SCAMMERS are impersonating the Australian Taxation Office and demanding bitcoin and other cryptocurrency payments for fake tax debts.

The ATO identified fraudsters pioneering the new payment method when ripping off taxpayers in late 2017.

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Unsuspecting members of the public have already handed over more than $50,000 in bitcoin to scammers claiming the fake ATO debts.

In 2017, the ATO received more than 80,000 reports of scams, with taxpayers reporting almost $2.4 million dollars lost to scammers claiming to be from the ATO.

media_camera Scammers are demanding bitcoin for fake tax debts. Picture: AFP Photo/Jack Guez

The callers are often ­abusive and demanding. They ­usually target the elderly and socially isolated people.

“Cryptocurrency operates in a virtual world, and once the scammers receive payment, it’s virtually impossible to get it back,” ATO Assistant Commissioner Kath Anderson told the Herald Sun.

“The ATO won’t ask people to pay in ­bitcoin or with an iTunes card and if you aren’t sure you can call our scams line.”

While the ATO is concerned about scammers abusing the cryptocurrency system, Ms Anderson said taxpayers should remain vigilant for other versions of the fake tax debt scam.

ATO release audio of tax scam phone call ATO release audio of tax scam phone call

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Scams demanding direct deposits into third-party bank accounts, demanding payment via iTunes cards or with ­prepaid Visa gift cards remain the most frequently reported to the ATO.

“In 2017, over $900,000 worth of iTunes gift cards were reportedly paid to scammers — by almost one-third of all victims,” Ms Anderson said.

“We are hoping that the new warnings Apple is including on their gift cards will help people realise the ATO doesn’t accept payment in iTunes cards.”

Ms Anderson said the ATO feared taxpayers were being tricked into sharing personal details with scammers. Anybody who would like to confirm the legitimacy of an Australian Taxation Office call or letter should call the ATO on 1800 008 540.