Watch out for online tax scams, warns BBB
Today is the start of tax season. If we know anything about tax scams, it is the fact that they are among the most stubborn cons out there. They reappear often, each time with a slightly different spin.
The usual con behind most of these scams is where scammers pose as the Canada Revenue Agency (CRA), trying to trick you into either paying up or sharing personal information. However, because more people are expected to file their taxes online this year, BBB is encouraging the public to keep an eye out for online tax scams.
The CRA wants us to go digital this tax season. This year, Canadians are being encouraged to file their returns electronically and as soon as possible. Online filing is now open. Filing online is expected to allow the CRA to produce your notice of assessment (NOA) and refund faster. If you file a paper return, the CRA anticipates that it may take 10-12 weeks for them to issue your NOA.
“While filing taxes online is faster and more convenient, it also widens the net of scams being used to target Canadians,” said Karla Laird, Manager for Community and Public Relations at BBB. “Taxpayers will need to keep an eye out for versions of phishing emails with malicious links, fake CRA websites, and communications through non-traditional mediums like text messages and direct messages on social media. The scammers may use the ongoing pandemic as a reason to encourage you to engage with them.”
In a BBB Scam Tracker report, a consumer said she received an email saying, “You have a refund of $700 this year. Click here to claim it. Link expires in 5 days.” This is a classic online phishing tax scam. The email includes a link; the communication is enticing and encourages the recipient to click; and the link is likely to take you a website controlled by the scammer and not the CRA. Emails from the CRA will never include links and will never ask you to reply with private information.
While Canadians are now much better at identifying and avoiding CRA scam calls, they are unlikely to go away this year. These scams often start with a phone call where you hear a serious and official sounding “robocall” recording. The CRA "agent" says you owe back taxes and pressures you into paying a certain amount. The imposters often go to great lengths to appear real. The scammer may give a fake badge number and name. Your caller ID may look like the call is coming from Ottawa. Scammers typically try to push you into action before you have time to think.