Tax file number fraud almost doubled since last year
8 August 2011
Tax payers should be on the lookout for a scam designed to extract tax file numbers for the purpose of identity fraud,
which could leave their bank accounts empty and their credit files ineffective for up to five years, a national credit
repairer warns.
Director of MyCRA Credit Repairs, Graham Doessel says if people fall victim to this particular type of identity theft,
they are at a high risk of having their credit file misused.
"A person's tax file number is like the key to their credit file. If fraudsters are able to obtain this number, they
have a crucial piece of information for building a duplicate identity in the victim's name," Mr Doessel says.
Mr Doessel says social networking sites like Facebook have made it easier for fraudsters to obtain the extra personal
information a criminal could need for identity fraud.
"People post a whole host of information about themselves on sites like Facebook, MySpace and Twitter, but people need
to think - what would a criminal do with this information? If fraudsters already have a person's tax file number, a
simple check on Facebook for a date of birth can give them the tools they need to request replacement copies of personal
documents, and use those documents to take out credit - even mortgage homes in the victim's name," he says.
This comes as the Sunday Telegraph reported yesterday that the practice of stealing tax file numbers has almost doubled
in the past year, from 12,669 to 31,200 from the previous year.
The number of complaints made to the Commonwealth Ombudsman about the Australia Tax Office also increased almost 40 per
cent, largely because of the stolen TFNs.
It reported that techniques to steal someone's TFN include bogus approaches by phone calls, emails, letters, websites
and text messages. People who share the same name and birthday are also in the "at risk" category.
The Government issued an alert on its StaySmartOnline following the 2010 financial year about bogus emails from the ATO
specific to e-tax.
"New fraudulent emails are circulating which pretend to be from the Australian Tax Office. Using social engineering
tricks the criminals behind these emails try to trick you into providing personal information as a pretext to receiving
a tax refund. This personal information can be used by the criminals to steal your identity," the alert says.
The Telegraph reported an ATO spokeswoman as saying stolen TFNs and identity theft was a big problem - the effects could
last for years and were a nightmare to clean up.
"When an identity is stolen it can take a long time to put everything right," she said. "A person can face financial
problems if someone commits fraud or other crimes using your identity.
Other impacts may be experienced in getting a job, a bank loan or other credit, renting a house or a car, or applying
for government services or benefits. "She said the ATO had established a "client identity support centre" to assist
people whose identities were stolen.
Mr Doessel says identity fraud can often go undetected until the victim applies for credit and is refused.
"The fraudster could abuse someone's good name all over town and it is not until the victim applies for credit and is
refused, that they learn about the identity theft and subsequent fraud," Mr Doessel says.
Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past
60 days can be listed as a default by creditors on the victim's credit rating, and those defaults remain there for 5
years.
Mr Doessel says the consequence of people having a black mark on their credit rating is generally an inability to obtain
credit.
"Most of the major banks refuse credit to people who have defaults, or even too many credit enquiries, so it is really
essential to keep a clean credit record," he says.
By law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their
amendment or removal.
"To clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit -
which can be difficult. Not only are victims generally required to produce police reports, but large amounts of
documentary evidence to substantiate to creditors the case of identity theft," Mr Doessel says.
Contact www.mycra.com.au for more details on credit repair following identity theft.
ENDS