Beware of ITR refund scam! Fraudulent messages circulating on social media

In an alarming development, the income tax department has issued a warning to taxpayers about a new scam that has surfaced amidst a record growth in Income Tax Returns (ITRs) filed this year. As per the government data, over 6.77 crore ITRs were filed until July 31, 2023, showing a YoY increase of 16.1 per cent.

The government-run Press Information Bureau (PIB) Fact Check took to social media to caution the public about a viral fraudulent message targeting individuals. The deceptive message, claiming to be from the income tax department, informs recipients that they have been approved for an income tax refund of Rs 15,490. To appear authentic, the message includes the last few digits of the recipient's bank account number. However, this message is fake, and the income tax department has not sent any such communication.

A viral message claims that the recipient has been approved for an income tax refund of ₹ 15,490.#PIBFactCheck

✔️ This claim is 𝐅𝐚𝐤𝐞.

✔️ @IncomeTaxIndia has 𝐧𝐨𝐭 sent this message.

✔️𝐁𝐞𝐰𝐚𝐫𝐞 of such scams & 𝐫𝐞𝐟𝐫𝐚𝐢𝐧 from sharing your personal information. pic.twitter.com/dsRPkhO3gg

— PIB Fact Check (@PIBFactCheck)

This scam aims to trick people into sharing their personal information by directing them to a fraudulent link. The message urges recipients to update their bank account details to receive the supposed tax refund. Such scams exploit the window between income tax filing and the refund process to defraud unsuspecting taxpayers.

Tips to outsmart scammers

No government agency or bank asks for personal details

"Remember that government agencies or banks never ask for sensitive information like debit/credit card numbers or OTPs through text messages or calls," said Amit Gupta, MD, SAG Infotech.

Income tax refund process 

The income tax department follows an automated process for tax refunds. The refund is credited to the taxpayer's registered bank account linked to their mobile number and Aadhaar card. The department does not share any link for refund verification on mobile numbers.

Cross-verify official communications

"Always cross-verify any communication claiming to be from a government agency by checking official websites or contacting the respective department directly," said Arpit Suri, CA and personal finance expert.

"The income tax department has already processed refunds for eligible taxpayers, and those who are yet to receive their refunds need to exercise caution and stay vigilant against these fraudulent messages. Report any suspicious messages to the authorities immediately to prevent falling victim to such scams," he added.