The Income Tax (IT) department regularly warns taxpayers about scammers who pose as IT officials and make fraudulent promises of income tax (ITR) returns through phone calls, text messages and phishing emails. “Do not trust unsolicited calls. The department will never ask you for immediate payments,” the department says on its website. If you or any senior citizen you know has received such messages, educate yourself on how these scams work and avoid falling victim to them.
Mode of operation
Scammers send deceptive messages with embedded links. Once unsuspecting taxpayers are tricked into clicking on these links, they are asked to reveal sensitive banking information, including one-time passwords (OTPs) and other confidential details.
“In some cases, fraudsters manage to install remote access applications on victims’ devices and gain access to their personal data. Senior citizens are often the main targets of these fraudulent schemes,” says Vikram Babbar, Partner at EY Forensic & Integrity Services – Financial Services.
Scammers create fake websites that look like the official IT Department site and trick users into providing login credentials, personal information, or payment details under the guise of updating records or processing refunds. “While browsing the Internet, taxpayers may encounter pop-up notifications that appear to be from the IT Department urging them to request a refund or update their information,” says Ritika Nayyar, partner at Singhania & Co. Scammers may sometimes pose as tax advisors and promise larger refunds in exchange for upfront fees.
Personal information collected during tax preparation is sometimes misused, leading to identity theft or unauthorized financial transactions.
Verifying the authenticity of messages
To verify the authenticity of any communication, taxpayers should carefully check the email address, phone number or website URL. Official communications from the department usually originate from domains like @income-tax.gov.in or @gov.in.
“Avoid clicking on links or downloading attachments from unexpected messages. Instead, manually type the official URL of the IT Department portal (https://www.incometax.gov.in) in your browser. Once logged in, you can check for any official notifications or updates related to your tax matters. Also, you can directly contact the department through official channels for confirmation,” says Amit Bansal, Partner, Direct Tax, Singhania & Co.
Thoroughly check the details even of SMS messages received. “The IT Department usually sends communications through the official email ID ending in ‘@incometax.gov.in’ or through SMS from IDs like ‘ITDEPT’ or ‘CPCITR’. Remember that the department does not ask for sensitive information like passwords, PINs or bank account details over email or phone,” says Prashant Mali, an advocate and cybercrime expert.
Handling suspicious messages
If you receive a suspicious message claiming to be from the department, do not reply or click on any links. Instead, report it to the relevant authorities. Also, change your passwords if you have shared personal information. “Be wary of urgent requests and verify the identity of the sender. Always use official channels to contact the IT Department,” says Nayyar. Remember that the department never asks for personal or financial information via email, phone or pop-up notifications, and you should not disclose such information either.
If you receive an email or discover a website that you think is impersonating the department, please forward the email or website URL to ‘[email protected]’. You may also send a copy to [email protected].
Sense of urgency: The message creates urgency by implying the need for immediate action.
Suspicious link: Using a shortened URL (bit.ly) hides the destination website, which could be a phishing site designed to steal personal or financial information.
Request for personal information: Tax authorities do not request sensitive information such as bank account details through a link in an unsolicited message.
First published: August 27, 2024 | 10:53 PM IS
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