Operational and Policy Solutions in Combating Cybercrime – A Practical Perspective on Challenges in Fighting Cybercrime Albena Spasova, Lawyer and Strategy.

Operational and Policy Solutions in Combating

Cybercrime – A Practical Perspective on Challenges in

Fighting CybercrimeAlbena Spasova,

Lawyer and Strategy Advisor, Alba Advisors LTD

Agenda Evolution of cybercrime Meet the fraudster European policies - addressing challenges

and giving solutions Virtual worlds – Is it real? Should we be

concerned?

Evolution of cybercrime: The future is nowVersion 1.0 Version 2.0 Version 3.0

Traditional crimes move online:

hacking viruses fraud theft drugs prostitution vandalism

Net crimes:

phishing botnets organized crime cyber terrorism critical infrastructure attacks

Virtual worlds:

artificial intelligence “worlds” collide

Approach cybercrime as:

“Old crimes, new tools and

new crimes, new tools”

Investigating Internet crime is no different from investigating traditional crimes!

You have to ask the right questions!

Know evidence to search for

Properly seize and preserve the evidence

Know what information leads to the suspect

That’s key because of the nature of the crimes and the perpetrators

Let’s meet them

My name is………

A.B. Live in a small city near the Carpathians

mountains I am coming from a poor family I want to have money The average salary in my town is… I have friend who does Internet fraud…

This is how I started…

I talked to my friends…. I became a money mule… I retained 20% bonus for me… I bought a car… I was so cool …

I was caught…

I am in prison now…

Where are the rest of the group…

Where is the boss of the scheme?

Investigation – challenges for law enforcement

Where did the crime happen? Is the crime a crime in the jurisdictions

involved? Who will investigate it? Who is behind it? Tracing back…

Tracing………

While its happening - where is the illegal activity taking place – who are the parties involved?

Using information provided by ISPs and other communications providers – different legal requirements

Encrypted communications

Tracing… Preservation of data

Information kept must be sufficient to allow tracing

Fast sharing of information

Tracing scheme…

Sharing electronic evidence internationally How long does it take to share information

between two countries?

What other challenges we have in the process?

Challenges

Legislation and jurisdiction Sufficient resources and personnel Localizing and identifying the “bad guys” Collect and share evidence internationally

Solutions:

Adopt adequate legislation Assure sufficient law enforcement

personnel with adequate training and resources

Partnerships with industry Public awareness

Legislation

Council of Europe Convention

Guidelines for Cooperation between Internet Service Providers and Law Enforcement

European Commission Initiatives

Operational support

Cross-border cooperation is the biggest challenge

European platform for reporting cybercrime incidents

Training

Law enforcement trainings

Training magistrates

Individual industry trainings

Joint initiatives

Government support Fighting cybercrime is a priority

Public awareness campaigns

Crime in a virtual world? Really? Introduction Is it real? Should we be concerned? Get real!

Virtual worlds? Computer-based simulated environment

intended for its users to inhabit and interact via avatars. These avatars (“av” or “avi”) are usually depicted as textual, two-dimensional or three-dimensional graphical representations

Virtual worlds fulfill a fantasy roll – avatars can fly, change genders, pose as monsters and conquer new worlds

Also more mundane and common activities: shop, run political activities, engage in diplomatic relations, have sexual relations, work as journalist and engage in criminal activities

Virtual worlds Most popular is Second Life (SL) Since opening in 2003 it has expanded

dramatically and now is “inhabited” by over 16 million

http://secondlife.com/whatis/?lang=en-US Own economy – Linden Dollars – L$

(Official exchange rate 250 L$ for 1 USD) In January 2008 residents spent

28.274.505 hours in their “metaverse”

Virtual Worlds These avatars live in worlds that are absolutely

“real” for the participants (physiology or virtual worlds) 20% of the MMORG gamers say the virtual world is their

primary place of residence The real world is a.k.a metaspace, is just a place to get

food and sleep (Mother Jones) Massively Multiplayer Online Role-Playing Games

(MMORG) are videogames that allow thousands of players to introduce themselves into a virtual world in a simultaneous way and interact among them

Virtual worlds In worlds populations: Second Life (with over 16 million) Warcraft (12 million paid subscribers) Disney Club Penquin (expected to attract over 30 million

participants) Together the population of these three virtual worlds alone

exceeds the real- world populations of Canada, Australia and Ireland combined

Life in a virtual world: What can you do?

Life in a virtual world:

Interesting stats 567 mil. $ user to user transactions in 2009 65% jump from 2008 770.000 unique users made repeat visits to SL in

December 2009 Residents cashed 55 mil. $ transferring to PayPal Land barons make 12 mil. $ untidily per year Users control IPRs of what they build Average price per island is 1000 $

The crimes

Property crimes:given the size of economy, not surprising

Theft Burglary Robbery Extortion/Gang activity Counterfeiting Tax evasion Organized crime

Vice crime Gambling Prostitution Legal issues deeply unclear and remain

unresolved Invading real world London couple divorces

after wife discover husband “cheating” with an other avatar

Crimes against persons Assault Kidnapping Domestic violence Stalking

Crimes against persons Hate speech/Xenophobic/ Religious Crimes

Crimes against personsChild pornography-Grooming/Sexual Aggressions

Age Play: players request sex with “Child” avatars Has encouraged a growth in players posting as

children in order to make money Not all criminal Virtual adoption Now under 18 banned from SL, but how to verify? German prosecutor

investigated “virtual child pornography and exploitation”

Crimes against persons Rape:

In 2007, one avatar in SL, allegedly raped an other one Some Internet bloggers dismissed the simulated attack as nothing more than digital fiction But police in Belgium open investigation Julian Dibbel. Famous case from late 1990’s.

Crimes against persons Murder (of an avatar)

Virtual money Money launderers can now move illicit cash

through the growing number of virtual reality role-playing games, and convert that cash into real currency before withdrawing it from ATMs worldwide.

One wonders just how many laundrymen have tumbled to this cyberlaundering opportunity.

Compliance officers at financial institutions please note that their banks may be guilty of money laundering if it facilitates deposits or payments in these virtual worlds, for there is no functional due diligence on players or recipients.

Scenario

LD$

Imagine this scenario

All account with counterfeit identification

Policing the virtual world: Real Police

Policing the virtual world Willingly or reluctantly? Laws are coming…be prepared Governments beginning to regulate online

behavior related to obscenity, fraud and theft

European regulators are considering whether to impose real-world laws on virtual-world money

The future? Integration of biology and silicon Nanotechnology Killer robots

The metaverse vs the real world Computer controlled real weapons:

liveshot.com

In conclusion… Establishing 24/7 points of contact in

virtual worlds EU Regulations Take a step at a time Thank you!

Contact information:

Albena SpasovaLawyer and Strategy AdvisorAssociate Professor, Lille-1 University, FrancePresident, International Cyber Investigation Training Academy

[email protected]: albenaspasovaCell: +32 473 111 721Cell: +359 887 30 32 89