Dubbo residents have reported receiving scam messages promising a tax refund or threatening them with a tax debt.
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A federal government warning was issued on Tuesday to advise people that these messages are not from the Australian Tax Office or myGov.
"We see a surge in scammers impersonating trusted brands like myGov or the Australian Taxation Office [ATO] to trick you into giving them money or personal details," the government's Stay Smart Online page warns.
Figures from the Australian Competition and Consumer Commission reveal a more than 900 per cent increase in scam activity where criminals were pretending to be from the Australian Tax Office.
To help combat the rise in scam activity, the Customer Owned Banking Association has prepared tips to prevent Dubbo residents from falling victim to the crime.
The Customer Owned Banking Association director of services and financial crimes Leanne Vale said vigilance was crucial to thwart scammers from taking your details.
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"Sadly, the people who are most vulnerable to scammers are the elderly," Mrs Vale said.
"Do not assume that an Australian phone number means the call is legitimate.
"Offshore scammers use programs to change their international number to look like a local one for legitimacy.
"Don't become panicked or flustered. Scammers prey on people's fear and panic. They try to convince you that you'll either be cut off from a service like the internet or rounded up in a paddy wagon for failing to pay an imaginary fine."
Mrs Vale said people should question whether the organisation they claim to represent would actually call and threaten you.
"Government departments, utility providers and law enforcement all follow due process. Phone calls that carry threats of hefty fines or imprisonment or ask you for immediate payment are not genuine," she said.
"Just hang up the phone. You've worked hard all your life, don't give in to these heartless thieves."