Tax scams targeting Mobile Users

 

Recently the I.T department has noticed the new type of cybercrime. The tax scam is one of them. Cyber criminals have targeted mobile users for tax scams. Income tax return filing dates have become the tax scam season for cyber criminals & this shows that there is still not enough E- literacy among netizens.

 

What is a Tax Scam?

As per the report published by The Hindu^[1], the messages sent out by the imposters to people right around the deadline for filing Income tax returns. Those messages contain –‘the person’s income tax refund has been approved and mentions a random bank account number next to it.’

Clicking on the link more, opens a website that appears just like I-T Department’s official website. When the target enters his login credentials on that website, subsequent step needs the target to enter checking account details, which can currently be simply accessible to the scammer, who sent the message.

 

In starting, scammers will simply use it to transfer the I-T refund to a different bank account. But they can also change the target’s cell phone number in the I-T department s records, so they cannot be notified about the changes.

 

How Tax Scam Works?

      There are numerous modes used by the Scammers. Some of them are:

• Phishing- A scam typically carried out with the help of unsolicited email or a fake website posing as a legitimate site to lure in potential victims.
• Offers Tax Refund.
• Identity Theft- By obtaining the personal or financial information of another person for the sole purpose of making transactions or purchases.
• Fake Phone Calls- Here imposter fraudulently calls and threats you in the name of a legal notice.
• Ransomware- By designing malicious software that exposes unwitting customers to data breaches or prevents you from accessing your data.

Recently, the tax department had proclaimed that it would issue refunds of up to Rs Five lakh straightaway to assist the taxpayers to keep going financial emergencies caused by the nationwide lockdown. However, several taxpayers having outstanding tax demand from the previous year that was due was needed to be adjusted against the tax refund. Hence, the tax department has been sending emails to such taxpayers communicating to them regarding such adjustment and asking them to respond to such email.^[2]This has been done before also i.e. IRDA^[3], RBI.^[4]

 

      Preventive Measures

• The income tax authority of India has notified the official E-mail id for the communication check of the domain of such mails.
• Do not open any attachments. Attachments could contain malicious code which may infect your computer.
• Do not enter confidential information like bank account, credit card details, in case mistakenly clicked on links in a suspicious phishing website or email.
• If you think your e-Filing account may have been compromised or accessed in an unauthorized manner, you may file online complaint/FIR by visiting https://cybercrime.gov.in/

 

Conclusion

India has become the centre of fake calls, messages, and emails. Technology can be a boon or bane to the world, it’s our choice what to choose. We have to be more attentive towards fake calls, messages, emails, etc. It’s like a never-ending chain of crimes that will be more advanced with technology. As a user, it’s also our duty to keep a check on the fraudulent calls and report them so that everyone will be safe from those calls.

-Surbhi Joshi

(Legal Intern)

           For more updates, please visit our website: https://www.worldcybersecurities.com/

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[1] Beware the SMS on I-T refund by Gautam S. Mengle,(Feb 16.2021, 3.30 PM), https://www.thehindu.com/news/national/beware-the-sms-on-i-t-refunds/article24584632.ece

[2]https://economictimes.indiatimes.com/wealth/personal-finance-news/income-tax-department-warns-taxpayers-against-fake links/articleshow/75527591.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

[3] Insurance Regulatory and Development Authority of India

[4] Reserve Bank of India.