Huge spike in scammer activity revealed as NAB issues dire warning ahead of tax time

One major bank has urged Australians to remain vigilant ahead of tax time, with the bank tracking double the monthly average of ATO scams in one month alone.

NAB said cost of living pressures mean tax refunds are at the ‘front of mind for many Australians’. Picture: NCA NewsWire / Kelly Barnes

One of Australia’s big four banks has issued a grave warning ahead of tax time, urging Australians to remain vigilant for cyber criminals impersonating government agencies.

NAB has bolstered its fraud team by more than 50 people over the past nine months, as scams impersonating the Australian Taxation Office (ATO) are expected to spike around June 30.

The ATO itself has received around 20,000 reports of tax scams in 2022-23, averaging 360 reports per month.

NAB Scam Awareness Lead Tessa Bowles said it was crucial to stay “alert” as the end of financial year brought out more cyber criminals seeking to steal tax returns.

Ms Bowles said NAB had seen a spike in scammers impersonating the ATO ahead of tax time. Picture: NCA NewsWire / Kelly Barnes

“Current cost of living pressures mean tax returns will be front of mind for many Australians hoping for a refund,” she said.

“No one ever wants to lose their hard-earned money to criminals.”

Some typical scams include communications asking individuals to pay a processing fee or to provide personal details to have tax refunds released.

“Scammers may also try to trick people into thinking they owe a tax debt and must pay to avoid being arrested,” Ms Bowles said.

ATO impersonators will most often contact potential victims via text and email, while online communications are the most commonly used method in rebate scams, according to Scamwatch.

More than $4.2m has been lost to rebate scams this year alone.

Aussies have been urged to exercise caution ahead of June 30 and to remember the ATO will never ask for personal information over text, email or social media. Picture: Twitter @Scamwatch_gov

Ms Bowles said NAB had already seen a spike in scams ahead of tax time, with the number of phone calls impersonating the ATO in June “double the monthly average”.

“These phone calls can often be quite aggressive and threatening, but it’s important to remember the ATO will never threaten anyone with immediate arrest,” she said.

“Never feel pressured into making a payment and contact your bank immediately if you think you’ve been scammed.”

NAB has reminded Aussies to hang up if they receive an unexpected phone call from someone claiming to be from the ATO and that the ATO will never ask anyone to pay a tax debt into a non-ATO bank account.

Furthermore, individuals can check if they have a legitimate tax debt by logging into their myGov account, and should remember the ATO will never ask for information such as a Tax File Number over email, text or social media.