Toronto police have issued a public safety alert about a phone scam in which fraudsters pretend to be employees with the Canadian Revenue Agency and demand money from unsuspecting victims.

On June 6, police said a 65-year-old man was contacted over the phone by someone claiming to be an employee of the CRA.

The caller allegedly informed the man that he owed money to the CRA and that he would be arrested by Toronto police if the money was not obtained immediately.

Police said the man was told that the CRA had a financial agreement with Apple and that his payment must come in the form of Apple iTunes gift cards.

The caller said that once the gift cards were activated, the man would be free from the fees.

According to police, the man obtained $3,300 in Apple iTunes gift cards and proceeded to photocopy the cards and activation codes and email the copies to an address provided by the caller.

The man does not owe money to the CRA and the CRA never officially contacted the man, police said.

In an effort to prevent similar incidents, police are advising members of the public to take extra caution when speaking with someone claiming to be an employee of the Canada Revenue agency.

Police suggest members of the public should call the Canada Revenue Agency personally to confirm the status of their account and should not transfer any funds by means of Apple iTunes gift cards.

Anyone with information is asked to contact police at 416-808-5400 or Crime Stoppers at 416-222-TIPS (8477).