Fraud prevention: avoiding tax scams

March is fraud prevention month and with tax time approaching, police are reminding the public to stay vigilant and be on the lookout for money scams and other tax related fraud schemes.

Fraudsters typically exploit this time of year and will try a variety of tactics to trick people into giving up their money and/or personal information. One of the most common is the Canada Revenue Agency, or CRA scam.

The scam has many different forms but the goal is to steal money or identity information from the victim. It usually starts with an unsolicited email, phone call, or text message to the victim claiming the victim owes taxes, has committed a tax-relate offense, or the agency requires additional information. The scammer tries to pressure or scare the victim threatening legal action or arrest if the victim doesn’t comply with demands for immediate payment or disclosure of personal information.

This is one of the more common scams we see in the lead up to and during tax season, states Constable Chris Terleski, Media Relations Officer for the Vernon North Okanagan RCMP. They’re trying to scare you into making a fast, emotional decision. The best thing you can do is hang up and not reply to any of the messages. Education and awareness are key. Staying informed about common scam tactics and educating others is the best way to look after each other and protect our community from financial harm.

To protect yourself from tax related scams, remember the following tips:

Be cautious with personal information

• Avoid sharing sensitive personal or financial information the phone or through email unless you initiated the contact and are certain of the recipient’s identity.
• Remember, the CRA will never ask for information about your passport, health services card, driver’s licence or social insurance number.
• The CRA, police, or any government agency will never demand immediate payment or threaten arrest if you do not disclose personal or financial information.

Verify Communications

• If you receive communication claiming to be from the CRA, independently verify it’s authenticity by contacting the Agency directly using the contact information from their official website or by contacting the CRA directly at 1-800-959-8281.

Watch out for phishing attempts

• Be wary of unsolicited emails or messages requesting personal information or payments.
• The CRA will not send emails or text messages containing a link to a payment request or tax refund.
• The CRA will never request prepaid credit cards, gift cards, or cryptocurrency such as Bitcoin as payment

Stay informed

• Keep up to date on common scams and frauds and fraud tactics.
• Awareness is key to identifying and avoiding fraudulent schemes.
• Never rush into a decision because someone is pressuring you.  Discuss it with a family member or trusted friend.

Report suspicious activity

• If you encounter a potential scam or fraudulent activity, report it to the Canadian Anti-Fraud Centre online at www.antifraudcentre.ca or by calling 1-888-495-8501.
• If you've shared personal information, contact Equifax and Trans Union to place fraud alerts on your account;
• If you’ve shared banking information with a scammer, contact your financial institution to place alerts on your accounts

Additional information on fraud prevention can be found by visiting the BC RCMP Website, or the Canadian Anti-Fraud Centre here.