ATO searches Sydney home amid scam syndicate joint investigation

ATO assistant commissioner Pennie Snowden said authorities had zero tolerance for scams and fraud, and warned would-be criminals that misconduct could bring hefty penalties.

“This behaviour has real victims and serious consequences, including penalties of up to 20 years’ imprisonment,” she said.

The ATO said the syndicate used phishing emails and fake websites to trick Australians into entering their personal details, which were used to hijack victims’ ATO online accounts.

The scammers lodged false tax returns, amended existing ones and created fraudulent refunds, redirecting the money to mule bank accounts controlled by the syndicate to evade detection. The mules were told that their accounts were being used to assist local businesses that were having trouble transferring funds overseas.

“These allegations demonstrate how scams often rely on deception, telling people their involvement is legitimate or for a good cause, when it is anything but,” Snowden said.

The Tax Office also alleged that ATO and Services Australia funds were deposited into accounts in the alleged recruiter’s own name, which were subsequently transferred offshore or into cryptocurrency.

“Using personal or third-party accounts to move suspected fraud proceeds does not place offenders beyond reach,” Snowden said.

“We will pursue those involved, from the people at the top orchestrating these schemes to those unlawfully assisting with the movement of money.”

The ATO noted that its systems remained secure, as the fraud had relied on stolen personal information rather than a compromise of systems.

To make it harder for fraudsters to exploit taxpayers’ identities, the Tax Office urged individuals to download the ATO app, use myID when interacting with the ATO’s online services and to set up the highest identity strength where possible.

“The ATO app will send you real-time messages when changes are made to your ATO record, and you can quickly lock your account to prevent unauthorised access or fraudulent refunds,” Snowden said.

It added that taxpayers who were unsure whether an ATO interaction was legitimate could check their account through myGov or the ATO app, speak to their registered tax agent, or call the ATO’s scam hotline at 1800 008 540.