As April creeps up closer and closer, there is one thing every Canadian is dreading. Fine, two things… Tax season and the plethora of CRA scams that come with it. Scammers often tailor their scams to what's going on at specific times of the year, and tax season is no different. That's why we've made this comprehensive list for all the most common CRA scams you may get hit with over the next few months.

Text Message CRA Scams

There is a wide array of CRA scams that are sent out via text messages. A common one is when scammers claim to be from the CRA and prompt you to click a link and enter personal information such as your name, date of birth, and social insurance number.

Another text message scam has scammers impersonating the CRA with the intention of gaining access to your CRA accounts. The message will say that there is an error with your account and that it must be updated. They will ask victims to text back "HELP", after which they will be asked to disclose some personal information.

One last text message scam has scammers impersonating the CRA and offering fake refunds to Canadians. This is known as phishing, and again will prompt their victims to click on a link and provide personal information.

Remember that the CRA does not communicate with taxpayers via text message, so if you ever receive these texts, make sure to never click the links, reply to the texts, and above all, provide any of your personal information.

Social Insurance NumberScams

The SIN tax scam refers to scammers who threaten to suspend or cancel their victim's Social Insurance Number if they don't pay their "overdue taxes". Both email and phone calls (often beginning as robocalls with automated recordings) are used to carry out this scam and, in addition to demanding money directly, scammers are also hoping to acquire their victims' SIN.

If you receive a call or email like this, keep in mind that nobody, including the federal government, can just "cancel" your SIN. This is an identification number that lasts for life.

COVID Related TaxFraud

COVID changed the world in many ways, and the impact it had on scams was no exception. For tax related scams in particular, scammers have attempted to defraud victims by suggesting misuse of pandemic related assistance. Scammers will impersonate members of the CRA or even law enforcement agencies and demand payment in the form of debit cards or gift cards. Other reports have shown them asking for bank accounts and routing numbers.

Fraudulent Tax Returns/Identity theft Scams

These scams refer to scammers who attempt to acquire their victims' personal information (such as user ID and passwords), and file fake tax returns in their name. This is referred to as identity theft and targets all Canadians.

Things to look out for:

• a change on your account
• an email notification saying your account has been modified
• a delay in receiving credits or refunds
• difficulty filing your tax return online

If you notice a change on your account has been made without your knowledge or consent, contact the CRA immediately.

Ghost Tax ReturnScam

Also known as "ghost preparers", the ghost tax return scam refers to scammers who impersonate legitimate tax preparers and offer to assist their victims with their taxes, with the caveat that they do not sign the tax return that they prepare. Of course, it is a standard practice for any tax preparer to sign such documents, so this is a major red flag. The result is the scammer arranging the tax refund to go into their own bank account rather than their victims. Whenever acquiring the service of a tax professional, always make sure to check for proper credentials, licensing, and never hand over your tax files to anyone who isn't certified in your jurisdiction.

GST/HST tax refund/credit scam

This scam targets victims by text message or email, claiming that the CRA is sending them a GST/HST tax refund or credit, and then requests personal information in order to proceed. Victims will be asked to reply or click on a link to complete an application form by an urgent deadline to receive their refund or credit.

Remember that emails or texts of this nature are always bogus. If you are eligible for a GST credit, this one-time payment will be automatically mailed or direct deposited to you by the CRA.

Cryptocurrency-Related TaxScams

With the explosion of cryptocurrency in recent years, and regulations and safeguards constantly having to be updated, crypto-related tax scams are definitely something to watch out for. A common one involves investing tax refunds in cryptocurrency for alleged tax circumvention in the future. Essentially, this refers to scammers convincing victims that their tax refunds can be placed somewhere outside of the CRA. This is of course false since the CRA taxes cryptocurrency profits just like any other asset. Long story short, the money from the tax refund will be lost directly to the scammer.

Scammers may also target victims by phone, requesting money be transferred via cryptocurrency to cancel an RCMP warrant for their arrest. The scammer will then call their victim back, pretending to be the RCMP, and instruct the victim to transfer money from their bank account to cancel the arrest warrant. Promising to return the money once the victim's name has been cleared, the scammer will even provide phone numbers and passwords to deposit money into a local coin machine or cryptocurrency terminal. Remeber that the CRA will never, under any circumstance, request or accept payment by cryptocurrency.

Resolving Tax Jeopardy by DirectPayment

This scam refers to scammers who take advantage of vulnerable victims in some type of tax jeopardy, offering them the chance to resolve their issue with one easy direct payment. This can understandably be very tempting if you're in this kind of desperate situation, but before making any payment, always remember to verify and communicate with the CRA through their regular channels.

Tips to Protect Yourself Against CRAScams

1. The real CRA does not contact taxpayers by email, text message, or social media to request personal or financial information. They also do not ask for credit or debit card numbers over the phone, nor will they ever request payment via gift card or cryptocurrency. If anyone claims to be from the CRA doing any of those things, it is most definitely a scam.
2. The real CRA may sometimes call you, but not without attempting to contact you by mail first. If they do call, they will never demand money directly.
3. The real CRA will never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying. They will also never demand taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
4. The CRA website is a great resource to consult if you're suspicious that someone is attempting to scam you, as well as any other tax-related question you might have.
5. When in doubt, Whois by SIPSTACK allows you to easily check the safety of any phone number that's calling you.

How SIPSTACK Fights Fraud

Using the latest technology and machine learning, SIPSTACK's systems authenticate all activity in real time against variables that affect your security. When a carrier implements SIPSTACK's Smart CNAM, they are able to customize a threshold for calls to pass through, based on their specific needs. At SIPSTACK we take an active role in ensuring we are building a secure and connected tomorrow. Contact us today to learn how you can protect yourself from spam.