10.02.2025
The time to submit income tax returns is fast approaching, and with it comes an increase in fraudulent activity. According to the Estonian Information System Authority (RIA), Estonians lost nearly eight million euros to various scams last year, averaging a loss of 22,000 euros per day. Scammers exploit people’s trust and create a sense of urgency to trick victims into sharing their banking and personal information.
Annika Goroško, the Head of Retail Banking at LHV, explains how these scams work and offers advice on how to protect your assets and personal information during the tax filing season. ‘Scammers often refer to the authority of the Estonian Tax and Customs Board, using excuses like outdated refunds, erroneous declarations, or approaching deadlines. Victims are frequently pressured to act quickly, with claims that corrections need to be made within hours or a few days,’ Goroško warns. She emphasises that both the Estonian Tax and Customs Board and banks always allow a reasonable amount of time for submitting documents or correcting mistakes.
Scammers target tax filers
E-filing of income tax returns begins on 15 February, and refund processing for e-filers starts on 5 March, with the final deadline being 30 April. These dates are also attractive to scammers, as this is when fake notifications are sent out, seemingly from official authorities. The main goal is to gain access to individuals’ bank accounts or collect personal information for future scams. Victims are often targeted via phone or email.
Often, victims are told there are errors in their declarations, that taxes are unpaid (e.g., vehicle tax, land tax, etc.), or that the submission cannot be completed without additional information. Scammers may ask for a transfer to be made or prompt the installation of additional software that grants access to the victim’s bank account. Messages or emails may contain links leading to websites that appear to be the Estonian Tax Board’s official page, but are actually fraudulent sites designed to steal banking details.
Three key tips to protect yourself
With the rise of artificial intelligence, the quality of emails and phone calls has significantly improved, making it crucial to remember three important rules to protect your assets and personal data during the tax filing season:
Be critical of all emails and calls – even if the sender appears to be an official authority or bank. The Estonian Tax and Customs Board never asks for personal information, bank card details, or sends emails with QR codes via email, message, or phone.
Avoid untrusted links – the safest way to access the e-Tax Board or online banking is by typing the website address directly into your browser, rather than clicking on links in received messages. Note that access to the e-services of the Estonian Tax and Customs Board is no longer provided through banks.
PIN2 is equivalent to your signature – before entering your PIN2, always double-check the transaction you are confirming. When a PIN2 request appears, ensure that you carefully read the information displayed on your phone’s screen.
Limit financial risks and be prepared to act
We recommend reviewing your card and transfer limits, and keeping them as low as possible. You can also set separate limits for online purchases to minimise the impact of possible fraud. If you suspect fraud or fall victim to a scam, immediately inform the police and your bank. Be sure to keep screenshots and received emails to assist with the investigation.
Given the rise in scams and increasingly sophisticated schemes, it is also a good idea to raise awareness within your family, schools, and social circles to help prevent potential losses.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,200 people. As at the end of November, LHV’s banking services are being used by 452,000 clients, the pension funds managed by LHV have 114,000 active clients, and LHV Kindlustus protects a total of 170,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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