Cyber threats usually escalate during the festive season, as cybercriminals take advantage of holiday distractions. For many, a tax refund may feel like the perfect holiday gift. But, unfortunately, cybercriminals often intercept these refunds, leaving taxpayers and businesses vulnerable.
As a tax attorney, I have encountered countless stories of taxpayers falling victim to such schemes. During this time of year, staying alert to the growing wave of South African Revenue Service (SARS) scams is more important than ever. From phishing emails to scammers posing as SARS consultants, fraudsters use increasingly sophisticated tactics to catch even the savviest taxpayers off guard.
Take, for example, a recent encounter of my own: I was contacted on LinkedIn by someone claiming to be a “SARS Consultant”. This person alleged they worked in SARS Alberton’s debt management department and could “permanently clear taxpayer debts”. The offer might tempt someone under financial strain, but it didn’t take long to identify it as a scam. This incident highlights a troubling trend gaining traction as the end of the year approaches.
The rise of festive season cyber threats
As the year winds down and many are fatigued from months of hard work, cybercriminals ramp up their efforts, exploiting distractions.
Social media is rife with stories of eFiling profiles being hacked, phishing attempts, and tax fraud schemes targeting unsuspecting taxpayers. A recent article noted that SARS has recorded a surge in eFiling fraud, with scammers using increasingly sophisticated tactics.
While SARS has implemented several security measures, taxpayers must remain vigilant and proactive in protecting their personal information.
How SARS is fighting back cyber threats
In response to these threats, SARS has rolled out several countermeasures to safeguard taxpayer profiles:
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Facial recognition for eFiling registrations
To prevent profile hijacking, SARS has introduced biometric authentication to confirm that the person registering is indeed the taxpayer.
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Enhanced fraud investigations
Amid rising complaints of hacked profiles, the Tax Ombud is investigating concerns about SARS’s support processes. SARS has emphasised that sophisticated global syndicates are often behind these attacks.
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Public awareness campaigns
SARS has stepped up efforts to educate taxpayers about phishing scams, identity theft, and fraudulent claims. Taxpayers are encouraged to use official channels to report suspicious activity.
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OTPs and two-factor authentication
Security measures like one-time pins (OTPs) have been implemented to strengthen eFiling security.
Tips to stay safe this festive season
Cybercrime evolves with technology, so taxpayers must stay ahead of the curve. Here are practical tips to avoid becoming a victim:
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Secure your eFiling account
Use strong, unique passwords and enable two-factor authentication (2FA) where possible.
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Verify communications
SARS will never request sensitive information, like passwords, over email or SMS. Always verify messages through official SARS contact channels.
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Beware of phishing scams
Avoid clicking on links in unsolicited messages. Log into your eFiling account directly via the SARS website to check for updates or notices.
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Monitor your profile regularly
Periodically review your eFiling account for unauthorised changes to your personal or banking details.
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Protect your devices
Ensure your computer and phone are secured with updated antivirus software. Avoid using public Wi-Fi for financial transactions.
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Report suspicious activity
If you suspect fraud, report it immediately using SARS’s online fraud reporting form.
In conclusion
The holidays are for fun, not fraud. Keep your personal and tax details secure, and outsmart scammers this season. Second-guessing and questioning everything is your first line of defense. A little vigilance now will ensure your festive season is one to remember – for all the right reasons.
To report SARS-related online fraud or scams, use the official SARS reporting tool available here. Additionally, if you encounter suspicious emails or communications, you can contact SARS through their Fraud and Anti-Corruption Hotline at 0800 00 2870.
Geo Kilian | Tax Attorney | Hobbs Sinclair Advisory | mail me |