Tax scams are on the rise. Here’s what to watch out for

Tax scams typically involve fraudsters posing as representatives from the Canada Revenue Agency (CRA) or other government bodies. Their goal is to trick you into providing sensitive information or making payments under false pretenses. These scams can come in the form of phone calls, emails, text messages or even regular mail.

For example, scammers may claim you owe back taxes, threatening legal action or arrest if you don’t pay immediately. Alternatively, they might promise a tax refund but require your banking details to “deposit” the money.

Knowing the warning signs of a tax scam is your first line of defense. Here are some common red flags.

Unsolicited contact

Neither CIBC nor the CRA will ever unexpectedly contact you by phone, email or text to request personal or financial information.

Pressure tactics

Scammers often use urgent or aggressive language, such as threats of arrest, deportation or loss of benefits.

Requests for unusual payment methods

Demands for payment via gift cards, cryptocurrency, prepaid credit cards or wire transfers are clear signs of a scam.

Links to fake websites

Emails or messages may direct you to websites mimicking government portals to collect your information.

Spelling and grammar errors

With artificial intelligence (AI), scammers are able to create more convincing messages with fewer errors. However, you should continue to watch for awkward formatting, phrasing, typos or incorrect official logos.

Protecting yourself and your family from tax scams starts with vigilance and education.

Never share personal information

Do not provide your social insurance number (SIN), banking details or credit card information over the phone, email or text unless you initiated the contact with a verified organization.

Verify the source

If you receive a suspicious phone call or message, hang up or delete it. Contact the CRA directly using the official phone number on their website to confirm any claims.

Don’t click suspicious links

Avoid clicking on links or downloading attachments from unknown or unexpected sources.

Monitor your accounts

Regularly check your bank and credit card statements for unauthorized transactions.

Enable account alerts

Set up notifications for your bank accounts to monitor for unusual activity.

CIBC is committed to helping you protect your finances and personal information. Here’s how we can support you.

• Stay informed with CIBC’s up-to-date fraud alerts
• Take advantage of our educational resources
• If you suspect you’ve been targeted by a scam or notice suspicious activity on your accounts, contact CIBC immediately at 1-800-465-2422 Opens your phone app.
• CIBC offers real-time alerts and monitoring services to help you spot unusual transactions
• Our online and mobile banking platforms use industry-leading security measures to help keep your information safe

Just as a solid financial plan helps you weather market volatility, a proactive approach to fraud prevention can protect you from tax scams. Take the time to educate yourself and your loved ones, and don’t hesitate to reach out for professional guidance if you’re unsure about a communication you’ve received.

Remember, neither CIBC nor the CRA will ever pressure you to make immediate payments or share sensitive information through unsecured channels.

When faced with a suspicious request, remember to Stop, Check, Talk. 

1. Stop: Pause before taking any action
2. Check: Carefully verify the legitimacy of the request
3. Talk: Discuss the request with a trusted contact or advisor before sending any money or sharing personal information

This simple approach can help you avoid falling victim to tax scams.