Scammers are always looking for opportunities to take advantage of unsuspecting individuals, and tax-related scams are among their favourites. These schemes can happen any time of the year - not just during tax season - so staying vigilant is essential.

One common scam involves phone calls, emails, or text messages claiming you’re entitled to reclaim overpaid tax or bank fees. The scammer might pose as someone from a government agency, a financial institution, or even a private law firm to make their story seem convincing.

They may insist that you need to pay a fee or tax upfront to receive your refund. Some may even reference news stories or use personal details they’ve found about you to gain your trust. But remember, these tactics are designed to trick you into sharing personal or financial information.

How to spot and avoid tax scams

Protecting yourself from scams starts with knowing what to look for:

• Unexpected messages: Be cautious of calls, texts, or emails that arrive out of the blue claiming you’re owed money. Legitimate organisations won’t contact you in this way to ask for personal details or payments.
• Pressure to act quickly: Scammers often create a sense of urgency to make you act without thinking. If someone is rushing you to make a payment or provide details, take a step back.
• Requests for fees upfront: A real refund process won’t require you to pay a fee or tax before receiving your money.
• Unverifiable claims: Always double-check the authenticity of anyone contacting you. Look up their contact details independently and reach out to confirm their identity.

Steps to take if you’re targeted

If you suspect you’ve been approached by a scammer, here’s what to do:

• Don’t engage: Hang up the phone or delete the message immediately. Avoid clicking any links or downloading attachments.
• Verify the source: Contact the organisation directly using trusted details, not those provided in the suspicious message.
• Protect your details: Never share personal or financial information unless you’re absolutely sure of who you’re dealing with.
• Act quickly if compromised: If you’ve shared sensitive information or suspect fraud, contact your bank or financial institution immediately to secure your accounts.

Stay safe and informed

Scams can be stressful, but you don’t have to face them alone. Educating yourself and others about the warning signs is one of the best ways to reduce the risk.

For more information on current scams or to report suspicious activity, visit the ACCC Scamwatch website: https://www.scamwatch.gov.au

Remember, staying alert and taking precautions can keep you and your finances safe from scams.