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Beware of tax scams: How to make sure you don’t get fleeced

ATO Chief Technology Officer Todd Heather said the ATO’s brand was often employed in scams due to the Tax Office’s intensive interaction with the community and their willingness to comply with requests from the ATO. “Scammers are relying on more sophisticated methods to trick people into handing over their financial or personal contact details,” he […]
Terry Hayes
Terry Hayes
Beware of tax scams: How to make sure you don’t get fleeced

ATO Chief Technology Officer Todd Heather said the ATO’s brand was often employed in scams due to the Tax Office’s intensive interaction with the community and their willingness to comply with requests from the ATO. “Scammers are relying on more sophisticated methods to trick people into handing over their financial or personal contact details,” he said.

The scam flagged by Fair Trading, as with many others reported to the ATO, asks people for their personal details so they can likely commit identity theft and other types of fraud. Heather said the ATO has seen this scam over the past two years and have dealt with it by informing real estate industry associations and asking them to warn their members.

In 2013 alone, the ATO received almost 50,000 reports from the public about ATO branded scams.

To avoid being scammed, NSW Fair Trading offers some sensible advice:

  • Don’t respond to offers, deals or requests for your personal details. Stop. Take time to independently check the request or offer.
  • Never send money or give credit card, account or other personal details to anyone who makes unsolicited offers or requests for your information.
  • Don’t rely on glowing testimonials: find solid evidence from independent sources (not those provided with the offer).
  • Never respond to out of the blue requests for your personal details.
  • Always type in the address of the website of a bank, business or authority you are interested in to ensure you are logging onto the genuine website.
  • Don’t open unsolicited emails.

Regularly updated information on tax-related scams and online security is available on the ATO website. SMEs need to be particularly aware of potential scammers, especially as the sophistication of the scams increases.

Terry Hayes is the editor-in-chief of tax news reporting at Thomson Reuters, a leading Australian provider of tax, accounting and legal information solutions.