Hoax payroll tax malware hits local shores

Hoax payroll tax malware hits local shores

Fake payroll tax emails carrying the malicious Cryptolocker virus, which forces victims to pay a ransom before their computer files can be unencrypted, are circulating in Australia and overseas.

Businesses in NSW, Queensland and Britain have reported receiving scam emails threatening penalties for unpaid payroll tax, including a link to a fake NSW Office of State Revenue webpage.

The virus has hit local shores before where victims have be asked to pay between $500 and $700 in ransom to unlock their PCs.

The payroll scam email contains a poorly worded “notice of assessment” and refers to a penalty tax of between 15 per cent and 19 per cent.

However it also has a convincing OSR webpage titled More Information that leads to a fake page, which will infect people’s computers with Cryptolocker if accessed.

A ransom would then be demanded by unknown persons to reinstate the files.

NSW Chief Commissioner fo State Revenue Tony Newbury said the email had been tested and found that it destroyed all files on a computer until a ransom was paid.

“We had our IT people check the email in an isolated environment.

“When you opened it up it was the Cryptolocker virus,” Mr Newbury said.

Mr Newbury was concerned that individuals receiving the email might mistake it for a PAYG note and fall victim.

He also warned that anti-virus software may not pick up the scam emails.

His office had received numerous reports about the scam from concerned business and he urged people to spread the word.

“If people are aware of it please tell everybody they know.

“We can’t have these people make money from their criminal behaviour,” Mr Newbury said.

The source of the email nor the total number distributed couldn’t be pinpointed, he said. “These people are very good at covering their trail”.

OSR has reported the matter to Australia’s peak computer emergency response team, AusCERT, for further investigation.

A report in 2013 found that the virus had infected 250,000 computers globally but the numbers would have dramatically increased since.

This story was first published in The Australian Business Review