A data breach of social insurance numbers (SIN) belonging to the clientele of one of Canada’s largest investment firms is “so dangerous,” according to a former high-level employee at the company.
Terry Beck was the Manager of Operations at Mackenzie Investments, and an employee at the company for nearly 20 years, up until he retired in 2019. When he left, he divested his investments.
Yet a couple weeks ago, he said he received a letter from the corporation explaining that his SIN was compromised in a data breach.
Mackenzie informed clients in a letter dated April 27 that a third-party vendor, InvestorCOM Inc., was compromised by a cyber security incident related to data transfer supplier GoAnywhere. Clients’ account numbers, names, and addresses were also compromised, according to one of the letters, reviewed by CTV News Toronto.
“This is so dangerous,” Beck told CTV News Toronto. “It’s an opening of a door to a lot of places.”
To work in Canada or access government programs and benefits, a nine-digit number – known as a SIN – is assigned to an individual. It is “private” and “illegal” for anyone else to use, according to the federal government.
“It’s the gateway to the government,” Beck said.
He said that when he was manager of operations four years ago, SINs were not shared with third-party vendors and that the practice could lead to continued privacy breaches.
In a statement to CTV News Toronto on Monday, a Mackenzie spokesperson explained the company now uses SINs to identify and provide notifications to clients.
“Companies may use SINs as an identifier for reasons such as consolidating investor holdings so that fees associated with their account are reduced,” a spokesperson said.
“They may also share a client’s SIN as a unique identifier to third parties such as a dealer, group plan sponsor, and third-party service providers.”
Beck acknowledged the necessity of consolidating a client’s accounts, but he questioned why a random set of numbers couldn’t stand in as a unique identifier, instead of a highly sensitive form of government identification.
“It could rear its head at any time down the road,” Beck said.
In a statement issued following the ransomware attack, Mackenzie said it regrets the effects the breach has had on their clientele.
“Mackenzie takes privacy and data protection very seriously and we are committed to protecting the confidentiality of all personal information. We greatly regret any concern or inconvenience this incident may cause to our valued clients,” a company spokesperson said in the statement.
The spokesperson said there has been no evidence of data misuse at this point in time and that the company reported the incident to the federal privacy commissioner, in addition to provincial privacy commissions.
LONG WAITS FOR RESOURCES
Shelly Rae, a Toronto resident and Mackenzie investor of about three decades, said she was concerned when she received a letter in the mail explaining that her personal information had been exposed.
“When someone has your name, phone number, address and SIN, that’s a pretty significant breach,” she said. “They can go on to steal your identity.”
After being notified that her information had been compromised, she said she spent about 10 hours on the phone in an attempt to sign up with a TransUnion credit monitoring service that Mackenzie is offering to impacted customers.
A Mackenzie spokesperson said the company is experiencing “particularly high volumes” of calls, leading to long wait times for victims of the breach seeking resources.
They said they “sincerely apologize” for the delays.
“The TransUnion call centres are doing their best to address all client concerns as quickly as possible by enhancing service capacity to help manage call volumes. We are proactively working with TransUnion to manage the high volume of calls and appreciate people’s patience,” the spokesperson said.
Despite credit monitoring services offered, Beck said “there’s nothing you can do” to change the fact that your SIN number is out there. “It will always be out there,” he said.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
