Millards Chartered Professional Accountants is warning Canadians about escalating “CRA Scams” after a Calgary woman was defrauded $20,000 in iTunes cards.
The Calgary Police Service posted the story on their Facebook page after relatives of the victim contacted them to report the crime.
“A woman received a phone call on her cell phone from a man claiming to be from the Canada Revenue Agency. The man asked for the woman by name and said that he was calling because she owed money for income taxes to the CRA and that there was a warrant out for her arrest and liens had been placed against her home, car and investments.”
The fraudster instructed the woman to go to a nearby grocery store, where he directed her to purchase Apple iTunes gift cards as a way of paying the debt owed on the CRA taxes.
“He remained on the phone with her as she purchased the gift cards, and provided him with the activation codes. He then instructed the victim to attend another grocery store and purchase additional iTunes gift cards. The victim complied and once again provided the activation codes over the phone to the scammer.”
According to the Calgary Police, the caller told the victim he was at the courthouse attempting to have the arrest warrant removed. He then made a false claim that the warrant had been re-issued and once again told the victim that more money was required.
“The victim proceeded to attend her bank and withdrew funds, before contacting a family member to request additional money. The family member contacted police, who were able to locate the victim and stop the fraud. The victim was defrauded of nearly $20,000 before police were able to intervene.”
Robert Parker
CPA, CGA, CFI
Millards Associate
Certified Forensic Examiner
Robert Parker, CPA, CGA, CFI, is a Millards Associate and Certified Forensic Examiner. He’s calling on the public to reach out to anyone that might be at risk for this type of scam.
“We’re particularly concerned about the elderly, the less tech savvy and those that may not have the cognitive ability to identify unscrupulous callers. We’re calling on everyone to spread the word about money transfer scams and to caution family and friends to be very wary of this type of fraud.”
Parker says that while the scam seems obvious to most, these fraudsters are convincing and count on perseverance and probability to find victims.
“If you make enough calls, eventually you’re going to reach someone that actually owes money to the CRA and is also vulnerable in some way. Fear is a motivating factor and the caller attempts to frighten you into thinking that the only way to get out of trouble with the taxman is to pay quickly.”
The Canadian Revenue Agency has online resources and articles dedicated to protecting against fraud but please note that the CRA will NEVER do the following:
- send email with a link and ask you to divulge personal or financial information.
- ask for personal information of any kind by email or text message.
- request payments by prepaid credit cards.
- give taxpayer information to another person, unless formal authorization is provided by the taxpayer.
- leave personal information on an answering machine.
In addition to warning member of the public about the dangers of this type of phone scam, police want merchants and store cashiers to be aware of customers asking to purchase large amounts of iTunes or other gift cards. Responsible retailers should have a policy to initiate conversations around potential scams.
Have you been a victim?
You should report deceptive telemarketing to the Canadian Anti-Fraud Centre online or by calling 1-888-495-8501. If you suspect you may be the victim of fraud or have been tricked into giving personal or financial information, contact your local police service.
Do you have a concern about money you owe the CRA? Have you received a suspicious call from someone claiming to represent the CRA? Millards Chartered Professional Accountants can help. Contact your Millards representative today for advice and guidance you can trust.
In addition to his other designations, Robert is a Certified Forensic Investigator and a member of the Association of Certified Forensic Investigators of Canada. His area’s of interest include assurance work in the finance, retail and wholesale sectors as well as the manufacturing and construction industry.
Robert manages audits for several local non-profit organizations including Community Living Brant, Contact Brant, Enterprise Brant, Family Counseling Centre Brant and Ontario Agencies Supporting Individuals with Special Needs.
Resources and Sources:
Calgary Police Service
Protect yourself against fraud
Don’t get scammed!
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