While it is the season to be jolly, it’s also a time for caution, as South Africans face a heightened risk of tax scams during this period.

“People are more relaxed this time of year and tend to let their guard down, making them easy targets for tax fraudsters,” says Jemaine Manikus, CEO of Latita Africa.

Spot the scam
Scammers employ a range of schemes to con people out of money or sensitive tax information they can use in subsequent crimes. To reach their goal, they usually pose as a SARS official or authorised third-party online, in the mail, over the phone, through SMS or in person.

They’re masters at “social engineering”, which simply means they know how to manipulate a person’s behaviour using language that triggers our laziness, fear, greed or trusting nature.

“Don’t think for a moment that you’re too clever to be outsmarted by them; they are masters at getting you to do what they want because they’ve practiced on thousands of others before you,” says Manikus.

However, most attempts usually boil down to:

• Urgent requests for sensitive information, like a banking PIN or eFiling password, supposedly needed to offer unnecessary support to the taxpayer or help them avert some fabricated disaster;
• Prompts to take immediate action through a provided channel, such as clicking on an email link or inputing sensitive information through an online form; or
• Threatening demands for payment of non-existent debt to SARS using a payment method provided by the scammer.
• How to protect yourself

Regardless of which method a scammer uses, always follow these simple rules:

• Secure your eFiling and bank accounts with strong passwords and PIN numbers, biometric or facial access, and any other security feature available to you.
• Never click on a link in an email, text or chat message, even if you’re completely sure it came from SARS or an authorised third party.
• Never divulge sensitive information to anyone - even a SARS official. This includes your SARS eFiling password; banking PIN or password; or any other information that could be used to access your eFiling profile or bank account.
• Never interact with anyone claiming to be a SARS official or authorised third party without first checking their credentials with the SARS Contact Centre.
• Never offer non-sensitive information to anyone other than a verified SARS official or authorised third party. Things like your ID number and tax reference number may be used later in fake SARS correspondence to make it look more convincing. 
• Never use information provided by these people to verify their authenticity, including contact numbers, email addresses or internet links.

How SARS protects you
Apart from the typical username and password, SARS has long used two-factor authentication to protect access to its eFiling website and mobile app (MobiApp). This can either be in the form of a One-Time PIN (OTP) delivered by SMS or email, or a login alert through MobiApp.

Two recent enhancements include making two-factor authentication compulsory for all individual profiles, and confirming and updating security contact details.

Bear in mind though, there has been a growing trend in SIM swapping and cloning. This can allow criminals to receive security messages sent to your phone, like OTPs, and use them to break into your account. It’s best to use the MobiApp because it creates login alerts that cannot be intercepted from the outside.

In addition, SARS is introducing facial recognition authentication for all individuals registering for Personal Income Tax through its eFiling website, MobiApp or Self-Service Kiosks.

“These are essential security features that can help, but taxpayers still need to be vigilant and do their part to protect themselves,” says Manikus.

Look before you leap
The best way to defend yourself against scammers is to always verify what is happening before taking any action by calling the SARS Contact Centre on 0800 00 7277. If SARS doesn’t know about an email, letter, phone call, text or chat message, personal visit or the official in question, then they should not be trusted.

If you feel you are the victim of a scam or an attempted scam, call the SARS Fraud and Anti-Corruption Hotline on 0800 00 2870 for assistance.

Lastly, to educate yourself on the latest attacks, visit the SARS Scams and Phishing webpage where you’ll find good advice and examples of fake correspondence.

Use your tax consultant as your first line of defence
A registered tax consultant is a sometimes overlooked but essential first line of defence against tax scams. They can readily identify communications as fraudulent or verify their authenticity through their close contact with SARS.

On top of that, they’ll manage your eFiling profile for you, monitor your account for unauthorised access or transactions, and provide technical support to secure your tax data.

That said, taxpayers should ensure their tax advisor is actually registered with SARS and prefer firms with a strong tax legal team on board.

“It’s an often-used term for attorneys, but it’s just as valid to say ‘Don’t talk to me, talk to my tax advisor’; you’re far better protected if everything goes through your tax consultant, especially over the festive season,” says Manikus.

Written by Latita Africa