You receive a call from the Canadian Revenue Agency threatening legal action or arrest if you or your lawyer doesn’t call immediately. What should you do?
According to Josh Laporte, CPA, CA and Associate from Millards Chartered Professional Accountants, you’re being scammed.
“Unfortunately, this type of scam is highly successful and very lucrative. As a result, these fraudsters are growing in numbers and becoming more emboldened. Incidents of this type of crime are on the rise across the country and right here in Brantford, Brant.”
Earlier this year, a Brantford senior lost nearly five thousand dollars after falling victim to the fraud now known to many as the “CRA scam.”
A Mississauga man was convicted in a Brantford court in September after being found guilty for three counts of fraud. The fraudster received a five-month conditional sentence and house arrest. His victims included a Brantford man.
A message on the Brantford Police website warns citizens about fraud.
“Fraud investigators are encouraging people to resist being pressured into giving anyone money without first verifying the person’s name and authenticity of their story. Consider calling a neighbour, a family member, or friend to assist you before handing out any money. Fraudsters often develop a ploy to receive money by pleading to the emotions of unsuspecting and generous residents by meeting with them in person, over the telephone, or through the internet.”
One of the techniques growing in popularity is a call from a person identifying themselves as Canada Revenue Agency. The victims are told they have an outstanding income tax bill and are threatened with arrest or having their assets frozen if they do not respond by deadline.
“The fraudster uses aggressive tones and high pressured tactics to scare the victim into transferring money to an account. Ask yourself why the CRA would be asking for personal information over the phone or e-mail that they likely already have on file?”
You can hear an example of this phone scam in the London Free Press article from June.
Seniors are a primary target for the CRA scam and Laporte is encouraging everyone to educate and caution senior family and friends.
“Seniors can fall victim to the CRA scam because they are trusting and want to do the right thing. Please reach out to any senior or others that you think might not be savvy to this type of modern fraud.”
Police are advising that anyone receiving a similar telephone call should hang up and report the call. Incidents should be reported to The Canadian Anti-Fraud Centre at 1-888-495-8501. You can also report online at www.antifraudcentre.ca.
If you believe that you have been a VICTIM OF FRAUD and reside in the City of Brantford, contact the Brantford Police Service at 519-756-7050. If you have already sent funds or your personal information contact the police and your financial institution immediately.
A new form has been developed, with input from major financial institutions, to assist victims of fraud with providing the required consent from their bank, which will aid police in further investigating the crime.
The Brantford Police suggest that you never take immediate action at the request of a caller and that you “contact the CRA or your accountant to confirm that you in fact owe back taxes, or are entitled to a refund, before providing any personal or banking information.”
They also want to get the message out that the CRA never requests prepaid credit cards.
Unfortunately fraud has become a serious issue for Canadians. The CRA scam is just one of the fraud tactics making the rounds. Other popular scams include, grandparent scams, secret shopper scams, identity theft, “skimming operations” and internet fraud involving money orders. The Government of Canada has published a downloadable PDF called The Little Book Of Scams. It details a variety of popular scams and how to protect yourself.