With tax season coming in hot, tax refund scams become increasingly common. Scammers are constantly refining their tactics, making these schemes more deceptive and causing individuals to lose significant amounts of money. With this threat in mind, are you prepared to stay safe during tax season?
What are Tax Refund Scams?
Tax refund scams cover a range of deceptive practices designed to defraud taxpayers. Here are some common types:
Phishing Scams
Scammers send emails or text messages that appear to be from the ATO or tax preparation services like TurboTax. These messages often contain links to fake websites designed to capture your personal information, such as Social Security numbers and bank details. The ATO will never initiate contact via email or text; they only contact taxpayers through official mail.
Tax Return Recalculation Scams
Scammers send fake emails claiming there was an error in your tax return calculation and that you are owed an additional refund. These emails typically contain links to phishing websites that ask for your personal and financial information.
Gift Card Scams
In this scam, you receive a call from someone claiming to be an ATO agent, stating that you owe taxes and must pay immediately using gift cards. The ATO will never request payment via gift cards or ask for your credit/debit card information over the phone.
Tax-Related Identity Theft
In the United States, Scammers use stolen Social Security numbers to file fraudulent tax returns and claim refunds. You might only discover this when you try to file your return and the IRS rejects it, stating that a return has already been filed under your SSN. To prevent this, consider applying for an Identity Protection PIN (IP PIN) from the IRS.
Fake Charity Scams
Cyber-criminals set up fake charities to exploit taxpayers’ goodwill, often soliciting donations that are not tax-deductible. Always verify the legitimacy of a charity through the ATO’s search tool before donating.
Ghost Tax Preparers
These are fraudulent tax preparers who prepare tax returns for a fee but do not sign them or provide a valid Preparer Tax File Number (PTFN). This can lead to errors and potentially fraudulent activity on your tax return. Ensure that your tax preparer signs your return and includes their PTFN.
Do you Get a Text Message About a Tax Refund?
In Australia, receiving a text message about a tax refund is generally a sign of a scam. The ATO has issued multiple warnings about fake SMS and email messages claiming to offer tax refunds. These messages often include links that, when clicked, prompt recipients to enter personal information that can then be used for identity theft. The ATO explicitly states that it will never send an SMS or email with a link asking for personal information or to log into online services. If you receive such a message, it is best to ignore it and not click on any links.
For legitimate tax refunds, the ATO advises using official channels. You can check and manage your tax affairs directly through the myGov website or the ATO website by typing the URL into your browser. If you are using a registered tax agent, they will handle the submission and processing of your tax return, with any refunds automatically deposited into your designated bank account. If you are ever uncertain about the authenticity of a communication claiming to be from the ATO, you should contact the ATO directly through their official contact numbers to verify the information.
What to do if you’ve been a Victim of a Tax Refund Scam
If you’ve become a victim to a tax refund scam, taking immediate action is important to minimise damage and restore your security. Here are steps you can take:
Report to the ATO
Immediately notify the ATO by calling 1800 467 033 as soon as you can. This document provides important details for the ATO to investigate the identity theft. Additionally, contact the ATO customer support at 1800 199 010 for guidance and support. Prompt reporting to the ATO helps prevent further fraudulent use of your information.
Notify Financial Institutions
Contact your bank and credit card companies as soon as you realise you’ve been scammed. Inform them about the fraud so they can monitor your accounts for any suspicious activities. They may also advise you on further steps to secure your accounts and prevent unauthorised transactions. Quick action can help limit financial losses and protect your assets.
Report Phishing Emails
If you received phishing emails as part of the scam, forward them to [email protected]. Do not open any attachments or click on any links within these emails, as they may contain malware. Reporting these emails helps the ATO track and shut down scam operations, protecting you and others from future scams.
Report to the Australian Competition & Consumer Commission
File a complaint with the ACCC at accc.gov.au. This platform helps you create a recovery plan and provides tools to monitor the impact of the fraud. The ACCC collects data on identity theft, which aids in broader efforts to combat and understand these crimes.
Contact Cybertrace
Reach out to Cybertrace, an organisation that specialises in handling cybercrime and identity theft cases. Our investigative capabilities are top-notch, providing comprehensive reports that detail the extent of the fraud and trace the perpetrators. Unlike the often slow-moving government investigations, hindered by limited resources and heavy caseloads, Cybertrace offers a dedicated approach to resolving your case swiftly and efficiently.
Cybertrace’s team of experts uses advanced technology and extensive experience to reveal the full scope of identity theft incidents. Our detailed reports not only help in understanding how the fraud occurred but also provide actionable steps to mitigate further damage. With Cybertrace, you get a proactive partner in fighting cybercrime, ensuring that your case receives the attention and thorough investigation it deserves, which is often lacking in government-led efforts due to resource constraints.
How to Protect Yourself Against a Tax Refund Scam
Protecting yourself against tax refund scams is important to keep your financial security. Here are steps you can take:
Recognise Common Tax Scam Tactics
Scammers often impersonate ATO officials through emails, texts, and phone calls, attempting to steal your personal and financial information. They may claim that you owe money, are due a refund, or need to verify your information. The ATO will never initiate contact through these methods for such purposes. Be wary of any communication that asks for immediate payment or threatens legal action, as these are common tactics used by scammers. Always verify the authenticity of any communication that seems suspicious by contacting the ATO directly using their official channels.
Secure Your Information
Protect your personal information by using strong, unique passwords for your online accounts and enabling two-factor authentication where possible. Avoid sharing sensitive information like your birth date, or financial details unless you are certain of the recipient’s identity. Regularly update your security software to guard against malware that could compromise your information.
File Early
Filing your tax return as early as possible reduces the chance of scammers filing a fraudulent return in your name. Early filing ensures that your legitimate return is processed before any potential fake claims. This preventive approach can help you avoid delays in receiving your refund and prevent identity theft.
Verify ATO Contact
If you receive any correspondence from the ATO, verify its authenticity before taking any action. Most of the time ATO initiates contact via mail, not through email but sometimes phone calls. If you receive a suspicious letter, cross-check it with information available on the ATO website or call the ATO directly at their official phone number to confirm its legitimacy.
Do Not Click Suspicious Links
Avoid clicking on links in emails or texts that claim to be from the ATO, as they may lead to phishing websites designed to steal your information. Scammers use these tactics to install malware or direct you to scam sites. Instead, access the ATO website directly by typing the URL” www.ato.gov.au” into your browser to ensure you are visiting the official site.
Monitor Your Accounts
Regularly check your financial accounts and credit reports for any signs of unauthorised activity. Set up alerts for unusual transactions to catch potential fraud early. Monitoring your accounts can help you detect and address any scam activity promptly, minimising potential damage.
Contact US
If you suspect you’ve been a victim of a tax refund scam or need assistance in protecting your identity, contact Cybertrace for comprehensive cyber investigations. We’re here to help you manage the complexities of cybercrime and hold scammers accountable for their actions. Reach out to us through our official contact page.
Questions for the Readers
Have you or someone you know ever fallen victim to a tax-related scam? What actions did you take afterward?
