Scammers use generative AI to improve quality and volume of SMS phishing scams

Tax time scammers are warming up for their peak swindling season, and a new study by Australia’s biggest bank suggests many of us are not prepared.

Fear is one of the emotions that scammers used to their advantage.

Tax time scammers are warming up for their peak swindling season, and a new study by Australia’s biggest bank suggests many of us are not prepared.

The Commonwealth Bank is urging people to increase their scam awareness after its research found nine out of 10 people are confident they can spot a fake SMS or email, but its testing found only 69 per cent of adults could identify all the tax scams they were shown.

CBA’s general manager of group fraud, James Roberts, said between now and October scammers would be increasing their activity with fake SMS and emails focusing on tax returns.

“Everyone should keep an eye out for text messages and emails impersonating myGov and the ATO,” he said.

The YouGov research used fake texts and emails mentioning outstanding refunds and system issues, and some were realistic with logos and links, which is how scammers operate.

“Nowadays scammers use generative AI to improve both the quality and volume of their SMS phishing scams,” Mr Roberts said.

“Similar to the Aus Post or Linkt road toll text message, or the recent Coles loyalty program scam, during the tax season, you will likely receive a text message claiming your tax return has been ‘automatically processed’ and you need to update your card details to receive it.”

Mr Roberts said fear was an emotion that scammers used to their advantage.

“In the past, people have received robo-calls to threaten penalties and scare people into doing something they wouldn’t ordinarily do,” he said.

“Using advanced technology, scammers can automate scam text messages typically to put pressure on you to act very quickly without thinking and also often by preying on your emotions. So it’s important to stop, check and reject.”

Jacqueline Jayne said tax scams made criminals a lot of money and collected a lot of personal information.

Independent cybersecurity specialist Jacqueline Jayne said the latest Australian Taxation Office figures showed 25,609 ATO impersonation scams reported last financial year, and this number was up 25 per cent in 12 months.

It found 35-to-44 year olds were the age group most likely to pay money to a scammer, shifting from 25-to-34 year olds the previous year, she said.

Ms Jayne said tax scams made criminals a lot of money and collected a lot of personal information from unsuspecting victims.

“We know that the success of all scams globally is due to our human nature and emotional responses such as fear, greed, something owed to us and wanting to help or do the right thing,” she said.

“If the ATO threaten us with fines and accuses us of doing something illegal, and we know that it’s not true, critical thinking goes out the window, and we will respond without thinking.”

Ms Jayne said the sophistication of new scams could sometimes be challenging for cyber professionals to spot.

“If every taxpaying Australian knew that the ATO would never send you a link to click on or call you with demands or threats, the success of these scams would decline,” she said.

“We are generally law-abiding citizens who have grown up knowing that the ATO and other government agencies yield authority, and we must respect them and do as they ask. Scammers are incredibly optimistic and will use this against us.”

Originally published as Scammers use generative AI to improve quality and volume of SMS phishing scams