Protect Your Business From Tax Time Scammers

It’s not only individuals who need to watch out for tax scams. Businesses, too, can be victims of this type of crime, with severe consequences for owners, shareholders, and customers.

A tax scam is a seasonal scam in which online criminals impersonate tax accountants or government organizations (such as the ATO). By sending fake emails and delivering intimidating phone calls, these scammers aim to trick businesses into paying “taxes” or handing over the personal information of employees that can be sold on the dark web.

There are many different strategies that a scammer might use to get their hands on this information. Continue reading to discover just a few of them, as well as detailed information as to how you can protect your business come tax time.

Telephone scam:

Many scammers aim their efforts at small business owners. They claim to be government employees and indicate that the business owes the government money. In order to get what they want, they may threaten the business owner with arrest or the suspension of their business license. 

Typically, such a scammer will ask that the money be paid via direct transfer or some other method, such as a gift card. These scams are often targeted at immigrants or older people, who do not always understand how the Australian Tax Office conducts business.

How to protect your business:

Phone scammers may claim to be government employees. They can also change the victim’s caller ID to make it seem as if the government is calling them. To spot a telephone scamming attempt, remember that:

• The government does not threaten people 
• The government will never ask for specific payment methods, especially not gift cards
• They will never ask for credit card or debit card information on the phone
• The government will not demand payment without allowing the owner to appeal the amount due.

Phishing scam:

Phishing attacks typically occur via email or text message. In this scam, it appears that you are being contacted by a credible source, be that the ATO or a tax accountant’s office. Once the phisher has established trust, they can ask for sensitive information, including bank account numbers, credit card information, or other financial details. They may also send links with malware or viruses designed to attack and disable a computer. 

How to protect your business:

Government agencies such as the ATO will not contact businesses via email. Even emails that are received from banks, accountants, and other seemingly legitimate sources must be checked carefully. Look for typos, misspellings, blurry logos, or any indicators of a fake profile. Always call the person before sending any information to confirm what information they need and why they need it. And finally, never click on any links in an email without first having trustworthy security software downloaded to protect your computer. 

Internal scams:

Cybercriminals and scammers have been known to send emails that appear to be from the company HR, accounting, or payroll departments. These emails include official forms that employees complete, providing personal information including their full name, date of birth, tax file number, and superannuation details. 

This information is then sold on the dark web and used by hackers to commit identity theft and tax fraud.

How to protect your business:

All computers connected to your work network should be protected with strong security software. Keep your employees up to date with the latest security threats by running cybersecurity training and encourage them to come to you if they receive any communication that looks suspicious.

Fake charity scams

In the past, scammers have created fake charity websites that look legitimate in order to scam benevolent individuals and businesses. Such cybercriminals claim that victims are able to make a tax-deductible donation. However, in time, business owners discover that they have simply handed their money straight over to a scammer and there is no hope of getting it back.

How to protect your business:

If you are presented with the opportunity to make a donation, be sure to call the charity before giving money. Do a little background research and make sure you have accessed the charity’s website straight from your browser, rather than via an email link. 

Tax accountant scam:

This scam is less common but can have significant consequences. Many businesses rely on accountants to do their taxes for them. A trained, qualified accountant can be trusted with all of your business’ personnel and financial information. A scammer impersonating an accountant? Not so much. Most likely they will simply take all of the business’ details and sell it on the dark web.

How to protect your business:

Make sure to extensively check the credentials of your accountant. Opt to work with an accountant that comes with legitimate recommendations from people you know in real life, and always ask to see their credentials and qualifications. 

Small business owners must understand that they are prime targets for scammers, especially during tax time. Owners must educate themselves, and company personnel, about scams, phishing, and the dark web, and definitely make use of the best security software to protect themselves from malicious attackers.