When accessing your myGov account, you notice that your activity statements from the past year have been modified, and $100,000 in GST credits have been issued. The problem? You weren’t the one who made these changes, and there’s no sign of a $100,000 refund in your bank account. What should you do now?

This scenario is becoming increasingly common as scammers target myGov accounts for their wealth of personal data. They change bank details and file fake refunds, using your identity to claim large sums of money. From the outside, it looks like it’s all coming from you. The worst part is, you may have unknowingly helped these fraudsters access your account.

And it’s not just activity statements being manipulated. Scammers are targeting any myGov-linked service that can issue payments or refunds. They use legal loopholes and amendment windows in tax law to adjust tax data, leading to fraudulent refunds on personal income tax, GST, or pay-as-you-go (PAYG) instalments. The level of knowledge these scammers have about Australia’s tax and social systems is impressive—and concerning.

Once they gain control of your myGov account, they can wreak havoc.

How does this happen?

Human error is often at fault. Many scams start with phishing attempts. Around 79% of reported tax-related scams over the past year have come through email, while 18% have been through SMS. These scams mimic official messages that seem legitimate, with scammers using several common strategies:

• Fake warnings about unauthorized access attempts, prompting you to click a link and verify your details.
• Offers of supposed rewards, like a tax refund, with a link you must click to claim.
• Messages resembling official notifications from the Australian Tax Office (ATO), complete with a link to view the message.

The ATO reported that 75% of all email scams up to March 2024 involved a counterfeit myGov login page.

How to recognize a scam

You might first notice suspicious activity through alerts from myGov—ironically, the same kinds of alerts scammers may have used to access your account. However, there are clear ways to identify a fake:

• The ATO, Centrelink, and myGov never send messages with clickable links. If a message includes one, it’s likely a scam.
• The ATO doesn’t use QR codes to direct you to your account.
• The ATO will never ask for your tax file number (TFN), bank details, or myGov login information through social media platforms. Scammers often impersonate ATO or government agencies on social media to trick people into sharing personal data. Assistant Commissioner Tim Loh compares this to ‘handing your house keys to a stranger and watching them change the locks.’
• The ATO will not send pre-recorded messages about tax debt. It won’t cancel or suspend your TFN due to suspicious activity or tell you to transfer funds to a “safe” account.
• The ATO won’t initiate a conference call with you, your tax agent, and someone claiming to be from law enforcement. Some scammers pretend to be ATO representatives and stage fake calls with fraudulent tax agents to deceive victims.
• The ATO will not ask you to update your details due to a security issue with myGov. If you receive such a request, it’s likely a phishing attempt.

In general, you should avoid clicking on links in emails or messages. Instead, log directly into your myGov account to review any alerts or updates.

And remember: never log into myGov while using public Wi-Fi.

Who gets scammed?

While many assume older adults are the most vulnerable to scams, younger people are increasingly falling victim. The ATO reports that individuals aged 25 to 34 are the most likely to provide personal information to scammers. Younger people are also particularly susceptible to investment scams.

The AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) notes that Australians under 50 are now more frequently targeted by investment scams than older citizens. During the 2023-24 financial year, Australians lost $382 million to investment fraud, with almost half of those losses involving cryptocurrency.

Other types of scams

Scammers aren’t limited to tax fraud—they will exploit any opportunity to steal money:

• Investment scams: Scammers engage in a tactic known as ‘pig butchering’, where they build trust with victims over time through social media or messaging apps. Once trust is established, they lure victims into investing in fake cryptocurrency or foreign exchange platforms. These platforms are often designed to look legitimate, showing fake profits to convince victims to invest more money. Eventually, the scammers disappear with all the funds. Another type is called ‘deepface scams’ that scammers use AI-generated content, such as fake videos or images of public figures, to promote fraudulent investments. These deepfakes can be very convincing and are often shared through social media or direct messages. While subtle clues like unnatural facial movements or odd speech patterns can be giveaways, the quality of these deepfakes is improving rapidly.
• Invoice scams: Cybercriminals gain access to business systems, identify suppliers, and use legitimate company details to send fake invoices. The money is then diverted to scammer-controlled accounts.
• Bank scams: Some scammers call people pretending to be from their bank, claiming there’s an issue with their account. They guide the victim through a series of steps that eventually result in transferring money to a scammer’s ‘safe’ account. Victims often trust the scammers because they seem to know a lot of personal information.

It’s important to know that your bank will never request personal or account details via email or text. A recent survey by CHOICE found that four in five bank scam victims weren’t alerted by their bank before they transferred money to scammers.

The Australian Banking Association has announced that by the end of 2024, banks will implement new warning systems and payment delays, especially for high-risk transactions like cryptocurrency transfers.

What to do if you’ve been scammed

• For myGov scams: If you’ve downloaded a fake app, shared your details, or clicked on a suspicious link, immediately contact the Services Australia Scams and Identity Theft Helpdesk at 1800 941 126 or seek assistance online.
• For tax scams: Before acting on any instructions you receive, contact your tax agent for verification. If you’ve already been scammed, reach out to the ATO directly at 1800 008 540 to report the issue.

Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Yvonne Shao @ Pitt Martin Tax