Common Tax Scams and How to Protect Yourself Against Them

By Royal Bank of Canada

Published April 1, 2025 • 4 Min Read

Tax season is prime time for scams and cybercrime. As Canadians send employment and income details to accountants, log into tax preparation sites and check their emails for refund updates – often using unsecured technology – criminals are more than ready to take advantage. Adding to the risk, many people feel stressed about filing mistakes or owing money to the Canada Revenue Agency (CRA), making them more vulnerable to scams.

Knowing the tactics scammers use during tax season can help you stay one step ahead. Here are some of the most common scams and how to protect yourself.

1. CRA phone scams

CRA phone scams have been around for years. And while awareness of these scams has grown, thanks in large part to CRA’s education campaigns, they remain persistent. In these scams, criminals will call you (often using a spoofed phone number), claiming to be from the CRA.

Using aggressive language, they will say you owe money – and that you will face legal consequences if you don’t pay immediately. Payments are often requested via cryptocurrency, gift cards or wire transfers, as these methods are difficult to trace.

2. Phishing emails and texts

As phone scams have become more recognizable, scammers have shifted to email and text-based scams. In these scams, you receive a fraudulent message that appears to be from the CRA saying you’re eligible for a refund or need to verify your account information. These messages typically contain malicious links that lead to fake websites with a request to enter your Social Insurance Number (SIN), bank account details or online banking credentials.

Since you may be expecting a text or email about your taxes at this time of year, a communication from someone who claims to be from the CRA doesn’t seem out of place, making these scams hard to spot.

Social media is another platform through which scammers attempt to reach Canadians. They may send direct messages claiming to be the CRA, your financial institution or a tax preparer offering inflated refunds.

4. Fake CRA websites

The advancement of AI has helped scammers create convincing fake websites. AI-powered platforms allow them to create professional-looking sites in minutes, mimicking official branding, logos, colours and layouts so fake sites look nearly identical to the real thing.

5. Fraudulent tax companies

Many Canadians turn to tax companies to prepare and file their taxes. Some scammers will offer fast and cheap services, taking advantage of people who may be filing at the last minute or looking for a budget friendly option. They may also promise instant or large refunds. What happens, however, is that they file a fraudulent return in your name, steal your refund and/or your personal information.

How to protect yourself from tax scams

While tax scams may be tough to spot, here are some things you can do to protect yourself against them:

Validate any communication from the CRA: If you receive a suspicious call or message, call the CRA at 1-800-959-8281 to see if they are indeed trying to reach you. Note that the CRA only sends emails to notify you that there is a secure message in your CRA mailbox.
Check in with your CRA account: Sign in to your CRA My Account to track your filing status, assessment and refunds. If you notice anything unexpected, contact the CRA immediately.
Don’t share your personal information: Do not provide your SIN, banking details or personal information over email, text or phone unless you know the person on the other end is legitimate.
Watch out for urgent or threatening language: The CRA will never threaten arrest, deportation or other legal action in a call or message.
Use trusted tax services: Make sure the company or individual you’re using is a registered professional. Be wary of anyone who promises an unrealistically high refund or requests payment in cash, gift cards or cryptocurrency.
Don’t click on links in unsolicited texts or emails: They are likely a gateway to a fake website designed to steal data.
Look closely at all website addresses: Ensure they start with https://. Note that the official CRA website is canada.ca – variations such as “cra-tax-refund.com” are fake.

Filing your taxes is already stressful without the added threat of scams. To make tax season smoother, consider filing early – this reduces last-minute panic and lowers the risk of falling for fraudulent “quick-fix” services. Enrolling in direct deposit through the CRA can also ensure any refund goes directly to your bank account, bypassing potential scams.

Staying informed is key. The CRA regularly updates its website with the latest scam alerts, so check their resources to keep yourself protected.

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