Australians using AI tools like ChatGPT to help with tax returns or financial advice might be making a major mistake without even realizing it. While it may seem like a convenient shortcut, sharing personal details like your Tax File Number (TFN) with AI could put your sensitive information at risk. The Australian Taxation Office (ATO) and experts are raising red flags, warning that AI tools may not offer the privacy protections you think they do.<\/p>\n
More and more Aussies are turning to AI for tax advice\u2014almost a third of Australians, according to a recent survey. Whether it\u2019s using a chatbot to help with tax returns or to manage their personal finances, AI has become a popular tool. In fact, nearly 40% of Aussies are using AI to manage their finances, and an additional 36% are open to the idea of doing so in the future. It makes sense. AI is fast, accessible, and often free, making it an attractive option for busy people who want help with their finances.<\/p>\n
But here\u2019s the catch\u2014many people are unknowingly exposing their personal financial data, including their TFN, by trusting AI tools with sensitive information. Miriam Holme, director of Fab Tax Accountant, warned that once your data is entered into AI systems, it\u2019s hard to control where it ends up. She\u2019s seen clients who\u2019ve submitted their tax returns<\/a> to AI chatbots like ChatGPT, without realizing the potential consequences. “People don\u2019t know where their data has gone now,<\/em>” Holme explained.<\/p>\n The problem lies in the lack of privacy. ChatGPT itself, when asked about the risks, stated that once you share sensitive information, “you can lose control of where it goes,<\/em>” reports Yahoo Finance<\/a>. And that\u2019s a big deal when it comes to something as important as your tax details. In some cases, screenshots, browser extensions, or shared devices can expose your information, leaving you vulnerable to potential misuse. So while it might feel private in the moment, the reality is that sharing your TFN with AI tools isn\u2019t as secure as it seems.<\/p>\n The ATO is also warning Australians to avoid sharing their personal details, including TFN or myGov information, with any AI tools. They advise anyone who has shared their personal data with these tools to contact the ATO\u2019s Client Identity Support Centre as soon as possible to protect their information.<\/p>\n Despite these warnings, many Australians don\u2019t realize the risks until it\u2019s too late. In fact, after Holme shared her warning on social media, she was shocked by how many people admitted to making the mistake. “I think I\u2019ve already given a TFN, whoops,<\/em>” one person commented. It\u2019s clear that there\u2019s a lack of awareness around the issue, and people are rushing into using AI tools without fully understanding the risks involved.<\/p>\n As AI continues to become more embedded in our daily lives, it’s essential to raise awareness about the potential dangers of sharing sensitive information online. For now, it\u2019s better to err on the side of caution and leave your tax details out of the conversation.<\/p>\n \u00a0<\/p>\n\n\nWhy Is This a Problem?<\/h2>\n
The Growing Need for Awareness<\/h2>\n