In a digital world the threat of identity theft is nothing new, but there’s a timely reminder that hackers and scammers are becoming more sophisticated – even lodging bogus tax returns on behalf of unsuspecting Aussie taxpayers.
This year has seen a surge in cybercrime where criminals accessed a person’s tax file number (TFN) through MyGov. They then intercepted passports and drivers licence details through email to create a new bank account and then used that bank account to amend returns to claim a tax refund, without the victim being aware. Recently, we have become aware of attempts by brazen hackers who gained unauthorised access outside of HLB Mann Judd’s secure systems and attempted to lodged fake tax returns. We have even seen attempts to tampered with returns that had already been lodged.
HLB Mann Judd has protected systems and processes around the personal information we receive. However this may not be the case for smaller companies and individuals who share information via email or other digital means, as was the case with recent incidents.
When it comes to vulnerability for identity theft, our TFN probably rarely comes to mind. We hear a lot about protecting our bank details, passport and driver’s licence, but not a TFN. Tax file numbers are like a digital fingerprint linked to not only the tax system but also superannuation and investments – and they are definitely worth protecting.
The Australian Tax Office is vigilant, and this is not about ATO security, it is about all of us having the right protections in place to protect identity theft. Ensuring that you have a strong identity through MyGov increases the chance of beating the hackers, which includes not using the same passwords and utilising technology such as fingerprint and face identification.
The consequences of having your TFN compromised could not only be costly but also make it harder to manage your interactions with the ATO. The ATO does not issue new tax file numbers, so in response to these threats they put in additional layers of security such as requiring verbal rather than online verification. A breach can impact your use of MyGov ID, and also ends the pre-filling of data in tax returns or activity statements.
Identity theft is a serious threat, and nobody should be sending TFN information unless it is encrypted or password protected. If you think your TFN has been stolen, immediately advise the Australian Cyber Security Centre and the ATO, as well as your tax agent.
This article first appeared in the Summer 2024/25 issue of HLB Mann Judd Perth’s Client Alert.