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National

Josh's tax file number was stolen. Now his personal data is at risk — and his money

Tax file numbers are sensitive personal data that should be guarded carefully. (Flickr: Dave Dugdale)

When Brisbane radio producer Josh Edwards booked an appointment with his accountant to get his tax done, he had no idea that his tax file number (TFN) had been stolen.

Edwards, who works for ABC Radio Brisbane, was shocked when his accountant informed him his TFN had been blocked by the Australian Taxation Office (ATO) because it had been "compromised", and he could not file his tax return.

No one had previously informed him his TFN had been stolen, and it was only when he called the ATO that Edwards learnt that he had to check everywhere to make sure his data was secure.

ABC Brisbane producer Josh Edwards discovered his TFN had been stolen. (ABC Radio Brisbane: Lucy Stone)

"I have to call my superannuation [fund] because I've been told the hackers can use my TFN to change details in my super account and they can draw out money at a later date," he said.

"I've also got to go back into my MyGov account just to check my personal details haven't been slightly altered.

Call for help

An ATO spokesperson says Edwards's TFN being blocked "may relate to how the ATO protects clients who have had their TFN stolen or misused".

"The ATO continually monitors for ongoing threats to client information and continues to take measures as required.

"The security of taxpayer information is our primary concern, and as such, it would be inappropriate to comment publicly on the specifics."

Certified Practising Accountants Australia spokeswoman Elinor Kasapidis says if someone discovers their TFN has been compromised they should immediately contact the ATO and their tax agent.

CPA Australia spokeswoman Elinor Kasapidis says people should call the ATO and their tax agent if concerned. (Supplied: CPA Australia)

"The ATO will be able to help you understand what the problem is and what needs to be done to fix it," she said.

Ms Kasapidis said the ATO doesn't publish data on how many TFNs it blocks for security reasons, but there is a range of ways the personal identifier can be stolen.

"People who have their TFN stolen can be at risk of many different forms of damage, especially identity theft," she said.

"Criminals can harvest many different pieces of information from your TFN.

"If your TFN is stolen or compromised, refunds and documents could be obtained without your knowledge or permission."

'Criminals are after your money'

Not-for-profit identity theft organisation IDCARE has recorded 42,000 community engagements on tax and MyGov fraud issues since the start of the pandemic.

Managing director David Lacey said one in five people had no idea how their sensitive data had been stolen, and it could take weeks or months to resolve the issue.

David Lacey is the managing director of not-for-profit IDCARE. (ABC News: Chris Gillette)

He says calling your bank was another urgent step to take if you believed your TFN had been stolen.

"Criminals are after your money and that's where they're ultimately wanting to head," Dr Lacey said.

"In Josh's case, there is certainly a risk to his super and we see around 19 per cent of people who have compromised TFNs also experience unauthorised withdrawal of their super funds."

Dr Lacey said only a few organisations should have access to your TFN; your employer, the ATO, your super fund and occasionally your bank.

Ms Kasapidis says the ATO and the Tax Practitioners Board have recently introduced client verification guidelines for tax agents to ensure they are checking identity documents and verifying information.

"Tax agents are required to take reasonable care and will ask questions about your identity, your personal information and your circumstances and will query any differences from year to year," she said.

"Tax agents have obligations under the Privacy Act to protect client information and they often have processes in place to detect breaches."

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