A Coquitlam resident is warning people to beware of an email tax scam that offers a refund in exchange for personal information.
And Coquitlam RCMP say it’s just one of a number of fraudulent schemes circulating during tax time.
Art Zink said he was checking his email when an official-looking Canada Revenue Agency notification showed up. It said he had a tax refund of $458 waiting for him from previous years and all he had to do was click on a link to verify some information.
“I guess I was a little surprised I was getting a refund and that kind of clouded my thinking,” said Zink, a retired power engineer.
When he clicked on the link, a page bearing all the hallmarks of a CRA web page popped up and he was asked to submit his social insurance number, then follow up with his mother’s maiden name and other details. It wasn’t until he started to type in his credit card verification code and card number that he start to question the credibility of the information request.
“They said they would credit my Visa card and that’s what triggered me. This is not normal,” Zink recalled, admitting a sense of frustration that he had almost been hoodwinked.
What made the scam so hard to spot at first was the detail that had been put into the fake CRA website. A close eye might not have detected any problem with the URL because it included the letters "cra" and ".ca" and had all the graphics one might expect on a government website.
But it turned out to be as phoney as a $3 bill.
A call to the general CRA number confirmed Zink’s fears: The email was a hoax, a common phishing scam initiated by a con artist.
The email tax scam is a relatively common version of the CRA telephone scam, according to RCMP spokesperson Cpl. Michael McLaughlin, who said the local detachment regularly gets calls from people nearly ensnared by the tax scam or other rip-offs.
“It’s around tax time, so we are seeing a resurgence, as expected, of the Canada Revenue Agency scam," Cpl. Michael McLaughlin
While the email tax scam offers a refund to get a victim’s information to steal their ID and money, the phone fraud is an effort by scammers to get money directly.
In these phone calls originating from call centres outside of Canada, a scammer identifies himself with a badge number and threatens arrest for tax evasion unless back taxes are paid with money via Interac or money transfer, gift cards (fraudsters want the code to get the funds) and even Bitcoin, which is digital currency.
“It’s around tax time, so we are seeing a resurgence, as expected, of the Canada Revenue Agency scam,” McLaughlin said.
According Canadian Anti-Fraud Centre stats and Better Business Bureau Scam Tracker reports, Canadians continue to lose money to the CRA scam. Over $5 million was lost in 2017, likely a low estimate because it's believed only 5% of victims actually report the crime.
There has been some good news with the tax phone scam, however, after an arrest in India in 2016 of the ringleader of a network of call centres primarily responsible for IRS and CRA scams. (After the arrest, those scams actually dropped by 60%, according to the Better Business Bureau.)
Still, it’s up to residents to be alert to the scams and to trust their instincts if a deal sounds too good — or too bad — to be true. Visit the CRA website (cra.gc.ca) and you’ll find 23 samples of email tax scams targeting both individuals and businesses.
“If you think something’s amiss, take a break, tell the person you’ll call them back and talk to somebody you trust,” McLaughlin suggested.
• Here's where you can go for help.
CRA SCAM ADVICE
Here’s some advice offered by the Better Business Bureau about the scams where the fraudsters claim to be from the Canada Revenue Agency (CRA):
• The CRA does not make threatening phone calls demanding payment of taxes.
• The CRA will not solicit for personal or financial information over the phone or online.
• If there is a problem with your return, the CRA will contact you via mail.
• If you have any concerns about your tax return, contact the CRA directly.
TOP 10 SCAMS
According to the Better Business Bureau ScamTracker, the top 10 riskiest scams in 2017 were:
1. Online purchase scam (up from #4 in 2016): Products associated with scams are related to clothing, cosmetics, electronics and automobiles. The offer of free trials was a common tactic for these online purchases.
2. Investment scam, often targets elderly people (up from #6 in 2016).
3. Employment scam (no change).
4. Advance fee loan scam (up from #5 in 2016).
5. Fake check scam (down from #2 in 2016).
6. Home improvement scam (down from #1 in 2016).
7. Tech support scam (up from #8 in 2016).
8. Travel/vacation scam (new to top 10, #12 in 2016).
9. Family/friend emergency scam (no change).
10. Government grant scam (new to top 10, #11 in 2016).
Regardless of the scam, scammers often rely on the following tactics:
• the promise of getting a "great deal" (which is often too good to be true);
• pressure to respond immediately with offers that are time sensitive and prices that "can't be guaranteed;"
• intimidation (for example, "You are under federal investigation" or "You will be arrested within one hour unless you call this number");
• and isolation, which aims to force a decision without others' opinions.
Scammers can also be very nice and personable, which can defy "bad guy" stereotypes and make targets more at risk.
Travel and vacation scams joined the list of top 10 scams last year, with top destinations mentioned in the scams: Orlando/Florida, Disney, Mexico/Cancun, and the Bahamas.
