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ATO Warns Taxpayers About Identity Theft and Online Fraud
The Australian Taxation Office (ATO) has reassured citizens that its systems remain secure amidst rising concerns about identity theft impacting taxpayers across the nation. Recent complaints indicate that numerous individuals have had their accounts hijacked, leading to fraudulent tax returns being filed in their names.
ATO’s Position on Security
The ATO has explicitly denied allegations of a security breach, attributing the "unusual activity" in some accounts to identity theft rather than hacking. In response to these incidents, the ATO has announced that it will implement stricter security measures if it suspects a taxpayer’s identity has been compromised. They emphasised, "The safety of taxpayers’ information is of the utmost importance… and the ATO continues to remain vigilant for new and emerging cyber threats."
Methods of Identity Theft
Identity information can be compromised through various channels, including:
- Phishing emails
- Malicious information requests
- Large-scale data breaches
- Residential network hacking
Unsuspecting taxpayers and their accountants have found that hackers were able to infiltrate myGov accounts, file fake tax returns, and divert refunds to unrelated bank accounts.
Real-Life Experiences of Fraud Victims
While the ATO has not disclosed the exact number of affected Australians, reports of misconduct are accumulating. One affected taxpayer, Kate Quinn from Perth, discovered that a fraudulent tax return had already been lodged in her name, with her linked bank account details altered. Her accountant flagged that they were no longer authorised to manage her tax affairs, revealing the filed $8,000 return for the previous financial year.
Kate noted how quickly such fraud can occur: "They hack in, they untick ‘notify me or notify my tax agent’ and change the bank account details," she recounted, adding that it can take mere seconds to redirect funds, leaving victims unaware until it’s too late.
In a similar case, Melbourne accountant Adrian Raftery reported a similar scenario where hackers filed a new return and amended a previous one, resulting in a fraudulent claim of over $14,000.
ATO’s Response and Recommendations
The ATO has indicated that it will partner with taxpayers to restore their accounts and strive to recover any misallocated funds. To enhance security, the ATO is urging individuals to enhance their protective measures by using digital identity verification services like myID (formerly myGovID) when accessing ATO online services. This application enables Australians to prove their identity when using government digital services.
Taxpayers are further cautioned to remain vigilant against potential scams, especially around tax time. The ATO clarified that while they may send SMS or emails requesting taxpayer contact, they will never issue unsolicited messages containing hyperlinks to access their online services. The ATO advises individuals to directly access their services via the official ATO website or my.gov.au.
For those suspecting their information may have been compromised, the ATO urges immediate contact at 1800 008 540, along with notifying their tax agent if their tax affairs have been affected.
The ATO’s proactive measures are vital in the current climate of increasing cyber threats, urging citizens to take necessary precautions to secure their identities and financial information.
By implementing these recommendations and staying informed, taxpayers can significantly reduce their risk of becoming victims of identity theft and online fraud.
