Don’t be a victim. Fight Scam, Report Fraud.

By: Earl Francis Dacara

With the onslaught of Covid 19, people’s acts were considerably limited so that almost all are trying either to amuse themselves or make themselves busy and useful during the stay-home order measures. With the global pandemic, reports of phishing, scams, and fraud are on the rise. Not only are there more people and dubious charities reaching out for money, social isolation is making people more vulnerable to being taken advantage of in these trying times.

The government has taken decisive measures and provided immediate financial support to Canadians, residents and business. One of the earliest is the Canada Emergency Response Benefit (CERB), providing $2000 per month for four (4) months to qualified applicants. With all the benefits and support being given by the government, there are unscrupulous fraudsters working so hard to take advantage of some of the weaker sectors of the society.

One form of fraudulent practice is phishing which is an attempt to steal personal information such as passwords or credit card numbers, or to get someone to inadvertently install malicious software on his/her device. It takes the form of email or other online communication from a reputable company or organization you would normally trust, such as your bank. Phishing usually results in stolen information or a compromised device.

Scammers, on the other hand, usually attempt to steal money or other valuables directly through lies or other deception. Scams usually involve the victim sending money or valuables to someone else.

Fraud, however, usually involves someone pretending to be someone else or using someone else’s information. One example is Credit card fraud, where a person uses another person’s credit card information to purchase things, but leaves the person stuck with the bill.

The present Covid 19 pandemic has given rise to a wide variety of new cyber incidents and can take many different forms.

There are a plethora of ways scammers can make it appear that their transactions are legitimate. Below are some examples and tips on how to spot and avoid scammers.

Charity and donation scams

Scammers and use glib talks to persuade someone to send them money immediately for charitable donation. The best way to avoid this scam is to ask for information in writing before donating, or to go to the charity’s website independently and donate there. Verify that a charity is registered through the CRA website and never give money to someone on the phone, or through links in an email.

Crowdfunding scams

In this type of scam a person will set up a project or donation drive, requesting money to support the creation of a product, such as a book or game, or to support a person or business in need of financial assistance.

Many of the crowdfunding drives are legitimate, but there are some which are completely fabricated and the money does not reach the beneficiary. It is best to do some research before giving anyone any money or credit card information.

Fake ads for health-related products

Fake news and fake ads about face masks, hand sanitizers, or home medical testing kits are cropping up more and more as a result of this pandemic. There were advertisements about vaccines or herbal remedies on social media to exploit stressed people.

It is best to verify with Health Canada if the health product is indeed registered. As there is yet no approved vaccines, there are no approved cure and specific remedies for the coronavirus.

Emergency scams

These scams attempt to persuade someone to send money by claiming to be a friend or family member who is in an emergency situation. This scam can be difficult to handle, because we have an innate desire to help our loved ones.

Utility company scams

Scammers pretend to be from electricity or gas company and claim that there is an unpaid balance on the user’s bill. They threaten to cut off service unless they get money immediately.

Scammers also come to one’s house pretending to be from a utility company and attempt to get in your home or to get to sign a contract for a new water heater or the like. They will instruct the victim to call a 1-800 number to make a payment using a prepaid gift card or electronic transfer.

Immigration extortion

Newcomers to Canada, are exploited by these scammers who will call or email them advising them that documents were incomplete. They will insist that fees be paid immediately, or risk being deported or losing one's passport or citizenship. In these cases, it’s very important to remember that Canadian immigration officials will never ask for money or threaten immediate punishment.

Credit card fraud

There is credit card fraud when someone obtains a person’s credit card information and uses it without his permission, buying things or withdrawing money and leaving the victim stuck with the bill.

It is important to safeguard credit card information. A person should also look into what policies a credit card issuer has around credit card fraud and what protections they provide.

The most important thing is to protect credit card information by:

·         keeping credit card in a safe place,

·         protecting PIN and keeping it secret,

·         shredding credit card and bank statements before throwing them away,

·         only shop online at trusted websites, and

·         never give credit card information in email or over the phone.

NOTE: If you believe you have been the victim of credit card fraud, contact your credit card issuer immediately and put a fraud alert on your credit report. Also report the fraud to the Canadian Anti-Fraud Centre.

Identity theft

This scam is similar to credit card fraud, in that someone steals personal information and uses it for some form of criminal activity, such as:

·         access your bank or credit card information,

·         open new bank accounts or credit cards in your name,

·         change your online passwords and information,

·         rent an apartment or car, and

·         the list goes on and on.

This scam happens when scammers are able to get a hold of one’s credit card or bank statements, PINs, passport, driver’s license, or SIN card. This can happen either in the real world or online.

Some of the most popular strategies of the identity thieves are:

·         stealing mail out of mailbox,

·         going through garbage looking for credit card or bank statements,

·         stealing online passwords and using those to access information  stored online

Some important things to remember to protect yourself against scammers are as follows:

·         Do some research first

·         Be cautious and get help if needed

·         Protect information

·         Reporting phishing, scams, and fraud in Canada

·         Contact financial institution

·         Canadian Anti-Fraud Centre

·         Canadian Centre for Cyber Security

·         Contact the police

Canada Revenue Agency scams

CRA scams have become increasingly common and involve very forceful tactics threatening jail time or steep penalty fees if not paid immediately.

Sometimes scammers will claim that a person is actually owed money, such as an unexpected tax return or benefit, and ask him for personal information such as passport number, bank account numbers, or credit card information.

 

It’s important to know how the CRA does and doesn’t contact people and gather information. The CRA will call you on the phone and email you, but they will never:

·         ask for personal or financial information other than your name, birthdate and social insurance number,

·         demand immediate payment by credit card or in any other form,

·         use aggressive or threatening language,

·         threaten to have you arrested or deported,

·         leave threatening voicemails, or

·         send you emails with links for payment or refunds – they will always have you independently go to the CRA website.

CRA is precise in all its communications. Canadians, residents and business must be aware how CRA transacts business with all of us.

As provided by the Canada.ca website, scammers posing as Canada Revenue Agency (CRA) employees continue to contact Canadians, misleading them into paying false debt. These persistent scammers have created fear among people who now automatically assume that any communication from someone representing the CRA is not genuine.

This tax tip will remind Canadians that the CRA does indeed contact taxpayers by phone, email and mail for legitimate reasons. The following tips will help Canadians identify legitimate communications from the CRA.

 

By phone

The CRA may

·    verify your identity by asking for personal information such as your full name, date of birth, address and account, or social insurance number

·         ask for details about your account, in the case of a business enquiry

·         call you to begin an audit process

The CRA will never

·         ask for information about your passport, health card, or driver's license

·     demand immediate payment by Interac e-transfer, bitcoin, prepaid credit  cards or gift cards from retailers such as iTunes, Amazon, or others

·        use aggressive language or threaten you with arrest or sending the police

·  leave voicemails that are threatening or give personal or financial information

By email

The CRA may

·         notify you by email when a new message or a document, such as a notice of assessment or reassessment, is available for you to view in secure CRA portals such as My Account, My Business Account, or Represent a Client

·   email you a link to a CRA webpage, form, or publication that you ask for during a telephone call or a meeting with an agent (this is the only case where the CRA will send an email containing links)

The CRA will never

·     give or ask for personal or financial information by email and ask you to click on a link

·   email you a link asking you to fill in an online form with personal or financial details

·        send you an email with a link to your refund

·     demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon, or others

·         threaten you with arrest or a prison sentence

The Canada Revenue Agency (CRA) will never send or request e-transfers of any kind. The CRA will only send you payments by direct deposit or by cheque in the mail. If you receive a e-Transfer claiming to be from the CRA like the example below, it’s a scam!

This a sample of an email scam as shown in Canada.ca.

INTERAC e-Transfer Reminder: You received money from CRA
interac@payments.interac.ca
Mon 2017 07-17 9:44 AM
To [LINK to personal email has been removed.]

Hi [LINK to personal email has been removed.],
You received $458.00 (CAD) from Canada Revenue Agency.

Deposit your money
Expires: July 28, 2017

FAQs | This is a secure Transaction

Another sample of email scam:

Other sample email scams:

From: ben.kainth@cra-arc.gc.ca [mailto:ben.kainth@cra-arc.gc.ca]
Sent: Wednesday, April 18, 2012 12:11 PM
Subject: FW: CRA complaint
Importance: High

Dear business affiliate,

A complaint has been filled against you by Mrs. Ana Evans, claiming that you and your company are involved in tax evasion schemes.

The original complaint has been attached to this message, in Microsoft Word format.

Before starting an investigation , we are required to check the balance reports of your company and compare them with the data you filled in the tax forms.

Please forward the required reports to : ben.kainth@cra-arc.gc.ca

Thank you,

Benjamin Kainth

Fraud Department

Canada Revenue AgencyEmail scanned for virus: mail.mapleleaf.ca

De : Canada Revenue Agency [mailto:taxfraud@cra-arc.gc.ca]

Envoyé : mercredi 11 mai 2011 11:20

À : undisclosed-recipients:

Objet : Possible tax evasion fraud!

Dear tax payer,

While checking your company's tax reports , several discrepancies were found by comparing the real and the declared profit.

An investigation has been started to determine if this is a mistake or a tax evasion attempt.

A new tax form , revised , with additional fields has been attached to this message.

The revised tax form can also be downloaded from the CRA mirror : (web link)

Please complete the revised tax form , with accurate information and forward the completed form to : taxevasionfraud@cra-arc.gc.ca

Thank you

NOTE: Please see other email scam samples at: Canada.ca

By mail

The CRA may

·         ask for financial information such as the name of your bank and its location

·         send you a notice of assessment or reassessment

·    ask you to pay an amount you owe through any of the CRA's payment options

·       take legal action to recover the money you owe, if you refuse to pay your debt

·         write to you to begin an audit process

The CRA will never

·         set up a meeting with you in a public place to take a payment

·      demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon, or others

·         threaten you with arrest or a prison sentence

Below is a sample of a fraudulent letter (Canada.ca):

Dear Mr. xxxxxxxxxxxx ,

Our records indicate insufficient information for your income tax return. As a result, you have been except from the Canadian Tax reporting and withholdings on claims to be paid to you. To apply for your claims

We have been required by law to update our records in order to rectify your exemption status.

Therefore, you are to Use this form to claim your benefit or SR&ED carried out in Canada during this year. Authenticate the following by completing form Schedule T2 and return to us as soon as possible through the fax number: [Fraudulent fax number has been removed.] or send through attachment to the E-mail.

When completing form T2, please follow the steps below

1.   We need you to provide your permanent address if different from the current mailing address on your Form T2. You must indicate your country of origin to support your resident status (if your bank account or other financial dealing has a Canada address for mailing purpose).

If any joint account holder are now Canada residents or Citizen, or in any way subject to Canada tax reporting laws, please check the box in this section.

All account holders sign and date the form separately and fax it to above-mentioned number. Please complete Form T2 ‘attached” and return to us within 2 (two) weeks from the receipt of this letter in order to enable us  update your records immediately.

If you do not meet this reporting deadline, we may reject your claim or it will be subject to Canada tax reporting and back up withholding (if back up withholding applies, we are require by law to withhold 30% of the benefit paid to you.

On this form, references the Act are to the Income Tax Act. References to the Regulations are to the Income Tax Regulations.

We appreciate your cooperation in helping us protect your exempt status and also update our records.

(Signature)

Following the letter is a fraudulent Government of Canada form requiring taxpayers to enter their personal information (i.e. name, sex, nationality, date of birth, place of birth, social insurance number, mother's maiden name, passport number). It also requires taxpayers to enter their bank account information, mailing address, to answer questions about their country of residence and to sign and date the form.

By text messages/instant messaging

The CRA never uses text messages or instant messaging such as Facebook Messenger or WhatsApp to communicate with taxpayers under any circumstance. If a taxpayer receives text or instant messages claiming to be from the CRA, they are scams!

This is a sample of a scam text message (Canada.ca):

Before giving money or personal information over the phone

Make sure the caller is a CRA employee

·   Ask for, or make a note of, the caller's name, work section, and office location and tell them that you want to first verify their identity.

·      You can then check that the employee calling you about your taxes works for the CRA or that the CRA did contact you by calling 1-800-959-8281 for individuals or 1-800-959-5525 for businesses. If the call you received was about a government program such as Student Loans or Employment Insurance, call 1-866-864-5823.

To protect yourself from scams, verify your tax status and make sure the CRA has your current address and email

·         Confirm your tax status through one of the CRA's secure portals, My Account, My Business Account, or Represent a Client, or through the MyCRA and MyBenefits CRA mobile web apps

·         You can also call the CRA's Individual Tax Account Balance Automated Service at 1-866-474-8272. This automated phone service provides information about your tax account balance, as well as your last payment amount and date. To use this service, be ready to give your social insurance number, date of birth and the total income you entered on line 150 of your 2017 or 2016 tax return.

·         Call 1-866-864-5823 to update your address or contact information for government programs that you owe money to, such as student loans or employment insurance.

When in doubt, ask yourself

·         Why is the caller pressuring me to act immediately? Am I certain the caller is a CRA employee?

·         Did I file my tax return on time? Have I received a notice of assessment or reassessment saying I owe tax?

·         Have I received written communication from the CRA by email or mail about the subject of the call?

·         Does the CRA have my most recent contact information, such as my email and address?

·         Is the caller asking for information I would not give in my tax return or that is not related to the money I owe the CRA?

·         Did I recently send a request to change my business number information?

·         Do I have an instalment payment due soon?

·         Have I received a statement of account about a government program I owe money to, such as employment insurance or Canada Student Loans?

Some of the reasons the CRA may call

They wrote to you previously or any of the following situations apply:

·         you owe tax or money to a government program. A collections officer may call you to discuss your file and ask you to make a payment. In this case, you may need to provide some information about your household financial situation.

·         you did not file your income tax and benefit return. A CRA officer may call you to ask you for the missing returns.

·         the CRA has questions about the tax and benefit records or documents you sent. A CRA officer may call you for more information.

·         you are a small business and the CRA is offering a Liaison Officer visit.

How to protect yourself from identity theft

·         Never provide personal information through the Internet or by email. The CRA does not ask you to provide personal information by email. 

·         Be suspicious if you are ever asked to pay taxes or fees to the CRA on lottery or sweepstakes winnings. You do not have to pay taxes or fees on these types of winnings. These requests are scams.

·         Keep your access codes, user ID, passwords, and PINs secret.

·         Keep your address current with all government departments and agencies.

·         Choose your tax preparer carefully! Make sure you choose someone you trust and check their references. Always review your return, agree with the content before filing, and follow up to make sure you receive your notice of assessment, since it contains important financial and personal information that belongs to you.

·         Monitor your tax accounts by registering for My Account or My Business Account. Once registered, sign up for email notifications (account alerts), which will notify you of changes made to your accounts (e.g. change in address or direct deposit information) or if paper mail from the CRA was returned. 

·         Before supporting any charity, use the CRA website to find out if the charity is registered and get more information on the way it does business.

·         Be careful before you click on links in any email you receive. Some criminals may be using a technique known as phishing to steal your personal information when you click on the link.

·         Caller ID is a useful function. However, the information displayed can be altered by criminals. Never use only the displayed information to confirm the identity of the caller whether it be an individual, a company or a government entity.

·         Protect your social insurance number. Don't use it as a piece of ID and never reveal it to anyone unless you are certain the person asking for it is legally entitled to that information. If an organization asks for your social insurance number, ask if it is legally required to collect it, and if not, offer other forms of ID.

·         Pay attention to your billing cycle and ask about any missing account statements or suspicious transactions.

·         Shred unwanted documents or store them in a secure place. Make sure that documents with your name and SIN are secure.

·         Immediately report lost or stolen credit or debit cards.

·         Carry only the ID you need.

·         Do not write down any passwords or carry them with you.

·         Ask a trusted neighbour to pick up your mail when you are away or ask that a hold be placed on delivery.

Report a scam

By phone, Call the Canadian Anti-fraud Centre to report a scam at 1-888-495-8501

What to do if you were scammed?

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.

If your social insurance number (SIN) has been stolen, you should contact Service Canada at 1-800-206-7218. For more information, see Social Insurance Number (Service Canada website).

You should contact the CRA if you:

·         think your CRA user ID or the password you use in personal dealings with the CRA has been compromised.

·         want to disable online access to your information on the CRA login services.

·         want to re-activate online access to your information after it has been disabled.

If the CRA has confirmed that a taxpayer's information has been compromised, the Agency will act to prevent the fraudulent use of the information involving systems and processes for which the CRA is responsible.

Call the CRA at 1-800-959-8281 for individuals and 1-800-959-5525 for businesses to request that enhanced security measures be placed on your account. These measures will ensure CRA call centre agents ask additional security questions to determine a caller’s identity.

If you have had your account compromised and are unable to comply with your tax obligations, you may be eligible for taxpayer relief or any resulting interest or penalties. To submit your request for relief, please complete Form RC4288, Request for Taxpayer Relief - Cancel or Waive Penalties or Interest.

More information on tax scams and fraud can be found at canada.ca/taxes-fraud-prevention.

To report scams

To report scams, go to antifraudcentre.ca or call 1-888-495-8501. If you think you may be the victim of fraud or you unknowingly provided personal or financial information, contact your local police service, financial institution, and credit reporting agencies.

Source: Canada.ca

Disclaimer: The above is NOT intended as legal practice/advice from the writer. Readers are enjoined to seek advice from a legal professional.

The writer is a Regulated Canadian Immigration Consultant (RCIC) and CEO of Northern Quest Canadian Immigration Services Inc. with offices at Suite 203, 169 Dundas St. East, Executive Offices, Suite 203 Mississauga, ON L5A 1W6. He is also an associate Paralegal from Y.S.N. & Associates Professional Corporation with offices at 1018 Finch Ave. West, Suite 100, Toronto, ON M3J 3L5 with contact # Direct: 647-302.3508, Tel. 905-232.4553, Fax 905-232.4551, email: dacaralegal@hotmail.com / earldacara@gmail.com