Cases of cyber fraud related to income tax return (ITR) filing and tax refund claims have escalated across several parts of India, as the ongoing season for tax returns raises shutdowns among taxpayers that are being exploited by scammers through fraudulent calls, phishing messages and fake emails.
Authorities have urged citizens to remain vigilant as cybercriminals try to take advantage of taxpayers expecting refunds or filing their returns online.
Over the years, there has been significant increase in online/facility for filing of taxes has also opened new avenues for fraudsters to lure them into disclosing their sensitive financial and confiding details like bank accounts numbers, PAN such as OTPs and username/password of points.
The fraud risks for taxpayers during filing season
The surge in cyber crime primarily being reported during the income tax filing season when people are not only checking their refund status but also filing documents online. The messages claim to be from official sources, saying the recipient can get a tax refund.
These messages will usually include links taking victims to fake third-party websites, allegedly powered by the official government website. After entering their personal information to these sites, scammers can access bank accounts or steal sensitive data.
Such fraud typically follows a common pattern, cybersecurity officials say:
- Superb SMS or mail pretending salary tax discount other affirmation
- Links that take users to the fake sites
- Never ask for PAN/ bank details/log in credentials
- Financial fraud, where one sends an OTP for verification
Fraudsters sometimes impersonate tax department officials and call up individuals directly asking them to provide personal information for a refund.
Rise in phishing and fraudulent messages
Phishing attacks tied to tax refunds are becoming increasingly sophisticated, authorities warn. Fraudsters make their messages look legitimate by using official-looking logos, professional spacing and domain names that are similar to legit government websites.
Cybercrime investigators have observed that many scam messages contain urgent direction like:
- “Claim your tax refund immediately”
- “Refund pending verification”
- “Click link to process refund”
This urgency frequently leads victims to click suspicious links without verifying their authenticity.
Experts caution that government agencies generally don’t send out refund links through SMS or solicit sensitive information from taxpayers via email or phone calls.
Several such cases have shown its financial loss
Indeed, several victims have already reported a loss of funds after being victimised by fraud related to refunds. Often, people complain that their bank accounts were logged into without the knowledge or consent of the victim through OTP verification of either authorizing a fictitious transaction.
Complaints regarding these scams have already been registered with cybercrime cells in different states and the victims should immediately report such incidents at official cybercrime portals, the police had advised.
Many fraudsters, investigators say, operate under organized networks that use multiple phone numbers and digital platforms to interact with potential victims.
Taxpayers urged to verify official communication
Advisories have been issued by the Income Tax Department and cybersecurity agencies on taxpayers being cautious while filing returns or checking refund status online.
Taxpayers, always rely on the official income tax portal for filing returns and information about refunds, officials said.
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Authorities have also cautioned citizens not to click on any links or download attachments they receive in unsolicited emails and text messages.
Taxpayers should try these safety tips while filing ITR
Cybersecurity experts offer a number of precautions to prevent falling victim to such scams.
Key safety measures include:
- Do NOT visit the official income tax website through browser
- Do not open links sent via SMS or email for refunds
- Do not share PAN, OTP or bank details with strangers calling you.
- Filing returns on secure Internet connection
- Review bank transactions and account activity regularly
Experts also recommend turning on two-factor authentication for financial accounts and making sure devices have security patches updated.
Now that they are digital, financial crimes are causing growing concerns
The surge in cyber fraud associated with tax filing, however, is part of a wider increase in digital financial crimes throughout India. With more government services online, scammers have new opportunities to prey on those who don’t know basic tech security practices.
Be alert to social engineering threats and adopt strong cybersecurity practices, authorities said, steps that will be vital in averting financial loss and safeguarding sensitive personal information.
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Cybercrime officials are also monitoring the scams and urge citizens to report any mysterious messages or attempts at fraud using a national cybercrime reporting portal.
All these issues are occurring as the 2023 tax filing season is at its peak, and more cyber crimes targeting taxpayers can be expected, making vigilance and digital awareness important for all people doing their returns.
