Remain vigilant! 4 precautions to take, while eFiling scams ramp up

Zain Johnson interviews Sidney Fletcher, Senior Manager of Trust and Deceased Estate Tax Compliance at Tax Consulting SA.

Listen below.

The 2024 income tax filing season is approaching; taxpayers must remain vigilant.

Instances of eFiling profile hacks are increasing, with fraudsters gaining unauthorised access to taxpayer and tax practitioner accounts.

This trend is expected to escalate during the filing season, posing a significant threat to sensitive tax information.

This issue is not new, according to Fletcher, who has over 27 years of experience in taxation.

He notes that such incidents have occurred since the introduction of eFiling and the shift to digital platforms.

Fraudsters often exploit vulnerabilities such as outdated personal details registered with Sars and target tax practitioners managing numerous clients, which can lead to inefficiencies in client management, he says.

Here are key precautions to take:

• Beware of scams: Sars will never request an OTP (One-time Password) over the phone or via email.
• Verify communications: If you receive unexpected correspondence from Sars, verify its legitimacy by logging into your eFiling profile where such notifications would be displayed.
• For tax practitioners: If clients report receiving notifications they did not initiate, promptly log in to investigate.
• To safeguard your tax profile, Fletcher stresses the importance of robust password management and multi-factor authentication for enhanced security measures.

"When people hear Sars they just jump, jump, jump at the opportunity."

- Sidney Fletcher, Trust and Deceased Estate Tax Compliance – Tax Consulting SA

Scroll up to the audio player to listen to the interview.