Scam warning for taxpayers in South Africa

Individual tax filing season opens fully on Monday (15 July), and taxpayers are warned to stay vigilant as cybercriminals seek a quick payday.

The South African Revenue Service (SARS) announced 15 July 2024 as the start date of the filing season for provisional and non-provisional taxpayers who must file a tax return.

Taxpayers who did not receive or agree with auto-assessments issued between 1 July 2024 and 14 July 2024 will need to file a tax return.

Tax experts at Tax Consulting SA have warned that the number of tax scams has increased significantly in 2024 compared to 2023, with criminals getting more sophisticated in their modus operandi and keeping up to date with the latest developments at SARS to better fool victims.

Notably, tax season has become a popular time for criminals to send out fraudulent emails and SMSs claiming to be from the South African Revenue Service (SARS), engaging in phishing and social engineering scams.

Messages and communications sent to victims can often appear above board, coming from addresses such as [email protected] or [email protected], and often claim that the recipient is due a tax refund or owes money to SARS.

Messages also typically feature links to fake forms and websites that mimic the official SARS site to get taxpayers to provide personal information to make payments.

“There are many variations on these scams, and although the specific premise and wording might change, it is concerning that spoofed emails, SMSs, and cloned sites mimicking SARS tend to look more convincing each year and are therefore quite successful in luring unsuspecting individuals into complying,” said Carey van Vlaanderen, CEO of ESET Southern Africa.

Like many other online scams, tax scams rely on some form of social engineering.

“Scammers contact you via email or SMS and are quite deliberate in creating a sense of urgency to mislead you into revealing sensitive personal information, like banking details, passwords or pin numbers,” said Van Vlaanderen.

“Often, there’s the claim of an error on your tax return that needs immediate attention, along with the threat of penalties for not acting quickly. Fake messages can also contain welcome news for taxpayers in the form of sizable refunds with a request to confirm banking details.”

She said that fraudsters are master manipulators who use emotions to pressure individuals into making hasty decisions.

It is thus vital to remain calm and verify the authenticity of any communication before responding or taking action.

SARS has said it will never request banking details via post, email, or SMS.

Although a representative may verify personal details over the phone, SARS does not send hyperlinks to other websites to confirm said details.

While a representative may verify personal details over the phone, SARS will not send hyperlinks to other websites to confirm said details. In addition, SARS does not send .htm or .html attachments and will never ask for credit card details.

“Awareness is the first line of defence. Understanding how SARS communicates and being able to recognise red flags can prevent you from falling victim.”

“Although scammers can be quite sophisticated, the more individuals empower themselves with the right information and the right cybersecurity tools, the easier it is to stay safe online during tax season.”

How to keep safe

• Submit your tax return early. The earlier you file, the less time scammers have to target you.

• Take time to verify SMS messages and emails. Do not open or respond to emails from unknown sources. Always verify the sender’s information and check the official SARS e-Filing site to confirm official communication.

• Be cautious with personal information. “If something feels off, it usually is. Always question unexpected requests for personal details and do not click on links, complete online forms, or open attachments if you have any doubts about their authenticity,” said van Vlaanderen.

• Use strong Passwords. Use unique passwords for each website you use, and consider using a password manager to keep track of them.

• Keep your software updated. Regularly update your operating system, web browsers, and other software to ensure you have the latest version. Updates often include security fixes and other enhancements that can help protect you from scams.

• Use online protection tools. Protect yourself from online scams with reliable and reputable cybersecurity tools.

• Stay informed. Keep up to date with the latest scams. SARS maintains an updated list of phishing scams on its website.

• Choose the right tax professional to assist. Ensure any tax professional you consult is registered with SARS and an approved industry body such as the South African Institute of Tax Practitioners (SAIT) or the South African Institute of Business Accountants (SAIBA).

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