Protect Yourself: ATO Impersonation Scams and Tax Return Investments

With it being tax season time, it’s important that you remain vigilant when it comes to lodging your tax return as scammers will take the opportunity to impersonate the Australian Taxation Office (ATO) and coerce you into supplying your details so they can steal your funds.

We provide you an overview on what to look out for when it comes to ATO Impersonation Scams and what to be mindful of if you choose to invest your tax return, especially when considering volatile investments like cryptocurrency.

All you need to know about ATO Impersonation Scams

According to ATO, there has been significant growth in scammers using SMS to take funds from victims. In the 2022-23 financial year, SMS scams impersonating the ATO brand, products, services and their staff members increased by over 400%^1.

In January this year, as a precautionary measure, the ATO have removed the inclusion of hyperlinks in their SMS messaging to reduce the likelihood of people accessing fraudulent websites. In the past, victims would click on the hyperlink and in the phishing SMS that directed them to a fake myGov sign-in page. These websites are designed to steal your personal information or install malware.

The ATO website mentions that they will still communicate SMS alerts to contact people but it will never include links to login pages. If you’re accessing any of the online services, you should always type my.gov.au or ato.gov.au into the internet browser.

Tips on how to protect yourself from ATO Impersonation Scams

In order to protect your information, it’s important to keep the following things in mind to avoid falling victim from ATO Impersonation Scams:

• Never give out your Tax File Number (TFN), date of birth or bank details unless you genuinely trust the person you’re interacting with, and they need these details from you.

• If you think the communication you receive from the ATO is not genuine, whether that’s a phone call, text, email or interaction, it’s important that you do not continue to engage with it.

• If you have been impacted by an ATO scam, you can visit the ATO website for more information on how you can report it to the agency. If you have paid a scammer money or shared your personal identifying information, immediately call the ATO on 1800 008 540.

Take care of your return if you’re investing

If you are considering investing your tax return, it’s important to be aware of Investment Scams as they often start with a victim responding to a social media post or an unsolicited call from someone claiming to be a financial advisor or investment broker promising very high returns with little risk.

According to Scamwatch between January to April 2024, Australians have lost over $31,553,591 from Investment Scams with people from ages 45-65 years old being the most impacted from this type of scam.

If you’re choosing to invest your tax return this year, here are some tips to consider to better protect yourself:

• Educate yourself - To avoid any Investment scam, it’s important that you research how certain investments work, especially if you’re looking into volatile investments like cryptocurrency.

• Deal with Reputable Institutions - Always stick to well-known financial institutions and licensed investment professionals. Verify their credentials and check if they are registered with the Australian Securities and Investments Commission (ASIC) Moneysmart website.

• Always do your research - Before you commit to any investment opportunity, you should always do your thorough independent research. Be wary of unsolicited offers or high-pressure sales tactics and check the ASIC “Investor Alert List” on the Moneysmart website. This list is provided as a warning to potential investors. If you cannot find the name on the list, it does not mean that you can trust it.

• Watch out for the red flags - Be alert for common signs of investment scams such as guaranteed returns, unregistered investments, and pressure to invest quickly without sufficient information.

• Keep Personal Information Secure - Never share sensitive personal or financial information with anyone unless you are certain of their legitimacy. Scammers often use stolen information to impersonate legitimate businesses.

Stay informed and stay secure

By staying informed and proactive, you can safeguard your financial wellbeing and navigate tax season and investment opportunities with confidence and security.

Remember, never disclose sensitive information unless absolutely necessary and always verify the legitimacy of communication, whether from the ATO or investment advisors. Should you encounter suspicious activity, reporting it promptly can help protect others and mitigate potential losses.

For more resources and information on the latest scams, visit our Fraud Hub via the Qudos Bank website.

 

 Published August 2024