ATO Impersonation Scams on the Rise Ahead of Tax Time
As tax time approaches, reports of ATO impersonation scams are increasing. Taxpayers should remain vigilant and think carefully before responding to any unsolicited contact from individuals or organisations claiming to be the ATO.
“Scammers aren’t mugs, they’re cunning criminals who adapt and change their tactics and we need to be able to do the same.”
Stephen Jones MP, Assistant Treasurer and Minister for Financial Services
Government Action to Combat Scams
The Australian Government has recently announced that the National Anti-Scam Centre (NASC) will join an advanced intelligence-sharing exchange involving Australian banks, telecommunications providers, digital platforms and the Australian Financial Crimes Exchange (AFCX).
Real-Time Intelligence Sharing
The AFCX intelligence loop allows near real-time sharing of information about scammer tactics and tools. This collaboration enhances the ability to disrupt scam activity, intercept scammer contact with consumers and identify and take down scam-related websites.
Early Results From Anti-Scam Measures
The establishment of the NASC, increased funding for ASIC and the Australian Communications and Media Authority (ACMA) to remove fake investment websites, and the introduction of the SMS Sender ID Register to prevent spoofing of trusted brands have already shown positive results.
In the final quarter of 2023, more than 5,000 scam websites were taken down and over 100 million scam text messages were blocked.
Increased Risk Around Tax Time
Despite these efforts, the lead-up to tax time remains a high-risk period. Updated ATO figures for May 2024 show a 31% increase in reports of ATO impersonation scams compared to the previous month. These scams have occurred across SMS, email, phone calls and social media channels.
The ATO continues to work on preventative measures to help the community better recognise legitimate ATO communications, particularly SMS interactions.
Changes to ATO SMS Communications
From January 2024, the ATO began removing hyperlinks from all outbound unsolicited SMS messages, with the aim of completing this process by Tax Time 2024.
Why Hyperlinks Are Being Removed
Cybercriminals commonly use hyperlinks in SMS phishing scams to direct victims to sophisticated fake websites, such as imitation myGov login pages. These sites are designed to steal personal information or install malware on devices.
Removing hyperlinks from ATO messages helps reduce the risk of taxpayers being misled by fraudulent links.
ATO Support and Scam Monitoring
The ATO has a dedicated team responsible for monitoring scam activity and assisting taxpayers who have been affected. The ATO website provides detailed information on identifying and avoiding email and SMS scams, phone scams and social media scams.
The ATO also offers a reporting service that allows individuals and businesses to report suspected ATO impersonation scams.
Common Warning Signs of ATO Impersonation Scams
Taxpayers should be aware of the following key warning signs.
What the ATO Will Never Do
The ATO may contact taxpayers by phone, email, SMS or post to advise of suspicious activity, but it will never:
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Ask for personal information to be provided through phone calls, emails or SMS
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Send emails or unsolicited SMS messages containing hyperlinks or QR codes prompting a login
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Use a visible phone number when calling, as ATO calls display as “No Caller ID”
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Threaten arrest or involve a third party claiming to be law enforcement
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Demand immediate payment while on the phone
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Send unsolicited pre-recorded voice messages
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Charge fees to issue refunds
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Threaten to cancel a tax file number
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Request payment via Apple or Google Play gift cards, cryptocurrency or cash
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Contact taxpayers through social media platforms such as Facebook, Instagram, X or LinkedIn to discuss personal ATO matters
What to Do If You’re Unsure
If you receive unsolicited contact claiming to be from the ATO and you are unsure whether it is legitimate, do not respond. Instead, contact the ATO directly using official contact details to verify the communication.
If a scam is identified, it should be reported through the ATO’s designated reporting channels. Remaining cautious and informed is one of the most effective ways to protect yourself from tax-related scams.
Speak to one of our accountants if you have any questions about the changes in tax for 2024.
