Tax Scams: Everything You Need to Knowand Tips to Avoid Them


Posted October 25, 2024 by mkayassociate

Scammers. It seems they’re everywhere. They may employ any contact means possible from emails, calls, text messages, social media even to LinkedIn message, all to achieve one thing, to steal your hard-earned cash
 
Scammers. It seems they’re everywhere. They may employ any contact means possible from emails, calls, text messages, social media even to LinkedIn message, all to achieve one thing, to steal your hard-earned cash. In 2019 alone, the ATO reported about 40,225 cases of tax scams and estimated that more than 300 Australians lost around $1M.

Fortunately, the situation is changing thanks to some reliable tax Accountants in Maroubra, if not dramatically, at least somewhat. While it still seems like every time you could use a moment to catch your breath someone out there is trying to con you out of it, the statistics are beginning to look a little more positive. According to the report provided towards the end of 2023, the ATO has observed an improvement in the capacity of ordinary citizens in the identification of scams and reporting the same. Number of reports received increased by 25% than the previous financial year, while the actual money lost to scammers decreased by a whooping 75%.

But of course, scammers and hackers are also growing more and more intelligent in their ways. Here are the basics every Australian should know to avoid becoming the victim of a tax scam:

How Do Tax Scams Work?

Robocall technology makes pre-recorded messages on landline and mobile phones throughout Australia, which is abused by scammers. This technology tricks a caller identification service in such a way that the phones show that a called number is from a legitimate ATO phone number although the call originates from overseas. Referring to it as spoofing, makes their call appear authentic

How to Spot a Tax Scam

When scammers make contact with victims, they generally request payment of a supposed tax debt through unusual methods, such as:

• Gift cards
• Vouchers
• Pre-paid cards
• Direct credit to a bank account
• Issuing a direct web link via email or SMS to a login page to make a payment

They may take a different angle and come demanding fees to release the money that is owed to you. Again, they will always request you deposit this ‘fee’ using one of the unconventional methods above.

Another trick that scammers will use is to tell you that you will be arrested or deported and this normally creates a sense of urgency. Sometimes, they will just try to take as long as possible to ensure that you accept to use the phone to pay the amount. They might start insulting you, or using aggressive language with you and since you feel they are making you react to your deepest fears in some of these techniques, the intensity of the message can be very persuasive.

What Should You Do to Avoid the Latest Tax Scams?

Do not open links, download files and open attachments, without first implementing the basic safeguards detailed below. Some of these applications may allow invasion by viruses that can be downloaded into your device and start retrieving identification numbers and bank accounts. These are the type of details which should only be disclosed to people you know well, like your registered tax accountant, and never post on social media.

If you ever receive any text messages that look counterfeit, the correct procedure is to call the ATO on 1800 008 540. Do not engage with the text or call back. We, as your tax accountant also will be familiar with the latest scam data and inform you whether you have been an identified target.

If you’ve answered a call, and you’re worried it’s a scam:

• Ask for their full name and extension number
• Ask for their team leader’s full name and extension number
• Hang up and verify the information with the ATO

What are You Supposed to Do When You Fall Prey to a Scam?

If you have fallen to the tricks of a con artist and have shared your TFN or other details, call the ATO immediately. Some of these details may be lost, and the scams can and do move incredibly quickly. If you have given credit card information in addition to the scam, do not hesitate to call the bank immediately.

And as our client, you can also contact one of our accountants at any time of the year to discuss tax scams and any tax-related questions you may have. We may only see you about your tax-return once a year, but we care about your financial health year-round! Schedule an appointment with us today.

Contact Details

Address: 242 Boyce Road,Maroubra, NSW 2035
Website: https://www.mkayassociates.com.au/
Phone: +61 481 146 154
Email: [email protected]
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Contact Email [email protected]
Issued By mkayassociates
Phone 0481146154
Business Address 242 Boyce Road
Country Australia
Categories Accounting
Tags accounting
Last Updated October 25, 2024