- Tax Scams
- Cybersecurity
- Financial Protection
Learn to identify and avoid tax scams targeting Australians. Expert tips from CPA Australia on spotting phishing emails, SMS fraud, and protecting your personal information during tax season.
Rising Tax Scam Threats Target Australian Taxpayers
As the financial year concludes, Australian taxpayers face an escalating threat from sophisticated tax scams designed to steal personal information and money. CPA Australia, the nation's largest accounting body, has issued urgent warnings about the surge in fraudulent communications impersonating the Australian Taxation Office and other reputable organisations.
The timing of these scams is particularly insidious, with criminals deliberately sending fraudulent messages overnight to catch recipients off-guard during their morning routines. Jenny Wong, CPA Australia's tax lead, emphasises that scammers exploit the vulnerability of people checking messages before fully waking up, when judgement may be temporarily impaired.
Alarming Statistics Reveal Growing Scam Epidemic
Recent data from the National Anti-Scam Centre paints a concerning picture of the current scam landscape. The first four months of 2025 witnessed a dramatic increase in scam-related losses, with phishing scams leading the charge. These impersonation schemes, where criminals masquerade as government agencies and financial institutions, resulted in losses totalling $13.7 million, representing a substantial increase from the $4.6 million recorded during the same period in 2024.
The Australian Taxation Office has reported an even more alarming trend, with impersonation email scams increasing by more than 300 per cent compared to the previous year. This dramatic surge demonstrates the growing sophistication and persistence of cybercriminals targeting Australian taxpayers.
Common Tax Scam Tactics and Warning Signs
Fraudulent communications typically arrive with urgent-sounding subject lines designed to prompt immediate action. Examples include messages titled 'Urgent new notification in your account inbox' or claims about important updates requiring immediate attention. These messages often direct recipients to log into their myGov accounts through supposedly secure links.
The psychological manipulation employed by scammers centres on creating artificial urgency and the promise of significant financial benefits. Common tactics include claims about new refund notifications, threats of penalties for non-compliance, or urgent updates regarding tax, pension, or other government services. The messages encourage continuous monitoring of inboxes to maintain the illusion of legitimacy.
Expert Guidelines for Identifying Fraudulent Communications
Distinguishing legitimate government communications from sophisticated scams requires careful attention to specific details. Grammatical errors and unusual language usage serve as primary indicators of fraudulent messages. Particular attention should be paid to American English spellings, such as the use of 'z' instead of 's' in certain words, which would be inconsistent with official Australian government communications.
The Australian Taxation Office maintains strict communication protocols that can help identify genuine correspondence. Legitimate ATO SMS messages never contain hyperlinks or QR codes. Any unsolicited text message claiming to be from the ATO that includes these elements should be immediately treated as fraudulent.
Email communications require scrutiny of sender addresses for subtle anomalies. While scammers may include 'ATO' or 'Australian Taxation Office' in email addresses, careful examination often reveals irregularities such as additional numbers, extra letters, or missing characters that indicate fraudulent origin.
Protection Strategies and Verification Procedures
The Australian Taxation Office never requests sensitive information through email or SMS communications. Legitimate government agencies will not ask for passwords, account numbers, or other confidential data through these channels. Any unexpected requests for personal or financial information, particularly those claiming urgency, should be treated with extreme suspicion.
Social media impersonation represents another avenue for scam activity. Legitimate ATO social media accounts display official verification badges, such as blue ticks on Facebook and Instagram or grey ticks on X. Importantly, the ATO never discusses individual tax account details on social media platforms, including through private messages.
When uncertainty exists regarding the legitimacy of any communication, verification should always be sought through official channels. The Australian Taxation Office can be contacted directly on 1800 008 540, or taxpayers can visit the verify or report scam page on the official ATO website to confirm the authenticity of any suspicious correspondence.
Staying Vigilant During Peak Scam Periods
The period surrounding the end of the financial year represents a particularly high-risk time for tax-related scams. Criminal organisations specifically target this period when taxpayers are actively engaged with tax-related activities and may be more susceptible to fraudulent communications.
Maintaining awareness and exercising caution when reviewing morning communications can significantly reduce the risk of falling victim to these sophisticated schemes. Taking time to fully wake up and approach messages with a clear mind provides an important defence against scammers who deliberately exploit moments of reduced alertness.