Tax Scams: How To Spot Them And How To Deal With Them

Tax season can be stressful for many people – and this stress can make you more vulnerable to scammers, who strike at the end of the tax year, hoping to gain an advantage at your expense.
 
There are unfortunately many different ways that scam artists can trick both individuals and small businesses from parting with their hard-earned money at the end of the financial year. So it pays to be aware of the most common tricks, as well as some of the new and creative ways these criminals will try to get a foot in the door.
 
Here are some of the most common methods in play right now:
 

November 2024 – ATO impersonation email scam

The ATO have received reports of a new email scam attempting to steal personal identifying information by return email.

Scammers pretending to be from the ‘Australian Taxation Office' or 'myGov’ are emailing and falsely telling people their taxable income has been recalculated and they are due to receive compensation. To claim the amount, they are asked to reply to the email with personal identifying information such as payslips, TFN, driver's licence and Medicare details.

Scammers use this information in a variety of ways to:

• Commit refund fraud in your name
• Access your myGov account to steal your tax refund
• Steal your superannuation
• Sell your identity to organised crime groups on the dark web or via other means.

Be aware, the sender's email address looks legitimate. 

If you receive an email like this, do not reply with any of your personal information.
 

November 2024 – myGovID and myID scams

The ATO are seeing ATO impersonation scams relating to the recent name change of myGovID to myID, which occurred on 13 November 2024.

myID is a new name and a new look – but it is used the same way as myGovID.

The community does not need to take any action, as the change has already been implemented. You don't need to set up a new myID or reconfirm your details as part of this change. If you are asked to do this, it's a scam.

Scammers are trying to trick the community into thinking they need to reconfirm their details via a link. The link directs users to a fraudulent myGov sign in page designed to steal personal information, including myGov sign in credentials.

These details can be used later in identity theft or other fraudulent activity such as refund fraud.
 

March 2024 – myGov email impersonation scams

The ATO and Services Australia are warning the community to stay vigilant as they continue to receive a high number of phishing scam reports that impersonate government agencies.

ATO branded emails containing links to fake myGov websites and a fake myGov sign in page.

Scammers use fake myGov websites to steal your sign in credentials and gain access to your myGov account. Once the scammer has access, they can make fraudulent lodgments in your name and also change bank details so that any payments are redirected to a scammers account.

Scammers use different phrases to trick people into opening these links. Some examples are:

'You are due to receive an ATO Direct refund'

‘You have a new message in your myGov inbox – click here to view”

'You need to update your details to allow your Tax return to be processed'

'We need to verify your incoming tax deposit'

'ATO Refund failed due to incorrect BSB/Account number'

‘Your income statement is ready, click on the link to view’
 

November 2023 – Multifactor Authentication (MFA) email scam

Scammers are emailing clients advising them that due to ATO security updates, they are required to update the multifactor authentication (MFA) on their ATO account.

The scam email includes a QR code which takes you to a fake myGov sign in page, designed to steal your myGov sign in details.

If you receive an email like this, do not scan the QR code, click on links, open attachments or download files. Forward the email to reportscams@ato.gov.au, and then delete it.

To help protect yourself, remember:

• The ATO will never send an unsolicited message asking you to return personal identifying information through SMS or Email.
• The ATO won't send you an SMS or email with a link or QR code to log on to online services. You should access them directly by typing ato.gov.au or my.gov.au into your browser.
• Don’t click on links, open attachments or download any files from suspicious emails or SMS; The ATO will never send an unsolicited SMS that contains a hyperlink.
• Only download the myID app from the official app stores (Google Play and the App Store).
• Never share your login code with anyone.
• Know your tax affairs – legitimate email communication from the ATO can be located in ATO online services. You can check this by logging into your myGov account. You can also contact your tax agent or the ATO.
• If someone claiming to be from the ATO contacts you and advises that you have a debt or are owed a refund or asks for your myGov sign in credentials, bank or personal details such as your TFN, it is likely they are a scammer.
• The ATO are on Facebook, Instagram, X and LinkedIn, but will never use these social media platforms to discuss your personal information or documentation, or ask you to make payments.

If you’re unsure if it’s really the ATO, don’t engage with them. Phone the ATO on 1800 008 540 to check. 

You can report any suspicious contact claiming to be from the ATO to ReportScams@ato.gov.au.