Beware of tax-related scams, warn authorities

In an indication scammers are ramping up their tax-time efforts, WA ScamNet revealed it has received reports of a phishing email claiming to be from the Australian Taxation Office (ATO), but it actually originates from a completely unrelated email address.

The fake email, which brandishes a stolen Australian government logo to claim legitimacy, promises a refund of several hundred dollars.

However, the money can only be claimed on the condition that the recipient sends across their personal and financial information in return.

The scammers would then likely use this information to commit identity theft and steal their money.

WA ScamNet further warned the email scheme is just one of the many ways scammers target their potential victims.

With losses exceeding $3 billion reported by the Australian Competition and Consumer Commission (ACCC), tax time emerges as the peak season for scammers and criminals to exploit unsuspecting individuals.

Mark Gorrie, APAC managing director at security firm Norton, said the tax season provides the “perfect storm” for scammers to target Australians, due to “the amount of personal and financial information that is being stored and shared at this time, coupled with the stress that comes with filing tax returns.”

“There are certain times each year that pique cyber criminals’ interest, and tax time is one of them,” he stated.

During the 2022-23 financial year alone, ATO reported receiving over 19,000 scam reports, noting there are three main ways scammers operate to take advantage of this time of year: through tax-related identity theft, posing as fake tax specialists and accountants, or pretending to represent the ATO.

WA’s Consumer Protection highlighted that in addition to sending text messages and threatening phone calls, scammers are increasingly turning to social media platforms for their schemes.

Notably, both the ATO and myGov have expressed concerns about fake social media accounts impersonating their organisations, staff, and senior executives that ask users to send a direct message so they can make phony offers of help with taxes or fake refunds.

Regardless of the contact method, the watchdog advised consumers to ‘practice the pause’ on unexpected calls, emails, and messages. It also warned against sending personal or financial information to unverified parties.

For social media messages, consumers are urged to investigate the account that has sent the correspondence, including verifying the presence of verified ticks to establish its authenticity. Additionally, it is recommended to assess the follower numbers and recent activity for any suspicious indications.

Upon receiving emails, the agency advised clicking or hovering over the sender’s name to find the full email address. For phone calls, it’s recommended to hang up and call back the organisation using contact details that are independently sourced.