New Generation Crimes Securing Asia 2013

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New Generation New Generation CrimesCrimes

( Need for Capacity Building)( Need for Capacity Building)

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New Generation CrimesNew Generation Crimes

Broad categoriesBroad categories

CharacteristicsCharacteristics

Inadequacies in Law Enforcement Inadequacies in Law Enforcement

Road AheadRoad Ahead

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Technology CenteredTechnology Centered

Technology FacilitatedTechnology Facilitated

Resulting from lifestyle changesResulting from lifestyle changes

Terrorism-RelatedTerrorism-Related

Resulting from GlobalizationResulting from Globalization

Corporate fraudsCorporate frauds

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Technology Centred CrimesTechnology Centred Crimes

Cause:Cause: Creation of Creation of

knowledge knowledge economieseconomies

Miniaturization of Miniaturization of storage mediastorage media

Digitized wealth Digitized wealth E-commerceE-commerce E-governanceE-governance

Effect:Effect:HackingDenial of Service a

ttacksPhishingBotnets Virus AttacksVirus AttacksTrojan Horse

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Case Studies:Case Studies:

1. Estonia Incident1. Estonia Incident

2. Fraudulent Duty Draw Back through Computer 2. Fraudulent Duty Draw Back through Computer

ManipulationsManipulations

3. Source Code Theft3. Source Code Theft

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Estonia Incident:Estonia Incident:the Cyber War!the Cyber War!

EstoniaEstonia– Very high dependence on computersVery high dependence on computers– Has a CERTHas a CERT– Member of both NATO as well as EUMember of both NATO as well as EU– Typical of any State in times to comeTypical of any State in times to come

The crisis in April-May 2007The crisis in April-May 2007– Botnet DDoS attack paralyzes critical infrastructureBotnet DDoS attack paralyzes critical infrastructure– Initial defence by isolating itselfInitial defence by isolating itself– Rogue IP blocked with cooperation of foreign ISPsRogue IP blocked with cooperation of foreign ISPs– It took about 2 weeks to be fully functional againIt took about 2 weeks to be fully functional again

A Cyber war!A Cyber war!

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Fraudulent Duty Draw Back CaseFraudulent Duty Draw Back Case

Fraudulent payment of Fraudulent payment of supplementary duty drawbackssupplementary duty drawbacks

Supplementary Duty Drawback of Supplementary Duty Drawback of around 150 crores was paid to around 150 crores was paid to around 300 exporters. around 300 exporters.

Data manipulation was done by Data manipulation was done by Computer Network officials at the Computer Network officials at the backend of the computer system.backend of the computer system.

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Source Code TheftSource Code Theft

A reputed firm developed data recovery A reputed firm developed data recovery softwaresoftware

Ex-employees stole the source code of Ex-employees stole the source code of the software and started selling them the software and started selling them through their own companiesthrough their own companies

Stolen software also sold to a US based Stolen software also sold to a US based company, which is selling it in US.company, which is selling it in US.

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Technology Facilitated Technology Facilitated OffencesOffences

Cause: Cause: Advancements in Advancements in

technology have technology have facilitated commission of facilitated commission of some of the traditional some of the traditional economic crimes in a economic crimes in a simpler way and on an simpler way and on an unprecedented larger unprecedented larger scale. scale.

Effect:Effect: Internet PornographyInternet Pornography Nigerian Letter FraudsNigerian Letter Frauds Counterfeiting of currency Counterfeiting of currency IPR CrimesIPR Crimes VoIP Crimes Internet GamblingInternet Gambling Drug-peddling through Drug-peddling through

Internet sitesInternet sites Money laundering through Money laundering through

e-banking channelse-banking channels Blackmailing by MMS / Blackmailing by MMS /

morphed photographsmorphed photographs

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Crimes resulting from lifestyle Crimes resulting from lifestyle changeschanges

Cause:Cause: Increasing Increasing

urbanizationurbanizationAnonymityAnonymityChanging Value Changing Value

SystemSystemConsumerismConsumerismMaterialismMaterialism

Effect:Effect: Crimes taking Crimes taking

advantage of advantage of anonymity anonymity

Drug peddling in Drug peddling in affluent sections of affluent sections of societysociety

Organ TransplantsOrgan Transplants Credit card / ATM Credit card / ATM

Frauds/ E-Commerce Frauds/ E-Commerce Frauds for sustaining Frauds for sustaining expenses on luxuriesexpenses on luxuries

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Terrorism-related CrimesTerrorism-related Crimes

Cause:Cause: Rise in Fundamentalism Rise in Fundamentalism

and Terrorismand Terrorism Specialised needs of the Specialised needs of the

Terrorist groupsTerrorist groups Easier transborder Easier transborder

movementmovement Development in the Development in the

Internet and Internet and communication communication technologiestechnologies

Effect:Effect: Arms & Explosives Arms & Explosives

TraffickingTrafficking Terrorist funding Terrorist funding

through e- channels through e- channels Use of internet for Use of internet for

communication communication Generation of funds Generation of funds

by trafficking of by trafficking of contraband goodscontraband goods

Suicide bombersSuicide bombers

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Spurt in FICN circulationSpurt in FICN circulation

Very high value seizures in last decadeVery high value seizures in last decade– 2.67 crores in Colombo (Dec. 2006)2.67 crores in Colombo (Dec. 2006)

– 2.34 crores in Hyderabad (Aug. 2007)2.34 crores in Hyderabad (Aug. 2007)

– 1.67 crores in Kualalampur (July, 2007)1.67 crores in Kualalampur (July, 2007)

– 1 crore from Kathmandu (July, 2007)1 crore from Kathmandu (July, 2007)

Total FICN seizures in India in the past have Total FICN seizures in India in the past have crossed 10 crorescrossed 10 crores

Evidence of involvement of organized crime Evidence of involvement of organized crime syndicatessyndicates

Role of foreign agencies suspectedRole of foreign agencies suspected

Most of security features being replicatedMost of security features being replicated

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Crimes resulting from Crimes resulting from GlobalizationGlobalization

Cause:Cause: End of cold war End of cold war Globalization of Globalization of

economies economies Porous international Porous international

bordersborders

Effect:Effect: Transnational Drug Transnational Drug

traffickingtrafficking Breach of security by the Breach of security by the

BPO employeesBPO employees Human traffickingHuman trafficking Smuggling of antiques, and Smuggling of antiques, and

wild life products by wild life products by transnational organized transnational organized crime syndicatescrime syndicates

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Wildlife CrimeWildlife Crime

Demand driven crimeDemand driven crime Global trade estimated at US $20-30 Global trade estimated at US $20-30

billionbillion Chain comprises Nomadic Hunting tribes Chain comprises Nomadic Hunting tribes

of poachers, city based middlemen and of poachers, city based middlemen and international buyers international buyers

An estimated 350 tiger skins, 2350 An estimated 350 tiger skins, 2350 leopard skins and 3800 otter skins were leopard skins and 3800 otter skins were smuggled by Sansarchand gang alone smuggled by Sansarchand gang alone in the past twenty yearsin the past twenty years

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Corporate FraudsCorporate Frauds

CauseCause Growth in Growth in

market market capitalisationcapitalisation

Liberalised rules Liberalised rules of lendingof lending

Capacity Capacity constraints of constraints of regulatory regulatory agenciesagencies

EffectEffect Frauds in stock Frauds in stock

issuesissues Emergence of fly-Emergence of fly-

by-night by-night operatorsoperators

Bank fraudsBank frauds Trade Trade

malpracticesmalpractices Accounting Accounting

ManipulationsManipulations

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Characteristics of New Characteristics of New Generation CrimesGeneration Crimes

Transnational character requiring trans Transnational character requiring trans

border investigationsborder investigations

Volatile evidenceVolatile evidence

Ignorant VictimsIgnorant Victims

Demand driven: Collusive natureDemand driven: Collusive nature

Educated/ First time criminalsEducated/ First time criminals

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New Generation crimes are here to New Generation crimes are here to staystay

They need different type of They need different type of responsesresponses

There are serious gaps in the There are serious gaps in the capacitycapacity

The situation requires urgent The situation requires urgent interventionintervention

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Where do we stand ?Where do we stand ?

Cutting edge level not techno-savvyCutting edge level not techno-savvy

Lack expertise and motivationLack expertise and motivation

Deficient in comprehension of Deficient in comprehension of nature of emerging challengesnature of emerging challenges

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Few IssuesFew Issues

How to change local mindset into How to change local mindset into global mindset ?global mindset ?

From functional expertise to broader From functional expertise to broader perspectiveperspectiveIndividual to teamworkIndividual to teamworkChange as surprise to change as Change as surprise to change as opportunityopportunityFrom local competency to global From local competency to global competencycompetency

Versatile Transnational PolicingVersatile Transnational Policing

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Few IssuesFew Issues

Integrating technology with workIntegrating technology with work

Creating a knowledge-based transparent Creating a knowledge-based transparent organizationorganization

Technology as an HRD ToolTechnology as an HRD Tool

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Road AheadRoad Ahead

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TrainingTraining

Target GroupsTarget Groups– Investigating Investigating

Officers Officers – ConstabularyConstabulary– Prosecution Prosecution

OfficersOfficers– Executive Executive

Officers Officers – JudiciaryJudiciary

ModulesModules– Sensitization to Sensitization to

underlying technologyunderlying technology– Criminal Gangs and their Criminal Gangs and their

Modus operandiModus operandi– Skill formation in use of Skill formation in use of

technological aids technological aids – Legal issuesLegal issues– Interagency coordinationInteragency coordination– Trans-border Trans-border

investigations investigations

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Logistics and Budgetary SupportLogistics and Budgetary Support

Modern GadgetryModern Gadgetry

R&D for customization of off the shelf R&D for customization of off the shelf technologytechnology

Budgetary support and procedural Budgetary support and procedural simplicitysimplicity

Incentives, Extra pay, Foreign training, Incentives, Extra pay, Foreign training, etc.etc.

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What we envisionWhat we envision Even the remotest Police Station is in a Even the remotest Police Station is in a

position to understand the dimensions of position to understand the dimensions of the crimethe crime

Every state has at least one specialised unit Every state has at least one specialised unit to handle such crimesto handle such crimes

At national level there is a nodal agency for At national level there is a nodal agency for coordinationcoordination

Criminal Laws are sufficient to address the Criminal Laws are sufficient to address the issuesissues

There should be well equipped training There should be well equipped training institutions at the central and state levelsinstitutions at the central and state levels

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Thank YouThank You