It’s that time of the year again: the start of tax season! While you may be looking forward to getting a nice refund from the government, you should also be aware of the risks you can encounter. Scammers are always on the lookout for ways to trick you into giving them your personal information or your money, and they may use various tactics to do so.
February 19 marks the online start of tax season, so let’s take a look at some of the common scams you might run into and how you can protect your identity.
Common scams to watch for
One of the most common scams is a fake call, text, email or letter from someone claiming to be from the Canada Revenue Agency (CRA). They may tell you that you owe money, that you are entitled to a larger refund, or that you need to verify your identity or bank account details. Or they may threaten you with legal action, arrest, or penalties if you don’t comply and also ask you to pay them with gift cards, wire transfers, or other untraceable methods.
Don’t fall for these scams! The CRA will never contact you by phone, email, text message, or social media to ask for your personal or financial information. They will also never demand immediate payment or threaten you with law enforcement. If you receive any suspicious communication from someone claiming to be from the CRA, don’t respond, click on any links, or open any attachments. Instead, report it to the Canadian Anti-Fraud Centre (CAFC) online or call 1-888-495-8501. And, if you’re unsure if it’s a scam, you can always check the CRA’s Scam Alerts for help.
Filing your taxes safely and securely
Another way to protect yourself from identity theft and fraud is to file your taxes safely and securely. Here are some tips to keep in mind:
File early. The sooner you file your taxes, the less chance there is for someone else to file a fraudulent return using your information and claim your refund.
Use a reputable tax preparer or software. Make sure you choose a trusted and verified service to help you with your taxes. Don’t share your personal information with anyone who contacts you unsolicited or promises you a bigger refund.
Use a secure network. Don’t file your taxes on a public wi-fi network, such as at a coffee shop, library, or airport. Hackers can intercept your data and steal your information. Instead, use a private and password-protected network, such as your home wi-fi.
Use a VPN. A virtual private network (VPN) is a service that encrypts your online activity and hides your IP address. It can help you protect your sensitive information from prying eyes and cyberattacks. You can use a VPN on any device, whether it’s your laptop, tablet, or smartphone.
Filing your taxes online is convenient and fast and completely secure with only a few precautions. By watching out for scams and following these tips, you can avoid becoming a victim of identity theft and fraud and enjoy your refund without any worries.
Don’t let scammers ruin your tax season. File safely and securely today to protect your personal information!
