ATO Issues Urgent Warning: Scammers Demand Bitcoin Payments

The Australian Taxation Office (ATO) has issued a warning regarding scammers demanding tax payments via Bitcoin ATMs. The number of scammers requesting payments in BTC has surpassed those asking for iTunes gift cards, with Assistant Commissioner Kath Anderson urging Australians to be vigilant against tax scams. Since July 1, over 28,000 scam attempts have been reported, with victims paying nearly $1 million to scammers who often request unusual payment methods. The ATO emphasizes that they do not request payments through Bitcoin ATMs or other unconventional methods.

Australian Tax Office Issues Urgent Warning on Scammers Demanding Bitcoin Payments

November 14, 2019

The Australian Taxation Office (ATO) has issued a stern warning regarding a surge in scams involving fraudsters demanding tax payments through Bitcoin ATMs. The number of such scams has reportedly overtaken those requesting payment via iTunes gift cards.

Kath Anderson, Assistant Commissioner at the ATO, emphasized the prevalence of scammers impersonating ATO officials in an attempt to extort fraudulent tax payments. She urged Australians to remain vigilant against "tax scams."

Earlier this year, the ATO alerted the public about scammers targeting citizens by invoking fake tax debts and demanding cryptocurrency payments, including Bitcoin. The Assistant Commissioner expressed concern over Australians divulging personal information to fraudsters, increasing their vulnerability to financial exploitation.

According to the ATO's November 14 warning, Australians have reported over 28,000 scam attempts linked to the ATO since July 1st. Alarmingly, nearly $1 million has been paid to these fraudsters, who often employ unusual payment methods such as iTunes gift cards and Bitcoin. Anderson stressed that such tactics are not standard ATO practices.

"That's just not how we do business [...] November is a prime time for scammers as they know lots of people have tax bills to pay. Be wary if someone contacts you demanding payment of a tax debt you didn't know you owed," Anderson cautioned.

The warning comes amidst a broader crackdown on cryptocurrency-related scams in Australia. In September, the Australian Securities and Investments Commission (ASIC) issued an advisory regarding misleading Initial Coin Offerings (ICOs) and crypto-asset funds targeting retail investors.

Additionally, a recent incident involving the official Twitter account of Google's G Suite has highlighted the evolving tactics employed by fraudsters. The account was reportedly hacked and used to promote a fraudulent Bitcoin giveaway to over 800,000 followers.

The ATO's warning serves as a timely reminder of the importance of vigilance and skepticism when encountering unsolicited requests for tax payments or financial transactions. Citizens are advised to verify the authenticity of communications and to report any suspicious activity promptly.