Tax Scams: Don’t Be a Victim
The ATO warns taxpayers to always watch out for scammers. Each year, the ATO receives a growing number of reports from the public of new phishing scams. Not only do scammers try to steal money, they also try to steal identities. The misuse of stolen personal information has been recognised in income tax evasion, customs duty and GST fraud, superannuation fraud and welfare fraud.
Scammers are becoming more cunning in their attempts to defraud the public and trick people into handing over money, their tax file numbers or other personal information. Some perpetrators of such scams send emails containing the latest ATO website imagery and the names and signatures of real ATO staff.
The typical story is that a fraudster contacts a taxpayer out of the blue claiming the taxpayer has overpaid taxes and is entitled to a refund. The fraudster often asks the taxpayer to pay an “administration” or “transfer” fee to obtain the refund. They may also ask for the taxpayer’s personal details including financial details such as bank account information, so the “refund” can be transferred. If the taxpayer hands over money, chances are that it is never seen again, and no transfer is forthcoming.
In another typical scam, fraudsters phone to demand that people pay allegedly unpaid taxes. The ATO is aware of one such aggressive scam where taxpayers are threatened with arrest if they do not pay a fake “tax debt” over the phone. Scammers may also demand payment in gift cards, such as iTunes or prepaid Visa cards.
Scams are most prevalent during tax time, but taxpayers should remain aware and vigilant throughout the year. If you receive an email or a phone call out of the blue from “the ATO” claiming that you are entitled to a refund, that you owe taxes or that you must confirm, update or disclose confidential details like your tax file number, delete the email (do not click any links) or hang up the phone.
From time to time the ATO will send emails, text messages or official social media updates advising of new services. However, the ATO’s messages will never request personal or financial information by SMS or email. If you receive a call, an email or an SMS and are concerned about providing personal information, you can call the ATO on 1800 008 540 (8 am to 6 pm, Monday to Friday). You can also contact our office if you have concerns.
You should practise the same level of vigilance in relation to calls and emails claiming to be from other government authorities, such as state revenue authorities.
Document verification service for businesses
The Government has developed an electronic document verification service (DVS) for business use. The DVS helps businesses to protect themselves against identity crime and makes it easier for businesses to meet their regulatory obligations to verify customers’ identities. The DVS allows businesses to verify information on driver licences, passports, visas and Medicare cards “in real time” directly with the issuing agencies. The system is not a database and does not store any personal information. All DVS checks must occur with the informed consent of the person involved. Further information is available on the DVS website.