Albena Spasova, Lawyer and Strategy Advisor, Alba Advisors LTD

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

2. Agenda • Evolution of cybercrime • Meet the fraudster • European policies - addressing challenges and giving solutions • Virtual worlds – Is it real? Should we be concerned?

3. Evolution of cybercrime: The future is now

4. Approach cybercrime as: “Old crimes, new tools and new crimes, new tools”

5. 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

6. 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…

10. 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 …

11. I was caught… I am in prison now…

12. Where are the rest of the group…

13. Where is the boss of the scheme?

14. 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…

15. 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

16. Tracing… • Preservation of data • Information kept must be sufficient to allow tracing • Fast sharing of information

17. Tracing scheme…

18. Sharing electronic evidence internationally How long does it take to share information between two countries? What other challenges we have in the process?

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

20. Solutions: Adopt adequate legislation Assure sufficient law enforcement personnel with adequate training and resources Partnerships with industry Public awareness

21. Legislation Council of Europe Convention Guidelines for Cooperation between Internet Service Providers and Law Enforcement European Commission Initiatives

22. Operational support Cross-border cooperation is the biggest challenge European platform for reporting cybercrime incidents

23. Training Law enforcement trainings Training magistrates Individual industry trainings Joint initiatives

24. Government support Fighting cybercrime is a priority Public awareness campaigns

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

26. 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

27. 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”

28. 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

29. 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

30. Life in a virtual world: What can you do?

31. Life in a virtual world:

33. 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 $

34. The crimes

35. Property crimes:given the size of economy, not surprising • Theft • Burglary • Robbery • Extortion/Gang activity • Counterfeiting • Tax evasion • Organized crime

36. 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

38. Crimes against persons • Assault • Kidnapping • Domestic violence • Stalking

39. Crimes against persons • Hate speech/Xenophobic/ Religious Crimes

40. 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”

41. 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.

42. Crimes against persons • Murder (of an avatar)

43. 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.

44. Scenario LD$

45. Imagine this scenario All account with counterfeit identification

46. Policing the virtual world: Real Police

47. 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

48. The future? • Integration of biology and silicon • Nanotechnology • Killer robots

49. The metaverse vs the real world • Computer controlled real weapons: liveshot.com

50. In conclusion… • Establishing 24/7 points of contact in virtual worlds • EU Regulations • Take a step at a time • Thank you!