The tax return filing season has kicked off in Australia, and people are busy preparing for lodgement. But they need to be worried about more than just tax returns and refunds—the rising tide of scams targeting taxpayers. Last year, Australians lost almost $2.1 billion to various scams. The Australian Taxation Office (ATO) has already flagged a significant uptick in fraud through email, phone calls, social media, and SMS channels.
Recent ATO reports indicate that email scams have skyrocketed from 1267 in May to 2165 in June, a 70% increase within a month! With AI-powered tools easily accessible to the public, scammers are employing various strategies, targeting small businesses and individuals. Here we discuss various scams targeting Australian taxpayers.
1. myGov Email Impersonation Scams
Scammers craft highly realistic emails that appear to be from the ATO, complete with logos and official-sounding language. These emails contain links directing recipients to fake myGov login pages. Once victims enter their credentials, scammers gain full access to their personal and financial information stored on the myGov platform.
How to Spot a Fake
Always scrutinize the sender’s email address for any inconsistencies. The ATO will never ask you to log in to myGov via a link in an email. The safest approach is manually typing the official myGov website URL into your browser and logging in from there.
2. Tax Refund SMS Scams
In July 2024, around 18.4% of the scam was attempted through SMS. Scammers use smishing tactics, sending out deceptive SMS messages that falsely claim you’re due for a tax refund. These messages contain links to fraudulent websites built to store your personal and financial information, leading to cases of identity theft and unauthorized access to bank accounts.
How to Spot a Fake
The ATO does not include links for tax refunds in SMS messages. Be cautious of unsolicited texts, and never click on links or divulge personal information in response to an SMS. Previously, the ATO used to send two SMS—one informing taxpayers that their return was processed and one to inform them that the refund had been paid. Now, only one SMS will be sent when the refund is processed.
3. Multifactor Authentication (MFA) Phishing Scams
With the widespread adoption of MFA as a security measure, scammers have adapted by sending out emails claiming that the ATO requires an “MFA update.” These messages often include a QR code or a link to a fake login page, tricking victims into revealing their credentials. This can lead to unauthorized access to sensitive information.
How to Spot a Fake
The ATO won’t ask for MFA updates through email, particularly not via QR codes or direct links. Always manage your security settings directly through official platforms, and if something seems off, contact the ATO to verify.
4. Email Scams
These scams involve emails that mislead recipients with fake information and receipts. The email will urge the taxpayer to click on links or check the attached document to ensure that all the data is correct.
How to Spot a Fake
The ATO will never send out emails with links or attachments asking you to open them. If you receive such an email, don’t engage with it. Instead, forward the email to ReportScams@ato.gov.au and delete it.
For accounting firms, this is the time to step up and protect clients by informing them about the latest scams and how to stay safe. By staying informed and vigilant, individuals and businesses can protect their personal information and avoid falling victim to these fraudulent activities. Keep checking the ATO Website to know more about the latest updates.