Words Chris Ounsted, Ounsted & Company
The (very) old saying was “Beware of the Tax Man” and now it’s “Beware of the Tax SCAM.” In recent years, tax scams targeting Canadians, and in particular seniors, have become increasingly sophisticated with financially devastating consequences.
These scams not only impact people but also harm the integrity of the broader tax system and ability for the Canada Revenue Agency to communicate with you. CRA doesn’t need any more communications challenges then it already has … don’t get me started!
The Phone Scam is one of the most well-known and widespread types of tax fraud in Canada. In this scam, the caller impersonates a CRA agent and claims that you owe back taxes or have committed tax fraud, and threatens immediate arrest or legal action. To create a sense of urgency, scammers often use high-pressure tactics and demand payment through unusual methods, such as gift cards or wire transfers. Scammers may also ask for personal information, such as Social Insurance Numbers (SIN), banking details or passwords.
The Email Scam is another common scam which involves fraudulent emails that appear to come from the CRA. These emails often claim that you are eligible for a tax refund and will ask you to click on a link to provide your banking details. Once you click the link, you are directed to a fake website that resembles the official CRA site. This is designed to steal sensitive information, which is then used for identity theft or financial fraud. In some cases, the email may contain an attachment that, when opened, installs malware on your computer, allowing scammers to access sensitive data such as passwords and account numbers.
If you suspect you are the target of a tax scam, the most important step is to not respond.
Secondly, determine if it is actually a scam by contacting CRA by phone (1-800-959-8281 and just make sure you have a copy of your last tax return and have some time to spare) or log into your “CRA My Account” if you are registered.
Thirdly, contact your local police or the Canadian Anti-Fraud Centre. If you already provided sensitive information, you must contact your financial institution and monitor your financial accounts.
Canadian tax scams are a growing concern and scammers are continuously finding new ways to exploit unsuspecting individuals. By understanding how these scams work and learning to recognize the signs, you can protect yourself from falling victim to fraud. CRA will never threaten you with arrest or ask for sensitive personal information by email. By taking the time to verify suspicious communications, report scams and educate yourself on tax fraud, you can help ensure that you don’t become another victim of these harmful schemes.
For more information, visit https://tinyurl.com/w9uzpdzv.
