Beware of Tax Refund Frauds

Fraudsters often take advantage of the income tax refund season by luring people with fake messages, emails, or calls claiming to offer faster refunds or additional payouts. Falling for such tricks could result in financial loss and identity theft.

What is Tax Refund Fraud?

Tax refund fraud happens when criminals trick individuals into sharing their confidential financial or identity details under the pretext of processing a tax refund. These details are then misused to access bank accounts, file fraudulent returns, or commit other financial crimes.

Modus Operandi

Fraudsters adopt several tactics to trap unsuspecting individuals. Common methods include:

• Sending fake emails or SMS pretending to be from the Income Tax Department with links to claim “pending refunds.”
• Creating phishing websites that closely resemble official government portals.
• Making calls impersonating tax officials and requesting bank details or OTPs for refund processing.
• Using malware links or attachments in emails that, once clicked, steal personal data.
• Misusing stolen PAN, Aadhaar, or bank account information to file fraudulent tax returns.

Precautionary Measures

To protect yourself, follow these steps:

• Always check the sender’s email ID or SMS source. The Income Tax Department communicates only through official domains (e.g., @incometax.gov.in).
• Never click on links or download attachments from unknown or suspicious emails and messages.
• Do not share sensitive details such as PAN, Aadhaar, bank account number, UPI ID, passwords, or OTPs with anyone.
• Access your refund status only through the official portal: www.incometax.gov.in.
• Keep your registered mobile number and email updated on the Income Tax portal to receive authentic alerts.
• Use trusted anti-virus and keep your devices updated to avoid malware attacks.

Report such scam/ fraud cases to national cybercrime helpline number 1930 or report on www.cybercrime.gov.in for assistance & immediately report unauthorised cyber fraudulent transactions to the bank, if any.

Consequences

If someone falls prey to tax refund fraud, consequences may include:

• Direct financial loss through unauthorised transactions.
• Identity theft, where fraudsters misuse your personal documents for other crimes.
• Legal complications if your details are misused for fraudulent returns.