ATO issues warning on emerging identity fraud threats
BUSINESSRecent activity has revealed a growing number of attempts by fraudsters to impersonate taxpayers and misuse stolen identity information, according to the Tax Office.
Tax professionals have been told to remain vigilant and apply strong due diligence practices with criminals using increasingly sophisticated attempts at impersonate taxpayers and engage in fraudulent activities.
"Recent activity shows a growing number of attempts by fraudsters to impersonate taxpayers, misuse stolen identity information, and pressure tax professionals into acting on fraudulent instructions," the Tax Office said.
"In some cases, these attempts are designed to appear routine or urgent, increasing the risk of agents being unknowingly drawn into fraudulent activity. These approaches are increasingly sophisticated and often appear legitimate."
The ATO said that tax professionals are on the frontline of this threat and play a critical role in protecting client information and maintaining the integrity of the tax system.
"Strong verification, professional scepticism, and adherence to established safeguards are essential to disrupting these fraud attempts," it said.
The ATO said tax professionals should ensure they follow the client verification procedures set out on the ATO and TPB websites every time they link or act for a client in the ATO record.
"Tax professionals should also work directly with clients and refuse to accept instructions from third parties and question any requests or behaviours that seem unusual, inconsistent or illogical," the Tax Office said.
Tax professionals should also take extra care and obtain additional proof of identity when new clients interact with them only online or provide contact details or bank information that differs from their ATO records.
"[You should also] thoroughly check supporting documents to confirm they are authentic, review bank statements to confirm ATO refunds are being deposited into accounts held in the client’s own name and report any suspicious activity to us via the tip-off form on the ATO website."
"Maintaining these safeguards to help protect your clients, your practice, and the broader community is a critical defence against increasingly sophisticated tax and identity fraud."
The Australian Taxation Office is the target of yet another review by the sector’s ombud into its service provision to tax agents, following recent criticisms of its phone services.
Ombud Ruth Owen announced a fresh review after tax agents expressed concern about the reliability of the ATO’s online platforms during previous consultations on the tax office phone line.
“Online Services for Agents (OSfA) is a secure system provided by the ATO for registered tax and BAS agents,” said Owen.
Tax Ombudsman kicks off review into OSfA
REGULATIONThe review will explore improvements to Online Services for Agents and Practice Mail following significant concerns raised by registered agents.
Tax Ombudsman Ruth Owen has officially launched her review into Online Services for Agents (OFsA), building on her previous review into the ATO's registered agent phone line last year.
The review into the ATO's registered agent phone line found that many of the issues raised by agents were linked to perceived gaps, limitations or inefficiencies in the ATO's digital service offerings.
Feedback from agents indicated that OSfA fell short in some key areas of functionality, resulting in inefficiencies, delays and increased reliance on phone-based support.
Practice Mail, the only secure messaging channel available to agents, was also described as slow and unreliable in the review.
The Tax Ombudsman said that when systems do not function as intended or required, registered agents have no choice but to revert to less efficient channels such as phone calls or paper-based correspondence.
The new review into OSfA will examine whether OSfA and Practice Mail are effective tools for the ATO and agents to interact, provide appropriate functionality, and effectively support agents in assisting their clients. It will be shaped by feedback from the agent community, with a focus on their key concerns.
"The review will identify and articulate the current priority improvement areas for OSfA and Practice Mail and support greater transparency about how improvement priorities are set and progressed," said Owen.
In addition to reviewing submissions and system documentation, the Tax Ombudsman will also observe how agents interact with OSfA and Practice mail in real time to better understand what is working and where the pain points lie.
The Ombudsman will also engage with the ATO to host system walkthroughs and technical sessions to explore what can feasibly be implemented given system constraints, resourcing and broader cost-benefit considerations.
"Our aim is to make recommendations in line with the ATO’s digital strategy and architecture so that they can be adopted into the future roadmap," said Owen.
The scope of the review will focus on identifying the top-priority improvements to enhance the efficiency and effectiveness of OSfA and Practice Mail, in supporting taxpayers in complying with their tax obligations through their registered agents, and, where appropriate, reducing demand for phone and postal contracts.
It will also explore whether the ATO has an established process for identifying, prioritising and implementing improvements to OSfA and Practice Mail, including capturing and considering feedback from the agent community and ensuring that system changes appropriately consider user experience and user support.
The Ombudsman also noted that online access to taxpayers' information by professionals other than registered tax or BAS agents is not within the scope of the review.
The Tax Ombudsman is encouraging tax and BAS agents who use the ATO's Online Services for tax agents to provide feedback on the system in terms of what's working, what's not and any suggested improvements.
“I’m looking for feedback on the top 5 improvements agents would like to see made to OSfA and Practice Mail,” said Owen.
Owen noted that tax agents relied heavily on ATO online services to help millions of taxpayers to meet their tax and super obligations each year, and it was important that online services were effective.
“In undertaking our Review of the Registered Agent Phone Line last year, we received a lot of feedback from agents about ATO online services not meeting their needs,” she said.
“Agents reported transactions not available online and inefficiencies; calling for improvements to OSfA and Practice Mail to help them better support clients without needing to call the ATO.”
Consultation for the review is open until 10 April. Registered agents can participate by registering for a webinar on 27 March or 2 April, completing a short survey, or making a submission.
The review report is expected to be delivered by August 2026.
