What is identity theft crime?
It is fraud or another crime that is committed by criminals using false identities or another person’s identity details.
How does identity theft happen?
Identity criminals get other peoples’ identity details by:
- stealing purses, wallets, mail, mobile phones containing identity details or during a burglary
- pretending they are government, bank or other financial institution representatives seeking information
- offering to complete a person’s tax return or other document that needs their personal details or,
- using computer viruses or email phishing.
Identity theft victims could face unwanted trouble and expense because of fraud or other crimes identity thieves commit using their identity details. Getting a job, a bank loan or other credit, renting a house or a car or getting government services or benefits could also become difficult and frustrating.
Buying, selling or using other peoples’ identity details, including their tax file number (TFN), is a serious crime which can result in heavy fines or jail.
Tax file numbers
A tax file number or TFN is a nine digit number issued by the Tax Office to identify your tax records. It’s one of your most important forms of identification in Australia. It’s yours for life and keeping it secure is a good defence against identity theft.
While you don’t have to have a TFN, without one:
- your employer must take tax from your wages at the highest rate
- financial institutions tax interest you earn at the highest rate
- you can’t get an Australian business number (ABN)
- the processing of your tax return will be delayed by the Tax Office
- it is more difficult for the Tax Office to look up your records and discuss them with you, and
- you may not be able to get government services or benefits.
Your tax file number is valuable. Don’t share it with friends and don’t provide it on the internet when applying for work. Keep it secure.
Note: Your TFN should only be used for taxation purposes. It should not be used or disclosed to establish or confirm your identity with other organisations.
You can apply for a TFN:
- online on the Tax Office website – please note that this application can only be used by permanent migrants and temporary visitors with a work rights visa
- by downloading a Tax file number application or enquiry for an individual form
- by visiting a Tax Office shopfront, or
- by phoning The ATO on 13 28 61 for an application form.
Applying for a TFN using false or other peoples’ identity details, or misusing your TFN, can mean heavy fines or jail.
Protect your identity including your TFN
Keep all personal details like bank account passwords and your TFN secure by:
- not carrying them in your purse, wallet or storing them in your mobile phone
- shredding or destroying documents containing identity details before disposing of them
- installing up-to-date anti-virus software on your computer
- only providing your identity details to trusted or reliable organizations.
Remember, if you have legitimate access to other people’s identity details, including their TFN, you must keep that information secure.
Case study 1
In 2006, a man was sentenced to six years imprisonment after pleading guilty to 55 charges in the Downing Centre District Court to tax fraud. The criminal used the identities of 17 former clients to create false payment summaries and lodge 51 income tax returns on their behalf. He will serve four and a half years before being eligible for parole.
Case study 2
In 2006, a Melbourne night club manager was sentenced to three years jail by the Victorian County Court for GST fraud. He pleaded guilty to two counts of obtaining and attempting to obtain a financial benefit by deception. He stole the tax file numbers and identities of two individuals and submitted false business activity statements to the Tax Office. A joint investigation with the Australian Federal Police led to his arrest.
Case study 3
In 2006, a Sydney man who stole the identities of four people to falsely claim income tax refunds was sentenced to two years and four months jail by the Downing Centre District Court. He was arrested by police and will serve 21 months before being placed on a 12 month good behaviour bond.
Report identity crime
Reporting identity crime without delay helps limit the harm that may result. Report any loss, theft or misuse of your TFN to the Tax Office by phoning 1800 060 062.
Likewise, report lost or stolen identity documents including passports, driver’s licences or student cards without delay to the organisation that issued them.
Remember
- Keep your TFN secure. It’s an important lifetime form of identification in Australia and its misuse by another person can have serious implications for you.
- Report the loss or theft of your TFN or other identity documents without delay.
- Using another person’s TFN, misusing yours or allowing it to be used by others, and ‘buying’ or ‘selling’ a TFN are all serious crimes which can mean heavy fines or jail. I
- f you have legitimate access to other peoples identity details, including their TFN, you must keep that information secure.
About the Author
Warren Kruger is an Australian Tax Specialist and Advisor.
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Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.
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