Tips for safeguarding yourself during tax season

The 2025 tax season has officially kicked off, and fraudsters are increasingly targeting taxpayers with sophisticated scams and fraud attempts. With over 31,000 privacy breaches reported at the Canada Revenue Agency (CRA) recently, protecting your personal and financial information has never been more crucial.

Understanding the threats

Fraudsters employ various tactics during tax season to exploit unsuspecting taxpayers. These include sending phishing emails that impersonate the CRA, setting up fraudulent tax preparation websites to steal personal information, and orchestrating identity theft schemes. They may also engage in phone scams, demanding immediate payment while posing as CRA officials. Additionally, malware specifically designed to target financial information is often deployed. This type of attack is particularly common during this vulnerable period.

Essential security measures

1. Verify CRA communications: It's crucial to remember that the CRA never requests personal information via email or text. Always access your tax information through the official CRA My Account portal. If you're unsure about any communication claiming to be from the CRA, contact them directly using official phone numbers listed on their website. Never click on links in unexpected emails purporting to be from the CRA, as these are often phishing attempts designed to steal your information.
2. Secure online filing: When filing your taxes online, ensure you're using up-to-date antivirus software and that all security patches are installed on your devices. Only use NETFILE-certified software for filing your taxes, as these meet the CRA's stringent security requirements. Create strong, unique passwords for all your tax-related accounts and enable two-factor authentication whenever possible. Avoid using public Wi-Fi networks for any tax-related activities, as these can be easily compromised.
3. Protect personal information: Safeguarding your personal information is paramount. Keep your Social Insurance Number (SIN) and tax documents in a secure location, whether physical or digital. Regularly monitor your bank and credit card statements for any suspicious activity. Review your CRA account activity frequently to ensure no unauthorized changes have been made. When disposing of physical tax documents, always shred them or use a secure disposal method. For digital tax records, store them in encrypted files to add an extra layer of security.
4. Safe tax preparation practices: If you're using a tax preparation service, ensure they are licensed and reputable. Verify the credentials of any tax preparer before sharing your personal information. Never sign blank tax forms, as these could be filled in fraudulently later. Always keep copies of all submitted documents for your records. Before submitting your tax return, review it thoroughly to catch any errors or discrepancies that could flag your return for audit.
5. Digital hygiene: Maintaining good digital hygiene is essential during tax season. Always use a secure, private internet connection when handling tax-related matters. After completing any tax-related activities online, clear your browser cache to remove sensitive data. Ensure you log out of all tax-related sessions completely, not just closing the browser window. Avoid saving tax documents on mobile devices, which can be easily lost or stolen. Regularly update all your devices and software to patch any security vulnerabilities.
6. Red flags to watch for: Be vigilant for common signs of tax-related scams. These include unsolicited calls about taxes or refunds, threats of immediate arrest or deportation if payment isn't made, requests for payment via gift cards or cryptocurrency, promises of unusually large refunds, and pressure to act quickly or provide immediate information. Remember, the CRA will never use aggressive language or threaten you with immediate arrest.

What to do If compromised

If you suspect your tax information has been compromised, act quickly. Contact the CRA immediately to report the issue and secure your account. Alert your financial institutions so they can monitor for suspicious activity. File a report with the Canadian Anti-Fraud Centre to help authorities track and combat these crimes. Change all passwords related to your tax and financial accounts, and request a credit report to check for any unauthorized activities.

Better yet, consider using a service like TELUS Online Security for credit and bank monitoring, which provides real-time alerts and comprehensive protection against identity theft. Monitor your credit closely in the following months for any signs of identity theft.

Staying Informed

The cyber threat landscape evolves rapidly, making it crucial to stay informed about the latest security best practices. Follow the CRA's official social media channels for updates and alerts, and check the Canadian Anti-Fraud Centre website for the latest scam warnings and prevention tips. Consider subscribing to CRA security alerts to receive timely notifications about emerging threats and security measures. Stay up-to-date with digital safety information by signing up for the TELUS Wise newsletter.

By implementing these security measures and remaining vigilant, you can significantly reduce the risk of becoming a victim of tax-related cyber fraud. Remember that protecting your personal and financial information is a year-round responsibility, but it's especially critical during tax season. Stay informed, stay cautious, and keep your tax season secure.