ATO cracking donw on tax scams and financial fraud

ATO joins forces with banks to shut down tax scams and identity fraud

By Business Builders August 13, 2025 2:05 pm

Image source ATO

The Australian Taxation Office (ATO) is ramping up its fight against identity theft and tax scams, and they’ve just scored a new ally.

By teaming up with the Australian Financial Crimes Exchange (AFCX), the ATO now has access to a treasure trove of intel shared by banks and other financial institutions to help catch crooks in the act.

Half a million red flags a year

Over the next three years, the ATO expects to receive more than 500,000 records each year of suspicious bank accounts (often linked to “money mules”) and dodgy IP addresses. These will be matched against ATO data to detect unusual activity, stop fake tax registrations and prevent fraudulent refunds from landing in the wrong hands.

“Receiving this additional data will strengthen our systems to ensure individuals who commit fraud are caught and held to account,” said ATO Deputy Commissioner John Ford.

What’s a money mule anyway?

Money mules are people, sometimes fully aware, sometimes completely fooled, who transfer stolen funds through their personal accounts to hide the money trail. It’s a tactic scammers love because it makes their dirty work harder to trace. The ATO’s new data-matching powers mean these transactions are far more likely to be flagged before any damage is done.

Catching crooks

This partnership is part of the ATO’s $180 million Counter Fraud Program. The program’s aims are two-fold, to catch offenders and prevent fraud. One of the latest tools in its arsenal is an upgrade to the free ATO app.

The app now sends you real-time alerts if your bank details are changed or a tax return is lodged in your name. If it wasn’t you, you can lock your account on the spot to stop refunds or changes going through.

Do your bit to stay safe

While the ATO’s beefing up its defences, they say it’s still up to all of us to keep our own details secure. That means setting up a myGov account and linking it to the ATO, switching on multi-factor authentication, picking passwords even your partner couldn’t guess, and keeping your phone and computer updated so scammers can’t sneak in the back door.

The golden rule: never share your tax file number, myGov login or bank details with anyone, not even in private messages. If you wouldn’t shout it across a crowded pub, don’t send it in a text.