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Tax Return Scams

This topic can make news headlines any time, but during spring tax season they are very common.  In the past, there were frequent reports of the FBI (Federal Bureau of Investigation) and RCMP (Royal Canadian Mounted Police)  working with police in India to shut down call centers active in these scams.  Police in India recognized that there are many such illegal call centers and they will continue conducting raids.  Dozens of these call centers operate in several cities in India and it is believed that some may be operating with police approval since bribery is a common way to avoid scrutiny.

Recovering money will be difficult because some of the payments are processed through offshore intermediaries to insulate the scammers.  These intermediaries may be pocketing as much as 40% of the total amount, according to Indian police.

Police are emphasizing that prevention is likely the best approach because criminals will continue to create scamming techniques as long as there are willing victims. People seem to have a substantial fear of the tax man!

Just remember that the IRS (Internal Revenue Service) and CRA (Canada Revenue Agency) will not request payments by gift cards, e-mail, internet link, text, or bitcoin.  They won’t demand payment in hours or threaten immediate arrest.  When in doubt, simply contact the IRS or CRA directly, or call the police. 

Tax season is an opportune time for scammers to impersonate the tax authorities.  In this post, we will provide information regarding tax scams via e-mail.  This includes what you should recognize and what you should do.

            An e-mail or text message is sent from someone pretending to be with the IRS or CRA, claiming:

  • that your tax calculation has been completed, and you will receive a tax refund by going through a link and submitting the information
  • that you or your company is being accused of participating in tax evasion schemes
  • that several discrepancies have been found with your filed taxes which need to be revised
  • that you’ve received an e-transfer from the IRS or CRA for what appears to be a tax refund
  • that an “investigation” has been started on your IRS or CRA claim

Reject it: How can I protect myself or my loved ones?

  • Hang up immediately if there’s anything suspicious or unprofessional about the call – the IRS or CRA will never threaten you with immediate arrest, use abusive language, or send police.
  • The IRS or CRA will never request payment by online currency such as Bitcoin, or pre-paid gift cards such as iTunes, Home Depot, etc.
    • The IRS and CRA accepted methods of payment are online banking, debit card, credit card, or PayPal through a third-party service provider, and pre-authorized debit. Call IRS or CRA to verify.
  • Do not click on any link in an e-mail pretending to be from the IRS or CRA – they will never ask you to click on any link to get a refund or to collect personal or financial information.
    • The only time they will send an e-mail that contains links is if a taxpayer calls them to ask for a form or a link to specific information. An IRS or CRA agent will send the information to the taxpayer’s email during the telephone call – this is the ONLY exception to the above rule!
  • The IRS or CRA never sends out text messages. Any text message from them is a scam.
  • Young people are often the most at risk for this scam, particularly when filing their taxes for the first time. Make sure your family and friends are educated on what tax authorities will and will not ask for during tax season.

Report it:  How should I respond?

  • If you are not sure if a message is from the IRS or CRA, confirm your tax status with them online through a secure portal such as My Account or by calling them directly.
  • Report the scam to your local police if you paid money (this includes purchasing pre-paid credit cards, gift cards, or online currency such as Bitcoin).
  • If you sent money or shared financial information, report it to the financial institution used e.g. your bank, Western Union, or MoneyGram.
  • If your Social Security or Social Insurance Number has also been stolen, contact authorities immediately

    The tax scam has been a topic in our Identity Theft, Fraud, and Scam seminars for several years and we’ve discussed such criminal activity in previous posts on LinkedIn and Facebook.  At last, we have some good news!  Police announced on Feb. 14, 2020, they had arrested 2 people in Ontario who were involved in the scam.  The arrests were made on Feb. 12, 2020, with another arrest warrant issued for an individual who they believe is now in India.

    Some interesting facts regarding these crimes and the criminal organizations:

    –  Most are originating in India; 39 call centers in India have been shut down.                                                      

    –  The same criminal organization was also involved in the Bank Inspector Scam and the Tech Support Scam.  Many of you have no doubt received a phone call saying that they are from Windows or Microsoft and have identified a problem with your computer that they can fix if they can have access to your computer online.                                                                                                  

    –  The investigation is continuing to find more “money mules” – people in the U.S. and Canada who are laundering the money and coordinating the transfer of the funds to India.

    • Every year, tax scams are popular with criminals.  While work by investigators has reduced the dollar losses, there are still criminal organizations and many lone scammers who take advantage of the fact that many taxpayers fear the taxman!  Here are some of their tactics:

    (Note that these are usually phone calls, but don’t rule out text messages or e-mails.)

    1.  A message suggesting that your SSN or SIN has been compromised. They know the IRS or CRA has your Number, so they use that to convince you to work with them to fix a “problem”.

    2.  They tell you there is some outstanding legal action against you, but they assure you they can help resolve the problem.

    3.  The most common scam in the past has been that you owe back taxes.  Victims are often those who may have a spouse who passed away and the scammer can indicate that the spouse owed the taxes. However, they may simply say you owe them and they will have a very convincing story.

    4.  You are told that your name, or part of your personal information, is linked to a crime. Of course, they will have plans to get you out of the jam, but always at a price.

    5.  They usually insist you take quick action and threaten that if you don’t, you may be arrested, fined, or deported.

    • There may be many variations of those scenarios, based on whatever has worked best for the scammer in the past.

    My usual, simple advice:  Never provide information, money, or access to money when they contact you – EVER!  Do that only after you have independently verified both the legitimacy of the caller and the topic.

    Future articles will discuss a variety of identity theft, fraud, and scams,  along with ways to recognize them to prevent being victimized. Follow me here on Medium to learn more.

    Lloyd Kenney has more than 50 years of experience in business operations, sales, and marketing; he has presented over 230 “Identity Theft, Fraud & Scam” seminars supporting individuals and organizations in reducing their risk of being victimized. Kenney is a Performance Management expert who provides consultations and workshops on performance management. He is also the author of Performance Management: Hiring, coaching, and retaining high-performance, superior employees for small businesses. You can follow Lloyd Kenney on LinkedIn and Facebook.

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    Welcome New Member, Jayson Chakkalakal

    Jayson is the Business Development Manager at TLC Solutions, a local managed services provider that offers Technolojoy (yes. you read that right) to their clients by ensuring that their networks, assets and devices are protected so they can do what they do best.

     His passion for connecting and partnering with local businesses, Not-For-Profits and First Nations groups to help them exceed their own expectations is second only for his love of all things sports and his family.

     He brings over two decades of experience working in multiple roles at some of the biggest CPG, IT, SaaS, utilities, technology, and pharmaceutical companies in Canada and beyond. Jayson enjoys sharing his expertise and creative execution on strategy, growth, social enterprise project planning and operational management with everyone and is always up for a chat over coffee or even lunch!

    www.linkedin.com/in/jayson-chakkalakal-mba

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    Biometric Identification

    By Lloyd Kenney

    You’re probably familiar with the term “Biometric Identification”.  Biometrics may be unique, but when installed on a computer, the information is still a string of numbers, it’s digitized. Physical identifiers include Fingerprints, Facial Recognition, Iris and Retinal Scans (Photo and Video), Hand Geometry, Palm Vein, Ear, Voice, Signature, and DNA.  Note that a $1000 scanner is now available to do a DNA match in minutes.

    The article, “Biometric Identification and Identity Theft”, by Jake Stroup at “The Balance” states that when the information is stored on a computer or a database system, whether it’s a credit card number or a digital voice print. A hacker can still steal such data from a computer or network. 

    “As far as security is concerned, many experts agree that maintaining a “token” form of identification is probably superior.  Token identification is a card, password, personal identification number (PIN), etc.  It is something that can be canceled or changed if it is lost, misplaced, or stolen.  On the other hand, biometric identification can’t be lost, misplaced, or loaned to a friend, but it also can’t be replaced if it’s compromised either.  This reality, combined with certain privacy issues (tracking, profiling, consumer-related privacy issues, etc.), is making experts give serious consideration to whether biometrics are a viable option on a large scale.”

    Biometric Identification, while appearing to be a more secure system, also has its limitations since once added to a computer database it becomes digitized just like a credit card or Social Security /Social Insurance Number.

    Stroup also points out that a smile can distort facial features – the reason why we’re told not to smile and show teeth in a driver’s license or passport photo.  “But the biggest consideration is that a biometric identity system is only going to be as good as the information that’s put into it in the first place.  In other words, your fingerprint won’t tell anyone who you are, all it can do is keep you from using somebody else’s identity once you are in the system.  Identity theft expert John Sileo said,  “If we implement biometrics without doing our due diligence on protecting the identity, we are doomed to repeat history – and our thumbprint will become just another Social Security /Insurance Number.”

    The message is simple – Biometric Identification has some benefits, but don’t let it give you a false sense of security. Biometrics are the physical and behavioral characteristics of an individual, which can be used to digitally identify a person to provide access to various data, devices, and systems.  It’s part of your identity.

    Behavioral identifiers, although limited to fixed characteristics, may be open to imagination.  These identifiers are often used to distinguish a human from a robot.  Examples include Typing Patterns, Physical Movements, Navigation Patterns (think a mouse or touch screen movements, which are easy to detect with software), and Engagement Patterns.  That last item can be as simple as how we hold our phones, how often we check social media, or how we navigate websites.  These can be used in combination with other authentication methods, but as technology improves, may become standalone security measures.

    Biometric identifiers are becoming increasingly popular and biometrics as an industry is expected to have a value of $68.8 billion by 2025.  However, their use has some concerns and limitations. 

    Remember also that when such identifiers are moved or stored digitally, they are done so with a series of 1s and 0s, the place where hackers could step in.  Bianca Soare at Heimdal Security puts it this way,” However, biometric authentication does carry with it quite a few security challenges and the main reason is obvious: once a biometric characteristic becomes compromised, it can’t be substituted. For malicious hackers, biometrics and other personal data contained within digital identification and access control systems can be easy prey. And while biometrics are indispensable to a cybersecurity profile, from a privacy perspective, the sensitive details an account holds might well become a nuisance.”

    A recent data breach compromised approximately 184,000 traveler images from an agency’s facial recognition pilot at the Anzalduas border crossing at McAllen, Texas. If you have a business and are considering biometric identifiers, or if you, as a customer are requested to use biometrics, speak to a security expert to learn the best practices.

    Bianca Soare, Heimdal Security, provides information to companies using biometrics and the employees, customers, and clients who may be required to use them.

    “First, data accessed through IAM (Identity and Access Management) systems can be a prime target for malicious actors.   For example, an experiment proved that the fingerprints of Germany’s Defense Minister could be recreated using only a few high-resolution images of the target.  You must never forget the importance of maintaining good security hygiene: Knowing exactly what data you collect, how it is stored, periodically removing the information you no longer require, and using proper threat prevention and mitigating tools.

    Second, be mindful of privileged accounts.  Once an account with elevated rights becomes compromised, it may lead to a wide array of cybersecurity dangers.  A top-notch Privileged Access Management tool will allow you to easily keep up with your privileged account management, keep a detailed overview of your account status, and grant admin rights to the users that need them only when they need them.

    Sensor inaccuracy may open up security holes.  In the case of sensor degradation, the consequences may range from the biometric system’s inability to properly identify an individual and deny his/her access to being unable to determine if the real owner of the account is indeed trying to access an IT system. For instance, back in 2018, Israel’s fingerprint identification system experienced ‘high rates of failure when used both at the country’s borders and by police’. Consequently, the working state of biometric systems must permanently be kept under watch by their owners and fixed as soon as possible in case of failure. In this instance, alternative authentication methods must be put at people’s disposal.”

    Conclusion

    Biometric technology – the detection of individuals using biological and behavioral characteristics – has been regarded as an identity identification solution that offers better protection and efficiency than conventional methods.

    However, the use of biometrics in IAM (Identity and Access Management) is certainly a controversial topic – while trying to secure access, it may also lead to unnecessary threats.

    Therefore, the private info needed for IAM technologies must be kept safe and aligned with any industry-specific legislation. It is also important to provide your clients and personnel with complete transparency on how your IAM data will be processed and used, particularly since this practice is required by more and more security regulations.

    All in all, make sure you figure out when requiring the use of someone’s unique characteristics doesn’t overstep the mark in security and privacy, and always use them responsibly.

    As a customer or client, keep this information in mind if requested to use one or more of your biometric identifiers.


    Future articles will discuss a variety of identity theft, fraud, and scams,  along with ways to recognize them to prevent being victimized. Follow me here on Medium to learn more.

    Lloyd Kenney has more than 50 years of experience in business operations, sales, and marketing; he has presented over 230 “Identity Theft, Fraud & Scam” seminars supporting individuals and organizations in reducing their risk of being victimized. Kenney is a Performance Management expert who provides consultations and workshops on performance management. He is also the author of Performance Management: Hiring, coaching and, retaining high-performance, superior employees for small businesses.

    You can follow Lloyd Kenney on LinkedIn and Facebook. Visit                                        www.performanceplanning.ca

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    Essential Keys to Protecting Yourself

    INTERNET OF THINGS

    By Lloyd Kenney
    Smartphones and tablets are used for a multitude of activities, including “Apps” which are downloaded
    for various purposes. Home automation is becoming popular – allowing you to remotely control various
    equipment items in your home; everything from your refrigerator to your security system.

    Internet of Things is when you pair or connect, your smartphone or tablet with all those
    consumer products, including your car. Since you are using the internet to access those
    products or pieces of equipment, you are also creating an opportunity for hackers to steal part
    or all your data and personal information, and of course, access to that equipment.

    Besides having devices connected to systems, sensors can also be connected to the Internet of
    Things platform. That allows analytics to share valuable information applied to specific uses
    and needs. Internet of Things platforms can determine what information may be of use and
    which can be useless and therefore ignored. The information can be used to identify trends and
    detect what areas may benefit from more refinement.

    An appliance manufacturer may want to know what appliance features are being investigated
    most by shoppers. They could match that information with actual sales data to determine
    trends and more accurately determine future inventory requirements. The same data could
    indicate which items may be deleted.

    The convenience of smart systems and analytics allows for automation – the reason many
    features are so popular. Home automation using cameras has made baby monitoring and
    thermostat adjusting very efficient. The same technology allows car manufacturers to load
    systems with sensors to notify you the owner and the manufacturer when something is failing
    and needs repair or replacement.

    Lloyd Kenney, Performance Planning

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    Wayfinders MasterMind

    Wayfinders is introducing a new service. We will offer a facilitated opportunity to bring Members together for mutual aid. In our initial session we will discuss our best methods for facilitating mutual aid. We will introduce methods from MasterMind and other programs.

    The name of this service is not yet determined and is expected to emerge from the first couple of sessions.

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    Welcome New Member Robert (Bob) Ascah!

    Robert Laurence (Bob) Ascah was born in Lachine, Quebec and received degrees in Commerce and Public Administration (M.A) from Carleton University. He completed his doctorate in political science at the University of Alberta in 1984.

    Before his appointment as Director of the Institute for Public Economics, he worked for the Alberta public service. After a short stint in Federal and Intergovernmental Affairs, he joined Alberta Treasury where he was responsible for financial sector policy, foreign borrowing, and liaison with ratings agencies. In 1996, he joined Alberta Treasury Branches (ATB Financial) as Secretary to the Board. Subsequently, Dr. Ascah was responsible for business planning, economics and government relations. In that capacity, Ascah was a frequent speaker on economics and financial institutions policy. He retired from ATB Financial in May 2009.

    Bob Ascah is Chair, Canadian Cancer Society, Alberta/NWT Division and is the academic liaison for the Edmonton Regional Group of the Institute for Public Administration of Canada. In 1999, the University of Alberta Press published Ascah’s Ph.D. dissertation Politics and Public Debt- The Dominion, the Banks and Alberta’s Social Credit.

    Since joining the Parkland Institute, he has become a frequent media commentator on financial and economic issues. He is currently Program Chair with the Economics Society of Northern Alberta and Principal of his company Abpolecon.ca

    You can find Bob’s blogsite at Abpolecon.ca

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    Welcome New Member Gordon Edmiston

    Associate Broker / Realtor at RIGHT Real Estate
    Gordon Edmistion, BA, ABR, RENE, SRS, is a licensed Realtor in the province of Alberta working in residential, commercial and rural property sales and leasing in the Greater Edmonton Area. Having worked with clients and developers for 19+ years in full time sales of new and used properties.

    RIGHT Real Estate is an Edmonton based real estate brokerage specializing in residential real estate.  Previously as CondoCrew we established ourselves as Edmonton’s premier condo specialized real estate brokerage that was established in 2004 to satisfy the escalating need for condo specialization in the real estate industry. However, as the real estate market and clientele is ever changing, we wanted to diversify to better serve ALL of your real estate needs.  All of our REALTORS® are full time professionals trading in new and used real estate.

    Our mission is to always be striving for excellence, providing an outstanding level of service and ultimately becoming the first choice for all of your real estate sales and purchases in the Greater Edmonton Area.

    Contact Gordon at:
    Website: http://rightrealestate.ca/
    Email: gordonedmiston@alain

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    Welcome New Member: Clare Paulson

    Clare is a seasoned professional Coach and Trainer with extensive experience in a wide variety of industries, including Oil & Gas, Construction, Retail, and others. Specializes in helping SME’s grow and prosper through better use of ‘People Analytics’ for hiring and training.

    Specialties: Job Benchmarking, Job Candidate Assessments, On-boarding, Performance Development, Behavioural and EQ Coaching, Mentoring

    Provides professional support for hiring, on-boarding, performance development, and succession solutions, resulting in decreased turnover, increased productivity, and vastly improved employee engagement through use of job benchmarking, skill assessments, behavioral and motivational matching.

    Contact Clare at:
    Website: http://www.betterleaders.ca/
    Email: clare@betterleaders.ca

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    Welcome New Member Shannon Berry

    shannon@madwomenva.com

    Digital Storyteller and Promotional Campaigns (events and digital)

    Everyone has a story to tell but, if the cover doesn’t catch people’s attention, nobody will read the book.


    My educational background is in the fields of Human Resources and Psychology. With this, I have the benefit of understanding both the corporate mindset as well as how clients and customers think and what they respond to. 

    As a marketing and advertising professional for the past ten years, I have worked with Authors, Speakers, Entertainers, Recording Artists, Celebrity brand Red 55 Winery – The Signature Wine of Miranda Lambert, and many Not For Profit and charitable organizations. 

    Many of the events and other endeavours I have been involved with have been featured in the news. There is no project or event that is too small for a press release. I have been fortunate to be featured in articles across Canada, being interviewed by media outlets in Alberta and British Columbia, and being featured in special segments on morning television news shows. 

    “Storytelling through visual mediums is my passion!” – Shannon Berry

    On a personal note, I enjoy the outdoors, writing, painting, reading, running, and traveling. 
    To contact Shannon:
    shannon@madwomenva.com

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    Wayfinders 2022 AGM

    Wayfinders Business Co-operative held its Annual General Meeting for the year ending March 31, 2022 on Thursday, September 22, 2022. It was held jointly in-person at Edmonton Federation of Community Leagues and on Zoom.
    Two new directors were elected to the board, Paul Cheung and Dave Yadallee.

    Click here to see the 2022 Wayfinders Annual General Meeting slide deck.