Deepfake Scams: How AI-Powered Impersonation Is Becoming the Next Big Social Engineering Threat

Deepfake Scams: How AI-Powered Impersonation Is Becoming the Next Big Social Engineering Threat

Deepfake scams are no longer rare, experimental, or easy to spot. Criminals now use AI-generated video, audio, and images that look and sound shockingly real—sometimes realistic enough to fool long-time employees, trusted partners, or even entire financial teams.

This article breaks down how deepfakes are being used in social engineering attacks, why the threat is accelerating, and the habits that help you (and your organization) stay ahead of it.

Quick note: defend-id helps organizations reduce the financial and operational fallout when identity-based attacks succeed. Employee monitoring + live recovery support gives teams peace of mind and keeps productivity on track—all for less than most HR teams expect.


Table of Contents

  1. What Is a Deepfake?
  2. Why Deepfake Scams Matter for Businesses
  3. Real-World Examples
  4. How Cybercriminals Use Deepfakes in Social Engineering
  5. Red Flags to Watch For
  6. Smart Verification Habits
  7. Organizational Protections
  8. Conclusion: Awareness + Systems = The Best Defense

What Is a Deepfake?

A deepfake is synthetic media—video, audio, or images—created using artificial intelligence to convincingly mimic a real person’s face, voice, or expressions.

You’ve likely seen examples online. But what many people don’t realize is how easy it’s become to generate these clips:

  • A few publicly available photos

  • A handful of social media videos

  • A few seconds of recorded speech

…is enough data for criminals to build a version of you that can trick coworkers, clients, or vendors.

This is no longer a future risk. Deepfake scams are already being deployed at scale, and they’re proving highly effective.


Why Deepfake Scams Matter for Businesses

Social engineering has always been about trust—exploiting urgency, authority, or emotion to push someone into a quick decision. Deepfakes supercharge this tactic.

They allow attackers to impersonate:

  • CEOs
  • CFOs
  • HR executives
  • IT admins
  • Vendors or partners
  • Colleagues whose faces you recognize

The result? Employees aren’t just reading suspicious emails anymore. They’re receiving video calls, voice messages, or short clips that appear completely legitimate.


Real-World Example: $25 Million Lost in Minutes

In one documented case, a finance employee received a video call from someone who looked and sounded exactly like the company’s CFO.

The “CFO” urgently requested a $25 million transfer.
Everything appeared normal.
The employee complied.
The money vanished.

Only after the employee reported the completed transfer did anyone realize the CFO had never made the call.

This wasn’t carelessness. It was a sophisticated deepfake scam—proof of how convincing these attacks can be.


How Cybercriminals Use Deepfakes in Social Engineering

Deepfakes fit naturally into the types of attacks businesses already see:

  • Wire transfer fraud – A video message from “leadership” asking for a fast payment.
  • Credential harvesting – A fake IT admin requesting an urgent password reset.
  • Data access manipulation – An impersonated executive asking for sensitive files or HR data.
  • Vendor or partner scams – A cloned voice leaving a voicemail about updated banking details.

These messages are usually short, urgent, and authoritative—designed to disarm you before you question them.


Red Flags to Watch For

Even high-quality deepfakes often show subtle inconsistencies. Slow down and check for:

Visual cues

  • Lips slightly out of sync with audio
  • Unnatural blinking or stiff facial muscles
  • Odd lighting or shadows
  • Movements that don’t match speech cadence

Audio cues

  • Robotic or “flat” tone
  • Repetitive phrasing
  • Background noise that cuts in and out
  • Speech patterns that feel off compared to the real person

Deepfake tech improves constantly, so cues won’t always be obvious. That’s why habits and verification steps matter more than visual accuracy alone.


Smart Verification Habits

Modern security awareness isn’t about being perfect—it’s about pausing long enough to validate.

Ask yourself:

  • Am I being asked to do something unusual for this person?
  • Would this action have a high impact if I’m wrong?
  • Is there a second way to verify the request?

Many organizations now use a shared passcode or callback protocol to confirm high-risk actions. Even if yours doesn’t, you can suggest one:

“Before I process this, can you confirm using our code?”
“Let me call you back using the number we already have on file.”

If there’s hesitation, delay, or pushback, treat it as suspicious.


Organizational Protections to Block Deepfake Scams

Leaders can make deepfake fraud harder and less likely to succeed by adopting a few practical safeguards:

  • Multi-factor authentication (MFA) on all sensitive systems – This prevents impersonators from getting in—even with stolen credentials.
  • Verification protocols for wire transfers and data access – A second check (or a passphrase) dramatically reduces rushed-decision errors.
  • Limit public exposure of executive voice and video – Many companies now avoid posting long, raw video clips of leadership.
  • Employee security awareness training – Teams should know what deepfake scams look like and how to respond.
  • Identity protection for employees – Deepfake attacks often start with stolen personal data. defend-id helps reduce exposure and gives employees and HR teams immediate support when identity misuse occurs.

Awareness + Systems = Your Best Defense

Deepfake scams are becoming a preferred weapon for cybercriminals because they exploit the one thing humans trust most—our own eyes and ears.

You can’t stop AI from evolving, but you can strengthen the habits that keep your organization safe:

  • Slow down
  • Verify identity
  • Use internal passcodes
  • Follow established financial controls
  • Question unusual requests

If this article gives you the manual, step-by-step guidance for staying alert, defend-id provides the automated layer that protects employees when identity-based attacks slip through. Monitoring, alerts, and full recovery support reduce risk, reduce distraction, and keep your team focused on what matters.

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Social Engineering: How Cybercriminals Use Human Emotion to Steal Data

Social Engineering: How Cybercriminals Use Human Emotion to Steal Data

Social Engineering Table of Contents

  1. What Is Social Engineering?
  2. Why Social Engineering Works
  3. The Three Building Blocks of Social Engineering
  4. Common Delivery Methods
  5. Questions That Help You Spot an Attack
  6. Phishing vs. Smishing
  7. Why Small Businesses Are Targeted More
  8. How to Defend Yourself (and Your Company)
  9. Final Takeaway

1. What Is Social Engineering?

Social engineering is a tactic where a cybercriminal manipulates a person into revealing personal information, login credentials, or financial details. The result is often data loss, financial loss, or unauthorized access—and it doesn’t just affect the individual. When an employee is tricked, the entire organization becomes vulnerable.

Employees often want to do the right thing quickly, and attackers rely on that instinct.

defend-id note: Social engineering is one of the leading causes of employee identity theft and business-wide data exposure. Protection programs that include monitoring and live restoration can minimize the damage if an employee slips.


2. Why Social Engineering Works

Cybercriminals focus on human emotion, not technology. They use:

    • Fear (“Your account is locked—confirm now.”)
    • Excitement (“You won a reward—click here.”)
    • Ego & Self-esteem (“HR needs your help urgently.”)

By creating urgency, attackers push people to act without thinking. The more rushed you feel, the more effective their manipulation becomes.


3. The Three Building Blocks of Social Engineering

1. Manipulation

Attackers heighten emotional distress. They want you in “react mode,” not “think mode.” A single click or quick reply is all they need.

2. Influence

They gather background information—where you bank, where you shop, where you work, even who your family members are.
With enough detail, they craft messages that feel personal and legitimate.

3. Deception

Social engineers mimic real environments:

      • Background noise like a call center
      • A fake crying child if pretending to be a school
      • Real-looking email signatures
      • Spoofed phone numbers

Once they get what they came for, they disengage quickly to avoid detection.


4. Common Delivery Methods

Social engineering can happen through:

    • Email (phishing)
    • Phone calls (vishing)
    • Text messages (smishing)
    • In-person encounters (“I’m here from IT to check your hardware…”)

Cybercriminals choose whichever channel gets the fastest response.


5. Questions That Help You Spot an Attack

1. Do I know this person?

If someone claims to be a representative, ask for:

      • A badge
      • A callback number
      • Their representative ID

Legitimate professionals will not object to verification.

2. Is the source valid?

Check:

      • Email addresses
      • Phone numbers
      • Internal directories

If it feels off, don’t respond. Confirm through an official channel you trust.

3. Does this make sense?

Slow down and ask yourself:

      • Am I expecting this package?
      • Did I request this service?
      • Would this organization communicate this way?

If the answer is “no” or “I’m not sure,” verify before acting.


6. Phishing vs. Smishing

Phishing

The most common form. Delivered through email, often appearing:

      • Urgent
      • Personalized
      • Professional looking

Smishing

A text message version of phishing.
It feels more personal—people instinctively trust texts more than emails, which makes smishing increasingly effective.


7. Why Small Businesses Are Targeted More

According to industry reports:

    • 90% of malicious data breaches involve social engineering.
    • Small business employees experience 350% more social engineering attacks than employees at large enterprises.
    • CEOs receive an average of 57 targeted attacks per year.

Attackers know small teams are stretched thin, handling many responsibilities. One slip can expose everything.


8. How to Defend Yourself (and Your Company)

1. Education & Awareness

Training reduces risk immediately. When employees recognize manipulation, the attack fails.

2. Verification First, Action Second

Always verify before:

      • Clicking
      • Responding
      • Sending money
      • Sharing credentials

3. Strong Identity Protection

Even well-trained employees make mistakes.
Programs like defend-id include:

      • Monitoring of personal and work-related identity elements
      • Alerts for suspicious activity
      • Full-service restoration if someone’s identity is compromised

This reduces lost time, stress, and operational disruption.


9. Final Takeaway

Social engineering is successful because it targets people—not systems. The tactics are evolving, but so is awareness. When individuals and businesses adopt simple verification habits and pair them with strong identity-protection programs, the impact of these attacks drops dramatically.

You can train yourself to spot manipulation. You can protect your employees from identity theft. And you can reduce the financial and operational fallout that follows a successful attack.


FAQ: Social Engineering

  1. What is social engineering?
    Social engineering is a method cybercriminals use to manipulate people into giving up personal information, login credentials, or financial data. Instead of exploiting systems, they exploit human emotion and urgency.
  2. Why is social engineering so effective?
    It works because it targets instinctive reactions—fear, urgency, excitement, or trust. When people feel pressured to act quickly, they are more likely to click, respond, or share sensitive information.
  3. What are the most common types of social engineering attacks?
    Phishing emails and smishing text messages are the most common. Both rely on convincing messages designed to trick individuals into clicking malicious links or revealing information.
    1. Phishing guide
    2. Smishing guide
  4. How can I tell if a message is a social engineering attempt?
    Ask yourself:
    1. Do I know this person?
    2. Is the sender information legitimate and familiar?
    3. Does the request make sense?
    4. Is it forcing urgency?
      If the answer to any is “no,” verify the request independently before taking action.
  5. Why are small businesses targeted more often?
    Small businesses often have fewer security resources, limited technical oversight, and distracted employees wearing many hats. This combination makes them easier targets for manipulation compared to larger enterprises.
  6. How can companies defend themselves against social engineering?
    A combination of ongoing employee training, verification habits, and identity protection tools helps reduce the risk. Programs like defend-id provide monitoring, alerts, and full-restoration support—critical when an employee makes an honest mistake.
  7. What should employees do if they suspect a social engineering attack?
    They should stop, verify the communication through a known source, avoid clicking unfamiliar links, and report the incident to their IT or security team. Quick reporting helps prevent broader exposure.

Next Steps

Choose what you want to do next:

1. Strengthen Your Employee Protection Program

If you want ongoing monitoring, $1M insurance, and full-service recovery support for your team, explore how defend-id can help. (link)

2. Share This Article

Know someone who should read this? Send it to them via LinkedIn or email.

Smishing Explained: How to Recognize and Prevent Text Message Phishing

Smishing Explained: How to Recognize and Prevent Text Message Phishing

What Is Smishing?

Smishing (short for SMS phishing) combines traditional phishing tactics with text messaging as the delivery method. Instead of using email, cybercriminals send fraudulent text messages designed to trick you into revealing sensitive information, clicking malicious links, or downloading harmful apps, AKA smishing attacks

Why the shift? Email spam filters have gotten better at blocking phishing attempts. But text messages have a 98 percent delivery rate—and nearly half of all texts get a response. Cybercriminals exploit that trust and immediacy, making smishing one of the fastest-growing forms of social-engineering attacks.

According to the FCC, Americans reported losing more than $86 million to text-message fraud in 2019, and the trend has only accelerated since.


Why Smishing Works So Well

Text messages feel personal and urgent. Most people assume that if a message lands directly on their phone, it must be legitimate. That false sense of security gives attackers an opening.

Common emotional triggers include:

  • Curiosity (“You’ve won a prize!”)
  • Fear (“Your account has been locked.”)
  • Urgency (“Confirm delivery details now.”)
  • Trust (“We noticed unusual activity—please verify.”)

These cues prompt quick reactions before the recipient has time to verify authenticity.


The Three Most Common Types of Smishing Attacks

1. Credential-Stealing Texts

These messages mimic banks, retailers, or corporate systems and urge you to log in to “verify your account.” Once credentials are entered, attackers gain access to financial data or company systems—often leading to ransomware or financial loss.

2. Malware Downloads

Some texts include links that install malicious software directly on your phone. Because personal devices often lack enterprise-grade protection, malware downloads via SMS succeed far more often than through corporate email systems.

Tip: Never click a link in a text message from an unknown sender—no matter how legitimate it looks.

3. “Call-Back” Scams

Instead of links, these messages provide a phone number. The person who answers may sound professional and reference familiar company details, but their goal is to persuade you to share personal or business information.

Rule of thumb: If you receive an unexpected message with a number to call, find the organization’s official contact information yourself and verify directly.


How to Recognize a Smishing Text

Ask yourself:

  1. Do I know this sender? If not, proceed cautiously.
  2. Did I expect this message? Legitimate authentication texts only arrive after you initiate an action (like a password reset).
  3. Does the text contain typos or odd grammar? Many smishing attempts originate overseas.
  4. Is it relevant? Fake delivery notices, contest winnings, and debt-relief offers are all classic lures.

If any answer raises doubt—delete the message without responding.


Best Practices to Protect Yourself

  • Don’t reply to suspicious texts. A single response confirms your number is active, increasing future attacks.
  • Avoid previewing messages that begin with strange characters or symbols.
  • Delete unknown messages immediately.
  • Don’t engage in conversation with unfamiliar senders—even if they claim to be from your bank or employer.
  • Verify independently using official apps or websites, not numbers provided in texts.

Remember: awareness is your strongest defense. Recognizing and deleting a smishing attempt protects not only your data but also your organization’s network.


Why Awareness Matters for Businesses

Every employee smartphone is a potential entry point for attackers. Training staff to identify smishing attempts helps prevent credential theft, data breaches, and costly downtime.

Many companies integrate identity-theft protection and mobile-security education into employee-wellness programs—an approach that reinforces security culture without adding administrative burden.


Final Thoughts

Smishing will continue to evolve, but so can your defenses. By staying alert, questioning unexpected messages, and following best practices, you can dramatically reduce your exposure to text-based fraud.

Stay smart, stay skeptical, and never click before you think.


Sources:

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🎣 Phishing: How to Spot It Before You Take the Bait

🎣 Phishing: How to Spot It Before You Take the Bait

Phishing awareness and prevention are essential skills in today’s connected world. Every day, more than 3.4 billion phishing emails are sent globally, targeting people of every age and experience level. These messages are designed to trick recipients into giving away passwords, financial details, or confidential business information.

In this guide, you’ll learn exactly what phishing is, how to recognize phishing attempts, and how to strengthen your organization’s defenses against them.


Table of Contents

  1. What Is Phishing?
  2. Why Phishing Awareness and Prevention Matter
  3. How to Spot a Phishing Email
  4. Common Phishing Tricks and Tactics
  5. Phishing Prevention Best Practices
  6. Final Thoughts on Phishing Awareness and Prevention

What Is Phishing?

Phishing is a cybercrime technique where attackers send fake messages—often disguised as trusted sources—to steal information or install malware. These messages might impersonate banks, retailers, or even coworkers. The goal is to get you to act before you think: click a malicious link, download an infected attachment, or reveal personal data.

Stat: Phishing attacks have increased 150% since 2019, according to the Federal Trade Commission.

Understanding phishing awareness and prevention starts with recognizing that phishing isn’t just about bad links—it’s about emotional manipulation.


Why Phishing Awareness and Prevention Matter

Even with advanced spam filters, many phishing messages still reach inboxes. Cybercriminals constantly evolve their methods to outsmart automated defenses, which means your best protection is educated employees and vigilant behavior.

According to CISA, human error remains the top cause of successful phishing breaches. That’s why building phishing awareness and prevention programs is vital to reducing risk.


How to Spot a Phishing Email

Here’s a quick checklist to identify suspicious messages before they cause harm:

  1. Urgent or Threatening Language
    If the email says “Your account will be closed in 24 hours” or “Act now to prevent suspension,” pause. Fear tactics are a hallmark of phishing scams.
  2. Unusual Sender or Domain
    Always check the actual email address. If a message claims to be from your bank but comes from a Gmail account, it’s phishing. Fraudsters also create look-alike domains, such as arnazon.com instead of amazon.com.
  3. Hidden or Shortened Links
    Hover your mouse over links before clicking. Verify the URL before visiting. If it’s a shortened link (like TinyURL or Bit.ly), avoid it—cybercriminals use these to hide malicious destinations.
  4. Unexpected Attachments
    Be cautious with PDF or Word documents that arrive without context. These often deliver malware or ransomware.

Common Phishing Tricks and Tactics

Cybercriminals have become increasingly sophisticated. Here are a few phishing styles to watch for:

  • Spear Phishing: Targeted attacks aimed at specific individuals, such as executives or HR managers.
  • Clone Phishing: Legitimate emails copied and altered with malicious links.
  • Smishing & Vishing: Phishing via text (SMS) or phone calls, often impersonating customer support.
  • Business Email Compromise (BEC): Attackers pose as executives to request wire transfers or sensitive files.

For an in-depth overview, visit Verizon’s 2024 Data Breach Investigations Report.


Phishing Prevention Best Practices

Building phishing awareness and prevention programs involves more than just IT tools—it’s about consistent behavior and training.

  1. Think Before You Click
    Pause and evaluate before opening attachments or clicking links.
  2. Verify Directly
    If an email claims to be from a colleague or institution, contact them using a verified phone number or company directory.
  3. Use Multi-Factor Authentication (MFA)
    Even if credentials are stolen, MFA can stop attackers from gaining access.
  4. Train Your Team Regularly
    Conduct quarterly phishing simulations and employee training. CISA’s phishing campaign assessment guide is a helpful resource.
  5. Report Suspicious Messages
    Never delete without reporting. Forward to your IT or security department so they can block similar threats.

Final Thoughts on Phishing Awareness and Prevention

Phishing remains the #1 cyber threat worldwide, responsible for most identity theft and ransomware attacks. The best defense isn’t just technology—it’s awareness, training, and vigilance.

By prioritizing phishing awareness and prevention within your organization, you help protect personal data, reduce stress on employees, and safeguard your company’s reputation.

Remember: Think before you click. Verify before you trust.

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Turning Your Employees into the Strongest Link in Cybersecurity

Turning Your Employees into the Strongest Link in Cybersecurity

Human error remains the single largest driver of data breaches. Verizon’s 2024 Data Breach Investigations Report found that the human element contributed to 68% of breaches, while Keepnet Labs reports 60%, and some studies push that figure as high as 95%.

Whether it’s a mistyped email, a reused password, or a convincing phishing lure, people—not systems—open the door. Yet those same employees can become an organization’s greatest defense through consistent, well-designed employee cybersecurity training.


The high cost of getting it wrong

IBM’s 2024 Cost of a Data Breach report pegs the global average breach at $4.88 million, up from $4.45 million in 2023. These losses include downtime, legal penalties, and reputational damage.

Organizations that implemented employee cybersecurity training reduced average breach costs by $258,000. The return is simple: trained employees click fewer malicious links, report incidents faster, and help prevent even a single million-dollar mistake.


Why employees remain the weakest link

Common mistakes that trigger breaches include:

  • Clicking phishing or smishing links.

  • Mishandling confidential data.

  • Sharing credentials across multiple tools.

According to Guardz (2025), 18 % of employees have never received cybersecurity training, and 67 % of decision-makers say their workforce lacks basic awareness. With remote and hybrid work expanding the attack surface, an untrained employee can jeopardize an entire network.


Transforming employees into vigilant defenders

The same Guardz study found that ongoing awareness programs can cut employee-driven cyber incidents by up to 72 %, and 90-day initiatives can reduce phishing susceptibility by 40 %.

Effective programs build confidence. Trained staff spot social-engineering attempts, recognize AI-generated scams, and act quickly to contain threats—before they escalate into breaches.


What effective security-awareness programs include

1. Foundational education
Cover phishing, malware, password hygiene, and insider-threat basics in plain, relatable language.

2. Hands-on simulations
Run phishing, smishing, and vishing drills. Keepnet Labs found that regular simulations boost detection accuracy to 92 %.

3. Continuous reinforcement
Micro-learning and quarterly refreshers outperform annual “check-the-box” sessions. Threats evolve; training must too.

4. Metrics and feedback
Track participation, click-throughs, and incident reports. Use real data to refine content and recognize progress.


Building a security-first culture

Technology alone can’t close the gap. Create a culture where employees feel safe reporting mistakes and leadership models proactive behavior.

Integrate awareness efforts into broader security programs—from incident-response planning to endpoint protection. Nearly 89 % of security leaders say awareness initiatives measurably improve overall posture.

When employees understand that data protection is everyone’s job, training becomes habit—not homework.


Training as a strategic investment

Every major study agrees: human error drives most breaches, but employee cybersecurity training dramatically reduces both risk and cost. Awareness programs aren’t an expense; they’re an investment in resilience.

Organizations that make training part of their culture turn their workforce into vigilant defenders of data security—and often save hundreds of thousands by preventing just one incident.


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Small Business Post-Breach Playbook: What to Do First

Small Business Post-Breach Playbook: What to Do First

A breach is chaotic. This small business post-breach playbook outlines the initial steps: contain systems without compromising evidence, avoid common mistakes, comply with notification rules, and transform the crisis into long-term resilience.

These insights are drawn from an interview with Sean Mack, Managing Director of ISMG’s CXL Advisory Service, originally published by Information Security Media Group. The full conversation can be viewed here: Post-Breach Essentials for Small Businesses (GovInfoSecurity.com). The following are my notes and key takeaways from that interview.


Post-Breach Containment: Stop the Bleeding, Save the Evidence

  • Isolate affected systems immediately—even if it disrupts business.

  • Don’t power them down. Preserving volatile data helps forensic investigators understand how attackers gained access.

  • Reset credentials for compromised accounts, with priority on administrative and remote-access users.


Who Leads the Response (and When to Call External Help)

In a breach, one person must lead decisively—whether CIO, CTO, or IT head.

If your business lacks in-house security expertise:

  • Call in a fractional CISO or incident response firm.

  • Involve legal counsel early.

  • Notify your insurance provider, as they may have specific requirements for approved support.


Mistakes to Avoid in the First 48 Hours

Sean Mack highlighted common errors small businesses make under pressure:

  • Wiping or re-imaging devices before forensics are complete.

  • Allowing logs to rotate before they’re collected.

  • Alerting attackers prematurely through public statements.

  • Communicating inaccurate information to customers or the media before details are confirmed.


Compliance & 72-Hour Notifications

  • Many states mandate breach notification within 72 hours.

  • Regulated industries like healthcare (HIPAA) and finance (PCI DSS) face additional rules.

  • Failure to notify appropriately can lead to lawsuits, fines, and reputational damage.

  • Engage legal counsel to guide notification timing, content, and audience.


Post-Incident Review: Turn Crisis Into Resilience

A breach can also be a learning opportunity. Conduct a postmortem to:

  • Identify entry points and attacker movement.

  • Review your incident response performance.

  • Create action items, assign ownership, and track to completion.

Too often, businesses leave postmortems on the shelf. Treat them as a roadmap to resilience.


Build Your Incident Response Plan (SMB Checklist)

Preparation reduces chaos and recovery time. Key proactive steps include:

  • Develop and test an incident response plan with clear roles and communication templates.

  • Maintain and test regular backups.

  • Run tabletop exercises annually to practice response in a low-stakes setting.

  • Engage a fractional CISO for ongoing security leadership and guidance.


Final Thoughts

As Sean Mack noted in the interview, “While a breach is a horrible situation, it can also be a real learning opportunity. Done right, it’s a chance to reassess your security and come out more resilient.”

👉 To hear the full discussion, watch the interview here: Post-Breach Essentials for Small Businesses (GovInfoSecurity.com).


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