Scammers. It seems they’re everywhere. From emails and phone calls to text messages and even LinkedIn messages, it seems they’ll leverage any communication platform they can to get at your hard-earned money. In 2019 alone, the ATO received over 40,225 reports of tax scams and recorded over $1 million in losses from over 300 Australians.
Thankfully, the tides are turning somewhat. Though it still feels like you can’t take a breath without some scammer wanting a cut of it, the latest statistics show some promise. According to a report published toward the end of 2023, the ATO has noted an uptick in the ability of everyday Australians to identify and report scams. Reports were up 25% compared to the previous financial year, while the amount of money paid to scammers dropped by an impressive 75%.
Of course, scammers are also getting smarter. The latest tax scams mimic businesses and government departments so well that you’d think you were speaking with the ATO itself. As terrifying as that is, you can still place yourself on the right side of the statistics by keeping tabs on what they’re doing. Here are the basics every Australian should know:
How Do Tax Scams Work?
Scammers use Robocall technology, which sends pre-recorded messages to landline and mobile phones across Australia. This technology manipulates caller identification so that phones display a legitimate ATO phone number, despite the fact that the calls actually come from overseas. Known as spoofing, this technique makes their call seem legitimate.
How can you tell the difference between a spoofed call and a real call from the ATO?
Thankfully, there are some tricks!
First up, take note of the caller ID. Real calls coming from the ATO do not show a number on caller ID. Instead, it should read No caller ID. Of course, this doesn’t guarantee that the call is legitimate, so if you’re unsure, it’s best to hang up and call back using the official number provided on the ATO website.
Another crucial clue is that the ATO will never use a pre-recorded messages. So if you answer a call and an automated message starts playing, claiming it’s from the ATO, you can safely hang up as this is a scam.
How can you tell if an SMS from the ATO is fake?
In 2023, the ATO announced that it will never include hyperlinks in an unsolicited outbound SMS. So if you receive a random message claiming to be from the ATO, and it has a hyperlink you’re encouraged to click, you can be certain it’s a scam.
You should also be on high alert if someone asks you to share your ATO or myGov login details. Never share these with anyone, regardless of whether you trust them or not. You should also be protective of your TFN, date of birth, bank details, and other sensitive information. Only share these details if you’ve confirmed beyond a shadow of a doubt that the person is legitimate and genuinely requires these details.
How to Spot a Tax Scam
When scammers make contact with victims, they generally request payment of a supposed tax debt through unusual methods, such as:
- Bitcoin
- Gift cards
- Vouchers
- Pre-paid cards
- Direct credit to a bank account
- Issuing a direct web link via email or SMS to a login page to make a payment
They may take a different angle and request a fee to release funds owed to you. Once again, they’ll usually ask for this “fee” to be paid via one of the unusual methods above.
Scammers will also threaten you with arrest or deportation, triggering a sense of urgency and fear. They’ll do their best to keep you on the phone until payment has been made. They may also become rude and aggressive, and because they’re triggering your worst fears, these heavy-handed tactics can be surprisingly persuasive.
What Can You Do to Protect Yourself from the Latest Tax Scams?
Be careful when clicking on links, downloading files, and opening attachments. These may contain invasive viruses that, when downloaded onto your device, can access private identification numbers and bank account details. Only give these types of details to people you trust, such as your registered tax agent, and never post them on social media.
If you do receive a suspicious email, you can forward it, unopened, to ReportEmailFraud@ato.gov.au
If you receive a suspicious text message, call the ATO on 1800 008 540 to verify if it’s authentic. Do not reply to the message or call back. Your registered tax agent will also be well versed with the latest scam data and can tell you if you have been targeted.
If you’ve answered a call, and you’re worried it’s a scam:
- Ask for their full name and extension number
- Ask for their team leader’s full name and extension number
- Hang up and verify the information with the ATO
What Do You Do if You Have Been Scammed?
If you have been the victim of a scammer and have provided your TFN or personal details, phone the ATO straight away. These details may be compromised, and scammers can and will act lightning fast. Contact your bank straight away if you have provided credit card details as a part of the scam.
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How to Stay Updated on the Latest Tax Scams
The ATO has a scam alert page, which is updated with the latest scams. If you’d rather have the latest info sent straight to you, you can subscribe to the ATO’s email updates. Note that these updates will also include general tax information, but you can tailor your subscription choices to suit your interests.
As an ITP client, you can also contact your accountant at any time of the year to discuss tax scams and any tax-related questions you may have. We may only see you about your tax return once a year, but we care about your financial health year-round! Schedule an appointment or drop by your nearest ITP office today.