E-filing profile hijacking occurs when criminals impersonate taxpayers, take control of their online accounts, file fraudulent tax returns and pocket the refunds.
The Office of the Tax Ombud will release a report on Wednesday highlighting the number of e-filing profiles that have been hijacked and how much money taxpayers have had stolen.
In the joint statement, the tax ombud said it has been investigating the cases of profile compromise for over a year following numerous complaints from taxpayers and tax practitioners. The South African Revenue Service (Sars) said the report has been delayed to allow it to provide detailed input on the preliminary findings.
This follows after an article by Sowetan that the ombud is investigating 16 000 cases concerning e-filing profile hijackings, which have resulted in at least R100 000 being lost.
ALSO READ: Tax Ombud working with Australia to stop e-filing profile hijackings
How e-filing hijacking works
E-filing profile hijacking occurs when criminals impersonate taxpayers, take control of their online accounts, file fraudulent tax returns and pocket the refunds. The hijacking of a taxpayer’s profile typically occurs through targeted identity theft, the misuse of login credentials, phishing, SIM swaps and other methods.
E-filing profiles hijacking has resulted in taxpayers’ tax returns being paid out to cyber-criminals. The two institutions have acknowledged that cybersecurity risks have escalated due to technological advances.
“The organisation observed that in today’s digitally interconnected environment, cybersecurity risks have escalated dramatically, posing significant threats to individuals, businesses and institutions,” their statement reads.
“As personal and financial transactions increasingly migrate online, malicious actors exploit vulnerabilities in authentication protocols, data-sharing mechanisms, and user behaviour to perpetrate identity theft, fraud and unauthorised system access. Even routine activities, such as accessing tax platforms or updating banking details have become potential gateways for exploitation.”
ALSO READ: Investigation into eFiling hijackings highlights the vulnerabilities
Sars is the prime target
“Sars, as the custodian of revenue collection and refund payments, is a prime target for those with nefarious intent,” reads the statement.
Sowetan’s article said that the report has been delayed due to disagreements between tax ombud Yanga Mputa and commissioner Edward Kieswetter about the report’s contents.
“Sowetan’s sister publication, Sunday Times, reported in 2024 that a Sandton-based IT firm lost about R20m after its e-filing profile was hijacked,” article said.
The article adds that Sars denied any negligence after the story was published. “We have found that no negligence or liability can be imputed to Sars, meaning that Sars can therefore not be held liable for the criminal action reported by the Sunday Times,” Kieswetter said at the time.
The tax ombud and Sars said the Sowetan article “contained a number of factual inaccuracies”.
ALSO READ: Unjustified debt collection measures cause unnecessary taxpayer distress
Security measures by Sars
“Sars continuously enhances security protocols to mitigate risks and prevent unauthorised access. We encourage taxpayers to exercise vigilance by safeguarding their login details and promptly reporting suspicious activity.”
The statement added the two parties have held extensive consultations about the contents of the report. However, some differences remain, which is expected for a review of this kind.
“This cooperative approach aims to strengthen the report’s recommendations and foster meaningful improvements. The ombud will publish the draft report on 1 October 2025.”
Kiewswetter said: “We respect that the final report by the ombud will be made public soon and Sars remains committed to continue its engagement with the public on its substance.
“The public must be assured though, that Sars continues to work with diligence to ensure the highest level of integrity and protection to taxpayers who use the SARS digital platform.”
The ombud said that: “The ombud takes the hijacking of taxpayer eFiling profiles very seriously. As an independent institution, the ombud ensures objective oversight and the fair treatment of taxpayers. The upcoming draft report reflects extensive engagement with all stakeholders and is aimed at driving real, practical solutions.”
NOW READ: Pay your debt as soon as possible, says Sars
