Australia’s tax office is grappling with dark web-fueled fraud, even as the government battles a surge in tax fraud that has seen the country lose over $500 million to false claims.
According to the Australian Financial Review (AFR), officials have observed an increase in people purchasing materials for tax fraud from the dark web.
Dark web marketplaces often contain tax fraud products, including stolen personal information that unscrupulous individuals can use to submit false tax claims. Cybercriminals are also selling tax fraud tutorials and falsified documents people may need to file for tax claims for non-existing businesses.
The Australian Tax Office (ATO) aims to eliminate tax fraud. The ATO’s Operation Protego, launched in April 2022, has saved the country $2.7 billion by blocking fraudulent tax refund claims.
How the Dark Web is Fueling Tax Fraud in Australia
Thanks to major data breaches in the past year, hackers have access to the personal information of millions of Australians. This data is among the tax fraud products on the dark web.
An investigation by Australia’s ABC News in December 2022 revealed that credentials stolen from the Optus and Medibank breach allowed cybercriminals to bypass the Australian tax office’s security checks. In March, a listing for Australian tax refund tutorials appeared on CryptBB, a hacking forum on the dark web.
The dark web is unpoliced. And, due to the anonymous nature of this hidden part of the internet, it’s nearly impossible for investigators to unmask the identities of individuals selling tax fraud documents and tutorials on dark web marketplaces.
The ATO has identified Goods and Services Tax (GST) fraud attempts where individuals invent fake businesses, submit refund claims for non-existent businesses, and lodge bogus business number applications.
The ATO is enhancing its defenses with artificial intelligence (AI) tools to combat tax fraud, the AFR reported.
Strengthening Your Online Defenses
Recognizing the urgent need to upgrade its online security, in July, Australia’s Finance Minister Katy Gallagher said the country would launch a new digital verification system within a year. The revamped system will mandate stringent identity verification using multiple data points before granting access to essential services.
Meanwhile, the ATO has urged individuals to monitor their account statements for suspicious activity and practice good cyber hygiene.
We also recommend using an identity theft monitoring service. Read our guide to identity theft to learn how to determine if you’ve been a victim of identity theft and how to protect yourself from this threat.
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