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Trust & Safety
How to Stay Safe from Tax Scams
ITR filing season is here! And with it comes not just paperwork but the risk of falling prey to Tax Scams too.
Imagine this: Your phone buzzes with an SMS stating “URGENT: Your tax refund of ₹25,000 is ready! Click here to claim before it expires in 1 hour.” The idea of getting such a large refund combined with the urgency imposed could lure you into clicking a link that is almost certainly a phishing attempt, potentially leading to identity theft or financial loss.
Cybercriminals exploit confusion, looming deadlines, and the excitement of tax refunds to trick individuals into revealing personal information, clicking malicious links, or paying fake fees. Read on to understand this scam type and how to stay safe from it.
What is a Tax Scam?
In a tax scam, criminals impersonate trusted entities such as tax professionals, government agencies, or refund services to steal your personal data, money, or tax refund.
How does a Tax Scam work?
Scammers rely on fear, urgency, or tempting offers to manipulate you into handing over sensitive information or money. Here’s a typical scam scenario:
- Impersonation: Scammers contact you pretending to be from the Income Tax Department, a tax consultant, or a refund agency.
- Multiple channels: They reach out via phone calls (often with spoofed caller IDs), emails using fake government-like domains, SMS, or WhatsApp messages claiming urgent tax issues or refunds.
- Creating urgency: They provoke panic or rush you with messages like:
- “You owe taxes and must pay immediately to avoid arrest.”
- “Claim your tax refund now before it expires.”
- “Your PAN/Aadhaar is under investigation.”
- “Your ITR has errors; verify your details immediately.”
- “You owe taxes and must pay immediately to avoid arrest.”
- Requesting personal info: Once engaged, they ask for personal details like PAN, Aadhaar, date of birth, bank account numbers, UPI IDs, card details, or OTPs for apparent “verification”. They may also demand immediate payment via UPI, gift cards, or wallets.
- Consequences: If you happen to follow all the instructions given by the scammer, you may lose money, have your identity stolen, and be cut off from further contact by the scammer.
Common red flags of Tax Scams
- Unexpected calls, emails, or messages claiming to be from tax authorities
- Urgent threats or unrealistic deadlines
- Requests for unusual payment methods
- Refund offers that seem too good to be true
- Demands for OTPs, PINs, or passwords
How to protect yourself
- Verify the Source: Official tax communications come only from email addresses ending with @gov.in. The Income Tax Department never asks for personal information via SMS or phone calls.
- Use Trusted Platforms: File taxes only on incometax.gov.in or via trusted professionals. Avoid unverified third-party sites or unsolicited links.
- Never Share OTPs or Passwords: Tax authorities never ask for OTPs, PINs, or banking passwords.
- Keep Software Updated: Use the latest antivirus and anti-malware software, especially on tax filing software and financial apps.
If you have been scammed
- Contact your bank immediately.
- File a cybercrime complaint online at https://cybercrime.gov.in. or call the helpline 1930.
- Report the incident to the Income Tax Department.
- Monitor your credit and financial activity regularly.
How to report a Tax Scam on PhonePe
If you’ve been targeted via PhonePe, here’s how to raise an issue:
- PhonePe App: Go to Help > “Have an issue with the transaction” and raise your complaint.
- Customer Care: Call PhonePe support at 80-68727374 / 022-68727374 for assistance
- Social Media: Report fraud through PhonePe’s official handles:
- Grievance Portal: Track existing complaints at https://grievance.phonepe.com/ using your ticket ID.
Reporting to Authorities
- Department of Telecommunications (DOT): Report suspicious messages, calls, or any fraud request via the Chakshu facility on Sanchar Saathi Portal.
Important reminder — PhonePe never asks for confidential or personal details. Ignore all mails claiming to be from PhonePe if they are not from the phonepe.com domain. If you suspect fraud, please contact the authorities immediately.
