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Don't Be Fooled! How to Spot Tax Scams and Protect Your Money

Updated: Oct 9, 2023


Credit cards on a hook

As the tax season approaches, scammers are also gearing up to take advantage of unsuspecting taxpayers. Every year, thousands of people fall victim to tax scams, losing their hard-earned money and sensitive information. But you don't have to be one of them! In this article, we will teach you how to spot tax scams and protect yourself from becoming a victim.


What are Tax Scams?

Tax scams are schemes used by fraudsters to trick taxpayers into giving away their personal and financial information or to pay bogus tax bills. These scammers can use various methods such as email, phone calls, or even social media to deceive you into believing that they are representatives of the Australian Taxation Office (ATO) or a tax agent. They may offer you refunds or threaten legal action if you do not pay immediately.

How to Spot Tax Scams?

The best way to avoid tax scams is to know how to spot them. Here are some tips to help you identify a tax scam:

Unsolicited Phone Calls or Emails

1. The ATO does not make unsolicited phone calls or send unsolicited emails, especially to demand payments or personal information. If you receive a call or email claiming to be from the ATO, it's probably a scam.


Threats or Pressure to Pay

2. Scammers often use fear tactics to pressure taxpayers into paying immediately. They may threaten legal action or arrest if you do not pay. Remember that the ATO will never threaten you with immediate legal action, arrest, or demand payment without giving you the opportunity to dispute the debt.


Requests for Personal Information

3. Scammers often ask for personal information such as your tax file number, date of birth, or bank details. The ATO will never ask you to provide this information via phone or email.


Offers of Refunds or Bonuses

4. Scammers may offer to give you a refund or bonus in exchange for your personal information or payment. Remember that the ATO will never offer you a refund or bonus via email or text message.



How to Protect Yourself?

If you suspect that you have been targeted by a tax scam, here are some steps you can take to protect yourself:


  • Do not provide any personal information or payment details.

  • Hang up the phone or delete the email.

  • Report the scam to the ATO or Scamwatch.

  • Check your bank account and credit report for any suspicious activity.

  • Change your passwords for any online accounts that may have been compromised.

  • Stay informed about the latest tax scams and share this information with your friends and family.


Tax scams are becoming more sophisticated and prevalent. It is important to stay vigilant and informed to protect yourself from falling prey to these fraudsters. Remember, the ATO will never ask you to provide personal information or payment details over the phone or via email. If in doubt, always verify the legitimacy of the call or email before providing any information. Stay safe this tax season!

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