Increase in scam activity prompts warning in lead up to tax time

Consumer Protection is urging people to be aware of various scams in the lead up to tax time, a warning prompted by figures which show an increase in losses suffered by WA victims.

So far this financial year (July 1, 2020 to May 31, 2021), 34 people have reported losing a total of $268,300 with 217 reports being received.

This is a massive increase when compared to the 2019 calendar year statistics showing 22 victims losing $100,450 and 51 reports.

Taxpayers targeted receive hostile phone calls or voicemail messages from scammers pretending to be from the Australian Taxation Office (ATO) threatening arrest unless a fake tax debt is paid.

Other variations include the supposed suspension of a Tax File Number or claims that the victim’s bank account has been used for fraudulent activities that are being investigated by Police.

The calls can also come from scammers pretending to represent Home Affairs, Services Australia or MyGov.

They often ask for a variety of payment methods including bank transfer, cash bank deposits, iTunes/Google Play/Steam cards, Neosurf vouchers, gift cards, prepaid credit cards or cryptocurrencies.

Commissioner for Consumer Protection Gary Newcombe said the scammers often hold their victims on the phone until payment is made.

“By doing this they maximise the pressure on their victims and prevent them from contacting other people who may warn of the possibility of a scam,” he said.

“If you get one of these calls, don’t be intimidated. Hang up and contact the ATO directly to verify the call but don’t use numbers that are given.

"Do the same if it’s a voicemail and importantly don’t respond, otherwise you could risk becoming a victim.”

Tips to avoid becoming a victim:

• Confirm the caller’s name, title and why they are calling
• Call the ATO on 1800 008 540 to verify the ATO contact or log in to your MyGov account to check your tax affairs
• Never send money or give financial/personal details to someone you don’t know or trust
• If you have provided your financial information, contact your financial provider immediately
• The ATO will never leave pre-recorded messages
• Government agencies never demand payment through unusual means like gift cards or cryptocurrency
• Government agencies will never threaten immediate arrest
• Do not call back numbers left in voicemails
• Search for the legitimate number of the agency and call them direct to verify the call
• If in doubt – contact WA ScamNet on 1300 30 40 54

For further information or to report a scam, go to the WA ScamNet website www.scamnet.wa.gov.au or call 1300 30 40 54.