Tax Time Scams: What to Watch For & How to Stay Safe

Every year, tax time brings a surge in scam activity. Fraudsters often pose as the ATO or other government agencies to trick individuals into revealing personal details, bank information, or even handing over money.

This year alone, the ATO has reported a 300% increase in impersonation email scams compared to the same period last year. That’s why it’s more important than ever to ensure you are safe, informed and aware this tax time.

How these scams work

Tax scams are constantly evolving, but most of them follow the same playbook. Scammers may reach out via phone, SMS, email, or even social media. Common tactics include:

• Claiming you’re owed a refund and asking for bank details to “process” it
• Threatening arrest or legal action over a fake tax debt
• Asking you to click on a link or open an attachment
• Pretending to be your accountant, the ATO, or another trusted organisation

These messages are designed to trigger urgency or fear, so you act quickly without thinking.

Watch out for the warning signs

Not sure if a message is real or fake? These red flags can help you spot a scam before it catches you off guard:

• Unexpected contact claiming to be from the ATO asking for sensitive details
• Demands for payment using gift cards, cryptocurrency, or wire transfer
• Poor grammar in written messages, odd phrasing, or suspicious links
• A caller ID that appears legitimate, but the interaction feels “off”

An example of a scam email

To help you spot the signs, here’s an example of a scam email doing the rounds:

From: ATO Refund Services [email protected]

Subject: Important: You Are Eligible for a Tax Refund

Dear Taxpayer,

We have reviewed your tax records and determined you’re eligible for a refund of $1,348.52.

Please confirm your details via the secure link below:

Claim My Refund Now

Respond within 48 hours to avoid cancellation.

Kind regards,

Australian Taxation Office

Note: The red flags

At first glance, the email might look convincing, but look closer. These are classic scam signs:

• A fake domain name (not from ato.gov.au)
• A generic greeting like “Dear Taxpayer”
• A false sense of urgency (48 hours)
• A suspicious link asking for personal or financial details

If you receive something like this, don’t click and don’t respond. Report it to Scamwatch and the ATO, and always check with us first before taking any further action.

What you can do to protect yourself

Good digital habits can go a long way toward keeping you safe during tax time. Here’s what we recommend:

• Avoid clicking on links in unexpected ATO messages
• Never share personal or banking details without verifying the request
• Use strong passwords and multi-factor authentication
• Confirm with your accountant or contact the ATO directly through official channels