Scam emails prove taxing

NOT content with fake emails masquerading as messages from banks, scammers are now sending out emails pretending to be from the tax office.

Not surprisingly, the tax man is not amused.

The phoney email bearing a tax office logo asks people to click on a link which redirects them to a bogus website.

Once there, they’re asked to provide personal credit card details so that they can receive a “tax refund”.

Let’s be clear about one thing. The tax man does not ask for credit card details before paying refunds. So if you see an email like this, delete it.

The tax office certainly isn’t alone in being targeted for fraudulent emails.

Several of our big banks have recently issued scam email alerts.

And with the silly season approaching it’s not a bad idea to take another look at how to avoid losing your money to the crooks behind these emails.

Bogus emails requesting your personal information are a type of fraud known as ‘phishing’.

They typically involve an official looking email which appears to be from a legitimate financial institution or agency.

The message sets out an urgent reason for you to ‘verify’ personal information by clicking on a link embedded in the message.

If you click on the link, it takes you to a website that may appear to belong to the institution involved, but in fact the site belongs to the fraudsters.

Once inside the crooks’ website, you may be asked to provide Centrelink details, bank account numbers, passwords or other information used to identify you including your mother’s maiden name or your place of birth.

If you enter these details the crims behind the fraud can access your accounts — or assume your personal financial identity.

Sadly, plenty of people fall for phishing scams, and it’s costing us around $4 billion annually.

In the case of stolen financial identity, it can take years to clear up.

The golden rule is to remember that no reputable organisation will ever ask for personal or confidential information via an email.

If you suspect an email is fraudulent, report it to the organisation involved, such as your bank.

Our investment watchdog ASIC would also be interested to hear about it, and they can be contacted on 1300 300 630.

- Paul Clitheroe is a founding director of financial planning firm ipac, chairman of the Financial Literacy Foundation and chief commentator for Money magazine.