You can’t pay taxes with gift cards, officials warn

Fraud investigators are warning the public about scammers who pose as government officials and ask for tax payments with retail gift cards.

It starts with a telephone call, text, email or letter from someone claiming to be from the RCMP or Canada Revenue Agency. They may ask for personal information or demand that back taxes be paid with gift cards or prepaid credit cards, police said.

“These calls can be confusing and overwhelming, so fraudsters tend to succeed with those who aren’t thinking clearly, don’t understand the tax process, or are the most vulnerable,” Edmonton police Det. Linda Herczeg said in a news release Wednesday.

Phone numbers or email addresses may look legitimate, but the contact information ends up redirecting people back to the scammers, police noted.

Initial conversations may be courteous and sound official, but they can become aggressive, police said. This includes threats of legal action, arrest warrants, criminal charges, deportation, seizure of property or suspension of bank accounts.

“They profile you psychologically during the conversation and look for ways to manipulate you,” explained Herczeg, who is with the economic crimes section. “Their strategy is to keep you on the phone and under pressure, so you don’t question why your taxes need to be paid with $2,500 in music gift cards.”

Police said there were about 187 victims of Canadian Revenue Agency frauds in Edmonton last year. They reported losing more than $620,000 collectively. Scammers targeted all age groups, asking for as little as $100 and up to $72,000.

“The CRA does not accept payment in gift cards, CRA agents will never try to keep you on the phone for long periods of time, and the CRA will never threaten to arrest you or send police,” Canada Revenue Agency spokesman TJ Madigan said in a release.

Fraudsters will tell people to buy gift cards at specific retailers, often in large quantities or with large denominations, police said. After the cards are activated, the victims will be asked to remove security stickers and give the information to the scammers who will sell the numbers illegally.

Economic crimes can be reported to EPS at 780-423-4567 and anonymous tips can be submitted to Crime Stoppers at 1-800-2228477.