Beware of tax scams as we head into the new financial year. Tax fraud and scams happen year round, but with tax on people’s minds, they can often be more susceptible to falling for scams at this time of year.

In the last 12 months, the ATO has taken action against 595 websites impersonating them. These fake sites are designed to steal passwords, personal information and identity documents, such as passports and driver’s licenses. In 2021 the top reported tax and super scams were threats of arrest, fraudulent TFN activity and fake tax debts.

Whilst the common belief may be that older people are more likely to fall victim to a scam of this nature, this is not necessarily the case. In 2021, people aged 25 to 34 made the most reports about losing money in a tax or super scam, closely followed by people aged 18 to 24.

Scams have become more sophisticated, no longer just a dodgy-looking email in your spam folder.

Whilst the ATO does, in fact, send email and text message communications, always contact your advisor to re-confirm the accuracy of the ATO’s communication.

The ATO will never:

• Send an unsolicited message requesting personal information via a return email or SMS;
• Send an email or SMS with a link to log in to their online services;
• Ask you to pay a fee to receive a refund.

To protect yourself from tax scams, you should:

• Protect personal information such as your TFN and credit card number.
• Do not share your usernames and passwords with anyone.
• Be cautious when clicking links, even when they appear to come from a legitimate source.
• Only log onto ATO online services directly, never via a hyperlink.

If you are ever unsure of a communication from the ATO, get in contact with your advisor. They can help you identify if communication is legitimate or not. You can also report any scams to the ATO via their website.