Exposing the ATO Tax Refund Text Scam Targeting Australians
Written by: Thomas Orsolya
Published on:
In recent weeks, many Australians have been receiving suspicious text messages claiming to be from the Australian Taxation Office (ATO). The messages often state that your tax return has been processed or deposited into your bank account. Understandably, these messages are causing a lot of confusion and concern.
This article will provide an in-depth look at this text message scam – how it works, what to do if you receive one, and most importantly, how to protect yourself. With tax time coming up, it’s crucial to be aware of scams targeting your personal information and money.
Keep reading to learn everything you need to know about the ATO text scam so you can avoid falling victim.
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Scam Overview
The ATO text scam involves receiving a text message that claims to be from the ATO, Australia’s tax authority. The message usually states that your tax return has been processed or deposited early into your bank account.
Some common examples of these fake ATO messages include:
“From ATO: Your tax return of $950 has been processed. Your refund has been deposited into your bank account.”
“ATO MSG: We have sent you an early refund of $850 based on your projected tax return. Check your bank account.”
“ATO Alert: Your 2024 tax return has been finalized. A refund of $1,200 has been issued to your bank account today.”
The goal of these messages is to trick you into clicking on a malicious link or calling a fraudulent phone number. The scammers aim to steal your personal information and money or infect your device with malware.
The surge in these fake ATO text scams correlates with tax time each year in Australia. Scammers take advantage of taxpayers eagerly awaiting their refunds and wanting to believe the money has come early.
However, the reality is the ATO does not initiate contact via text message or calls regarding tax returns and refunds. Any communication claiming to be from the ATO with links or phone numbers should ring alarm bells.
Why the Scam Works
There are several reasons this ATO text scam has been so successful at deceiving Australians:
Familiarity with the ATO – Most Australians have filed taxes and are familiar with receiving correspondence from the ATO. This makes the scam messages appear more legitimate.
Promise of money – Claiming you have received an early tax refund is tantalizing, especially when many people are facing financial struggles. The promise of unexpected money is compelling.
Creates urgency – By stating the refund has already been deposited, the scammers introduce urgency to click their link and “claim” the money. This pressures victims to act quickly without thinking it through.
Cybercrime on the rise – In general, scam calls and texts are increasing in Australia. People are more likely to fall for scams in an environment saturated with cybercrime.
Tax time urgency – Many taxpayers file their returns at the last minute in June. The rush to get refunds makes them more vulnerable to tricks promising early money.
Scope of the Problem
The ATO scam text messages exploded in prevalence in 2023 with the ATO receiving over 34,000 reports of scam texts in April-May alone. However, many more scam texts are likely going unreported.
Online forums reveal the incredibly widespread nature of this scam:
On Twitter, hundreds of users have also shared experiences receiving the fraudulent ATO messages.
In Queensland, the police commissioner estimated 10,000 residents reported the scam texts in just one month.
One victim online stated 20 of his friends and family members had received the text scam.
The Australian Competition and Consumer Commission (ACCC) has warned that Australians have lost over $7 million to tax scams this year, with text-based scams making up a majority of losses.
This demonstrates how unsuspecting taxpayers across Australia are being bombarded with these messages and falling prey at an alarming rate. The widespread nature of this scam makes awareness and caution extremely important.
How the ATO Text Scam Works
Now that you understand the common types of fake ATO texts being sent and their goal, let’s break down exactly how this scam operates at each step:
Step 1: Receiving the Text
The scam begins with the victim receiving an unsolicited text message claiming to be from the ATO. The sender typically masks the number to appear as an official source. For example, the text may come from “ATO-Gov” or “ATO-TaxRefund.”
The message is short and urges the victim to take immediate action regarding their “tax refund deposit.” Scammers aim to incite panic or excitement that money is waiting.
Step 2: Clicking the Link
The text message includes a link, typically branded with “ATO” to look official. If the recipient clicks the link, it will take them to a fake ATO website designed to mirror a real ATO portal.
This malicious website prompts the victim to enter personal details like their name, birthdate, address, tax file number, driver’s license number, and bank account information.
In the rush to claim their “refund,” victims end up handing over valuable personal data to scammers.
Step 3: Calling the Number
Some versions of the scam text will not include a link but rather instruct the recipient to call a phone number regarding their “refund.”
This phone number connects to a scammer claiming to be an ATO agent. They advise the victim to verify personal details or make an upfront payment via gift cards to release the fake refund.
Either way, through the link or call, scammers are gathering private information and money from victims who believe the tax refund is real.
Step 4: Stealing Money and Identity
Once scammers secure the victim’s personal information through the website or call, they can steal their identity and drain their bank account in various ways:
File a fake tax return in the victim’s name and have the refund deposited into a fraudulent account.
Use the bank account details to withdraw or transfer funds from the victim’s account.
Take out loans or credit cards using the victim’s identity.
Sell the personal information like tax file numbers on the dark web.
Hack into the victim’s email, bank, or government accounts using security details gained.
The ATO will never ask for personal information over text. Providing data through these scams leads to serious financial and identity theft consequences.
Step 5: Spreading Malware
In some cases, the link in the scam text message leads to a website infected with malware instead of a phishing form. If the victim clicks the link on their smartphone, the malware can infect their device.
Signs of malware infection include:
Pop up ads, notifications, and alerts
Apps crashing frequently
Slow device performance
Overheated battery
Strange activity like texts sending automatically
The malware allows scammers to monitor the victim’s device activities, contacts, accounts, and more. It also leaves the device vulnerable to data breaches.
What to Do If You Receive the ATO Text Scam
If you receive a suspicious text message claiming to be from the ATO, here are the steps to take:
1. Avoid clicking any links or calling phone numbers.
This gives scammers direct access to steal your personal information or money. Never click or call numbers in unverified messages.
2. Do not respond to the message.
Replying lets scammers know your number is active. Simply delete the text message instead.
3. Report the scam text to the ATO.
Forward the text message to 0428 792 698. This helps the ATO gather data on scammers impersonating their agency.
4. Report the scam to your phone carrier.
Alert your mobile provider (e.g. Telstra, Optus, Vodafone) about the fraudulent message so they can take action and block numbers.
5. Check your bank accounts and credit history.
Look for any signs of unauthorized transactions, accounts opened in your name, or money withdrawn. Report anything suspicious to your financial institutions.
6. Reset account passwords and enable two-factor authentication.
Update passwords on your important accounts like online banking, MyGov, email, etc. Enable two-factor authentication for an extra layer of security on accounts.
7. Scan devices for malware if you clicked any links.
Use security software to run a scan that detects and removes any malware that may have infected your phone or computer if you clicked the scam link.
Being proactive protects you in the case any personal data was compromised by scam links or calls. Make sure your accounts and devices are secure.
What to Do If You Fall Victim to the Scam
Unfortunately, many Australians have fallen victim to the ATO text scam and had their personal information, money, or identity stolen. If this happens to you, here are the necessary steps to take:
1. Contact your bank immediately.
If you notice any unauthorized transactions, report them to your bank right away so they can attempt to recover the funds or reverse transfers. Cancel any compromised cards.
2. Change passwords and security questions for all accounts.
Secure your online accounts by updating your passwords, security questions/answers, and enabling two-factor authentication everywhere you can. Prioritize accounts tied to your finances.
3. Report identity theft to IDCARE.
This non-profit organization can help with recovery steps if scammers stole and misused your personal information. They provide customized identity theft support.
4. Check your credit reports and set up credit alerts.
Pull your credit reports from Equifax, Experian, and TransUnion to check for any accounts opened fraudulently in your name. Set up credit alerts that notify you of new activity.
5. File a scam report with the ACCC.
Report the scam to the ACCC’s Scamwatch so they can investigate and warn others. Provide details on how the scam occurred and the losses inflicted.
6. Notify the ATO if your tax file number was compromised.
If scammers now have your TFN, inform the ATO immediately. They can place additional security measures on your tax records.
7. Wipe and restore any infected devices.
If clicking a scam link infected your smartphone or computer with malware, perform a factory reset to wipe it entirely. Ensure all data is erased, then restore from a clean backup.
8. Monitor accounts and credit reports for suspicious activity.
Be vigilant in watching your financial accounts and credit reports for signs of further misuse of your personal information. Report any new unauthorized activity right away.
Is Your Device Infected? Check for Malware
If your device is running slowly or acting suspicious, it may be infected with malware. Malwarebytes Anti-Malware Free is a great option for scanning your device and detecting potential malware or viruses. The free version can efficiently check for and remove many common infections.
Malwarebytes can run on Windows, Mac, and Android devices. Depending on which operating system is installed on the device you’re trying to run a Malwarebytes scan, please click on the tab below and follow the displayed steps.
Malwarebytes For WindowsMalwarebytes For MacMalwarebytes For Android
Scan your computer with Malwarebytes for Windows to remove malware
Malwarebytes stands out as one of the leading and widely-used anti-malware solutions for Windows, and for good reason. It effectively eradicates various types of malware that other programs often overlook, all at no cost to you. When it comes to disinfecting an infected device, Malwarebytes has consistently been a free and indispensable tool in the battle against malware. We highly recommend it for maintaining a clean and secure system.
Download Malwarebytes for Windows
You can download Malwarebytes by clicking the link below.
After the download is complete, locate the MBSetup file, typically found in your Downloads folder. Double-click on the MBSetup file to begin the installation of Malwarebytes on your computer. If a User Account Control pop-up appears, click “Yes” to continue the Malwarebytes installation.
Follow the On-Screen Prompts to Install Malwarebytes
When the Malwarebytes installation begins, the setup wizard will guide you through the process.
You’ll first be prompted to choose the type of computer you’re installing the program on—select either “Personal Computer” or “Work Computer” as appropriate, then click on Next.
Malwarebytes will now begin the installation process on your device.
When the Malwarebytes installation is complete, the program will automatically open to the “Welcome to Malwarebytes” screen.
On the final screen, simply click on the Open Malwarebytes option to start the program.
Enable “Rootkit scanning”.
Malwarebytes Anti-Malware will now start, and you will see the main screen as shown below. To maximize Malwarebytes’ ability to detect malware and unwanted programs, we need to enable rootkit scanning. Click on the “Settings” gear icon located on the left of the screen to access the general settings section.
In the settings menu, enable the “Scan for rootkits” option by clicking the toggle switch until it turns blue.
Now that you have enabled rootkit scanning, click on the “Dashboard” button in the left pane to get back to the main screen.
Perform a Scan with Malwarebytes.
To start a scan, click the Scan button. Malwarebytes will automatically update its antivirus database and begin scanning your computer for malicious programs.
Wait for the Malwarebytes scan to complete.
Malwarebytes will now scan your computer for browser hijackers and other malicious programs. This process can take a few minutes, so we suggest you do something else and periodically check the status of the scan to see when it is finished.
Quarantine detected malware
Once the Malwarebytes scan is complete, it will display a list of detected malware, adware, and potentially unwanted programs. To effectively remove these threats, click the “Quarantine” button.
Malwarebytes will now delete all of the files and registry keys and add them to the program’s quarantine.
Restart your computer.
When removing files, Malwarebytes may require a reboot to fully eliminate some threats. If you see a message indicating that a reboot is needed, please allow it. Once your computer has restarted and you are logged back in, you can continue with the remaining steps.
Your computer should now be free of trojans, adware, browser hijackers, and other malware.
If your current antivirus allowed this malicious program on your computer, you may want to consider purchasing Malwarebytes Premium to protect against these types of threats in the future. If you are still having problems with your computer after completing these instructions, then please follow one of the steps:
Scan your computer with Malwarebytes for Mac to remove malware
Malwarebytes for Mac is an on-demand scanner that can destroy many types of malware that other software tends to miss without costing you absolutely anything. When it comes to cleaning up an infected device, Malwarebytes has always been free, and we recommend it as an essential tool in the fight against malware.
Download Malwarebytes for Mac.
You can download Malwarebytes for Mac by clicking the link below.
When Malwarebytes has finished downloading, double-click on the setup file to install Malwarebytes on your computer. In most cases, downloaded files are saved to the Downloads folder.
Follow the on-screen prompts to install Malwarebytes.
When the Malwarebytes installation begins, you will see the Malwarebytes for Mac Installer which will guide you through the installation process. Click “Continue“, then keep following the prompts to continue with the installation process.
When your Malwarebytes installation completes, the program opens to the Welcome to Malwarebytes screen. Click the “Get started” button.
Select “Personal Computer” or “Work Computer”.
The Malwarebytes Welcome screen will first ask you what type of computer are you installing this program, click either Personal Computer or Work Computer.
Click on “Scan”.
To scan your computer with Malwarebytes, click on the “Scan” button. Malwarebytes for Mac will automatically update the antivirus database and start scanning your computer for malware.
Wait for the Malwarebytes scan to complete.
Malwarebytes will scan your computer for adware, browser hijackers, and other malicious programs. This process can take a few minutes, so we suggest you do something else and periodically check on the status of the scan to see when it is finished.
Click on “Quarantine”.
When the scan has been completed, you will be presented with a screen showing the malware infections that Malwarebytes has detected. To remove the malware that Malwarebytes has found, click on the “Quarantine” button.
Restart computer.
Malwarebytes will now remove all the malicious files that it has found. To complete the malware removal process, Malwarebytes may ask you to restart your computer.
Your Mac should now be free of adware, browser hijackers, and other malware.
If your current antivirus allowed a malicious program on your computer, you might want to consider purchasing the full-featured version of Malwarebytes Anti-Malware to protect against these types of threats in the future. If you are still experiencing problems while trying to remove a malicious program from your computer, please ask for help in our Mac Malware Removal Help & Support forum.
Scan your phone with Malwarebytes for Android to remove malware
Malwarebytes for Android automatically detects and removes dangerous threats like malware and ransomware so you don’t have to worry about your most-used device being compromised. Aggressive detection of adware and potentially unwanted programs keeps your Android phone or tablet running smooth.
Download Malwarebytes for Android.
You can download Malwarebytes for Android by clicking the link below.
In the Google Play Store, tap “Install” to install Malwarebytes for Android on your device.
When the installation process has finished, tap “Open” to begin using Malwarebytes for Android. You can also open Malwarebytes by tapping on its icon in your phone menu or home screen.
Follow the on-screen prompts to complete the setup process
When Malwarebytes will open, you will see the Malwarebytes Setup Wizard which will guide you through a series of permissions and other setup options. This is the first of two screens that explain the difference between the Premium and Free versions. Swipe this screen to continue. Tap on “Got it” to proceed to the next step. Malwarebytes for Android will now ask for a set of permissions that are required to scan your device and protect it from malware. Tap on “Give permission” to continue. Tap on “Allow” to permit Malwarebytes to access the files on your phone.
Update database and run a scan with Malwarebytes for Android
You will now be prompted to update the Malwarebytes database and run a full system scan.
Click on “Update database” to update the Malwarebytes for Android definitions to the latest version, then click on “Run full scan” to perform a system scan.
Wait for the Malwarebytes scan to complete.
Malwarebytes will now start scanning your phone for adware and other malicious apps. This process can take a few minutes, so we suggest you do something else and periodically check on the status of the scan to see when it is finished.
Click on “Remove Selected”.
When the scan has been completed, you will be presented with a screen showing the malware infections that Malwarebytes for Android has detected. To remove the malicious apps that Malwarebytes has found, tap on the “Remove Selected” button.
Restart your phone.
Malwarebytes for Android will now remove all the malicious apps that it has found. To complete the malware removal process, Malwarebytes may ask you to restart your device.
Your phone should now be free of adware, browser hijackers, and other malware.
If your current antivirus allowed a malicious app on your phone, you may want to consider purchasing the full-featured version of Malwarebytes to protect against these types of threats in the future. If you are still having problems with your phone after completing these instructions, then please follow one of the steps:
Restore your phone to factory settings by going to Settings > General management > Reset > Factory data reset.
Frequently Asked Questions About the ATO Text Scam
1. How can I tell if an ATO text message is fake?
The ATO will never contact you via text message about tax refunds or returns. Any text claiming to be from the ATO with details about a refund is a scam. Other red flags include being addressed as “Dear Customer” instead of your name, links to click, instructions to call a phone number, and threats of penalties.
2. What are some examples of the fake ATO refund texts?
Common fake ATO text examples include:
“ATO Alert: We’ve processed your 2023 tax return. A refund of $950 has been deposited in your account.”
“Dear Customer, the ATO has issued you a refund of $850. Please click here to confirm details.”
“ATO-TaxRefund: Your 2024 refund of $1200 has been direct deposited today. Call 000-000-0000 immediately.”
3. What do the scammers want from the ATO text scam?
The scammers aim to steal your personal information and money. The texts lure you to click links leading to fake websites that harvest your data. Calling provided numbers gives scammers info directly. They use the details to drain your bank account, steal your identity, and access your accounts.
4. What should I do if I receive one of these ATO refund text scams?
If you get one of these scam texts, do not click any links or call any phone numbers it provides. Delete the text immediately and report it to the ATO. Check your account transactions and credit reports for unauthorized activity just in case.
5. How can I report the fake ATO text messages?
You can report the ATO text scam by:
Forwarding the text to 0428 792 698
Using the ‘Report scam’ function on the ATO app
Calling the ATO Scam Hotline at 1800 008 540
Filing a scam report with Scamwatch or your local police
6. How can I protect myself from the ATO text refund scam?
Protect yourself by:
Knowing the ATO never contacts taxpayers via text
Checking messages for red flags like links, phone numbers, threats
Enabling two-factor authentication on your accounts
Keeping software on devices updated
Checking your accounts often for unauthorized transactions
7. What should I do if I already fell victim to the ATO text scam?
If you provided your information, take these steps:
Contact your bank about any suspicious transactions
Monitor credit reports and set up alerts
Change online account passwords immediately
Report identity theft to IDCARE if relevant
Notify the ATO if your tax file number was compromised
8. How can I best avoid all tax scams during filing season?
Avoid tax scams by:
Knowing common red flags like pressure to act urgently
Checking the ATO’s website for its current advice
Being wary of any contact requesting personal details
Consulting a tax professional if you have concerns
Only using myGov for ATO communication and transactions
The Bottom Line
The ATO text message scam exploiting taxpayers is widespread in Australia. While the messages look legitimate, the ATO does not contact Australians via text or calls about tax refunds.
These scams aim to trick victims into providing personal information and money to fraudsters through misleading links and phone numbers. The consequences can be disastrous in the form of identify theft, financial account draining, and malware infections.
If you receive a suspicious text claiming to be from the ATO, do not click any links or call phone numbers provided. Report the scam to the ATO and relevant institutions immediately. Monitor your accounts closely for unauthorized activity.
Staying vigilant and informed is your best defense against tax scams. Share this knowledge with family and friends to help protect them during tax time. With awareness of common red flags, Australians can outsmart cybercriminals seeking to take advantage of those awaiting refunds.
How to Stay Safe Online
Here are 10 basic security tips to help you avoid malware and protect your device:
Use a good antivirus and keep it up-to-date.
It's essential to use a good quality antivirus and keep it up-to-date to stay ahead of the latest cyber threats. We are huge fans of Malwarebytes Premium and use it on all of our devices, including Windows and Mac computers as well as our mobile devices. Malwarebytes sits beside your traditional antivirus, filling in any gaps in its defenses, and providing extra protection against sneakier security threats.
Keep software and operating systems up-to-date.
Keep your operating system and apps up to date. Whenever an update is released for your device, download and install it right away. These updates often include security fixes, vulnerability patches, and other necessary maintenance.
Be careful when installing programs and apps.
Pay close attention to installation screens and license agreements when installing software. Custom or advanced installation options will often disclose any third-party software that is also being installed. Take great care in every stage of the process and make sure you know what it is you're agreeing to before you click "Next."
Install an ad blocker.
Use a browser-based content blocker, like AdGuard. Content blockers help stop malicious ads, Trojans, phishing, and other undesirable content that an antivirus product alone may not stop.
Be careful what you download.
A top goal of cybercriminals is to trick you into downloading malware—programs or apps that carry malware or try to steal information. This malware can be disguised as an app: anything from a popular game to something that checks traffic or the weather.
Be alert for people trying to trick you.
Whether it's your email, phone, messenger, or other applications, always be alert and on guard for someone trying to trick you into clicking on links or replying to messages. Remember that it's easy to spoof phone numbers, so a familiar name or number doesn't make messages more trustworthy.
Back up your data.
Back up your data frequently and check that your backup data can be restored. You can do this manually on an external HDD/USB stick, or automatically using backup software. This is also the best way to counter ransomware. Never connect the backup drive to a computer if you suspect that the computer is infected with malware.
Choose strong passwords.
Use strong and unique passwords for each of your accounts. Avoid using personal information or easily guessable words in your passwords. Enable two-factor authentication (2FA) on your accounts whenever possible.
Be careful where you click.
Be cautious when clicking on links or downloading attachments from unknown sources. These could potentially contain malware or phishing scams.
Don't use pirated software.
Avoid using Peer-to-Peer (P2P) file-sharing programs, keygens, cracks, and other pirated software that can often compromise your data, privacy, or both.
To avoid potential dangers on the internet, it's important to follow these 10 basic safety rules. By doing so, you can protect yourself from many of the unpleasant surprises that can arise when using the web.
Thomas is an expert at uncovering scams and providing in-depth reporting on cyber threats and online fraud. As an editor, he is dedicated to keeping readers informed on the latest developments in cybersecurity and tech.
