Beware of these scams during tax season

As if it is not bad enough that it is time for South Africans to pay their annual income tax, there are also scammers lying in wait to steal your personal confidential details and, in some cases, your money too.

Scammers and fraudsters eagerly await tax season to give them the opportunity to defraud consumers, Advocate Athaly Khan, head of fraud risk management at Standard Bank, warns.

“In many cases, we saw in the past that scammers use bait communication via text, email, WhatsApp or telephone call. The communication may indicate that you have a tax rebate, tax penalty or that you are being investigated for contravening tax laws.”

Using these tactics, scammers can acquire your banking credentials, steal your money, or even manipulate you into transferring money to fraudulent accounts. Khan says these are some of the most common ways Standard Bank has seen scammers try to defraud consumers:

ALSO READ: Beware of these scams this tax season – SAFPS

Extortion and secure account tax scams

Scammers claim they are investigating your submitted tax return, indicating they discovered discrepancies that warrant criminal prosecution. They even provide fabricated documentation to substantiate their allegations.

“They might also use intimidation and manipulation tactics to instil fear and panic so that you will follow their instructions,” Khan says.

Once satisfied that they have convinced you that they are from the South African Revenue Service (Sars), the scammers usually ask that you pay money over to them to make the case disappear. Alternatively, they provide a fraudulent account number to transfer ‘funds potentially due to Sars’ so that the funds are secured while they are busy with the bogus investigation.

In most of these cases, they claim to be working with the bank, law enforcement or regulatory bodies.

ALSO READ: Sars tax season: Five scams to look out for

Tax scams changing Sars’ banking details

Some scammers send you fake communication with banking details, claiming that you owe Sars money. Khan says some customers may, in fact, have funds due to SARS, making the communication seem legitimate.

However, he warns, the account details provided belong to fraudsters, not Sars. They may even offer a ‘settlement discount’ to pressure you into paying quickly without checking with the real Sars first.

ALSO READ: Tips to protect yourself from scammers during tax season

Phishing, smishing, quishing (QR code) and card not present (CNP)

Khan says the scammers sometimes send communication that includes a link, icon, attachment or QR code, laced with malicious software (malware) prompting you to click, download or scan.

The malware is designed to gain unauthorised access to your device, including your digital banking profile. In other scenarios, scammers may prompt you to capture your card information to make payments to Sars, compromising your card details.

ALSO READ: Sars makes changes to eFiling for easy use

This is what you must remember about tax scams

Khan says during tax season, it is important to remember:

• ALWAYS stop to think and seek advice from your trusted people before making any payment to someone you do not know.
• The bank and other industry bodies have the capability to secure funds directly from your account should there be a need. They would not need you to transfer your money to keep it safe.
• ALWAYS validate banking details with the source, such as Sars.
• Banks offer a business directory for Sars accounts as well as Account Verification Services (AVS) for the beneficiaries you add.
• ALWAYS be suspicious of links, icons, attachments and QR codes.
• Your bank and its employees will never ask you to click a link or scan a QR code to access banking services, be authenticated, redeem UCount points, make payments, order a card, or update your information.

“Nothing is ever what it seems. Sars scamming will now be on the rise, and we need all our customers to have their guards up.”