Two Tax Scams to Watch Out for This Tax Season

Tax Season Tax Scams

First Published Date: March 8, 2015

Hard-working Canadians are busy getting ready to file their taxes. And so are the scammers are busy getting ready to utilize this seasonal opportunity to make some money. Tax scams can come in various ways. Today, I will talk about two methods that are popular among con artists, as these methods are easier for con artists to use to get your money.

Tax Software Scam: If you are filing taxes via tax software, scammers can reach out to you via various methods like emails or phone calls. What usually happens is that they will tell you that you filed your taxes with the wrong information, password, or made terrible mistakes while filing and they need to fix the mistakes with the tax authority. So they will require your personal information to access your files. The emails they send can have malicious links to install a virus on your computer or would ask to enter a fake site that looks like your tax software site to obtain your password or other information. Sometimes they will make phone calls instead to obtain your information.

Tax Authority Phone Call: Scammers can manipulate phone lines to show they are calling from tax bodies like the CRA or IRS and will ask you for money to settle your issues, otherwise a warrant will be issued or a lawsuit will be filed. They can even provide you an 800 # to call back, which will look like a legit number. When such calls happen, scammers will have your previous tax information, your home address, and personal information – so you will think they are calling you from the tax authority for real. Then they ask for money right away to settle your case. Usually they ask to wire transfer money, but there are reported cases where scammers agreed to meet in person to receive the money.

Government agencies do not call or send email notifying you that a lawsuit or warrant is on its way and will never ask you to wire money or receive money in person. Any tax correspondences will arrive in the mail. Your best defence is your own common sense and vigilance. Look for suspicious behaviour and other elements from anyone contacting you for money in a sense of emergency and hurry.