In recent years, the ATO has seen a tremendous rise in tax scams that risks audits and heavy penalties. The rise is often witnessed in the tax season when people are quite stressed about filing accurate lodgements on time and fall victim to scams that usually claim to get the best returns on taxes.
Since there are many ways by which scammers can trick both individuals and business owners, it’s better to stay aware of the most common ones so you can avoid being falling victim. Here are some tax scamming methods that are in play right now:
- Telephone Scams
The most frequently used scam method is over a telephonic conversation where a scammer initiates a talk with an individual claiming to be from a tax office or a tax agent. They try to divulge personal and bank information to crack the accounts and scam money.
- Text Message Scams
In this scam, a text message containing a link pops up in the inbox of an individual, and upon clicking, further details like tax file number and credit card details are asked, pretending that the refund will be deposited in the account. This way all your tax or account details are accessed by the scammer.
- Email Scams
Fake emails are being sent to an individual’s email account that is designed to appear like the ones from the ATO. These often contain a link from a third-party website that asks you to enter your personal, tax, and account information, which is later misused by the scammers.
What To Do When You Witness Scam Attempts?
Whenever you receive a suspected message, call, or an email, handle the situation with utmost caution and don’t click on any link provided. Never share any of your personal, business, tax, or bank details with anyone.
Banks, ATO, Centrelink, and other financial institutions will never contact you for the verification of personal details, including tax returns.
In case you have already provided a scammer with funds or personal details, immediately bring the issue to the notice of the ATO and local police authorities.
If you want to leave the hassles of filing taxes and lodging tax returns on professionals, rely on our registered tax accountants at KPG Taxation.