How to identify a tax scam

It’s time to submit your tax returns to the Australian Taxation Office (ATO) - it’s also the time of year that scammers kick-off their ATO scam activity.

The most frequent scam is the “fake tax debt” scam, with the scammers calling you to inform you that you have an outstanding debt with the ATO that is due for payment. In an attempt to appear legitimate the scammer will provide a fake identification number, name and contact details and will use scare tactics to pressure you to pay the outstanding ATO debt.

To create a false sense of urgency and to frighten you into making the payment, the scammer may even threaten that you will be arrested if the debt isn’t paid immediately.

Another sign that you are dealing with a scammer, is the request for a tax debt to be repaid using an unusual method of payment such as through Apple’s App Store or Google Play gift cards, cryptocurrency or prepaid debit or gift cards that can be purchased at retail stores. Once the cards are purchased, the scammers will ask for the gift card or debit card details and/or codes to redeem the value of the card.

Scammers may also request access to funds via ‘cardless cash’ which is where you are asked to repay a debt by initiating a cardless cash transaction with a debit card and asking you to disclose to them the codes you receive to complete the transaction. Once the scammers secure the code to authorise the cash withdrawal, they can withdraw the cash from any ATM. Never disclose your PINs, passwords or secure transaction codes to anyone, including IMB.

There are several ways scammers may initiate contact with you including via telephone call, email or a text message requesting you enter your personal details to secure your tax refund.

If you receive a call from an individual claiming to be from the ATO, be aware that no legitimate government agency will ever ask for your card details or any other personal banking information over the telephone nor will they threaten you with arrest for non-compliance. The ATO will not ask you to click on any links via a text message, or request any a Cashless Card code for payment of a tax debt or to secure a tax refund.

If you receive any unsolicited contact from an individual claiming to be from the ATO, contact the ATO directly on 1800 008 540 to verify the call or text. For more information on ATO scams and reporting a scam visit the ATO website.

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