As the festive season approaches, a tax refund might feel like the perfect gift – until it’s intercepted by cybercriminals, writes Geo Kilian, tax attorney at Hobbs Sinclair.
As tax attorney, I’ve encountered countless stories of taxpayers falling victim to these schemes. At this time of year, it’s more important than ever to stay alert to the growing wave of SARS scams. From phishing emails to scammers posing as SARS consultants, these fraudsters are using increasingly sophisticated tactics, catching 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.” While their proposition may have sounded tempting to someone under financial strain, it didn’t take long to see it for what it was: a scam. This incident highlighted a troubling trend that’s gaining traction as the end of the year approaches.
The rise of cybercrime during “silly season”
As the year winds down and many of us are fatigued from months of hard work, cybercriminals ramp up their efforts, exploiting our distractions. Social media is rife with stories of eFiling profiles being hacked, phishing attempts, and tax fraud schemes targeting unsuspecting taxpayers.
I recently read an article noting 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
In response to these threats, SARS has rolled out a range of countermeasures to safeguard taxpayer profiles:
- Facial recognition for eFiling registrations – To prevent profile hijacking, SARS has introduced biometric authentication, ensuring the person registering is indeed the taxpayer.
- 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.
- Public awareness campaigns – SARS has stepped up efforts to educate taxpayers about phishing scams, identity theft, and fraudulent claims, encouraging the use of official channels to report suspicious activity.
- One-time PINs and 2FA – 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 some practical tips to avoid becoming a victim:
- Secure your eFiling account – Use strong, unique passwords and enable two-factor authentication (2FA) where possible.
- Verify communications – SARS will never request sensitive information, like passwords, over email or SMS. Always verify messages through official SARS contact channels.
- Beware of phishing scams – Avoid clicking on links in unsolicited messages. Instead, log into your eFiling account directly via the SARS website to check for updates or notices.
- Monitor your profile regularly – Periodically review your eFiling account for unauthorised changes to your personal or banking details.
- Protect your devices – Ensure your computer and phone are secured with updated antivirus software and avoid using public Wi-Fi for financial transactions.
- Report suspicious activity – If you suspect fraud, report it immediately using SARS’s online fraud reporting form.
The holidays are for fun, not fraud. Keep your personal and tax details secure, and outsmart the 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.