Property and Income Tax scams are becoming more and more common. There are multiple tactics that scammers are using to trick you into making fake payments.
Fake Tax Collection Calls or Emails
Scammers will impersonate the Canada Revenue Agency or your local municipality, claiming you owe back taxes. You will receive contact via email or phone. They will include threatening wording such as arrest and seizure of property to encourage prompt payment. They will sometimes request payment in gift cards and cryptocurrency. Both of which are next to impossible to trace or recover.
Phony Property Lien Notices
Victims receive fake letters stating that overdue taxes and threatening liens against the property have occurred. They will threaten seizure of property in order to encourage quick payment. Will come from fictitious companies.
In Person Impersonation
People will show up at your door, pretending to be from the CRA, or your local municipality to collect taxes. The Richmond Times reported in 2018 that a Richmond, BC couple was targeted. Someone claimed they owed taxes and demanded immediate cash payment in a parking lot.
How to Protect Yourself
- Remember, only scammers deal with gift cards, if they ask for gift cards as payment, it is 100% a scam
- If you are even in question of taxes owing, contact the CRA directly at 1 (800) 959-8281
- If you are in question of owing property taxes, contact your local municipality office to confirm
- Do not give any personal information or payment to a person at your door. If this was legitimate, they would have you contact the local municipality office to arrange payment.
- Look for unusual email addresses / contact information. Check the official sources (CRA website, or your local municipality’s website) for contact information and addresses
- Beware of threatening language like foreclosure, seizure, arrest. These are Fear and Urgency emotional triggers used to get you to react.