Tax Scams: Beware of CRA impersonations

April 1, 2015

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Consumers and businesses need to protect themselves against fraudulent calls. The tax scams work because it is tax time again in Canada and fraudsters are taking the opportunity to scam people out of their money.

Occasionally, taxpayers may receive, either by telephone, mail, or email, a communication that claims to be from the Canada Revenue Agency (CRA) but is NOT. In all these cases, the communication requests personal information, such as a social insurance, credit card, bank account, and passport numbers, from the taxpayer. These fraudulent communications are also referred to as scams or phishing.

The Canadian Anti-fraud Centre has received numerous reports in 2014 involving scammers impersonating the Canada Revenue Agency (CRA). Whether by telephone or by email the pitch involves one of these variations:

  • “You have a refund”. You have a refund pending from CRA and the communications will go on to instruct the receiver to provide personal information in order to receive the benefit.
  • “You owe back taxes”. You or your company, as a result of an audit, owe “back taxes”. You are advised you have to “pay up” ASAP to avoid a fine or the person is told there is an outstanding arrest warrant which can be avoided if the tax payment is made promptly. In many cases, individuals are being told they will be deported if the taxes are not paid right away. This is meant to cause fear to coerce you into a knee-jerk response as is the following lie.
  • “You are under investigation by CRA”. They may leave a number and a name by which to call back. They are that sure they can hook you. The fraudsters are either phishing for identification or are asking that outstanding taxes be paid by money service businesses or pre-paid debit / credit cards.

In some cases, they may become pushy, and say they will send the sheriff to take all of your assets if you do not comply. If they become insolent, this is a sure sign of fraud. Just hang up.

Warning Signs: How to Protect Yourself
Do not take immediate action. Verify that what you are being told is the truth. Ask for evidence. Ask if they work for the government (CRA is part of the government and this can throw them off). Ask yourself why the CRA would be asking for personal information over the phone or e-mail that they likely already have on file for you as a taxpayer.

In most cases, if you know you’ve paid your taxes, you won’t need to contact the CRA to question if you do owe back taxes or are entitled to a refund, before providing any personal or banking information.

For more information about Fraud Scams involving the CRA visit the Canada Revenue Agency Web page.

If you think you or someone you know has been a victim of fraud, please contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or their web page.

Important notice: The CRA has recently become aware of a new scam involving email money transfers. Canadians are reminded that the CRA will only send payments by direct deposit or by cheque, never by email money transfer.

Source: Canadian Anti-Fraud Centre | CRA warnng on fraud

 

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