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Beware of Scammers as Tax Time Approaches
As tax season approaches, the Australian Taxation Office (ATO) has issued a stark warning to individuals about an alarming surge in impersonation scams. Reports indicate a staggering 300% increase in such scams compared to last year, with unsuspecting Australians becoming prime targets for fraudsters.
Scammer Tactics
Jenny Wong, a tax expert from CPA Australia, cautions that individuals should brace themselves for an influx of scam attempts as the June 30 deadline draws nearer. Scammers exploit this period, sending unsolicited messages that masquerade as communications from the ATO or other legitimate organisations. These "phishing" attempts are crafted to appear credible, preying on recipients’ busy and distracted states as they wrap up their financial year.
The ATO has highlighted that these scammers often create fake messages aimed at tricking recipients into divulging personal information. Once they obtain such details, they can perpetrate identity theft and commit fraud. The timing of these scams is particularly strategic; messages often appear early in the morning, when individuals may be less vigilant.
Rising Financial Losses
According to Scamwatch, Australians reported losses amounting to $119 million due to scams in the first four months of 2025. Interestingly, this figure comes amidst a nearly 25% drop in the overall number of scam reports, which totalled 72,230. Notably, phishing scams alone accounted for $13.7 million in losses, significantly up from $4.6 million in early 2024.
Recognising Fake Messages
Wong describes typical tactics employed in ATO tax scams, including urgent email subject lines such as “Urgent new notification in your account inbox” and “New Tax Lodgement.” Scammers may direct users to log into their myGov accounts or claim to provide secure links for further instructions. Common ploys include enticing messages about "official government correspondence" or alarming notifications about penalties if immediate action isn’t taken.
It’s crucial to note that the ATO does not include hyperlinks in unsolicited SMS messages. If you receive such a communication, it is likely a scam. Additionally, the ATO will never request personal details like passwords or account numbers via email or text.
What to Do If You Suspect a Scam
If you’re uncertain about a message’s legitimacy, the ATO urges you to reach out directly at 1800 008 540. You can also verify or report scams through their official website.
Stay Safe This Tax Season:
- Be vigilant of unsolicited emails or messages.
- Do not click on links or provide personal information unless you are certain of the source.
- Contact the ATO directly if you receive suspicious communication.
This warning serves as an essential reminder to remain cautious during the busy tax season, protecting ourselves from the escalating threats posed by scammers.
