While the internet has exposed us to more information than ever before, today’s digital age also makes it easier than ever for scammers to carry out fraudulent and damaging activities. From fake social media posts to spoofing, scammers have found countless ways to access other people’s information and finances.
Typically, we imagine the victims of these crimes being older people who may not be as financially literate as the younger generations. However, cybersecurity experts have noted a significant increase in the number of young adults falling victim to scams, particularly those involving online gaming and tax.
The first of these two scam types makes sense — it is predominantly young people who spend their time battling it out against friends and family online. However, it is somewhat unusual for younger generations to be falling victim to the phishing schemes typically conducted by tax scammers. The fact that they are points to the need for all people to be educated on the prevalence and dangerous nature of online scams.
What are the signs of a tax scam?
Online scams of this nature can appear to be legitimate because of the language used and the validity of personal information that is used. The victim may receive documents that use official language and logos and can quickly fall into the trap of thinking they are talking to the real ATO.
On top of this, young people often don’t understand the role of the ATO and what kind of power they have. While the ATO may contact individuals to discuss concerns relating to their tax returns, they will never demand instant payment over the phone, or threaten an individual with arrest. These types of actions are often so alarming to young people that they immediately give into the scammers demands.
Aside from understanding how the ATO operates, there are several key signs that young people should look out for to ensure they are not unwittingly sharing their personal and financial information with a scammer:
# Requests for private or financial information. This can include your full name, date of birth, tax file number, credit card number, and any other kind of information that can be used to personally identify you.
# Tempting offers that try to convince you to respond to messages quickly. The ATO does not offer schemes or investments.
# A request for the immediate transfer of funds. The ATO will not ask for an immediate money transfer into an account or through unusual methods such as iTunes vouchers or other prepaid cards. They will also not ask for money in order for you to receive your refund.
# Threats that suggest that there will be consequences for not responding to phone calls or messages. The ATO will not use abusive language, and they most definitely will not threaten immediate arrest.
# Incorrect grammar, spelling, or style, mainly when referring to the ATO or other government agencies.
Links to suspicious looking URLs.
Measures to Protect Yourself Come Tax Time
It is becoming increasingly difficult for individuals to differentiate between legitimate ATO interactions and scammers. If you believe that you have fallen victim to an ATO scam, you must act immediately.
Young people often feel embarrassed at the fact that they have fallen victim to a scam. There is no need to feel this way. The most important thing is that you take action as soon as possible so you can hopefully recover any lost funds.
# If you have provided personal identifiable information to a scammer, you should contact the ATO directly. The scam can also be reported online via Scamwatch.
# A report should also be made with the local police.
# Consider installing antivirus and security software. Doing so provides an additional layer of protection while browsing the web and can alert you should your personal information be stolen by scammers and posted on the dark web.
# Consider using a certified accountant to complete your tax return. Doing so will grant you confidence that your tax return has been completely correctly and you do not owe any money to the ATO.
Tax season is fast approaching and online scammers will be looking for any opportunity to steal both money and personal information from people. It’s essential that people of all ages stay on the lockout for phishing scams and messages that appear to be from the government. If you come across such a scam, don’t be afraid to report it to the authorities. Doing so is the best way you can protect yourself and those around you.
