By now, there’s a good chance your Tax File Number (TFN)—one of the most critical pieces of personal information assigned to you—has been exposed in a data breach. Thanks to hacks targeting major organisations, government agencies, and even health care providers, millions of TFNs are circulating in the hands of cybercriminals.
It’s unsettling, but how serious is it?
Spoiler alert: Very serious. Here’s why a leaked TFN can cause major issues, how to check if yours has been compromised, and what steps to take if it has.
Why Is a Leaked TFN Such a Big Deal?
Your TFN is a key component of your identity. With it, hackers can access sensitive financial and personal information, impersonate you, lodge fraudulent tax returns, and more. Even if you don’t notice immediate effects, cybercriminals often hold onto stolen information for years before using it.
What Can Happen If Someone Has Your TFN?
If your TFN falls into the wrong hands, it can lead to:
- Identity Theft: Criminals can use your TFN to lodge fraudulent tax returns, apply for government benefits, or open accounts in your name.
- Tax Fraud: A stolen TFN can be used to claim fake deductions or benefits, leaving you with tax debts or audit complications.
- Financial Complications: Fraudsters may use your TFN as part of wider identity theft schemes to access your superannuation, open loans, or set up fake businesses in your name.
Take the Optus data breach in 2022 as an example. The breach exposed the personal data of over 10 million people, including TFNs for many. Victims faced months of financial uncertainty and risks ranging from identity theft to fraudulent transactions.
Signs Your TFN May Have Been Compromised
If your TFN has been misused, you may notice:
- Unexpected ATO Correspondence: Letters about tax returns you didn’t lodge or notifications about changes to your tax account.
- Credit Report Red Flags: Loans, credit cards, or applications you don’t recognise showing up on your credit report.
- Financial Irregularities: Suspicious transactions or attempts to access your bank or superannuation accounts.
How to Check If Your TFN Was Leaked—and What to Do Next
Whether you’ve experienced these signs or just want peace of mind, here are steps to check for leaks and safeguard yourself:
- Monitor Your Credit Report
- You can request a free credit report annually from agencies like Equifax, Experian, or illion. Review it for any unfamiliar accounts or inquiries and report suspicious activity immediately.
- Notify the ATO
If you suspect your TFN has been stolen or misused, contact the Australian Taxation Office (ATO) as soon as possible. The ATO can place additional security measures on your tax account to prevent further misuse.
- Set Up MyGov Security Features
Ensure your MyGov account is secured with two-factor authentication. This extra layer of security helps protect access to your government services, including your tax account.
- Use Identity Protection Services
Services like IDCARE can provide expert advice and support to help you respond to identity theft or TFN-related fraud. While these services can’t prevent breaches, they can help you manage and recover faster.
- Freeze Your Credit File
Consider placing a credit ban or freeze on your file through major credit reporting agencies. This makes it harder for anyone to open accounts in your name.
What to Do Immediately If Your TFN Is Compromised
If you confirm your TFN has been leaked or misused, act quickly:
- Report It to the ATO
Contact the ATO’s Client Identity Support Centre at 1800 467 033 to report the compromise. They can guide you on next steps and secure your tax account.
- Notify Credit Reporting Agencies
Request a credit ban or fraud alert from agencies like Equifax, Experian, or illion. This ensures lenders verify your identity before approving credit applications in your name.
- File a Report with IDCARE
The national identity and cyber support service, IDCARE, can help you develop a tailored response plan for identity theft and fraud.
- Notify Your Financial Institutions
Contact your bank and superannuation provider to flag the breach. They can monitor your accounts for unusual activity and provide additional security measures.
- Consider Police Assistance
If fraud or theft has already occurred, file a police report. This can support claims or disputes with creditors and help authorities investigate the crime.
Protecting Your Business: Why Cybersecurity Is Crucial
For businesses, safeguarding Tax File Numbers and other sensitive personal information is vital. A TFN breach not only impacts individuals but also exposes businesses to legal, financial, and reputational risks.
Ensure your business has a robust cybersecurity framework, including:
- Data Encryption: To secure sensitive information.
- Access Controls: To restrict who can view or use data.
- Employee Training: To reduce the risk of human error leading to data breaches.
If your business would like some assistance in securing its data and systems, our cybersecurity experts are here to help. Contact us today to schedule a FREE Cybersecurity Risk Assessment and protect your business from costly breaches. Call us on 1300 501 677 or click HERE to book a time and we’ll call you
