Tax file number integrity
This year, approximately 47,000 tax file numbers (TFNs) were compromised, an increase of 9.3% compared to 2011–12. A TFN is compromised when an unauthorised third party has, or potentially has the ability to, access a client's TFN, and personal information relevant to the TFN is available to the unauthorised third party. It is also applicable when an individual's TFN has been used by an unauthorised party to commit identity fraud. The increases this year were primarily due to:
- increased awareness and reporting by the community, with taxpayers and tax agents better informed about the risks associated with potentially compromised TFNs
- increased exposure to risk through the growing use of electronic media
- our continuing review and refinements to risk models.
In response, we have created a new unit to deal more effectively with the emerging incidence of identity crime in the online environment.