On a recent evening, I received a text from an unknown number. “Remember to deposit your money transfer from the Canada Revenue Agency,” it read. A link accompanied the message.
In years past, scam messages were relatively easy to spot. But today the calls, texts and emails are more sophisticated, often with no spelling mistakes or grammatical errors. They also have authentic-looking government and Interac logos, making it harder to know what is real. Scammers might also fake their caller ID so it looks like the number is from the CRA.
March is Fraud Prevention Month, an annual public awareness campaign to help Canadians recognize, avoid and report fraud. It coincides with tax season, when authorities warn about the spike in CRA-related scams as the April filing deadline approaches.
Tax scams are a common form of phishing, where cyber criminals send you an email or text claiming to be from the CRA. The message says you are entitled to a tax refund or credit and all you need to do is provide your banking information or confirm personal details like your social insurance number.
Scammers might also call or message to say that you owe the CRA money and if you don’t pay immediately, the police could arrest you. This can be frightening.
No one is immune to scams, though bad actors often target seniors. For instance, a fraudster might email an older adult and say that they are entitled to extra payments for Old Age Security, linking to a fake website that describes the benefit and makes the scam look legitimate.
People with dementia are especially at risk of becoming victims, as their thinking, judgment and memory skills decline. They might not understand that someone is defrauding them, or they might be confused, increasing their susceptibility to financial exploitation.
One of the best ways to protect yourself from tax scams is to be informed. The CRA has tips on how to recognize scams and it explains how and when it communicates with taxpayers. For example, the CRA does not send text messages, other than for multi-factor authentication for those signing into their online account and who have enrolled in that option. The agency will also never use aggressive language or threaten you with arrest.
Falling victim to a scam can feel embarrassing but remember that bad actors are using advanced tactics to lure us into believing they are actually the CRA. It is important to report the incident to your local police, especially if you or someone you know has lost money in a fraud. You are also encouraged to report it to the Canadian Anti-Fraud Centre, a national police service that gathers intelligence on fraud across the country. The information you provide could help link a number of crimes together, assisting with prevention efforts.
While tax scams happen throughout the year, we must be hypervigilant in March and April, when these fraudulent activities surge. No one will blame you for double checking the legitimacy of any unsolicited communication you receive about your taxes. As the old adage says, it is better to be safe than sorry.
Heather Campbell Pope is founder of Dementia Justice Canada, a small nonprofit dedicated to safeguarding the rights and dignity of people with dementia. She lives in St. Stephen, N.B.
