The 2024 tax-filing season started at the beginning of this month, and as millions of taxpayers log on to the South African Revenue Service’s eFiling website to complete their returns, scammers will be hard at work seeking to separate them from their money.
Scammers have taken note that SARS is increasingly issuing auto-assessments to qualifying taxpayers and are impersonating SARS and contacting taxpayers, says Manie van Schalkwyk, the chief executive of the Southern African Fraud Prevention Service (SAFPS).
When the targeted taxpayers log on to complete their auto-assessment, they are redirected to a proxy website where scammers will use the information taxpayers fill in on the form. The scammers will even produce a fake proof of payment document indicating that a rebate has been paid into the taxpayer’s bank account, Van Schalkwyk said.
SARS has warned the public of another impersonation scam.
Scammers posing as SARS lure taxpayers into a trap with an Outstanding Tax Payment notice. The notice, sent via email, replicates SARS’s logo and formatting and warns taxpayers they will be unable to file their tax return until they pay an outstanding amount attached to their tax profiles.
The scammers warn that failing to pay the amount by a specific date will result in fines, penalties, and potential assessments, which could result in conviction and prison time.
To avoid getting caught by scammers, Van Schalkwyk said taxpayers need to pay attention to the following red flags:
- Be wary if the auto-assessment notice does not come from a @sars.gov.za address. The email should not come from a sub-domain (for example, SARS.Assessment.gov.za). If it does, do not open it.
- The auto-assessment email may contain hostile and threatening language.
- Be wary if the auto-assessment notice is not directly addressed to you or your business and does not contain your unique tax number.
- Be wary if the email demands an urgency on your part to avoid penalties.
- Be wary if the notice contains spelling and grammar mistakes. This is an immediate red flag but is becoming less prevalent as generative AI makes writing correspondence on behalf of users easier.
- Be wary if the email contains a strange link you need to click on.
Immediately contact the authorities if:
- You receive this type of correspondence, have already filed your tax return, and do not owe SARS anything.
- The payment directive refers to specific bank account numbers and not SARS-approved bank references.
To make SARS payments easier, banks have SARS’s banking details under the public recipient details. Taxpayers do not have to enter the number. Instead, they can select the relevant account and add their payment reference number.
The latest SARS impersonation scams
Van Schalkwyk says scammers are well educated in current fraud tactics and are part of large syndicates that make a living from targeting individuals. This is making it increasingly difficult to identify scams.
SARS has a web-page dedicated to informing the public of examples of the latest scams involving the revenue-collection authority. These warnings can be found at https://www.sars.gov.za/targeting-tax-crime/scams-and-phishing/
To best protect themselves from such scams, SARS noted that taxpayers should be aware of the following:
- Do not open or respond to emails from unknown sources.
- Beware of emails that ask for your personal, tax, banking, and eFiling details, such as log-in credentials, passwords, PINs, and credit or debit card information.
- SARS will never request your banking details in any communication you receive via post, email, or SMS. However, for the purpose of telephonic engagement and authentication, SARS will verify your personal details. Importantly, SARS will not send you hyperlinks to other websites, even those of the banks.
- Beware of false SMSes.
- SARS does not send *.htm or *.html attachments.
- SARS will never ask for your credit card details.
Yima reporting tool
Van Schalkwyk says the SAFPS launched Yima in response to the growing need for a proactive approach to fraud prevention.
“Yima is a one-stop-shop website for South Africans to report scams, secure their identity, and scan any website for vulnerabilities related to scams. They can also educate themselves on how to identify a scam. These tools will enable consumers to surf the internet, access key products such as online banking and money transfers more confidently and empower them to make informed decisions in their daily lives. These are just some exciting elements South Africans can access through the site for free,” says Van Schalkwyk.
The website’s main element will be the ability to report a scam incident or any suspicious activity to the SAFPS. This suspicious activity includes fake or suspect-looking online shopping and investment websites or portals and instances where the user has received phoney banking information.
These reports will be collated and shared with law enforcement. Users will also be provided with a scam hotline to report a fraud incident directly to their banks, retailers, or insurance companies via a single number. Thus, users only need to remember one number rather than search for each institution’s contact numbers online.
Additionally, Yima users will have access to the consumer products and services offered by the SAFPS.
Van Schalkwyk said only a fraction of fraud and scams are reported.
“Unfortunately, there is a growing trend of victims not reporting these types of crimes to the authorities and the SAFPS. This is concerning, as we cannot become proactive in the fight against scams and fraud if crimes are not reported.
“The SAFPS reminds all victims that they are compelled to report a crime if one has been committed. This has been made very easy by Yima,” he said.
