How do you protect your identity information during tax time?

Introduction

As the tax season continues in full swing, the threat of identity crime can be more prominent than ever. With the rise of online filings and digital transactions, personal data is increasingly at risk. Findings from the Australian Cybercrime Survey indicate that identity crime is a significant concern, with thirty-one percent of respondents experiencing identity crime in their lifetime and twenty percent in the past 12 months.

Almost half of these victims reported suspicious transactions in their bank statements or accounts. The type of personal information most commonly misused includes names, followed by credit or debit card information. This situation underscores the urgency of protecting sensitive data during tax time. In this article, we'll discuss practical steps to help you safeguard your identity information during tax season.

What is an identity information?

Identity information includes any personal data that can be utilised to confirm who you are or to ascertain your location. This could be a single piece of information or a combination of different data elements that, when linked together, help to confirm your identity. Such information typically includes specific details unique to you, such as your:

• Full name
• Date of birth
• Current home address
• Email address
• MyGov and ATO online login details
• Bank account numbers
• Credit card details
• Tax file number (TFN)
• Passwords
• Location check-ins
• Parents’ names
• Photos
• Biometrics like your fingerprint or facial image.

Your credentials, also known as identity verification documents, may include:

• Proof of age card
• Australian visa or citizenship certificate
• Medicare card
• Driver's license details
• Passport details
• Marriage certificate
• Student’s ID
• ImmiCard

What is an identity crime?

Identity crime, commonly called identity theft or fraud, occurs when an individual unlawfully uses another person's identity information without their permission. For example, identity fraud might involve someone using your identity to:

• Access and drain your bank account or use your credit card for unauthorised purchases.
• Log into your myGov account to divert your tax refunds.
• Withdraw money from your superannuation funds.
• Create fake self-managed super funds (SMSF) in your name.
• Illegally apply for government benefits.
• Fraudulently sell your property.
• Engage in refund fraud under your identity.
• Take control of your business and make unauthorised changes to previously submitted Business Activity Statements (BAS).

The impact of identity theft can be devastating and enduring. Recovering from identity theft may hinder your ability to obtain employment, secure loans, rent properties, or access government benefits.

How to spot a scam?

Identifying scams can be challenging, but knowing common warning signs can help you avoid falling victim. Here are some indicators to watch for:

Be cautious of unsolicited emails, social media messages, or texts that prompt you to click on a link or request you to provide copies of personal documents. These are often phishing attempts designed to steal your personal information.

Some scams involve job offers that ask for your Tax File Number (TFN) or other sensitive information as part of the application process. Legitimate employers typically do not require such details until after an offer of employment is made.

Ads that ask for your personal information directly can be a red flag. Authentic businesses and services usually direct you to secure websites where privacy is clearly outlined.

If you are asked to make immediate payments through unconventional methods such as gift cards, it's likely a scam. Legitimate institutions will not ask for payments this way.

Scammers may claim that you will be arrested or face legal repercussions if you do not comply with their demands for payment. This is a common tactic used to create urgency and fear.

If the contact becomes threatening or abusive, it is a strong indicator of a scam. Professional entities do not engage in such behavior regardless of the circumstances.

Tips to protect your personal information during tax time

Here are some essential tips to help protect your sensitive information and avoid tax-related scams:

• Know your sensitive information: Be aware of the personal information that needs high protection, such as your Tax File Number (TFN), passwords bank account details, and date of birth.
• Verify identity requests: Whenever you are asked for personal information, verify the identity of the person or organisation by contacting them through official numbers or websites.
• Use registered tax agents: Ensure that you only engage with tax agents who are registered with the Tax Practitioners Board. Registered agents do not need access to your myGov or ATO online login details to assist you with your accounts.
• Protect your digital security: Regularly update your computer and smartphone's security software to protect against viruses and malware. Use strong passwords or passphrases that are difficult to guess.
• Be cautious with social media: Do not share personal information on social media platforms, and ensure your profiles are set to private. Be selective about accepting friend requests and posting sensitive data.
• Verify contact origin: Always ensure that the communication you receive, whether it's via SMS, email, or phone call, actually originates from the ATO. Scammers often impersonate official sources.
• Do not click on unexpected links: To combat scams, the ATO has stopped including links in unsolicited SMS messages. To access ATO or myGov services, always manually type the official website addresses into your browser’s address bar rather than clicking on links that appear in unexpected emails or texts. This precaution helps avoid phishing sites designed to steal your personal information.
• Use secure network: Always conduct financial transactions and access sensitive information over a secure, private network. Avoid using public Wi-Fi to protect your personal data from unauthorised access.
• Secure physical documents: Store important documents like birth certificates and passports in a secure location. Shred any documents that contain personal information before disposing of them.
• Voiceprint for secure verification: Enroll your voiceprint with the ATO to secure your identity further. This makes it difficult for scammers to access your tax account.
• Report suspicious activities: If you suspect a scam, report it immediately to the ATO or through official scam reporting channels. Do not engage with suspicious emails or messages.
• Stay informed: Keep up to date with the latest news on cyber safety and identity protection from reliable sources like the ATO website.

Have an experienced and dedicated tax agent by your side this tax season

At ZedPlus, your privacy and security are our top priorities. We use strict protocols and advanced technology to protect your personal information from theft, fraud, or misuse. Our team is trained to identify suspicious activities and take appropriate measures to safeguard your identity.

We offer secure online platforms that facilitate communication and document sharing to enhance your security further. This allows us to provide a safer environment by minimising the risks associated with traditional methods. We are also committed to continuously updating our security measures so you can feel confident and secure when using our services.

Contact us for all your tax needs, and we'll make sure your information is safe while helping you get the maximum tax refund.

Ending Note

With the rise of cybercrimes and identity theft, it is wise to take proactive steps to protect your personal information during tax time. Following the tips mentioned above and partnering with ZedPlus can ensure a smooth and secure tax season. This approach not only helps you stay ahead of potential scams but also harnesses expert services to handle your sensitive data with care. Stay vigilant and let ZedPlus provide the security and expertise you need during this critical time.