Scams are so much a part of Australian life that there’s an official site to help you identify and report scams. Even so, plenty of people still get caught out and end up losing money to scammers.
For instance, in early 2021, the ATO warned about a new scam that involves a robo-call impersonating the ATO with a pre-recorded message informing a target that their TFN has been suspended following suspected fraudulent activity. The victim is then persuaded to transfer money from their bank account to a fake ATO holding account to “protect” their funds.
(Yes, that’s a scam that is set up to protect you from a scam. Sneaky!)
And yes, people do fall for them! In early February 2021, one person lost $36,000 to the scammers.
Know how the ATO communicates. It can save you from tax-scams.
Tips to keep you safe from tax-scams
The simplest way to stay safe is to understand the way the ATO communicates with taxpayers. It’s very different from the scammers.
The ATO does call taxpayers. But note that they will never:
send unsolicited pre-recorded phone messages
use aggressive or rude behaviour, or threaten you with immediate arrest, jail or deportation
suspend your Tax File Number
request direct transfers of money to a personal bank account
project their number onto your caller ID (ATO calls are always No Caller ID)
You may also receive genuine reminder texts from the ATO, for instance when a BAS is due. However, these don’t include links.
It’s also wise to make yourself aware of the types of scams, so you have more chance of spotting them. The best source is the ACCC Scamwatch Site.
What to do if you receive a suspected tax-scam call
Don’t hand over any money. Remember, the ATO will never request direct transfers of money to a personal bank account.
If you have a genuine concern about your status with the ATO, check with your accountant. We receive ATO correspondence and can access your ATO information. If needed, we can call them on your behalf.
Report the scam. You can do this via the ATO Website or the ATO App.
What if you’ve fallen victim to a scam
If you have handed over to a scammer sensitive personal identifying information, contact the ATO
If you have handed over financial details, contact you bank.
If you have paid money into a scammer’s bank account, contact that bank.