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. 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.
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.
You should:
- Follow the Client Verification procedures on the ATO and TPBExternal Link websites every time you link to, or act for, a client in ATO records.
- Work directly with clients and refuse to accept instructions from third parties.
- Take extra care and obtain additional proof of identity where new clients:
- only interact with you online
- provide contact details or bank account information that differs from their ATO records.
- Question any requests or behaviours that seem unusual, inconsistent, or illogical.
- 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.
- 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.