Protect Yourself From The Top Tax Scam

A Menacing Phone Call

Phone fraudster at workI had a disturbing message left on my voicemail recently.  It was from a man claiming to be an RCMP officer calling on behalf of the Canada Revenue Agency (CRA).

 

He stated he had a warrant for my arrest because of unpaid back taxes.

 

The aggressive caller demanded that I must immediately dial a certain phone number and arrange for payment to avoid being arrested and carted off to jail.

 

This phone call was a tax scam.  Neither the RCMP, nor the Canada Revenue Agency (CRA) threaten people in this manner.  The caller was impersonating a tough cop to scare me into taking action without thinking.

This type of fraud, known as the CRA Income Tax Scam, was the #1 scam in Canada last year, as reported by the Better Business Bureau, with almost $3 million bilked from victims who fell for it.

 

Senior Woman Giving Credit Card Details On The Phone

It usually happens in one of two ways.  A phone call or email:

  • demands immediate payment of outstanding taxes by using a money-wiring service, or a pre-paid credit/debit card

 

  • informs you that you are eligible for a tax refund, but to claim it you must provide personal information over the phone or to a website (a phony site that looks like the Canada Revenue Agency site).

Protect Yourself from Phone or Email Fraud

Don’t feel pressured by callers.  Take the time to check with the Canada Revenue Agency before responding to demands for money or personal information.

 

Go directly to the CRA website to verify if you owe taxes or have a refund pending.  Never follow the links or call the phone number suggested by the person contacting you.

Report Tax Fraud Incidents

Canadian Anti-Fraud Centre (CAFC)
To Report an Incident
Toll Free: 1-888-495-8501

 

If you receive a fraudulent demand, report it to the Canadian Anti-Fraud Centre.

 

 

 

If you’ve actually been victimized by fraud, report it to the RCMP.

The Better Business Bureau also accepts reports about frauds and scams through their Scam Tracker program.

Be Aware of Emerging New Scams

White collar criminals are constantly thinking up devious new schemes to steal your money.  Keep on top of these trends by visiting the Canadian Anti-Fraud Centre regularly.

Take a look at the National Top Ten Scams of 2015 as reported by the Canadian Better Business Bureau.

Spread the word to family and friends to prevent them from becoming a victim.