As tax season rolls around in Australia, residents are being asked to act with caution to avoid being snagged in scams or schemes.
Cybersecurity software company Norton has revealed that 14 per cent of Australians have experienced cybercrime in the past 12 months, with 35 per cent experiencing unauthorised access to financial accounts.
With tax season approaching, Norton anticipates that scam activity in the financial sector is expected to rise with cyber criminals looking to capitalise in this timely period.
Norton’s Mark Gorrie is warning people to be on the lookout for phishers this tax season.
“There are certain times each year that pique cyber criminals’ interest and tax time continues to be one of them,” Mr Gorrie said.
“With the amount of personal and financial information that is being stored and shared at this time, coupled with the stress that comes with filing tax returns, it is the perfect storm for scammers to target Australians.
“It can be easy to fall into the trap of a scammer offering to ease this burden … However, it is important to understand that cyber safety practices should never be sacrificed in exchange for convenience.
“AI is aiding cyber criminals in evolving and developing their devious tactics. It is more important than ever that Australians are continuing to educate themselves on the warning signs.”
Mr Gorrie shared three examples of scams and how to avoid them.
1. Tax-related identity theft: This scam occurs when a cyber criminal illegally accesses a victim’s account, impersonates them and fraudulently lodges funds from the ATO using personal information.
Solution: Keep your tax file number and any personal documents with sensitive information safe. You can do this by shredding any documents with personal information that need disposing of, or using strong passwords and two-factor authentication for accounts that hold sensitive information, such as a MyGov account. And, if you suspect that someone has compromised your identity, immediately report it to the ATO.
2. ATO impersonation scams: Often cyber criminals will pose as official ATO representatives to gain personal information and convince people to provide them with bank details and tax file numbers. They will often send a message, an email, contact on social media or even call.
Solution: Distinguish cyber criminals from official ATO representatives by looking out for tell-tale scam signs. Scammers may try to intimidate you for information, or threaten your arrest or the suspension of your TFN. Official ATO officers will not do any of these. Additionally, if contacted by social media through an unverified account, delete the message. The ATO only has officially verified accounts through Facebook, X and LinkedIn. If you receive an email or SMS, do not open any links, provide any payments or account log-in information. Always confirm the validity of these messages by calling the ATO directly.
3. Impersonating a tax preparer to complete your tax refund: Cyber criminals will often act as tax preparers and drive a hard bargain by offering substantial returns and a speedy process. They often ask for your personal details, or access to myGov accounts, before disappearing.
Solution: Check the legitimacy of their claims by seeing if they are registered on the Tax Practitioners Board. Additionally, never share your myGov account password with anyone. Official tax preparers do not need access to personal myGov accounts to lodge your tax, as they have their own lodgement software that will not compromise your personal details.
To find out more information about how to stay safe from scammers this tax season visit Scam alerts | Australian Taxation Office (ato.gov.au).