The Australian Competition and Consumer Commission is urging Australians to hang up on and delete tax scams after more than $1 million was reported lost to Scamwatch already this year, with over 300 people reporting that they lost money to tax scams in the first half of the year. This is compared with 400 people who reported losing money in the 12 months previous, with $1.6 million lost in total.
“Tax scammers are particularly aggressive so many people feel pressured to pay quickly without questioning them. The most threatening scammers even say that police are on their way to arrest you but can be stopped if you pay immediately,” ACCC Deputy Chair Delia Rickard warned.
Ms Rckard explained that these scams often use personal information they found online to try and convince you they’re legitimate. They usually ask for payment for an “unpaid debt” via wire money transfer, credit card, direct debit cards or even iTunes cards. The call looks like it comes from a local phone number but most use voice over internet protocol (VOIP) phone numbers to disguise the fact that they are calling from overseas. While the ATO makes thousands of outbound calls to taxpayers a week, the ATO would never cold call you about a debt, would never threaten jail or arrest, and our staff certainly wouldn’t behave in an aggressive manner. The ATO would never request the payment of a tax debt via gift or pre-paid cards such as iTunes and Visa cards, nor will it ask for direct credit to be paid to a personal bank account.
“If you receive a call or email out of the blue from someone claiming to represent the ATO and that you are entitled to, or owe money – just hang up or press delete. You can check whether they’re the real deal by calling the ATO on its official contact number: 1800 008 540,” Ms Rickard commented “Any unusual requests to send money via money transfer, gift card or other digital currency should be treated as highly suspicious. Your personal details, including your Tax File Number, credit card or bank details are valuable and should never be provided to a stranger. If you hand over your personal information to a scammer, they can use it for identity theft or to commit other crimes.”
Ms Rickard also explained that other scams include using the busy tax time to slip under your radar include phishing emails, which aim to get your personal details. These scammers tell you that you are owed money by the government but to collect it, you must first pay a small fee. The ATO said that while it does communicate with people via bulk email, it would never request personal details, such as banking information. If such personal details were required, you would be redirected to ATO Online services.