The CRA tax scam appears to have stopped - at least for now.

Raid on call centre in India puts brakes on CRA tax scam

Experts are wondering if the scheme is permanently stopped, or if it will resume again when the heat dies down.

A raid on a call centre near Mumbai, India appears to have put a halt—at least temporarily—to the Canada Revenue Agency (CRA) scam that has bilked hundreds of Canadians out of millions of dollars.

On October 5 police in India arrested 70 people at the call centre, and brought more people in for questioning, in connection with complaints about a similar scam in the United States where people were phoned and told they owed money to the Internal Revenue Service (IRS), the American equivalent of the CRA.

“Both scams were pretty much identical,” says Evan Kelly, senior communications adviser for the Better Business Bureau (BBB) serving Mainland BC. Callers were informed of tax money supposedly owed, and threatened with arrest, fines, or deportation unless they paid the outstanding amount, usually by a prepaid Visa card or wire transfer.

A variation of the scam informed people that they were owed a refund, with the caller asking for personal information which could later be used for identity theft.

“I thought it was great for the IRS,” says Kelly, of hearing about the raid in India. “And I wondered if it would have an impact on the CRA scam.”

Numbers from the Canadian Anti-Fraud Centre show that it did. During the week of October 3 to 9, the centre received 358 complaints about the scam. In the week following the bust in India, the number of complaints dropped to 25.

“On first inspection it looks like having a dramatic impact, but I don’t know if this will lead to a long term decrease in the calls,” says Kelly. “Does one call centre affect everybody here, or have other call centres decided to lie low for a while? It’s difficult to say how widespread it is.”

The CRA scam took the top spot in last year’s BBB National Top 10 Scams list, and Kelly says they will be tracking the number of complaints about it over the next couple of months.

The BBB reminds people that the CRA does not send out robocalls, does not demand wire transfers or prepaid credit cards, and will never ask for personal information over the phone or online.

Although many people were suspicious enough not to fall for the scam, the calls were persistent and often threatening. Kelly urges anyone who gets such a call, or who has been scammed, to record their experience at the BBB’s Scam Tracker site (bbb.org/scamtracker). “You don’t have to have lost money; just record your experience.”

It is estimated that only five per cent of those who have been scammed report the matter, either to the BBB, the Canadian Anti-Fraud Centre, or the police, often because the victim is too embarrassed to say anything. “It’s one of our biggest problems,” says Kelly.

“There’s nothing to be ashamed of. The best and brightest of us get scammed. But the more aware people are of the scams around them, the less likely they are to fall for them.”

 

Just Posted

Sooke School trustee and VIHA both call for vaccine education in schools

A renewal of cultural memory is needed, says trustee

Canadian alcohol policy gets failing grade from UVic researchers

Canadian provinces and territories collectively achieved less than half of their potential to reduce alcohol related harm

MISSING: 32-year-old Heather Limer last seen in Victoria

Limer was last seen in the 800-block of Johnson Street on Feb. 18

Island playoffs underway at Oak Bay High

Home team vies for fifth straight Island title

Bungy jump naked in support of mental health programs

Registration open for annual fundraiser for BC Schizophrenia Society

Sell regulated heroin to curb B.C.’s overdose problem: report

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Man charged in stabbing of woman, off-duty cop outside B.C. elementary school

Manoj George, 49, is facing two counts of aggravated assault and two counts of assault with a weapon after the incident on Wednesday, Feb. 20.

Federal fisheries minister calls for precautionary approach to fish farming

Government still reviewing Federal Court’s decision on PRV – Wilkinson

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

HBC shuttering Home Outfitters across Canada

North America’s oldest retailer is revamping its various stores to improve profitability

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Man wanted for sex trafficking, confinement may be heading to B.C.

Kevin Myrthil, 26, is also accused of assault on a 19-year-old woman at an Edmonton hotel

Parksville council won’t ban single-use plastic bags

Politicians vote 6-1 against proposed bylaw

Most Read