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Beware of tax scam

Scam artists are preying on one of our biggest fears ... getting into trouble with the tax man.

Canadians across the country are falling victim to a phone scam where the fraudster poses as an agent with the Canada Revenue Agency. People are told they owe tax money and must pay up.

The caller threatens people that if they don't act fast, their assets will be frozen and police will arrest them.

Versions of this type of phone fraud have circulated before, but the Canada Revenue Agency is becoming more alarmed. This month it noted on its website an increase in these types of calls and the use of unpleasant tactics such as "aggressive and forceful language to scare [taxpayers] into paying fictitious debt."

Scammers often instruct the victim to pay the debt by wiring money or by purchasing prepaid credit cards and then telling the thieves the cards' codes so they can access them.

One police official said the scammers are "very persistent and they continue until they find a victim and then they prey on them."

He reports that a man recently lost just over $1,000. After being sent the money, the fraudster told the victim he made a mistake and that he actually owed a few hundred dollars more.