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.”

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Military police motorcycle relay roars through Nanaimo

National fundraising ride visited Mt. Benson legion en route to Lantzville and Campbell River

Wildfire southwest of Nanaimo now largely under control

Crews have been on the scene since Friday

Island Health warning of spike in overdoses in Nanaimo area

Substance users advised to visit overdose prevention site on Wesley Street in Nanaimo

Beefs & Bouquets, Aug. 5

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

Reuse Rendezvous invites Nanaimo residents to get rid of items that others might want

Annual city-wide swap meet happens Saturday and Sunday, Aug. 8-9

VIDEO: B.C. conservation officers free not-so-wily coyote with head stuck in jar

Poor pup was found with a glass jar stuck on its head in Maple Ridge

‘Do our lives count for less?’: COVID-19 exposes cracks in disability aid

In July, Parliament approved a $600 payment for people with disabilities facing additional expenses during COVID-19

Agreement between province, BC Hydro, First Nation, ends legal fight over Site C

B.C. will work to improve land management and restore traditional place names in areas of cultural significance

Investigators still hoping to solve 2015 homicide of Penelakut Island woman

Tips being sought into Penelakut Island woman’s death five years ago

B.C. doctors, dentists call on province for mandatory mask rule

Open letter says masks should be worn in indoor public spaces, public transportation or in crowds

Dwindling B.C. bamboo supply leaves Calgary Zoo biologists worried about pandas

Zoo has been trying to send pandas back to China since May

Facebook launches its new TikTok clone, Instagram Reels

Facebook has a long tradition of cloning competitive services

‘We all have anxieties’: B.C.’s top doctor addresses return-to-school fears amid COVID-19

Dr. Bonnie Henry promises school restart plan safe for B.C. kids

Most Read