Beware of tax scams this tax season

Beware of tax season scammers. Picture: Ziphozonke Lushaba. / Independent Media

Beware of tax season scammers. Picture: Ziphozonke Lushaba. / Independent Media

Published Jul 15, 2024

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As the country enters the annual tax season, millions of South Africans will log onto the SARS eFiling website to complete their tax returns. It is essential to practice extra caution as tax scammers will also be on the prowl for a quick payday.

Manie van Schalkwyk, the CEO of the Southern African Fraud Prevention Service (SAFPS) warns the public to be vigilant particularly of the SARS auto-assessment system.

SARS auto-assessment means SARS has already done the tax return on behalf of the individual, who will then either qualify for a rebate or pay money back to SARS.

While this is legitimate, Van Schalkwyk says that scammers have also gotten on board with this trend.

These scammers usually send emails and/or an SMS claiming to be from SARS, using addresses such as [email protected] or [email protected], and typically claim that the recipient is either due a tax refund or owes money to SARS that must be paid immediately.

Messages include links to fake online forms and proxy websites where scammers will use the sensitive information they fill in to execute the scams.

“The scammers will even produce a fake proof of payment document indicating that a rebate has been paid into the taxpayer’s bank account," warns Van Schalkwyk.

Additionally, scammers are also tricking taxpayers into a trap with an Outstanding Tax Payment notice.

The notice, sent via email, replicates SARS’ logo and formatting and warns taxpayers that failure to pay an outstanding amount attached to their tax profiles, will result in fines, penalties or them being unable to file their tax return for the 2024 tax season or worse, face conviction.

CEO of digital security company ESET Southern Africa Carey van Vlaanderen advises taxpayers to remain calm and verify the authenticity of any communication before responding or taking action.

“Fraudsters are experts at manipulating emotions and pressuring individuals into making hasty decisions, therefore awareness is the first line of defence,” Van Vlaanderen says.

SARS’s official communication protocols provide that SARS will never request banking details via post, email, or SMS, additionally, they will not send hyperlinks to other websites or .htm and .html attachments.

According to Van Vlaanderen, the other ways in which taxpayers can stay safe from tax scams is by submitting their tax returns early, being cautious with personal information, using strong passwords, keeping their device software updated and using online protection tools. Most importantly, she advises the public to stay informed, SARS maintains an updated list of phishing scams on its website.

Furthermore, due to the growing trend of tax scams over the past five years, the SAFPS launched “Yima” in response to the growing need for a proactive approach to fraud prevention.

"Yima is a one-stop-shop website for South Africans to report scams, secure their identity, and scan any website for vulnerabilities related to scams. They can also educate themselves on how to identify a scam.

“These tools will enable and empower consumers to make informed decisions in their daily lives,” Van Schalkwyk says.

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