Beware of tax season fraud as scammers target consumers

As the tax season rolls in, Standard Bank's Fraud Risk Management unit is sounding the alarm on heightened fraudulent activities aimed at South African consumers.

Fraudsters are anticipated to engage in cunning schemes, leveraging urgency and fear to defraud unsuspecting individuals during this critical financial period.

“In many cases we’ve seen in the past, fraudsters deploy 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,” warns Advocate Athaly Khan, the Head of Fraud Risk Management at Standard Bank.

This unsettling trend sees scammers using an array of tactics aimed at extracting sensitive banking information, misappropriating funds, or manipulating consumers into transferring money into fraudulent accounts.

Common scams

Standard Bank has identified several prevalent methods employed by fraudsters during the tax season. Here are the most alarming:

• Extortion and Secure Account Scams: These fraudsters claim to be investigating your tax return submission, alleging discrepancies that could lead to criminal prosecution. They often create fabricated documentation to bolster their claims and use intimidation tactics to instil panic, persuading you to pay them to make the case “disappear.”
• Change of Banking Details: This tactic involves sending fake communications reflecting misleading banking details, claiming that you owe money to the South African Revenue Service (SARS). Some individuals may, in fact, have legitimate debts, making these scams easier to fall for. Fraudsters often provide an account that belongs to them, urging you to pay quickly without verifying the source.
• Phishing, Smishing, Quishing, and Card Not Present (CNP) Fraud: Scammers send communications featuring malicious links, attachments, or QR codes that prompt users to click and possibly download harmful software. This software is designed to breach your device's security and gain access to your banking accounts. At times, customers are led to input their card details under the pretense of making payments to SARS, thus compromising their financial information.

Key takeaways for consumers

In light of these deceptive practices, Standard Bank urges customers to exercise caution:

• ALWAYS pause and consult trusted individuals before making any payments to unknown recipients.
• Be aware that banks can directly secure any necessary funds and will not request personal transfers for safety purposes.
• NEVER hesitate to validate banking details against official sources.
• Utilise Standard Bank's business directory for SARS accounts and Account Verification Services (AVS) before proceeding with any transactions.
• Exercise extreme caution with links, icons, attachments, and QR codes in communications.
• Remember that bank employees will never request clicks on links or scans of QR codes for banking needs.

“Nothing is ever what it seems. SARS spoofing will be on the rise, and we need all our customers to have their guards up,” concludes Adv Khan, reminding consumers of the importance of vigilance in these challenging times.

IOL