New Spam Laws in Canada

Investment & Venture Capital Scams

NO SPAM FOR YOU

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New Spam Laws for Canadians !!

https://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00569.html

What is spam?

Spam can be defined as any electronic commercial message sent without the express or implied consent of the recipient(s). Spam is also used as the vehicle for the delivery of other online threats such as spyware, phishing and malware.

What is the intent of the legislation?

The intent of the legislation is to deter the most damaging and deceptive forms of spam from occurring in Canada, creating a more secure online environment. It does this by addressing the sending of spam, the undesired installation of spyware and malware on the computers of businesses and individuals, and the alteration of transmission data. The bill also extends the provisions of the Competition Act concerning false and misleading marketing to electronic messages, and restricts the scope of certain exceptions under the Personal Information Protection and Electronic Documents Act.

Spam is a nuisance, but how is it harmful?

Spam includes more than unsolicited commercial messages. It has become the vehicle for a wide range of threats to online commerce affecting individuals, businesses and network providers.

For individuals, spam can lead to the theft of personal data to rob bank and credit card accounts (identity theft); online fraud luring individuals to counterfeit websites (phishing); the collection of personal information through illicit access to computer systems (spyware); and false or misleading representations in the online marketplace.

Businesses are victimized by the counterfeiting of business websites to defraud individuals and businesses (spoofing). Recognizing that spam represents nearly 90 percent of worldwide email traffic, network providers are forced to invest ever-increasing resources to prevent spam from entering their networks. Once established, spam slows networks down, and spam-borne viruses and other malicious software (malware) are used to operate networks of “zombie” computers (botnets) without their owners’ knowledge. These network attacks threaten the stability of the Internet and online services as well as the confidence of Canadians to participate in the digital economy by conducting commerce online.

Can you expand on the threats that the bill addresses?

While spam is harmful in itself, it has become the primary vehicle for the delivery of other online threats, such as spyware, malware and phishing. Spyware is software that collects information about a user and/or modifies the operation of a user’s computer without the user’s knowledge or consent. Malware is a general term for all forms of harmful and malicious content, especially hostile software such as viruses, worms and Trojan horses. Phishing involves impersonating a trusted person or organization in order to steal someone’s personal information, generally for the purpose of identity theft.

Collectively, these online threats disrupt online commerce and reduce business and consumer confidence in the online marketplace, congest networks, impose heavy costs on network operators and users, threaten network reliability and security, and undermine personal privacy.

What can individuals and businesses do to protect themselves against spam and related online threats?

Education and awareness are key to ensuring that individuals and businesses are taking the right steps in proactively combating spam. Network security programs, spam filters and anti-virus software are also helpful in this regard.

To serve Canadians, this legislation will provide for a national coordinating body, which will coordinate public education and awareness efforts and lead policy oversight and coordination.

This initiative will also facilitate the establishment of a non-government agency, a spam reporting centre, which will receive reports of spam and related threats, allowing it to collect evidence and gather intelligence to assist the three enforcement agencies (the Canadian Radio-television and Telecommunications Commission, Competition Bureau Canada and the Office of the Privacy Commissioner) with investigations. The spam reporting centre will track and analyze statistics and trends in spam and other related online threats.

How long will it take before Canadians can expect to see a real difference in the amount of spam received?

Based on the experience of other countries with similar legislation, noticeable results are expected to occur quickly. The year after Australia passed similar legislation in 2004, it dropped out of the world’s top 10 spam originating countries.

Will the new legislation eliminate spam in Canada? If not, by how much will it be reduced?

While it is not expected that the new legislation will eliminate spam altogether, businesses and consumers will see a reduction in the amount of spam received. The intent of the law is to deter the most damaging and deceptive forms of spam from occurring in Canada and help drive spammers out of Canada.

Has anti-spam legislation been effective in other countries?

Several of Canada’s global partners, such as Australia, the U.K. and the U.S., have passed strong domestic laws to combat spam and related online threats. After the Australian Spam Act came into effect, the proportion of global spam originating from Australia was greatly reduced. Some major spammers, particularly pornographic spammers, closed their Australian operations altogether.

I am a legitimate business owner who uses bulk email to reach my customers. How will I be affected by these new anti-spam measures?

Legitimate businesses that use email to market their products to Canadians should not be negatively impacted by this legislation. The consent regime is based on existing marketplace best practices and uses a consumer opt-in approach, which stipulates that businesses must get express consent or implied consent prior to sending commercial electronic messages. Apart from express consent, consent to receive commercial messages is implied:

  1. where an existing business relationship exists with a customer or client, or
  2. the electronic messages are relevant to the recipient’s business, role, function or duties, and the electronic address has been conspicuously published or disclosed, without a statement that the person does not wish to receive unsolicited commercial electronic messages.

What about text messages or “cellphone spam”? Is it covered?

Yes. The legislation takes a technology-neutral approach, so that all forms of commercial electronic messages can be treated the same way. That means that unsolicited text messages, or cellphone spam, is addressed.

What if I buy email lists? How will I be affected by these measures?

The Act does not prohibit the legitimate collection and compiling of lists of email addresses, provided the activity follows the rules regarding consent in the legislation and other principles that apply within federal and provincial privacy laws. Federal privacy legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA), sets out the rules for the collection, use and disclosure of such personal information, and these continue to apply under the new Act. Under PIPEDA, an organization may not collect personal information without the knowledge or consent of an individual unless the information is publicly available (according to regulations). In addition, the organization must state the purpose of the collection of that information.

Are there exceptions, as with the National Do Not Call List (DNCL), for political parties and charities?

The legislation does not apply to non-commercial activity. Political parties and charities that engage Canadians through email are not subject to the legislation if these communications do not involve selling or promoting a product.

There are also further exemptions for situations where such organizations engage in commercial activities with people who have made a donation or gift in the last 24 months, volunteered or performed volunteer work in the last 24 months, or were a member of the organization in the last 24 months. These exceptions apply to registered charities, political parties and candidates in federal, provincial, territorial or municipal elections.

If you are raising funds for charitable or other non-profit purposes, you must ensure that your messages are truthful and accurate in order to avoid potential concerns under the Competition Act.

Why is there a transitional or “grandfather” clause for existing business relationships in effect prior to the Act coming into force?

The government understands that some small businesses and not-for-profit organizations do not have the technological sophistication to automate their email lists, for example. This clause gives these entities a 36-month transition period, so they are not caught off-guard by the legislation.

Why is the government not exempting surveys and market research?

Those doing surveys and market research are not affected by the legislation as long as they are not trying to sell something, so the electronic message is not considered to be a commercial message. The government is concerned that an explicit exemption for surveys and marketing research would easily be abused.

What purpose is served by the clause governing product updates?

This clause was included to allow for automatic updates and program upgrades to be installed without requiring the installer of the computer program to seek express consent for each subsequent installation. This would allow for daily or weekly updates to anti-virus, anti-spam and other computer programs as long as they fall within the original express consent that was given when the program was initially purchased or installed.

What impact will this legislation have on self-governing professions?

Self-regulating industries should not be affected by the legislation if they are not trying to sell something, since their electronic messages would not be considered as commercial messages. If a self-governing profession wishes to contact its clients or members regarding a commercial matter, it is not unreasonable for them to get express consent from their membership in advance. Once that consent is obtained, it remains valid until it is explicitly withdrawn.

How does this bill address the collection of personal information by accessing a computer system or by causing a computer system to be accessed without authorization?

The bill includes an amendment to PIPEDA that will enhance privacy protections in some circumstances. PIPEDA generally requires knowledge and consent for the collection and use of personal information. PIPEDA includes a list of exemptions from this requirement in certain circumstances, including where the information is publicly available, for journalistic purposes, or the purposes of private investigations. In these circumstances, it is not necessary under PIPEDA to get consent for the collection of personal information, regardless of whether access to the computer system holding that personal information was otherwise legal or illegal.

The legislation includes an amendment that will make these exemptions unavailable when a computer system is accessed in contravention of an Act of Parliament in order to collect personal information. To enforce this protection against collection without consent, the legislation attaches a private right of action to such privacy violations.

In Bill C–27, tabled in the last session of Parliament, this provision applied where access to a computer system was “without authorization”. Industry associations raised concerns with the uncertainty of this language, pointing out that, as drafted, persons could post a “Terms of Use” page on a website stating that the collection of information from that site was “unauthorized” under PIPEDA.

To address these concerns, the provision now applies where access to a computer system is “in contravention of an Act of Parliament.” This clarifies the intended scope of the provision, addresses the uncertainty that concerned industry associations, and yet elevates privacy protections to levels consistent with the intent and purpose of the legislation.

What other amendments have been made?

A number of technical and coordinating amendments were made to ensure the smooth functioning of the legislation. These amendments will ensure effective coordination with other Acts of Parliament.

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Protecting a company’s assets includes protecting its senior executives.

Investment & Venture Capital Scams

 

For more information on debugging sweeps visit us at http://www.corpa.com

The Financial Post

By Laura Ramsay, For The Financial Post. June 4, 1990.

Protecting a company’s assets includes protecting its senior executives.

A growing number of corporations are turning to security consultants to help ensure that top people — and the information they’re privy to — aren’t compromised by competitors. terrorists, extortionists or disgruntled employees trying to even a score.

Kevin Bousquet is president of a Scarborough, Ontario-based Protect Your Business, which provides security analysis to corporations, arranges to have corporate offices “swept” to determine whether listening devices have been planted in them, and markets counter electronic surveillance (anti-bugging) products.

“There’s a growing demand,” he says. “It’s still not a huge business, but it increases every year.”

With improved technology and a growing reliance on telephones and facsimile machines as business tools, it’s easy to eavesdrop on important conversations going on in a boardroom or over the phone. Conversations conducted on car phones are notoriously easy to intercept or misdirect. And it’s not hard to intercept messages sent by computer modem or fax.

Robin Ingle, president of Worldwide Security & Protection Corp. in Toronto says “if a company has spent five years and hundreds of thousands of dollars researching and developing a new product, its competitor can spend five minutes and $10,000 and get the same product on the market at the same time.” simply by stealing information by bugging the company’s boardroom.

He says people have been bugging corporate offices in the U.S, for years. But in Canada, information was more likely to have been gleaned from overly talkative employees.

Bousquet says almost all the companies he deals with are publicly traded corporations attempting to make sure that company secrets stay secret.

“It’s extremely competitive out there.”

He says there are three basic ways to eavesdrop on conversations. In addition to the basic telephone bug, budding eavesdroppers can use a radio frequency (RF) device, which can be purchased for about $30 from a mail-order catalogue or easily made by someone with a basic knowledge of electronics. The other device, similar to a baby monitor, uses all electrical current to transmit conversations conducted in another part of the building.

Counter electronic-surveillance equipment is designed to warn speakers when their conversation is being bugged or taped and to prevent third parties from listening. It can also emit high-frequency background noise to prevent tape recorders from picking up a conversation.

Many products are designed to be worn by executives, such as a device that fits in a suit pocket and starts to vibrate if a tape recorder is being used in the room.

“It’s quite popular with people who are afraid of reporters recording their conversations,” Bousquet says.

Telephone scramblers convert a telephone conversation into one of 52,000 codes which are unscrambled at the other end of the line. These are particularly useful for airplane and car phones, Bousquet says.

“It’s probably one of the best products going because it would take a real trained professional to descramble it.”

A similar product is available to scramble sensitive messages sent by fax.

Ingle’s company also arranges physical protection, including bodyguards, and self-defence training for executives who may find themselves in physically threatening situations.

The ideal bodyguard is someone who is well-trained and physically fit, but is not noticed in a crowd. Rambo types with mirrored glasses and bulging biceps aren’t welcome– they don’t fit in at embassy cocktail parties.

Executives are also taught how not to be a victim.

“We try to teach them simply how to strike and run if they get caught in a situation they can’t get out of,” Ingle says.

Other tips include how to safely enter a building and how to walk down a street alone at dusk. Executives traveling to foreign countries — especially ones with turbulent political situations– should be careful who they’re friendly with, avoid mingling with military people and never sit in outdoor cafes, where it’s easy for to strafe the crowd.

Also, executives should double-lock their hotel door and bring an inexpensive gadget that can be used to jam doors. For good measure, a device marketed to parents of young children that sets off an alarm when a doorknob is turned can be an effective deterrent to intruders.

“If you add some difficulty to the situation, the criminal element will usually look for an easier target,” Ingle says.

Al Guy, president of Continental Security Consultants in Toronto, and a former security adviser to senior executives in the oil-and-gas industry, says executives traveling to politically troubled nations should always contact the Canadian embassy in that country to let staff there know when they’ll be arriving and find out what security precautions should be taken.

Common sense is important, too. Don’t announce to everyone in the hotel that you’re president of a large firm. Avoid drawing attention.

“A lot of high-profile executives show up in Fortune 500 listings,” Guy says. “My advice is to avoid that sort of thing. Avoid having your picture taken and avoid being quoted in the media on controversial issues, especially on controversial political issues.”

For more information on debugging sweeps visit us at http://www.corpa.com

 


We’re not Promoting fear, we’re promoting concern !!!

Investment & Venture Capital Scams

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Globe & Mail

February 13, 1990

The company honcho talking on the telephone bemoans the fact that the corporation has lost the business deal. “the second time this month that we’ve lost a bid by less than $1000.”

Meanwhile, a headline on the newspaper in front of him reads: “Local Executive Charged in Wiretap.” An electronic sweep of the office nets listening devices in the adding machine, telephone, power outlet, and a cord that stretches along the floor.

This scene, portrayed in a demonstration video, and its message — “You may be bugged” — are part of a growing world-wide industry dealing in the technology of surveillance and counter-surveillance for corporations and individuals.

“We’re not Promoting fear, we’re promoting concern,” said Kevin Bousquet, who shows the video to demonstrate the CPM-700 counter-surveillance sweep device, one of the products and services he sells at his Scarborough, Ontario., company called Protect Your Business.

Security experts say that corporate and personal eavesdropping is a growing problem, with computerization, increased information technology and global competition, the crowding of communication airwaves and the availability of electronic surveillance products from sophisticated miniature devices to simple products available in many department stores.

The growth of such problems is being countered by an arsenal of products and services that detect hidden telephone, room and body bugs and tape recorders. The protection company also provides facsimile machine scramblers, hidden video cameras and microphones and sophisticated night vision surveillance equipment that would rival the gadgets in a James Bond film.

Among the fastest selling items in Mr. Bousquet’s inventory are telephone scramblers, which he calls “the yuppie toy of the 90s.” The devices, which cost $1,000 a pair, are strapped over the receiver and mouthpiece on two telephones and set to a special code to scramble the conversation.

The scramblers are especially useful for cellular telephone communications, which are conducive to accidental eavesdropping when signals get crossed and are easy prey for some frequency scanners sold in electronics shops.

Another item, which “sells well to lawyers,” is a bug detector resembling a simple smoke detector hanging over an office door. It sounds an alarm when someone walks in with a recording device.

“Under no circumstances am I promoting paranoia,” Mr, Bousquet said.

Robin Ingle, owner of Worldwide Security and Protection Corp., said that even large corporations have only limited security provisions. However, he said that awareness is growing as electronic eavesdropping gains ground in Canada.

“The threat is there,” Mr. Ingle said. The company’s Mississauga, Ontario showroom features a selection of more than 2,800 counter-surveillance and personal protection devices and new paraphernalia is added almost daily, largely from U.S. manufacturers.

Mr. Ingle said there is a need for the products because electronic eavesdropping technology is more and more accessible. Disgruntled employees, competitive businesses or simply the curious are apt to make use of it, he said.

“A lot of people don’t mind trying to gain an advantage” in whatever way they can, he said. “There’s a slipping in morals.”

Russ Donaldson, associate director of security for bell Canada, said that privacy is a concern with the growing volume of data such as computer and facsimile information transmitted over telephone lines.

“Trying to keep your data private and out of the hands of hackers is an ongoing challenge that everybody faces,” he said. “Anyone who is not protecting themselves is leaving the door unlocked.”

Security consultants say that while high-technology products are advertised in magazines and catalogues and a wide variety is available at stores such as Radio Shack, some can also be easily modified or made by hand.

Alvin Gabrielson, a buyer for Radio Shack in Canada, said the company stays away from products that can be used to intercept private conversations or telephone calls, but he realizes that a customer can try to use an item such as a radio frequency scanner to listen to private calls.

“There’s no way I can hold his hand and say, ‘You shouldn’t listen to that,’ ” Mr. Gabrielson said. “It is legal to sell the scanner.”

One of the most prevalent surveillance devices is a simple nursery or baby monitor, which is plugged into an outlet in one room and transmits sound to a receiver plugged into another outlet as far as several hundred metres away. It costs from $40 to $60.

“You put it behind a potted plant and you’ve got yourself a full-fledged bug,” Mr.Bousquet said.

The security companies themselves sell products that can he used to surreptitiously intercept private communications, such as “taping briefcases” equipped with audio or video and even microphones disguised as pens. However, the items come with disclaimers that they should not be used for illegal purposes

Security experts say companies can help protect themselves against “low-technology” theft and surveillance from inside and outside by shredding documents and restricting access to sensitive areas.

For more information on debugging sweeps visit us at http://www.corpa.com


Ever wonder if the walls have ears !!

Investment & Venture Capital Scams

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Toronto Real Estate News

By Laura Morrison. June 1, 1990.

Ever wonder if the walls have ears? Many companies are no longer taking chances — they’re investing in counter-surveillance equipment to ensure boardroom secrets stay that way.

Kevin Bousquet of Protect Your Business says since January he has sold counter-surveillance equipment and services to 90 firms listed on the Toronto Stock Exchange.

And his clients aren’t paranoid, he said. “When it comes down to dollars and cents, everything goes.”

Whether it’s a proxy battle, a hostile takeover or corporate espionage, things can get dirty. said the former private investigator. So companies are taking measures to protect themselves against electronic eavesdropping.

No security system will ever be infallible, Mr. Bousquet said. Even the most elaborate system can’t prevent a disgruntled employee from spilling the beans to a competitor.

And short of television spy Maxwell Smart’s cone of silence, there’s probably no way to beat the more sophisticated surveillance techniques. such as a laser that’s beamed on to a window from the outside to pick up vibrations while the occupants of the room are talking.

But interior security sweeps can prevent bugging from within. The security consultant recommends electronic sweeps of company boardrooms shortly before all important meetings.

The sweeps will detect any RF (radio frequency) bugs or hidden tape recorders. The firm Mr. Bousquet contracts out to charges $325 an hour for a sweep. The firm is operated by an ex-RCMP officer experienced in surveillance.

Those attending a meeting can be checked for bugs as they enter a room and a paper shredder should be placed inside to destroy confidential material at the conclusion of the session.

For those who really want to make sure they aren’t recorded, an audio jammer can be installed in the board room. This device will create background noise that will foil any attempts at tape recording. However, it will also make it difficult for those attending the meeting to hear what’s being said. For that reason, Mr. Bousquet recommends against using this type of equipment.

Business people can also purchase equipment to conduct their own security sweeps. These devices can detect RF bugs, tape recorders and even video cameras and range in price from about $900 to more than $3,000, depending on their capabilities.

Some detectors are so small they can be hidden in a suit pocket and will sense a bug or tape recorder when you shake hands with the person carrying them. “The government is very big on this stuff.”

Another popular device is the telephone scrambler. These come in pairs and work somewhat like walky talkies. Partners, for instance, can install them on their phones to ensure they have a safe line of communication that can’t be tapped. The battery-operated units can be attached to any phone including car phones. They retail for about $1,000 a pair.

Fax scramblers are also available for firms who conduct extensive business together and want safe lines of transmission. Like the telephone scramblers, the fax scramblers must be attached at both ends of the line. They retail For about $3,000 a pair.

Other James Bond-like gadgets available to the office market include electronic tap detectors ($395 to $1,300); phone censors that only accept calls with the proper pass code ($50); and call controllers that either prevent long distance calls from being placed or record record the telephone numbers of long distance calls and the extensions from which they were placed ($189 to $3,000, depending on capabilities).

And if your objective is to record your conversations rather than cloak them, there are long-play tape recorders you can attach to a telephone ($289 to $325) and briefcases with hidden tape recorders activated by the case’s handle ($725).

For more information on debugging sweeps visit us at http://www.corpa.com


HOME, OFFICE, VEHICLE, OR PHONE DEBUGGING

Investment & Venture Capital Scams
For more information on debugging sweeps visit us at http://www.corpa.com
tscm
HOME, OFFICE, VEHICLE, OR PHONE

More and more each day competitors, ex-associates, new start-up ventures, and unscrupulous individuals are using electronic eavesdropping as a way to gather information that could seriously damage your business.

“Bugs” telephone taps and video transmitters (above) are readily available that can compromise your business secrets for as little as $30.00. The manufacture, sale, installation, and monitoring of these devices is a multi-billion dollar industry in North America.
Unless you are a law enforcement agency with an Order or Warrant for a wire tap, it is a criminal offence to record the conversations of two or more persons without their consent.

Is Your Office or Phone Line Bugged?

How Do You Know If You’re Bugged ?

Confidential information seems to be getting out to competitors.

Competitors seem to be just one step ahead all of the time.

Your office was broken into yet very little or nothing was taken.

Sockets or switches show signs of being moved slightly, ie: the wallpaper may be disturbed.

Vehicles parked near to your premises, that appear to be empty.

Your telephone rings but no one speaks or you just hear a short tone.

Unusual sounds (crackling, clicks, volume changes) on your telephone handset.

Indications that your handset may have been exchanged, ie: numbers in memory may be lost.

Repairers or utility companies turn up to carry out work when they have not been called.

Furniture or items appear to have been disturbed.

Interference on your radio or television.

Unexplained brick or plaster dust on floor.

PROFESSIONAL DEBUGGING SERVICES BY TRAINED PRIVATE INVESTIGATORS AND TSCM TECHNICIANS IN BUSINESS FOR OVER 22 YEARS.

RF SPECTRUM ANALYSIS TO 6 GIG, , NLDJ, PHONE TAP DETECTION, TRACKING DEVICES, VLF, MICROWAVE, PHYSICAL INSPECTIONS !!

Is Your Office or Phone Line Bugged?

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Prices Starting From $500.00 and up !!

905-331-1333 – Sam Labella – TSCM

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World Wide Private Investigation – Results or You don’t Pay !!
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Bugs & Telephone Taps

Investment & Venture Capital Scams
For more information on debugging sweeps visit us at
The ProblemMore and more each day competitors, ex-associates, new start-up ventures, and unscrupulous individuals are using electronic eavesdropping as a way to gather information that could seriously damage your business.
“Bugs” telephone taps and video transmitters (above) are readily available that can compromise your business secrets for as little as $30.00. The manufacture, sale, installation, and monitoring of these devices is a multi-billion dollar industry in North America.
Unless you are a law enforcement agency with an Order or Warrant for a wire tap, it is a criminal offence to record the conversations of two or more persons without their consent.
How Do You Know If You’re Bugged ?

Confidential information seems to be getting out to competitors.

Competitors seem to be just one step ahead all of the time.

Your office was broken into yet very little or nothing was taken.

Sockets or switches show signs of being moved slightly, ie: the wallpaper may be disturbed.

Vehicles parked near to your premises, that appear to be empty.

Your telephone rings but no one speaks or you just hear a short tone.

Unusual sounds (crackling, clicks, volume changes) on your telephone handset.

Indications that your handset may have been exchanged, ie: numbers in memory may be lost.

Repairers or utility companies turn up to carry out work when they have not been called.

Furniture or items appear to have been disturbed.

Interference on your radio or television.

Unexplained brick or plaster dust on floor.

Kevin Bousquet Looking & Listening for RF Devices


The RF Sweep & Spectrum Analysis

The most commonly and widely used of all the devices is the RF (Radio Frequency) transmitter bug. These devices are inexpensive easy to use and require no specialized receiving equipment a simple AM or FM radio can be used to monitor the bug. Due to their low cost, there is very little incentive to recover these devices once planted.

The Spectrum Analysis (photo above) we use to detect RF devices is capable of monitoring frequencies up to 36 Gigaherts. This will also include very low frequency (VLF) devices which transmit on frequencies down to 15 Kilohertz.

Sam Labella Listening for Devices through the Power Lines

Power Line Analysis – Hard Wire Bugs


The next method is often known as the “wire tap” or a “hard wire bug”. The wiretap will use any existing wiring in the home or office ie: the electrical plugs (see photo above), alarm systems or even the telephone wiring. This is similar a typical baby monitor situation where you plug the transmitter into one room and the receiver in the other.


Many think that telephones are only a security risk when being used but a simple modification to the handset can leave the microphone connected, even when the phone is not in use.

Telephone System/Line Analysis

Wired and wireless transmitters must be physically connected to the line before they will do any good. Once a wireless tap is connected to the line, it can transmit all conversations over a limited reception range. Wired taps, on the other hand, need no power source, but a wire must run from the line to the listener or to a transmitter.

An ‘Infinity Transmitter’ or ‘Harmonica Bug’ must be installed inside the phone. When someone calls the tapped phone it rings, blows a whistle over the line, and the transmitter picks up the phone via a relay. The mike on the phone is activated so that the caller can hear all of the conversations in the room.

The telephone line analyzing equipment used during the sweep (photo above) is capable of determining illegal taps, defective phones, room listening devices, splices, VLF devices, infinity triggered devices, and selectively targeted phones in situations where a tap has been placed in a wire closet or a telephone room.

A signal is generated from your phone right to the Bell Canada Phone Centre (or the main phone centre of your particular State or Province). The purpose is to evaluate the current in the line and to discover if any device has been placed on the line that might be causing a drop in the current.

Globe and Mail.February 13, 1990.
The Financial Post.June 4, 1990.
For more information on debugging sweeps visit us at http://www.corpa.com

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Why Canadian Businesses Fail

Business Bankruptcy in Ontario, Canadian Business Taxes, GST, Investment & Venture Capital Scams

PRESS RELEASE

Why Canadian Businesses Fail

By Kevin Bousquet

What would happen if you were given a key to a race car for which you had only the manual (a written plan), but you had no previous driving experience? 

You take your new race car out on to the track and find yourself surrounded by other race car drivers on fast moving track.  You try to follow the manual (your written plan), but you discover it’s useless without practical driving experience.

Within moments, you crash into a wall and bring down other race car drivers with you.  You suffer injuries that affect you and others for a very long time.

Banks, lenders, and business development organizations wonder why new start-up businesses in Canada continue to crash into the wall at record rates.  Even with the most perfect written business plan, many lenders no longer lend to new start-up businesses simply because the risk for failure is too high.   

A friend of mine was recently laid off from a job she had for many years.  Like most people she went on unemployment benefits while she struggled to look for work.  Realising her hope for employment in Canada was bleak she decided to start her own business.  She had no previous experience running a business.    

She discovered a government-sponsored program that would allow her to receive unemployment benefits while starting her own business.  The only catch to the deal was she would have to attend and complete the unemployment business training course on how to properly start her own business, or her unemployment benefits would be cut off.

While taking the class she came to me almost weekly seeking help with her business plan. I soon realised that her course was very focused on the written business plan, with very little practical training involved.

Every business scholar and successful entrepreneur would agree that a written business plan is crucial to the start-up process.  Before a building can be built there has to be a solid blueprint.  Essentials to a business plan are strategies such as the mission statement, target market, industry analysis, competition, marketing, financial projections and so on. 

There is, however, a limit to what can be learned in a classroom setting, without hands-on experience or through the examples of successful entrepreneurs. 

If government lenders, banks and others continue to focus exclusively on well-written business plans, they might as well attach a bankruptcy application form to each loan application.

There are many reasons why businesses fail, and in most cases failure has little to do with not following the actual business plan.

 

CANADA’S BUSINESS TAX SYSTEM

A new small business owner may not be properly prepared to handle Canada’s tax system.  

After a year or so in business, the owner can expect government envelopes to begin arriving almost daily in the mail.

All levels of government will be looking for their money. There will be Municipal, Provincial and Federal taxes, plus GST.  If your business qualifies you may also be subject to Retail Sales Tax and Workman’s Compensation dues.

Hiring an employee or two will launch the new business owner into Canada’s complicated and expensive payroll system.   Many business associations continue to lobby against Canada’s excessive business payroll tax.  They maintain the expensive payroll system alone is prohibiting new start-ups from providing job opportunities.  They say this is the true reason why there are few jobs available in Canada.  Entrepreneurs simply don’t want to do business here because of our tax system.

A business owner can expect that more than 50% of every dollar earned will be paid out in tax.  This means the tax man is your partner and you may not even know it.    That is of course if you’re a business that actually pays tax as many don’t.   If you do you may find yourself competing with competitors undermining your prices whom have given up and illegally joined the underground economy. 

Understanding Canada’s business tax system and how to manage and pay business tax on time can make the difference between success and failure.

Other Challenges

And what about other aspects of business that may not be covered in the business plan?  For example:

·        Renting space; dealing with commercial landlords who seek long term leases with hidden personal guarantees that may prevent your business from growing when you can’t break out of a lease. 

·        financing equipment and vehicles successfully

·         finding the right insurance for the business and its employees

·        Coping with suppliers or customers who don’t pay.   

·        Dealing with bad debt, insurance claims, lawyers, accountants, customs and freight brokers.

·        entering into contracts

·         Learning how to hire and fire employees, and discovering their rights under the employment legislation

Some of these issues alone are documented business killers. 

 

What is the Answer?

In the early days of the Internet there was a Dot Com Venture Capital boom.  Millions of dollars were being invested by Venture Capitalists and private lenders into new start-ups.  Some deals went well; others were disastrous.

During this time, I read about a few Venture Capital firms who made the decision to nurture the business in which they were investing on many different levels. 

For example, the new start-ups were not only well-financed by lenders/investors, they were provided with office space sometimes in the same building as the lender or on the same floor.   The owners and staff were given basic business training paid for by the lender/investors.   They virtually had a professional venture capitalist holding their hand each step of the way. 

Imagine one of Canada’s leading banks lending to new start-ups under a new training program.  Before a potential loan applicant could even get an appointment to see a loan rep, they would have to complete a joint government and bank sponsored professional business course. 

A course available day, nights, or weekends to accommodate any schedule, taught by qualified business professionals who were not only teachers but were successful entrepreneurs in their own right.  Entrepreneurs who focus not only on the written business plan but who could teach on all the expected struggles of running a Canadian business.  A course that could cover various aspects of industry, such as retail, construction, manufacturing, technology etc.

In Canada we have subsidized housing for those who cannot afford to pay expensive rent. Imagine government-subsidized commercial space for new businesses trying to grow 

 Why should we expect the government to pay or assist with such training?

Every new business created is a new tax payer to our system.  A company who will pay the government 50% or more on every dollar earned.   Each employee who works at the new company will also pay an array of other taxes. An employee who is making money will also spend money into the economy.

The failure of a company, from a government standpoint, is the death of a tax payer.  It is in the government’s best interest to keep businesses alive and offer incentives for business to be created and to grow, so that jobs can be created.    

Giving out government grants to new start ups using well-designed business plans to the untrained and unqualified only increases the financial coffers of bankruptcy trustees.  

The Author:

Kevin Bousquet is the president of The Corpa Group Inc; a Private Investigation and Due Diligence firm working for the Venture Capital Industry.