Tax Tip -Protecting taxpayer information: How the CRA prevents, detects, and addresses fraud

EmitenTrust.com OTTAWA, ON, Oct. 1, 2026 /CNW/ -- In today's increasingly digital world, safeguarding sensitive information against constantly evolving threats is critical for every organization, including the Canada Revenue Agency (CRA).

This Cyber Month, the Canadian Centre for Cyber Security highlights the growing sophistication of threat actors and the increased use of artificial intelligence (AI), which is making it more difficult to detect tax scams.

The CRA continually implements additional lines of defense to protect taxpayer information, such as prompting CRA account users to add a backup multi-factor authentication (MFA) option and taking down hundreds of phishing websites every year.

Using AI to detect suspicious activity
The CRA invests in security measures, technologies, processes and controls to better detect, report, and address fraud, which includes the use of AI systems to help the CRA more quickly detect and respond to cyber security threats. Automated monitoring, threat intelligence, and internal analysis have helped the CRA further safeguard taxpayer information and reduce the potential impacts of fraud.

Reducing the risk of CRA user IDs and passwords being misused by threat actors
While the CRA has strong safeguards in place to combat scams, identity theft can still occur. Threat actors acquire personal information through a variety of means, such as malware, phishing scams and data leaks or breaches outside the CRA. This creates a potential security vulnerability with CRA systems, as threat actors may attempt to use this information to gain unauthorized access to a CRA account. 

To reduce the risk of threat actors being able to use this information to gain unauthorized access to online accounts, the CRA:

• Revokes dormant CRA and Sign-In Partner credentials after a prolonged period of inactivity.
• Revokes CRA user IDs and passwords that may have been obtained by unauthorized third parties through external sources.
• Limits new CRA account users to only one credential with the CRA (either a CRA user ID and password or a Sign-In Partner).  
• Sends an email notification when there are changes made to a user's CRA account.

Working with partners to prevent and respond to fraud
The CRA's Criminal Investigations Program (CIP) plays a crucial role in protecting Canada's tax base by investigating suspected cases of tax evasion, tax fraud and other tax crimes, and where appropriate, referring cases to the Public Prosecution Service of Canada for possible criminal prosecution. It focuses its CIP on severe tax crimes that have the biggest impact on compliance, including investigations related to benefits such as the Canada Emergency Wage Subsidy.

Depending on the nature and complexity of the case, investigations may be undertaken either independently by the CRA or collaboratively through Joint Force Operations with partner law enforcement agencies.

By working with its partners, the CRA can combine its specialized tax and financial expertise with other agencies' authorities and intelligence, resulting in more comprehensive, efficient, and impactful investigations of complex financial crime.

The CRA also works closely with other federal departments, provincial and territorial governments, financial institutions, tax practitioners, and the Office of the Privacy Commissioner, sharing business intelligence and security best practices to prevent fraud and to uphold the integrity of the tax system. More information on the CRA's criminal investigations process can be found at Criminal investigations at the Canada Revenue Agency.

Additional layers of defense
The CRA's vigilance combined with the cyber hygiene of CRA account users creates a strong barrier against those seeking to gain from fraudulent activities.

Users are encouraged to:

• Use a strong and unique password for their CRA account
• Stay alert for email notifications
• Regularly monitor their CRA account
• Keep up-to-date on the latest scams
• Add a backup MFA option

Contacts

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

Stay connected

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SOURCE Canada Revenue Agency