Is your business protected against tax fraud scams?

Imagine logging into your myGov account only to discover that your GST activity statements for the past year have been amended, issuing a $100k refund—but you never saw a cent. Scammed? It’s a scenario more common than you’d think, and as a trade or maintenance franchise owner, you’re at risk.

Tax fraud is evolving into a sophisticated scam, targeting myGov accounts for their treasure trove of personal and business data. Scammers manipulate activity statements, alter bank details, and file fraudulent amendments to claim refunds under your name. The damage can be extensive, not just to your finances but to your business reputation.

But why are trade businesses particularly vulnerable? Often, it's because we’re busy juggling jobs, invoices, and compliance deadlines, leaving little time to scrutinize every message or alert.

How scammers target trade businesses and maintenance franchises

The most common entry points are phishing emails or texts that seem legitimate. For example, scammers mimic ATO communications to trick you into clicking a link and providing access to your account. Once in, they exploit amendment periods in tax law to generate fraudulent refunds from GST, PAYG instalments, and personal income tax.

Here’s how to spot a scam:

The ATO or myGov will never include links in their messages. Messages with hyperlinks are red flags.
They won’t ask for your login credentials or tax file number (TFN) via email, SMS, or social media.
The ATO doesn’t use pre-recorded messages or initiate conference calls involving your tax agent and law enforcement.

Always log into your myGov account directly to verify activity instead of clicking links, and never use free Wi-Fi networks to access your account.

Who’s falling for these scams?

You might think scams mainly target the tech-challenged or older demographics. However, the reality is starkly different. Younger Australians, including many in the 25–34 age group, are reporting a significant rise in scams, including those targeting business owners.

For trade and maintenance franchises in their first five years, the risks are amplified. Scammers exploit the fast-paced nature of running a new business, where financial vigilance sometimes takes a backseat to operational demands.

More scams to watch for in your industry

Invoice scams: Your suppliers’ details are used to issue fake invoices, with payments redirected to scammers’ accounts. This is often tied to cyber breaches, where hackers infiltrate your systems.
Bank scams: Scammers pose as bank representatives, citing issues with your business account and directing you to transfer funds to a "safe" account. Always verify directly with your bank before acting.
Investment scams: Beware of 'too good to be true' investment opportunities, often disguised as crypto or market trading. Scammers create fake platforms to siphon your money, leaving you with nothing.

What to do if you’re scammed

If you suspect a scam:

Contact the ATO immediately at 1800 008 540 to verify or report fraudulent activity.
Reach out to the Services Australia Scams and Identity Theft Helpdesk at 1800 941 126 if your myGov account has been compromised.
Contact your accountant or bookkeeper to help assess the extent of the damage and implement protective measures.

Protect your business and master financial foundations

Don’t let scams derail your success. Take control of your finances and build the foundations to safeguard your trade business. Learn how to streamline your bookkeeping, understand tax compliance, and maximise profitability with our Small Business Foundations Course and Ultimate Bookkeeping Series.

Equip yourself with the knowledge and tools to keep your business thriving and scam-proof!