Jemaine Manikus | CEO | Latita Africa | mail me |
With the holidays around the corner, combating holiday tax scams is more important than ever. While it is the season to be jolly, it is also a time for caution in South Africa. During this period, South Africans face a heightened risk of tax scams.
People are more relaxed this time of year and tend to let their guard down. This makes them easy targets for tax fraudsters.
Combating holiday tax scams
Scammers use various schemes to con people out of money or sensitive tax information for future crimes. They often pose as South African Revenue Service (SARS) officials or authorised third parties through several channels. These include online interactions, mail, phone calls, SMS, or in-person visits.
Scammers are masters at “social engineering”, which manipulates behaviour through language triggering laziness, fear, greed, or trust. Don’t think you’re too clever to be outsmarted by them; they are experts. They practice on thousands of others before you.
Most scams boil down to the following tactics:
- Urgent requests for sensitive information like banking PINs or eFiling passwords to offer unnecessary support or avoid fabricated disasters.
- Prompts to take immediate action through provided channels, such as clicking email links or entering information online.
- Threatening demands for payment of fake SARS debts using payment methods provided by the scammers.
How to protect yourself
Regardless of the method used, follow these rules to protect yourself:
- Secure your eFiling and bank accounts with strong passwords, PINs, biometrics, or other available security features.
- Never click on links in emails, texts, or chat messages, even if they appear to be from SARS.
- Never share sensitive information with anyone, including SARS officials, such as your eFiling password or banking credentials.
- Always verify the credentials of anyone claiming to be a SARS official through the SARS Contact Centre.
- Avoid sharing non-sensitive information, like your ID or tax reference number, except with verified officials.
- Do not use contact numbers, email addresses, or internet links provided by suspicious individuals to verify their authenticity.
How SARS protects you
SARS has long used two-factor authentication to protect access to its eFiling website and mobile app (MobiApp). This includes a One-Time PIN (OTP) sent via SMS or email or login alerts through the MobiApp.
Recent enhancements include mandatory two-factor authentication for individual profiles and updating security contact details. However, SIM swapping and cloning are growing concerns. These allow criminals to intercept security messages like OTPs.
For better security, it is recommended to use the MobiApp. It generates login alerts that cannot be intercepted externally. SARS is also introducing facial recognition authentication for registering Personal Income Tax through eFiling, MobiApp, or Self-Service Kiosks. These features are helpful, but taxpayers must remain vigilant and protect themselves.
Look before you leap
To defend yourself, always verify any action by contacting the SARS Contact Centre at 0800 00 7277. If SARS cannot confirm an email, letter, phone call, text, or visit, it should not be trusted.
If you suspect a scam or attempted scam, contact the SARS Fraud and Anti-Corruption Hotline at 0800 00 2870. Educate yourself about recent attacks by visiting the SARS Scams and Phishing webpage. This page includes advice and examples of fake correspondence.
Use your tax consultant as your first line of defence
A registered tax consultant is an essential first line of defence against tax scams. They can quickly identify fraudulent communications or verify authenticity through close contact with SARS.
Tax consultants also manage eFiling profiles, monitor accounts for unauthorised access, and provide technical support to secure tax data. Taxpayers should ensure their consultants are registered with SARS and prefer firms with strong tax legal teams.
It’s valid to say, “Don’t talk to me, talk to my tax advisor”. You’re better protected if everything goes through your consultant during the festive season.
