As the 2024 income tax filing season approaches, taxpayers are advised to be on high alert. Reports of eFiling profile hackings have been on the rise, with fraudsters gaining unauthorised access to taxpayer and tax practitioner profiles.

Vulnerability During Filing Season: Heightened Risk for Taxpayers

The prevalence of these profile hijackings is expected to surge with the onset of the tax filing season, posing a grave threat to taxpayers' sensitive tax information. Cybercriminals are targeting both individual taxpayers and tax practitioners, exploiting vulnerabilities in eFiling security protocols to alter login details and banking information to claim fraudulent refunds against taxpayer accounts.

With the 2024 Filing Season set to commence on July 15th, the window of opportunity for scammers is wide open. Taxpayers awaiting refunds are prime targets for scammers who exploit the anticipation of taxpayers awaiting refunds to carry out fraudulent activities. 

Despite assurances from the South African Revenue Service (SARS) that eFiling profiles have not been hacked, the reality of compromised profiles cannot be ignored. Taxpayers and tax practitioners must take proactive steps to protect their own and their clients' eFiling profiles and tax data.

Protective Measures: How to Keep Your Tax Profile Safe

Here is how to keep your eFiling profile safe and your tax data protected:

• Robust Password Protection: Ensure robust password protection, utilising multi-factor authentication for added security.
• Updated Contact Details: Keep your SARS contact details updated to receive notifications of any SARS assessments generated.
• Regular Monitoring: Regularly monitor activity on your eFiling profile for any suspicious activity.
• Alert SARS: Report any suspicious activity or unauthorised access to your eFiling profile to SARS.
• If you have shared access of your eFiling profile with a tax practitioner, ensure your tax practitioner has the necessary eFiling security controls in place to protect your tax data. 

Conclusion: Remain Watchful and Take Active Steps to Safeguard Your Tax Profile

Staying informed about the latest cybersecurity threats against your tax information and adhering to best practices recommended by experts is essential for maintaining the integrity of your tax data.

In light of these escalating risks, it's crucial for taxpayers to remain vigilant and proactive in protecting their tax profiles. 

By taking proactive measures and staying informed, taxpayers can mitigate the risk of falling victim to eFiling profile hijackings and safeguard their tax data and financial well-being.

Written by Sidney Fletcher, Senior Manager Trust and Deceased Estate Tax Compliance at Tax Consulting SA