Your tax matters – SARS eFiling fraud growing in South Africa

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Nicolas Botha | Tax Team Compliance & Processing Manager | Tax Consulting SA | mail me |


In today’s digital age, cybercrime is advancing at an alarming rate. As technology evolves, so do the tactics of cybercriminals. Unfortunately, your South African Revenue Service (SARS) e-filing account is not immune to these threats.

Warning signs

Recent reports from SARS highlight a disturbing rise in fraud attempts and breaches of e-filing profiles. These breaches can lead to identity theft, financial loss and a lengthy process to restore your good standing with the authorities.

The threats have evolved from simple click-bait scams to sophisticated and planned fraudulent activities, often targeting vulnerable individuals such as the elderly, disabled and expatriates. These cleverly orchestrated profile hacks can wreak havoc on a taxpayer’s financial affairs.

Some involve hacking an individual’s e-filing profile, where fraudsters target taxpayers with disabled children to generate a fraudulent refund. This requires detailed knowledge of the taxpayer and careful planning, including updating banking account details with SARS and fraudulently submitting a tax return.

Extra vigilance needed

SARS warnings must be taken seriously. It is crucial to actively protect your registered details and monitor activities on your SARS profile.

Regularly reviewing your SARS account activity, updating security measures, and staying informed of potential threats are essential steps to safeguard your personal and financial information.

Solutions for the concerned taxpayer and practitioner

Most South African taxpayers and tax professionals are committed to compliance, aiming to pay the minimum amount of tax required while handling their tax obligations responsibly. Unfortunately, this respect for the law and dedication to compliance is precisely what tax scammers exploit. We recognise manually checking every item as practitioner or taxpayer may be impossible. This is where advancements in “good” technology may be the answer to combat the issue.

As a firm we use the TaxCheck system, to automatically obtain crucial information about our clients’ registered details and compliance status. This ensures there are no discrepancies and prevents fraudulent activity through advanced monitoring capabilities. These systems come highly recommended to both individuals and practitioners seeking to ensure compliance and active monitoring.

Stay safe

Protecting your SARS e-filing account requires diligence and the right tools. By staying informed, regularly monitoring your account, and using advanced systems like TaxCheck, you can safeguard your tax affairs from cybercriminals. Don’t wait for a breach to take action – stay proactive and secure your tax matters.



Related FAQs: Cybercrime and SARS e-filing

Q: What is SARS e-filing fraud and how does it occur in South Africa?

A: SARS e-filing fraud occurs when individuals attempt to illegally access another person’s e-filing profile to manipulate their tax matters. This can involve stealing personal information or hijacking an e-filing profile to divert a legitimate tax refund or create fraudulent claims.

Q: How can I protect my e-filing profile from fraud?

A: To protect your e-filing profile, ensure that you use a strong password, enable two-factor authentication and regularly monitor your tax compliance status. Avoid sharing your banking details or personal information with unverified sources and be cautious of phishing scams.

Q: What should I do if I suspect identity theft related to my tax matters?

A: If you suspect identity theft, immediately contact SARS to report the issue. You should also consider reaching out to the office of the tax ombud and consulting with a tax practitioner for advice on how to rectify the situation and protect your tax matters moving forward.

Q: Are there common scams related to SARS e-filing during tax season?

A: Yes, during tax season, there are often attempts and breaches of e-filing profiles. Scammers may impersonate SARS officials or tax practitioners, claiming they can help with tax consulting services. Always verify the identity of anyone offering assistance with your tax matters.

Q: What steps should tax practitioners take to safeguard their clients’ information?

A: Tax practitioners should implement robust security measures, including secure communication channels, regular training on cybercrime awareness and ensuring that all sensitive information, such as banking details, is stored securely. They should also stay informed about the latest threats in the tax practitioner fraternity.

Q: How can I report fraud related to my e-filing profile?

A: To report fraud, you can contact SARS directly through their fraud hotline or website. Additionally, consider documenting all suspicious activities and communications and consult with a tax consulting firm or the South African Institute of Chartered Accountants for further assistance.

Q: What are the implications of e-filing profile hijacking?

A: An e-filing profile hijacking can lead to severe financial losses for taxpayers, including unauthorised access to personal tax information, fraudulent tax returns being filed and potential issues with tax compliance. It is crucial to act quickly to secure your profile if you suspect it has been compromised.

Q: Can I recover my legitimate tax refund if it has been diverted due to fraud?

A: Yes, it is possible to recover a legitimate tax refund that has been diverted due to tax fraud. You should report the issue to SARS immediately and provide any evidence of the fraud. Consulting with a tax practitioner may also help expedite the recovery process.

Q: What role does the office of the tax ombud play in cases of tax fraud?

A: The office of the tax ombud assists taxpayers in disputes with SARS, including cases involving fraud. They provide an independent review of complaints and can help mediate issues related to attempts and breaches of e-filing, ensuring that taxpayer rights are protected.

Q: How can I stay informed about new scams related to SARS e-filing?

A: To stay informed about new scams, regularly check the official SARS website, follow their social media channels, and subscribe to updates from reputable tax consulting firms. Engaging with the tax practitioner fraternity can also provide insights into the latest trends in cybercrime and fraud.


 



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