Tax Season Alert: Protect Yourself from CRA Fraud

Tax season is here, a crucial time for managing your finances – and unfortunately, a prime opportunity for fraudsters. Scammers frequently impersonate the Canada Revenue Agency (CRA) to steal your money, personal information, or both. Understanding their tactics and knowing how the CRA truly operates is your best defence.

This page provides essential information to help you identify, avoid, and report common tax scams in Canada, ensuring your peace of mind this tax season.

Common Tax Scam Tactics to Watch For

Fraudsters use a variety of methods to trick Canadians. Be wary of any communication that:

• Demands Immediate Payment: Scammers often create a sense of urgency, threatening legal action, arrest, or even deportation if you don’t pay immediately.
• Requests Unusual Payment Methods: The CRA will never ask for payment via gift cards, cryptocurrency (like Bitcoin), pre-paid credit cards, or wire transfers. These are hallmark signs of a scam.
• Promises a “Refund” via Email or Text: You might receive a message claiming you’re owed a tax refund, prompting you to click a link to “claim” it. These links lead to phishing websites designed to steal your credentials or install malware.
• Asks for Personal Information: Beware of emails, texts, or calls asking for your Social Insurance Number (SIN), bank account details, credit card numbers, or passport information.
• Uses Aggressive or Threatening Language: Scammers often use intimidation, threats, or insults to pressure you into complying.
• Pretends to Be From Another Government Agency: Sometimes, scammers might claim to be from the RCMP, local police, or other government departments working “on behalf” of the CRA.

How the CRA Will NEVER Contact You

Knowing the CRA’s legitimate communication practices is crucial:

• The CRA will never demand immediate payment by e-transfer, gift card, cryptocurrency, or wire transfer.
• The CRA will never threaten you with arrest, immigration deportation, or send the police to your home.
• The CRA will never send you emails or text messages with links asking you to claim a refund or provide personal information.
• The CRA will never leave aggressive voicemails or use insulting language.
• The CRA will never ask for your SIN, credit card number, or bank account details via email or text message.

How the CRA WILL Contact You

The CRA uses specific, secure methods for communication:

• By Mail: The CRA primarily sends official correspondence, letters, and notices through Canada Post.
• Through Your Secure CRA My Account: For individuals, the CRA will post notices and communicate directly through your secure online “My Account” portal.
• By Phone (in specific circumstances): The CRA may call you for specific reasons, such as to verify information related to your return or an audit. However, they will identify themselves, provide context, and will never ask for personal information they already have on file. If you’re unsure, you can always hang up and call the official CRA general inquiries line or the number for the specific program they mentioned.
• Email Notifications (if subscribed): If you’ve opted into email notifications within your CRA My Account, you might receive an email alerting you to new mail in your secure account, but never containing personal tax information or direct links to sensitive forms.

What to Do If You Suspect a Scam

Your vigilance is the best defence against fraud. If you suspect you’ve been targeted:

1. Hang Up/Delete/Ignore: Do not engage with the caller, click on any links, or open attachments in suspicious emails or texts.
2. Verify the Communication: If you receive a suspicious call, email, or letter claiming to be from the CRA, do not use the contact information provided by the potential scammer. Instead, look up the official CRA telephone numbers on the CRA’s website and call them directly to inquire about your tax situation.
3. Do Not Share Personal Information: Never provide your SIN, birth date, credit card information, bank account details, or passport numbers in response to unsolicited requests.
4. Confirm Your Tax Status: If you’re unsure whether you owe money or are due a refund, check your official CRA My Account or contact the CRA directly.
5. Report the Scam:
   • To the Canadian Anti-Fraud Centre (CAFC): Report all suspected scams, whether or not you’ve lost money. You can report online at antifraudcentre-centreantifraude.ca or call 1-888-495-8501.
   • To the CRA: Forward suspicious emails to phishing@cra-arc.gc.ca and suspicious text messages (smishing) to 7726 (SPAM).
   • To the RCMP or Local Police: If you have lost money or provided sensitive personal information, report it to your local police department.

If You’ve Fallen Victim to a Scam

If you believe you have provided personal information or lost money due to a scam:

1. Contact Your Financial Institution(s): Immediately inform your bank and credit card companies if you’ve shared banking or credit card details. They can help monitor your accounts and prevent further losses.
2. Report to the Canadian Anti-Fraud Centre (CAFC): Provide all details of the scam.
3. Report to the Police: Contact your local police if you have lost money or shared highly sensitive personal details.
4. Change Your Passwords: Update passwords for your email, banking, and CRA accounts.
5. Monitor Your Credit Report: Consider placing a fraud alert on your credit file with the major credit bureaus (Equifax and TransUnion) to prevent identity theft.

Stay informed, stay secure. By understanding how the CRA communicates and recognizing common scam tactics, you can protect yourself and your finances this tax season. For more detailed information, always refer to the official Canada Revenue Agency website.