of questionable tax schemes
Business Email Compromise
These target businesses during tax time with sophisticated email attacks designed to:
- Intercept legitimate tax communications
- Redirect tax refunds to criminal accounts
- Access business banking systems
- Steal customer and employee data
What to Do If You’re Targeted
Knowing how to respond immediately can prevent minor encounters from becoming major problems.
If You Haven’t Shared Information or Money
- Don’t engage: Don’t click links, open attachments, or respond to the scammer
- Report the scam: Forward emails to ReportScams@ato.gov.au or take screenshots of SMS messages and email them to the same address
- Delete everything: Remove the scam message from your inbox, sent items, and deleted items
- Stay alert: Watch for follow-up attempts using slightly different approaches
If You’ve Shared Personal Information
Immediate actions:
- Call the ATO: Phone 1800 008 540 immediately to report what happened
- Contact your bank: If you provided banking details, notify your financial institution
- Change passwords: Update all online account passwords, especially banking and government services
- Monitor accounts: Watch for unauthorised transactions or account access
Follow-up protection:
- Place fraud alerts on your credit files
- Monitor government services for unauthorised access
- Keep detailed records of all communications and actions taken
- Consider identity monitoring services
If You’ve Paid Money
Critical first steps:
- Call the ATO: Phone 1800 008 540 immediately
- Contact your bank: Lodge a fraud report and attempt to stop or reverse payments
- Report to police: File a fraud report with local police for serious financial losses
- Document everything: Keep records of all payments and communications
Additional support:
- Contact the Australian Cyber Security Centre for cybercrime reporting
- Reach out to Scamwatch for additional support and resources
- Consider legal advice for significant financial losses
Age-Specific Scam Risks
Different age groups face varying levels of risk and different types of scam approaches.
25-34 Year Olds: Highest PII Risk
This demographic remains the age group that divulges the most personal identifying information (PII) to scammers. Common vulnerabilities include:
- High comfort level with digital communications
- Assumption that sophisticated emails must be legitimate
- Busy lifestyles leading to quick decisions without verification
35-44 Year Olds: Highest Payment Risk
This group is now most likely to pay money to scammers, representing a shift from younger demographics. Risk factors include:
- Higher disposable income making them attractive targets
- Increased tax complexity with mortgages, investments, and family responsibilities
- Greater concern about tax compliance leading to hasty responses to threats
Older Australians: Phone Scam Targets
Seniors often face more traditional phone-based scams with scammers:
- Impersonating authority figures to create pressure
- Using complex stories to confuse and overwhelm
- Targeting during business hours when other family members are unavailable
Technology-Enhanced Protection
Modern technology can help protect you from increasingly sophisticated scams.
Email Security
- Enable two-factor authentication on all government and banking accounts
- Use email providers with strong spam filtering
- Be suspicious of unexpected emails from any government agency
- Verify sender addresses carefully — scammers use addresses that look similar to legitimate ones
Phone Protection
- Use caller ID and screening services
- Don’t answer calls from unknown international numbers
- Let suspicious calls go to voicemail first
- Be aware that scammers can spoof Australian phone numbers
Banking Safeguards
- Set up account alerts for all transactions
- Use secure payment methods for legitimate government payments
- Never provide banking details via email or SMS
- Regularly monitor accounts for unauthorised activity
Building Family Scam Awareness
Protecting your household requires everyone to understand current threats and response protocols.
Teaching Children and Teens
- Explain that government agencies don’t communicate via social media
- Show them how to verify suspicious communications
- Emphasise the importance of involving adults before responding to any official-sounding messages
- Teach them to recognise pressure tactics and urgent demands
Protecting Elderly Family Members
- Regularly discuss current scam trends
- Provide simple verification procedures they can follow
- Ensure they have trusted contacts for checking suspicious communications
- Consider technology solutions that can filter calls and emails
Workplace Awareness
- Implement business email security protocols
- Train staff to verify any tax-related communications
- Establish procedures for handling suspicious approaches
- Regularly update security software and systems
Professional Support and Resources
While most scam encounters can be handled individually, some situations require professional assistance.
When to Seek Help
Consider professional support if:
- You’ve lost significant money to scammers
- Your personal information has been extensively compromised
- You’re facing complex identity theft issues
- Tax returns have been fraudulently lodged in your name
- You’re dealing with multiple compromised accounts
Available Support Services
Government Resources:
- ATO Scam Reporting: 1800 008 540
- Scamwatch: Comprehensive scam information and reporting
- Australian Cyber Security Centre: Cybercrime reporting and support
- myGov Security: Account security and fraud protection
Professional Services:
- Tax professionals for complex tax-related fraud issues
- Legal advisors for significant financial losses
- Financial counsellors for budget impact management
- Identity monitoring services for ongoing protection
How ITP Can Help
At ITP, we’ve been helping Australians navigate tax challenges for over 50 years, including the increasing complexity of tax-related fraud and scams. Our experienced advisors can assist with:
- Scam aftermath management: Helping restore legitimate tax affairs after fraud attempts
- Preventive education: Training you and your family to recognise evolving threats
- Secure communication protocols: Establishing verified channels for tax communications
- Identity verification: Ensuring your legitimate tax matters aren’t compromised by fraud
If you’ve been targeted by tax scams or want to ensure your tax affairs are properly protected, book a consultation with one of our experienced advisors, or visit one of our offices across Australia to discuss your specific situation.
Remember, the cost of professional protection is minimal compared to the potential cost of falling victim to sophisticated scams.
Staying Ahead of Evolving Threats
Scam protection is an ongoing process, not a one-time setup. Staying informed about current threats and maintaining good security practices helps ensure you’re protected as scammer tactics evolve.
Regular Security Reviews
Monthly: Check bank and credit card statements for unauthorised transactions Quarterly: Review and update passwords for government and financial accounts Annually: Run comprehensive security scans and update protection software Ongoing: Stay informed about current scam trends through official ATO communications
Information Sources to Trust
- ATO official website and verified social media accounts
- Scamwatch alerts and newsletters
- Reputable news sources for major scam warnings
- Professional tax advisors with current industry knowledge
Building Long-term Protection
Education: Regularly update your knowledge of current scam trends and protection methods Technology: Maintain current security software and use strong authentication methods Networks: Build trusted relationships with verified professional advisors Procedures: Establish and practice verification protocols for all tax-related communications
The Bottom Line: Trust but Verify
The sophistication of modern tax scams means that even careful, intelligent people can become victims. The key to protection isn’t perfection — it’s developing reliable habits for verification and response that protect you even when scammers get better at their tactics.
The ATO’s own data shows that while scam attempts are increasing dramatically, actual financial losses are decreasing as Australians become more aware and educated about how to identify and report scams. By staying informed, maintaining healthy skepticism about unexpected communications, and knowing how to verify legitimate contact from the ATO, you’re joining the growing number of Australians who successfully protect themselves from these threats.
Remember: when you’re contacted by someone claiming to be from the ATO, the safest approach is always to verify first through official channels. A few minutes spent confirming legitimacy can save you months or years of dealing with the consequences of fraud.
Your vigilance doesn’t just protect you — by reporting scam attempts and staying educated about current threats, you’re helping protect your family, friends, and community from these evolving dangers.
FAQs: Your ATO Scam Questions Answered
How can I tell if a phone call is really from the ATO?
Legitimate ATO calls will include the caller’s name, a direct contact number you can call back, and a clear explanation of why they’re calling. They’ll never threaten immediate arrest or demand payment during the call. If you’re unsure, hang up and call the ATO directly on 1800 008 540 to verify.
What should I do if I clicked a link in a suspicious ATO email?
Don’t enter any information on the website. Close your browser immediately and run a security scan on your device. Change passwords for your myGov account and any other government services. Monitor your accounts closely for suspicious activity and report the incident to ReportScams@ato.gov.au.
Can scammers really make their emails look like they come from the ATO?
Yes, email spoofing technology allows scammers to make emails appear to come from legitimate government addresses. Always verify suspicious communications through official channels rather than relying on the sender address. Check the content for urgency, threats, or requests for personal information — these are red flags regardless of how legitimate the email looks.
What information is safe to give to someone claiming to be from the ATO?
Never provide Tax File Numbers, Medicare details, banking information, or passwords via email, SMS, or to unsolicited callers. If someone legitimately from the ATO needs information, they’ll explain what they need and why, and give you time to verify their identity through official channels.
How do I know if my personal information has been compromised?
Warning signs include unexpected communications from banks or government agencies, accounts you didn’t open, unauthorised transactions, or tax returns lodged without your knowledge. If you suspect compromise, contact the ATO on 1800 008 540 and your bank immediately. Consider placing fraud alerts on your credit files.
Are there legitimate debt collection agencies that work with the ATO?
Yes, the ATO sometimes uses external debt collection agencies like recoveriescorp. However, legitimate debt collectors follow strict legal processes, provide written confirmation of debts, and don’t threaten immediate arrest or demand unusual payment methods. If you’re contacted by a debt collector claiming to represent the ATO, call the ATO directly to verify.
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Disclaimer: This information is general in nature and doesn’t take into account your specific circumstances. If you believe you’ve been targeted by scams or have concerns about your tax affairs, please consult with a qualified professional or contact the ATO directly.