We are receiving an increasing number of calls from worried clients about an ATO phone scam that has been doing the rounds for a number of months. Each month, the scammers are becoming more sophisticated, which has led to the ATO releasing a fresh warning this month as a reported value of losses hit $830,000 in November alone!

Reports from victims say the scam phone calls are made from landlines; a pre-recorded message, that makes threatening demands to comply with a series of instructions or you will be arrested. There may also be a three-way conversation with the scammer, the victim and another scammer pretending to be the tax agent, pushing the victims to transfer money. They can also ask you to pay through a variety of methods including iTunes cards. This should be an instant red flag – no government organisation will ask you to pay in gift cards.

Scamwatch, a website run by the Australian Competition and Consumer Commission (ACCC), has provided this advice:

How to protect yourself from scams:

  • If you receive a phone call or email out of the blue from someone claiming to be from the Commonwealth DPP or Australian Taxation Office telling you about an arrest warrant, hang up.
  • If you have any doubts about the identity of any caller who claims to represent a government department, contact the body directly.
  • Don’t rely on numbers, email addresses or websites provided by the caller — find them through an independent source such as a phone book or online search.
  • Never send money via wire transfer to anyone you do not know or trust.

These scammers can be very manipulative, demanding and in some cases threatening. Don’t give them any information. Hang up. If you are in any doubt, contact your Taxpro accountant for a second opinion.