- November 7, 2016
- Posted by: Melbourne Accountant
- Category: Tax Tips
Tax is not the only major concern during tax season. Unfortunately, it also means scammers are on the prowl! Nobel Thomas have heard firsthand stories from their clients regarding bad experiences with tax frauds. Here are some ways you can protect yourself:
Reload Tax Scams
This is a time when you need to beware of anyone calling or emailing you trying to impersonating the ATO. The cons may ask you to click a link or to verbally confirm additional personal information over the phone.
The scammers have been known to use phone spoofing to make their number come up as “ATO,” and they already have your security number—further lending them an air of legitimacy.
Know this: The ATO will *not* contact you by phone asking for money. They only contact you by snail mail if they want to get in touch with you. So if you get one of these calls, hang up the phone
Reduce Withholding At Work
People will often come to Nobel Thomas around tax time and happily ask for advice on what to do with their giant refund. They treat it like it’s found money or some kind of windfall. But it’s not.
In fact, its preferable that you get no refund at all. If you are getting one, it means that you’ve made an interest-free loan to the government and your money has been working for them—not you—all year long.
People often turn to credit monitoring as a way to protect their financial life, but a credit freeze is what you really need.
Credit monitoring only puts fraud alerts on your credit files with the three main credit bureaus. These alerts are meant to raise a flag to potential creditors, alerting them to carefully verify an applicant’s identity before extending credit. But very often these alerts are ignored.
That’s why a credit freeze is superior to credit monitoring. A credit freeze allows you to seal your credit reports so no new applications for credit can be initiated in your name without your knowledge.