Table of Contents
Tax Return Scam Alert: ATO Warns Australians to Stay Vigilant
As Australians start the annual task of lodging their tax returns, the Australian Taxation Office (ATO) has issued a stark warning about a rise in impersonation scams targeting unsuspecting taxpayers. These scams are primarily conducted through email, with scammers posing as ATO officials to harvest personal information.
Rising Trend of Scams
According to ATO assistant commissioner Rob Thomson, there has been a staggering 150 per cent increase in impersonation scams within the past year, with an overwhelming majority (90 per cent) being delivered via email. "This is the time of year when people are awaiting their tax returns or expecting to hear from the ATO, and scammers know it," Thomson stated.
The Dangers of Scams
The aim of these criminals is to illegally obtain personal details, which can then be used to file fraudulent tax returns or engage in broader identity theft and financial crimes. A recent report highlighted that phishing scams—those impersonating legitimate entities such as government bodies or banks—resulted in a loss of approximately $13.7 million in the early months of the year, a sharp increase from $4.6 million during the same period in 2023.
Protecting Yourself
To counter this threat, the ATO has enhanced the security features of its app. Users can now receive alerts about changes to their accounts and can lock their accounts instantly for added security. "Downloading the ATO app is a simple and effective way to stay ahead," Thomson advised.
If users receive suspicious notifications, they are encouraged to lock their accounts immediately via the app and to verify any interactions through the official ATO website or by contacting them directly at 1800 467 033.
Common Scam Tactics
CPA Australia has reported seeing various deceptive email titles such as "urgent new notification in your account inbox," luring recipients to log into myGov accounts through insecure links. Other tactics include enticing messages that suggest there are updates regarding benefits or refund notifications, often creating a sense of urgency by claiming the recipient risks penalties.
Escalating Scam Impact
Data from the National Anti-Scam Centre indicates a significant surge in reported scam losses, with a third of Australians having experienced attempts to defraud them this year. Alarmingly, nearly 21 per cent of those targeted fell victim, suffering an average financial loss of $1,537.
Deputy chair of the Australian Competition and Consumer Commission (ACCC), Catriona Lowe, emphasised that unsolicited contact claiming to be from the ATO is likely to be fraudulent. "Scammers may also use spoofed phone numbers and convincing email templates to appear legitimate," she cautioned.
Prevention Measures
To safeguard against scams, the ATO recommends several practices:
- Use the ATO app and secure digital ID, such as myID, for online access.
- Enable multi-factor authentication for additional layers of security.
- Opt for strong, unique passwords or passphrases, and ensure devices and software are kept updated.
The ATO also reiterated its policy never to send links requiring personal information or requests for online login credentials.
By staying informed and vigilant, Australians can protect themselves from falling victim to these scams, especially during this peak tax return season.
