Protect yourself against tax scams

Tax season can feel overwhelming, and unfortunately, scammers often take advantage of it. By learning how to recognise the warning signs, you can protect yourself and your personal information.

Keep reading to learn more about common tax scams and how to protect yourself.

Tax advice scams

Scammers impersonate the Australian Taxation Office (ATO) on social media, claiming to offer help with tax or superannuation queries.

Red flags to watch for:

• Someone claiming to be the ATO offering tax advice via social media.
• Requests for personal details or payments through comments or direct messages.
• Messages from 'official representatives' after you interact with an ATO post.

Tax refund scams

Another common ruse involves scammers claiming you’re owed a tax refund. They request your bank account or an upfront fee before releasing the refund.

Red flags to watch for:

• Emails, SMS messages, or phone calls requesting personal details or payments to process refunds.
• Messages claiming to be from the ATO but lack visibility in your MyGov account.
• Links asking you to log in or share sensitive information.
• Requests for you to share your MyState Bank secure code.

Tax owed scams

These scammers use fear tactics, falsely claiming you owe a tax debt and threatening consequences like arrest if you fail to pay immediately.

Red flags to watch for:

• Threats of arrest or high-pressure tactics to urge immediate payment.
• Demands to pay refunds using unusual methods like gift cards or cryptocurrency.
• Instructions to mislead your bank if suspicious transactions are flagged.

TFN and ABN scams

Targeting newcomers to Australia, scammers offer to process Tax File Numbers (TFNs) or Australian Business Numbers (ABNs) for a fee.

Red flags to watch for:

• Websites charging a fee to apply for TFN or ABN applications.
• Services asking for sensitive information without proper verification.
• Remember, applying for a TFN or ABN is free through the official ATO website.

How to spot and avoid tax scams

• Unexpected contact: Be cautious if you receive an unexpected email, SMS, or phone call. If you’re unsure, log in to your secure MyGov account and check for official communication from the ATO.
• Payment demands: The ATO never uses threats or urgency to collect a tax debt. Legitimate payment requests are clearly explained without pressure or intimidation.
• Unusual payment methods: The ATO will never ask for payment through gift cards, cryptocurrency or direct transfers to non-ATO bank accounts.
• Fake websites or phone numbers: Avoid clicking on unverified links in emails or messages, and always verify website or caller authenticity. If in doubt, hang up and verify by calling back using an official number (not one provided by the caller).