iscover ATO issues warning on emerging identity fraud threats
BusinessRecent activity has revealed a growing number of attempts by fraudsters to impersonate taxpayers and misuse stolen identity information, according to the Tax Office.
Tax professionals have been told to remain vigilant and apply strong due diligence practices with criminals using increasingly sophisticated attempts at impersonate taxpayers and engage in fraudulent activities.
"Recent activity shows a growing number of attempts by fraudsters to impersonate taxpayers, misuse stolen identity information, and pressure tax professionals into acting on fraudulent instructions," the Tax Office said.
"In some cases, these attempts are designed to appear routine or urgent, increasing the risk of agents being unknowingly drawn into fraudulent activity. These approaches are increasingly sophisticated and often appear legitimate."
The ATO said that tax professionals are on the frontline of this threat and play a critical role in protecting client information and maintaining the integrity of the tax system.
"Strong verification, professional scepticism, and adherence to established safeguards are essential to disrupting these fraud attempts," it said.
The ATO said tax professionals should ensure they follow the client verification procedures set out on the ATO and TPB websites every time they link or act for a client in the ATO record.
"Tax professionals should also work directly with clients and refuse to accept instructions from third parties and question any requests or behaviours that seem unusual, inconsistent or illogical," the Tax Office said.
Tax professionals should also take extra care and obtain additional proof of identity when new clients interact with them only online or provide contact details or bank information that differs from their ATO records.
"[You should also] thoroughly check supporting documents to confirm they are authentic, review bank statements to confirm ATO refunds are being deposited into accounts held in the client’s own name and report any suspicious activity to us via the tip-off form on the ATO website."
"Maintaining these safeguards to help protect your clients, your practice, and the broader community is a critical defence against increasingly sophisticated tax and identity fraud."
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
