Here are the most common tax scams and how to recognize to them, according to the CRA:
Smishing With Personal Data
The Canada Revenue Agency warns that scammers are sending SMS phishing, or smishing, texts intended to lure personal or financial information. The messages claim to be from the CRA often with the goal of getting credit card numbers, bank details and passwords from unsuspecting recipients.
What to look out for: A text with a link claiming to be from the CRA, that could include a name, birthdate or SIN.
How to respond: Never click the link or reply.
Giveaway it's a scam: The CRA doesn't communicate via text and will never reach out that way to discuss your taxes, benefits or online account.
Cryptocurrency Phone Scam
A recent series of phone calls from scammers posing as CRA employees warn that recipients have to submit a cryptocurrency payment to avoid an arrest warrant. The scammers follow-up with another call pretending to be the RCMP, offering instructions on how to make the cryptocurrency transfer, including phone numbers and passwords to deposit money into a local coin machine or cryptocurrency terminal. They promise to return the money after clearing the recipient's name.
What to look out for: Phone calls from someone claiming to work for the CRA and then the RCMP asking for a crypto transfer to help the recipient avoid an arrest warrant.
How to respond: Don't provide any info and hang up. If you want extra assurance, you can also verify whether a caller works for the CRA by requesting their name, phone number and office location. Hang up and contact the CRA, which will confirm whether the call was legit or not.
Giveaway it's a scam: The CRA does not accept payment by cryptocurrency.
GST/HST Tax Refund/Credit Scam
The CRA warns that scammers are sending texts (or emails) claiming to send recipients a GST/HST tax refund or credit and asking for personal information to proceed with payment. Most communication includes a link and request to complete an application form by an urgent deadline to receive the refund or credit.
What to look out for: A text or email from someone claiming to work for the CRA that includes a link and requests personal info to send a GST/HST credit.
How to respond: Do not click any links, reply, or send any personal or financial information.
Giveaway it's a scam: The CRA will not use text or email to ask you for personal or banking information, and it doesn't accept payment by e-transfer or gift card.
Note: If you’re eligible for the additional one-time GST Credit, payment will automatically be mailed or direct deposited.
CRA Account Smishing
Be on the look out for a text claiming to be from the CRA, warning of an error with your online account and requesting personal data. The message will ask you to text back "HELP" in order to proceed.
What to look out for: A text asking you to reply "HELP" and click a link to update information regarding your CRA "My Account."
How to respond: Do not reply to the text, click the link or provide any personal or financial information.
Giveaway it's a scam: The CRA doesn't communicate via text and will never reach out that way to discuss your taxes, benefits or online account.
Text Refund
Scammers have been texting Canadians to offer fake tax refunds. The messages claim to be from the CRA and include a link asking for personal information, like a SIN, birth date or name, or online banking information to get the refund by e-transfer
What to look out for: A text with a link claiming to be from the CRA and asking for personal data to send a tax refund e-transfer.
How to respond: Do not reply to the text, click the link or send any personal or banking information.
Giveaway it's a scam: The CRA will never sent a text about your tax refund.
Fraudulent Tax Returns & Identity Theft
This scam is already underway by the time you notice. The CRA warns that if criminals do get ahold of your account login info, they can file fake tax returns in your name.
What to look out for: A change on your CRA account, an email notification saying your account has been modified, a delay in receiving credits or refunds, or difficulty filing your online tax return.
How to respond: If you notice a change on your account has been made, and you did not make it, contact the CRA as soon as possible.
Giveaway it's a scam: You didn't make any changes on your account.
Extortion Call
You could get a call from someone claiming to be from the CRA and asking you to confirm your SIN over the phone. The scammers will usually follow-up with a request for payment by cryptocurrency or gift card. The caller could be using a local number or one linked to law enforcement or government agencies.
What to look out for: An intimidating phone call from someone claiming to work for the CRA and asking for a social insurance number and payment.
How to respond: Don't provide your SIN over the phone or send any payment.
Giveaway it's a scam: The CRA will not use aggressive language or demand immediate payment over the phone. The agency also doesn't accept payment by cryptocurrency or prepaid gift cards.
Refund Email
You could get an email from a fake CRA email address, offering you a refund. The message will usually advise you to click a provided link, which will take you to a page that requests your SIN, birth date or name, and online banking information to accept an e-transfer.
What to look out for: An email claiming to be from the CRA that includes a link asking for private information, supposedly in order to send you a tax refund electronically.
How to respond: Do not reply to the email message or send any personal data.
Giveaway it's a scam: The CRA will never email you to ask for personal or financial information, or request payment by e-transfer or gift card.
