"Scammers target tax season because they know people expect to hear from official agencies, so they use fake messages about unexpected refunds or urgent debts to trick you into sharing personal details or to make payments,” the Customer Owned Banking Association’s (COBA) Head of Financial Crimes and Cyber Resilience Martin Latimer said.
To help you protect your money and personal information this tax season, COBA’s Financial Crimes and Cyber Resilience team shares common tax scams to watch for, the warning signs to look out for, and simple steps you can take to stay safe.
ATO impersonation scams
Tax scams often involve scammers impersonating trusted government services, including the ATO, myGov and myID. They may contact you by phone, email, SMS, social media or fake websites, trying to trick you into sharing personal information such as your tax file number (TFN), myGov username, password or bank details.
Scammers may also send phishing messages that include suspicious links, QR codes or attachments designed to steal your information or install malicious software. If you are unsure whether contact is genuine, do not reply, click links or download attachments.
To combat tax time scams, the ATO has launched a verify call feature in the ATO app to help taxpayers confirm, in real time, whether a call claiming to be from the ATO is genuine. If you receive a call from someone claiming to be from the ATO, open the ATO app, log in and select verify call. If the app does not confirm the call, treat it as suspicious and hang up.
Urgency, threats and pressure tactics
Scammers rely on pressure to make people act before they have time to think. Be wary of messages or calls that threaten arrest, legal action, account suspension or cancellation of your tax file number, or that tell you not to speak with your tax agent. Stay calm, end the interaction and verify the claim independently through official channels.
Demands for payment by gift cards, cryptocurrency or unusual methods
Scammers often create fear and urgency by claiming there is a warrant for your arrest, an unpaid tax debt or an immediate fine. They may ask you to pay using gift cards, cryptocurrency, cash delivery, prepaid cards or personal or offshore bank accounts. These payment methods are difficult to trace and are a major red flag. The ATO will never ask you to pay a tax debt or fine using gift cards, cryptocurrency or other unusual payment methods.
Requests for an ‘admin fee’ to receive a refund
Another common scam involves a call, email, or message claiming you are entitled to a refund for overpaid tax. The scammer may pretend to be from the ATO or another government body and claim you need to pay an administration fee or an upfront cost before your refund can be released. The ATO will never ask you to pay a fee to receive a tax refund.
What to do if something feels suspicious
Always remember to “Stop. Check. Protect.” If you receive a suspicious call, SMS, email or social media message, do not reply, click links, download attachments or share personal information. If you encounter a potential scam, report it to Scamwatch to help protect others. If you have shared information or lost money, contact your bank or financial institution immediately and report the incident through official channels.
Customer-owned banks are committed to safeguarding customers from scams and fraud. In November 2023, the sector joined forces to launch the Scam-Safe Accord with the Australian Banking Association. This industry-wide initiative reflects a united effort to disrupt scammers, strengthen consumer protection and help Australians stay safer online.
Need help?
If you believe someone has gained access to your bank account and/or personal information, even if the scam appears unrelated to your finances, you should contact your bank immediately. A timely response can be critical.
- If you have concerns about your account contact us immediately.
- You can report cybercrime directly to the Australian Cyber Security Centre (ACSC) or National Anti-Scam Centre (NASC) – Scamwatch.
- Find out how scams work, how to protect yourself, what to do if you’ve been scammed or report a scam to the Australian Competition and Consumer Commission (ACCC) via Scamwatch.
- Change your passwords and enable two-factor authentication to protect your accounts.
As always, we remain committed to your security and privacy online. To understand how we help to keep you safe, please refer to our Security page. For more information on common scams and how to protect yourself, please visit the News section of our website.
