You have probably heard the horror stories of people logging into their myGov accounts only to discover that their activity statements have been significantly altered.
Some portals are displaying that individuals have been issued GST credits of $100k. But there certainly isn’t a $100k credit in their bank account.
Those people have been the victim of a major tax scam and the sad thing is, they probably gave the scammers access to their account accidentally.
How are the scammers doing this and how can you prevent yourself from being a victim of the most common tax scam? Keep reading to find out.
What Does The Scam Involve?
Currently, the most common tax scam involves unauthorised people gaining access to your myGov account and modifying your existing data to create fraudulent refunds on personal income tax, GST and variations to pay as you go instalments.
As the scammers are gaining access to your personal myGov account, it looks as though you have made the amendments yourself for legitimate reasons. Obviously, that is not the case.
But, the damage does not stop there. Once scammers have access to your myGov account, they also have access to all your personal data and any services that are linked. With an intricate knowledge of the Australian tax and social security systems, scammers can do a lot of damage.
How Does The Scam Happen?
As a modern internet user, you probably consider yourself to be pretty savvy when it comes to scams. You don’t open attachments in emails from unknown senders, you don’t give supposed Microsoft employees remote access to your computer over the phone, and you don’t hand out your credit card details willy-nilly.
Unfortunately though, scammers are getting savvy to our savviness! And they are upping the ante on their scam tactics. Many people unwittingly give these tax scammers access to their myGov accounts by falling for email and SMS communications that mimic what you would normally see from the Australian Tax Office (ATO). However the ATO will NEVER ask for these details or include a login link in an email or sms.
Often, scammers draw people in through:
- Giving a fake warning about a security breach on your account that requires you to click a link and confirm your details
- Dangling a reward like a tax refund and encouraging you to click a link to claim it
- Sending notifications that look remarkably like communication from the ATO, telling you to access a new message via a clickable link
With all three pathways, the end goal is the same – to get you to provide your login details via their fake sign-in page so they can gain access to your myGov account. You should be aware of anything that looks suspicious and if unsure contact Cadenze Partners.
How To Spot A Scam Attempt
Scam attempts are becoming pretty sophisticated, but there are some telltale signs that give them away. Here are the red flags to look out for:
- Official government offices like the ATO, Centrelink or myGov do not use hyperlinks or QR codes when sending you messages. So, if you receive a message claiming to be from them containing a link or QR code, the message is fake!
- The ATO does not communicate via social media. So if someone is sliding into your DMs or asking for personal information on your social pages, they are likely trying to scam you.
- If it is suggested your TFN has been cancelled or suspended and you need to pay a fee to correct it, then it’s a scam – the ATO will not cancel your TFN.
- You get invited to join a conference call with both the ATO and your tax agent present – this would never happen through official channels so hang up and notify the ATO.
- A request (accessed via a link) to confirm your details due to myGov security updates.
While all of these scam attempts can look very convincing, best practice is to log into your myGov account directly to see if there are any updates or messages that need your attention. That way you know you have not accidentally clicked a dodgy link and been redirected to a place you shouldn’t be.
Be Vigilant – Everyone Is Vulnerable
There is a common perception that older or less tech savvy people are most susceptible to scam attempts. But scarily, the statistics say otherwise – scamming is impacting all age groups.
In August 2024, the ATO received 3,380 reports of impersonation scams. While those over 65 years were the demographic who most reported providing personal information to scammers, younger generations are not immune.
In fact, in a recent Cybercrime study, it was found that those aged 18-24 years were more likely to fall victim to fraud, scams, and identity crime than any other age group. Those under 50 were also most susceptible to investment scams, losing a whopping $382 million during 2023 and 2024.
These statistics prove that it is vital all Australians remain vigilant and don’t fall for simple scam attempts. If something seems suspicious or too good to be true, it probably is!
Other Scams To Watch For
While tax scams are currently the most popular, there are others to watch out for:
- Pig Butchering: The appalling name of this scam demonstrates its appalling nature. The basic premise is that scammers will devote significant time befriending their victims, then encouraging them to invest in fake trading platforms. With fancy graphics and info that show impressive fake returns, scammers encourage people to invest more and more, then disappear with the funds, leaving their victims severely out of pocket.
- Deepfakes: Using AI, scammers will generate lifelike impersonations of well known celebrities or trusted figures to promote fake investment schemes. These videos and ads often pop up on your social feeds or are sent via messenger apps, enticing you to invest.
- Invoice scams: Scammers can send you invoices using the names and details of legitimate businesses, asking for payment. But the funds will ultimately end up in the scammer’s bank account. These invoice scams can sometimes be linked to cyber breaches where scammers have gained access to your business info and supplier lists.
- Bank scams: Probably one of the oldest scams in the book is receiving a call from someone claiming to be from your bank and asking you to transfer your money into a “safe” account to protect it from tampering. Often scammers will have a lot of personal information and will be quite convincing. But, it is important to remember that your bank will never send you emails, texts or phone calls asking for information they already have, and they will never ask for your log in details.
What To Do If You Suspect Scam
Some scam attempts are very obvious and by simply ignoring the email or message you can avoid danger. But, if you think you may have accidentally provided information that you shouldn’t, it is best to seek advice about what the next steps should be.
You can contact the ATO office directly for guidance and support. But, they receive many calls every day, so you may find yourself in a long queue of callers. If you would prefer a personalised and prompt response, get in touch with the experienced team here at Cadenze Partners. Believe us, we have seen every scam out there and will happily provide tailored guidance on the best steps forward for you. So, don’t hesitate to give us a call if something is worrying you.