Watch out – myGov Tax Scams are coming!

Watch out – myGov Tax Scams are coming!

It’s tax time! If you are one of the 7.7 million myGov users, make sure you read this through! 

 

 

Adelaide – Family business owners, private businesses and all taxpayers are warned to act vigilantly against scams. Tax time is upon us and with it comes a surge in fraudulent schemes. 

Just in June 2019, ATO reports 6,444 incidents of tax-time scams impersonating their brand. These scams come though as emails, text messages and fake myGov login pages. Emails with links to fake myGov login pages are the biggest email scam in that month.

“Usually, these scams will say you’re entitled to a tax refund or that you need to pay a debt,” According to the Australian Cyber Security Centre (ACSC). 

It seems that these scammers are getting far more creative than ever, as their target and modus have evolved with technology. 

They are also made to look very real through the sophisticated use of myGov and ATO logos, information and even email addresses which makes it easy for anyone to fall victim.” 

As reported by the ATO, the scam messages contain a link that routes any user to a fake website. Users are told that they can “claim a refund” after entering their login details and fill out personal information. 

From the information received through these websites, scammers can commit credit card, tax fraud and identity theft.  Clicking on these links also involves the risk of downloading malware onto your phone and computers. 

Government institutions, along with private tax practitioners like KMT Partners, are launching nation-wide campaigns to spread awareness further. 

Falling victim to these tax-scams results in multiple financial damages, loss of business and trauma. 

 

For family business and private practices

 

myGov scams are expected to exacerbate this year due to the expected 4 million taxpayers the ATO expects to sign up to myGov this tax time, adding to the current 3.7 million myGov users.

The increase of sign-ups comes as businesses transit over to the Single Touch Payroll regime, making end-of-year payment summaries redundant.

Payment summary information will now be called an “income statement” and can only be accessed through a taxpayer’s myGov account or their tax agent.

KMT Partners are being extra vigilant around their client communication list this tax time until the ATO develops its preferencing solution. If you have a tax adviser, accountant or financial advisor that is not alerting you to this situation, talk to us immediately.

“For now, it is really important that agents become much more robust around how they use the client communication list. That is how they are going to be able to see communications, particularly things such as notice of assessment, debt notices, things related to their income,” said ATO assistant commissioner Colin Walker.

KMT Partner’s tips to keep vigilant this tax season:

  1. If you have a myGov inbox, check it carefully.
  2. Check any inconsistencies in emails claiming to be from myGov or ATO. To do this, click on the ‘from’ email address to see if it has the correct email domain.
  3. Do not fill in personal details from a link in an email. You should login directly to your myGov account to do this.