Beware: Tax Refund Scams

March is Fraud Prevention month and with tax season here, scammers are keeping busy trying to claim victims via phone and email scams.

During tax season, it is common to see fraudulent phone calls and email from scammers. They disguise themselves as coming from legitimate government agencies like the Canada Revenue Agency (CRA).

Some of these emails claim that the recipient has received a refund because the CRA has recalculated their tax return. Others claim that the the recipient owes the CRA money. I've personally received a few of these fraudulent emails asking me to claim my tax refund.

These fraudulent emails contain links that are disguised as legitimate, but are used for phishing purposes. Some of these links may be used to spread malware, spyware or viruses. You can check the video below to see some of these sample emails that I've received.

Others have received fraudulent phones calls saying that the recipient owes the CRA monies that needs to be paid immediately. Their main goal is to create a sense of urgency and put the potential victim on the spot and feed off their fear.

"The Canada Revenue Agency (CRA) warns all taxpayers to beware of telephone calls or emails that claim to be from the CRA but are not. These are phishing and other fraudulent scams that could result in identity and financial theft." - Canada Revenue Agency (CRA)

Below is an image of a fraudulent email that I received in February 2015. As you will notice, it is disguised as coming from the Canada Revenue Agency, however on closer look it is quite easy to tell that this particular email message is fraudulent.

How can you tell if this is a fraudulent email message? Well, one clue is the email address. Notice the email address "Customer...@imm.apple.com". Clearly, it is not well disguised. The second clue was the "CLICK HERE" hyperlink towards the end of the email. When I hovered my mouse over the link, it showed some weird-looking website address something like "http://fert56thyuj78p9l.is-a-financialadvisor.com/uebimiau/theme/index.php"

I've received several other fraudulent emails messages like the one below. This particular email message was quite easy to detect as fraudulent, but others may be very well disguised. Therefore, it's important to stay vigilant and be prepared. There are various other types and format of fraudulent email messages. You can check the CRA website to see Samples of Fraudulent Email Messages.

Similarly, you may receive fraudulent phone calls from scammers claiming to be from the Canada Revenue Agency. These fraudulent people calling may claim that you owe the CRA back taxes or ask you to claim a refund. They try to create a sense of urgency so as to cause fear and panic in order for potential victims to act on impulse. In doing so, they get you to divulge sensitive and personal information which is used for identity or financial theft.

There are many things you can do to ensure that you don't fall victim to scams discussed above. Watch the informational video below that I created and be prepared, and protect yourself and family:

There are many other types of scams and you can check the Little Black Book of Scams to learn more and ensure that you don't fall victim to these scams. Also, you check this Guide on Shopping Safely Online. Should you have any questions or concerns, please feel free to leave them in the comments section below. Also, feel free to share your experiences and tips on tax refund and tax owing scams.

How to Claim Your Money? DRAM Class Action Settlement

The DRAM Class Action Lawsuit Settlement has been reached. Have you claimed your refund yet? I submitted my DRAM claim and found the process fairly simple and fast.

Well, if you’re wondering what this is about, let me explain. DRAM stands for Dynamic Random Access Memory. It’s a type of memory chip that is used in computers and many electronic products.

Based on the lawsuit filed, Canadian were paying more for DRAM and devices that contained DRAM between April 1, 1999 and June 30, 2002. It was alleged that DRAM manufacturers agreed to price fix and thereby Canadians overpaid for the above mentioned products.

There were several “representative plaintiffs” who sued the DRAM manufacturers on behalf of “class members” (i.e. eligible Canadians). Some of the DRAM manufacturers pleaded guilty to the charges of DRAM price fixing. A settlement of over $80 million (includes interest earned) was reached with eleven DRAM manufacturers who pleaded guilty.

Canadians who currently live in Canada or lived in Canada between April 1, 1999 and June 30, 2002; and who purchased DRAM or electronic products containing DRAM are eligible to claim a refund. Also, if you currently live in the US or lived in the US during the above mentioned period, but purchased DRAM or electronic products containing DRAM, you will be eligible to claim a refund. This applies to individuals and companies who purchased the said products for personal, commercial, and manufacturing purposes.

There are different types of claims: (1) End Consumer, (2) Electronic Manufacturing Services, and (3) Other DRAM Purchaser claims. Depending in which category you fall, you will accordingly receive a set percentage of net settlement funds. You can check the FAQ Section (see Informational Links below) for more details. In case you have questions regarding the type of DRAM claim, you can call the Claims Administrator (NPT RicePoint) at 1-866-855-5586.

All eligible Canadians will receive a minimum of $20 refund on their claim. You do not require a receipt (for proof of purchase) if you submit a Simplified Claim (i.e. claiming no more than $20). For DRAM claims above $20, you will need to submit a Standard Claim and receipts/documentation may be required as proof of purchase. You can use the End Consumer Claim Calculator (see Informational Links below) to determine approximately how much you are eligible to claim from the DRAM settlement.

There is no cost involved in filing a DRAM claim. However, there is a deadline for claim submission which is June 23, 2015. Once you submit your claim, you will receive a confirmation with a claim ID. The Claims Administrator expects to start processing DRAM claim cheques in the Fall of 2015.

As mentioned earlier, I have already submitted my DRAM claim and found the process quite simple. It took me less than 5 minutes to file my claim online. Of course, if you are claiming more than $20, your claim may take longer to submit. You can watch the video below for more information:

Informational Links:

• Canadian DRAM Class Action Settlement FAQs
• DRAM Class Action Settlement Claim Form
• End Consumer Claim Calculator