Online Gambling A Law Enforcement Perspective

1. Online Gambling A Law Enforcement Perspective Brigadier Piet Pieterse South African Police Service Directorate for Priority Crime Investigation (DPCI) 2 March 2012

2. The South African Police Service is responsible for the prevention, combating and investigation of crime, to maintain public order, protect and rescue the inhabitants of the Republic and the property, and to uphold and enforce the law. • The Directorate for Priority Crime Investigation’s mandate is to investigate national priority offences requiring specialised skills in the prevention and investigation thereof. Strategic objectives of the DPCI is to ensure a multi-disciplinary approach and integrated methodology involving stake holder partnership. INTRODUCTION

3. The DPCI recognised the value of combating, preventative and investigative initiatives in addressing the manifestation of the cyber crime phenomenon within the broader Southern African context. • The initiatives emanate from Government’s Delivery Agreement, with specific reference to Outcome Three, referring to “All people in South Africa are and feel safe”. • The agreement is based upon an overall outcome which is linked to a set of selected outputs, identifying cyber crime and more specifically “the negative impact of cyber crime on the economy and general well being of citizens (which) cannot be underestimated”, as one such output. • In order to adhere to Outcome Three in relation to “cyber crime activities that are threatening to become a pervasive danger to individuals and the community and economy as a whole…”, decisive action has been identified in Output Eight “Effective and integrated management of Cyber security”. Introduction to Cyber Crime

4. Cyber crime is defined in many different ways by different sources. • Cyber crime would be better described as ‘information and communication technology’ crime. • Communication, Banking and Commerce Sectors rely on a hybrid form of technology in that it consists of computers, computer systems and communication devices. DEFINING CYBER CRIME

5. The concept of cyber crime therefore, should be construed so as to include all these interacting hybrid technologies used by modern society. • Some experts distinguish between ‘ true computer crime’ and ‘computer related crime’.

6. These technologies, crime and methods are so interlinked, that it make sense to adopted a wide, generic approach to investigating information and communication technology related crimes, collectively referred to as cyber crime.

7. In terms of existing legislation ‘interactive gambling’ not defined. • The National Gambling Act 7 of 2004 - ‘interactive game’ means a gambling game played or available to be played through the mechanism of an electronic agentaccessed over the internet other than a game that can be accessed for play…. DEFINING ONLINE GAMBLING/ INTERACTIVE GAMBLING

8. ‘interactive gambling transaction’ a) commences when a player account is debited in the amount of a wager; and b) concludes when the i) player account is credited with the amount of winnings, in the case of a winning bet; or ii) player loses the game.

9. Identify the unique characteristics, nature, risks and extent associated with the threat (criminal business system). • Identify appropriate interdepartmental capacities and legal instruments. • Identify multi-disciplinary investigative, combating and preventative strategies. ESTABLISH EXTENT & IMPACT OF THE CRIME PHENOMENON

10. Establish the Transnational nature of the phenomenon and associated risks to South Africa. • Establish the extent of the threat within the Southern African context. • Identify unique characteristics and crime patterns that appears similar in nature. IDENTIFY UNIQUE CHARACTERISTICS, NATURE, RISKS & EXTENT OF ONLINE GAMBLING

11. An analysis of the crime threat reveals (challenges facing law enforcement) : • Transnational in nature (geographical boundaries does not necessarily limit unlawful activities); • Anonymity (perpetrators usually unknown-faceless in nature-often difficult to identify individuals who are responsible); • Often Organised/Complex in nature (it has a structure-specific roles and functions allocated to specific individuals within the structure-Internet platform not regulated-advances in technology-vulnerability of computer systems-wireless technology);

12. Difficult , time consuming to understand the threat, inclusive to gather and secure evidential material (digital evidence will form part of most crime scenes, yet there is still widespread ignorance amongst officials in gathering digital evidence-attempts at investigation involving computers often fail because of mistakes made at a very early stage, essential digital evidence is ignored, destroyed or compromised or inappropriately handled-need for more trained forensic experts to analyze and testify about digital evidence);

13. Techniques employed by perpetrators often sophisticated; • Often a process to commit fraud, inclusive of identity theft and money laundering/receiving the proceeds of crime; • Often difficult to identify and successfully prosecute (first price: arrest cyber perpetrator behind offending computer, the instrument to the crime-second price: arrest cyber perpetrator in possession of offending computer, case mainly based on circumstantial evidence-successful criminal prosecution depends essentially on the availability of prima facie admissible evidence); • International cooperation essential (Mutual Legal Assistance MLA- time consuming

14. Identify international best practices in addressing the threat. • International benchmarking in comparison to South African approach. • Establishment of adequate law enforcement capacity in addressing the identified threat within a multi-disciplinary approach. Appropriate Interdepartmental Capacities & Legal Instruments

15. Develop a detailed implementation plan to effectively prevent, combat and investigate the identified threat. • Assess and monitor the impact of the approved investigation strategy and interdepartmental collaborative delivery performance. Identify Multi-disciplinary Investigative Strategy

16. Operational implementation of Strategic initiatives: • Specialisation within the cyber forensic investigative environment (investigations requires specialised forensic skills); • Capacity to source operational information and create analytical/research capacity; • Cooperate and coordinate with local and international role players; • Identify and recognise cyber intrusions on computers and networks;

17. Electronic Task Team (project management) approach in addressing the identified threat (multi skilled team approach-reducing reaction time in attending to identified investigations); • Combined investigative approach (two phased investigative methodology-1.”follow the money”-2. forensic system analysis); • Investigative approach with specific focus on asset restraint and forfeiture as a primary objective.

18. The South African Police Service has a legal obligation to address the manifestation of the identified cyber crime phenomenon that poses a potential threat to our democracy and South African economy. CONCLUSION