Think you can spot a scam? What about misinformation?

Recent scam-awareness campaigns have highlighted the continuing risks posed by scams and online fraud. However, regulators are increasingly drawing attention to a related problem that may be less obvious: misinformation about tax and superannuation circulating online.

While many clients know to be cautious of fake refund offers, suspicious links and messages impersonating government agencies, misinformation can be just as costly. Incorrect information may not be part of a scam at all, but it can still lead people to make poor decisions based on inaccurate or incomplete information.

Misinformation is becoming harder to recognise

According to the ATO, misleading tax and super information can appear in a range of places, including:

• AI-generated summaries and responses;

• search engine results;

• websites and blogs;

• social media posts; and

• online discussions and messages.

One challenge is that incorrect information is often presented with the same confidence and professional appearance as accurate information. Clients may assume information is trustworthy because it appears prominently in search results, has been shared widely online or seems detailed and authoritative.

The consequences of misinformation can extend beyond simple confusion. Clients who rely on incorrect tax or super information may:

• ask to claim deductions they are not entitled to;

• overlook income that should be disclosed;
• misunderstand ATO requirements;
• make inappropriate superannuation decisions; or
• delay seeking advice because they believe they already have the answer.

In some circumstances, this may result in amended assessments, repayment obligations, interest charges or penalties.

Questions clients should ask

When reviewing tax or super information found online, clients should be encouraged to ask:

• Can this information be verified against an official government source?

• Is the content current and relevant?
• Does it apply to my circumstances?
• Is anyone pressuring me to act urgently?
• Does the claim sound unusually favourable or too good to be true?

This topic provides a useful reminder that not every online risk involves fraud. Sometimes the greater risk is acting on information that is incorrect, incomplete or taken out of context.

For advisers, the practical message is straightforward: encourage clients to check before they act. Having a short discussion before implementing a tax strategy, lodging a return or making a superannuation decision is often far easier than correcting the consequences later.

Source: www.scamwatch.gov.au/research-and-resources/scams-awareness-week 

www.ato.gov.au/online-services/scams-cyber-safety-and-identity-protection/scam-alerts