In recent years, we’ve seen a significant rise in tax fraud schemes, with cybercriminals using increasingly sophisticated methods. Among the major tax scams in 2024 are multi-factor authentication, tax refund, ATO social media misrepresentation, and tax lodgement scams.
In this article, we look at these scams more closely and provide tips on how to protect yourself.
4 Key Tax Scams to Watch Out for in 2024
Here are four of the top tax scams to be aware of in 2024 and how you can reduce the risk of falling victim to them:
Tax Refund Scams
Tax refund scams are on the rise. Scammers have refined their tactics to circumvent cybersecurity measures, using phishing and social engineering to trick people.
Government research from March 2024 indicated nearly 75% of email scams reported to the ATO were linked to fake myGov pages. Fraudsters send email, SMS, or social media messages that look like they’re from the ATO.
The messages claim the recipient is eligible for a tax refund. However, they carry malicious links or attachments leading to counterfeit ATO or myGov login pages. This enables the fraudsters to pilfer personal data.
Scammers have become better at mimicking real ATO communications, making their messages look more convincing. They ask recipients for updated information to process refunds, confirm deposits, or resolve refunds that failed due to incorrect account details.
The ATO never sends emails or SMS messages with links or requests for personal information. If you receive one, always contact the ATO directly through official channels, as this could be a phishing attempt.
You can also protect yourself from tax refund phishing attempts by using a Virtual Private Network (VPN). VPNs with additional features like Threat Protection scan your files during download, making it harder for scammers to steal your data. You can get VPN for phone as well as computers, so you can protect yourself from these scams on all your devices.
Multi-factor Authentication (MFA) Scams
Another major scam in 2024 is the Multi-factor Authentication (MFA) scam, which exploits the widely used MFA security measure.
Fraudsters send emails claiming to be from the Australian Taxation Office (ATO) requesting an ‘MFA update’ for your account. They aim to make you scan a QR code or click a link leading to a fraudulent government login page. The ultimate objective? To steal your login information.
Remember, legitimate organisations like the tax office will never ask for your MFA update via email. If you receive this type of email, don’t scan the QR code, click any links, download files, or open attachments. Instead, forward the email to [email protected] and delete it from your inbox.
ATO Social Media Misrepresentation Scams
This scam is similar to email scams, but fraudsters use social media platforms like Facebook, LinkedIn, or Instagram to lure victims. They use deceptive tactics, such as giving fake tax advice, promising fast refunds, or asking for personal information under false pretenses.
You can check if an ATO account is authentic by looking for a blue verification badge next to the name. Genuine ATO accounts usually have a large number of followers and consistently post updates.
If you see adverts for tax advice or refund offers on social media, always cross-check this information on the official ATO website. You can also contact them via their official channels for more details. Report any suspicious ATO accounts to the social media platform and refrain from interacting with them.
Email Scams Focusing on Tax Lodgement
Another prominent scam in 2024 is tax lodgement email fraud. Criminals create a sense of urgency by sending fake notifications about tax return lodgements. These emails often include counterfeit receipt numbers and caution recipients against contacting the alleged sender with enquiries.
The emails usually include a malicious attachment that leads to a fake Microsoft sign-in screen designed to steal your login information. By accessing your details, hackers can compromise your Microsoft account. This could result in huge security issues, especially if you use the same password for multiple websites.
If you receive any communication appearing to be from the ATO with links or attachments, report it immediately.
Stay Informed and Protected Against Cyber Threats
It’s important to understand how cybercriminals operate to protect your personal data and finances in 2024. Look out for fake tax refund emails, social media impersonations, misleading tax filing messages, and clever multi-factor authentication scams.
If you’re ever in doubt, contact the ATO directly using their official channels. By staying vigilant and informed, you can protect yourself and help create a safer online community.