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					Computer as a Tool

             Computer Facilitated Crimes

 Used as a convenient way to commit a host of crimes
 Objective is generally to defraud individuals or entities for
  financial gain

     Internet Fraud Complaint Center (IFCC)
Situation Prior to May 8, 2000

      Limited Reliable Statistical Data Available

      Limited Coordination of Internet Fraud

      Limited Number of Agencies Gathering
       Types of Internet Fraud Information

      No National Strategic Plan
Why Cyber Crooks Use the

        Simplicity
        Cost Effective
        Speed
        Credibility
        Anonymity

   Cybercrime is a major new challenge for law enforcement and
    fraud investigators

   Significant issues:
    –    regulatory issues
    –    international policy coordination
    –    technical complexity (e.g., cyber-payment system architecture)
    –    appropriate criminal statutes

   Law enforcement must be an early adopter of technology in order
    to combat it
    –    criminals are early adopters
Investigative Challenges

                       International Issues

        Treaties
        Language Barriers
        Crime in US, Not Foreign Country
        Extradition
Challenges for Fraud Cases

 Intelligence
 Identifying Subjects
 Locating Victims
 Determining Venue
 Technical Training & Expertise
 Developing partnerships with the private sector
Types of Crimes
Committed on the Internet

    Frauds
    E-mail Extortion Threats
    On-line Child Pornography
    Terrorism
    On-line Gambling
    Offshore Money Laundering
    Theft of Technology or Information
    Business to Business
How are law enforcement
  and fraud investigators
going to share information
 related to Internet crime?
Internet Fraud Complaint Center

  The IFCC is a joint project of the National White
   Collar Crime Center (NW3C) and the Federal
   Bureau of Investigation.

  The IFCC provides a web-site where victims of
   crimes can file complaints on-line. Internet Fraud
   Analysts refer complaints to the appropriate law
   enforcement agencies.
The Objectives of the IFCC

    Develop A National Strategy
    Identify and Track Frauds
    Analyze Internet Crime Trends
    Triage Internet Complaints
    Develop Investigative Packets
    Forward Information to Appropriate Agency
    Complaint Receipt and Referral

Complaints are Received and Entered into Database
–   Victim files complaint
–   Complaint is reviewed by IFCC
–   Victim may be emailed back for more information
–   Law enforcement agencies are identified
–   Complaints are forward to appropriate agencies
–   Follow-up to determine case status
Investigative Support (IS)

  Criminal investigation triggered, development of investigative
  – Loss exceeds $10,000 or as appropriate
  – All law enforcement agencies are identified
  – Investigative packet is developed
     • Criminal checks
     • Victim interviews
     • Open source checks
  – Coordinate joint investigations
  – Follow-up to determine case status
    International Impact
   The IFCC has received complaints      The IFCC has received complaints
    from 140 different countries           on perpetrators from 100 different
   Top 10 reporting countries:            countries
     –   United States                    Top 10 countries are
     –   Canada                             –   United States
     –   Australia                          –   Canada
     –   United Kingdom                     –   Nigeria
     –   Germany                            –   Romania
     –   Singapore                          –   Ukraine
     –   Japan                              –   United Kingdom
     –   Uganda
                                            –   Hong Kong
     –   Aruba
                                            –   Indonesia
     –   Hong Kong
                                            –   Australia
                                            –   Germany
Complaint Process

Phase I:
•   Receive 1,000 consumer complaints per week
•   Keep web page operational, evaluate feedback, modify
•   Recruit and train additional staff
•   Identify additional complainants and aggregate data
•   Develop trends and schemes
•   Assist law enforcement and regulatory agencies
•   Develop international law enforcement contacts
•   Develop industry contacts
Complaint Process
Phase II:
 Artificial intelligence, data mining
 E-Commerce and B2B merchant hyper link, bulk complaints
 ISP training to take complaints, down load direct
 Number of complaints - ?
 Continue liaison with foreign law enforcement agencies
  interested in establishing similar IFCC’s
 Provide hardware and software architecture (proprietary)
 Provide foreign law enforcement the opportunity to work in the
 Sponsor international training for Internet fraud related issues
  for IFC Centers
 Provide on-site assistance during the start-up phase
 Provide an introduction to private industry partners
Business Link

 Limited testing of link

 Receipt of business complaints

 Receipt of bulk business complaints

 Trend analysis & statistical data
                            September 7, 2001
              Two Arrested in Alleged $50 Million Web Fraud
Federal law officials say two men they believe helped mastermind a $50
million Ponzi scheme on the Internet have been arrested in Costa Rica.
A joint announcement Thursday from the Sacramento office of the U.S.
Department of Justice and the FBI said the two were arrested by Costa
Rican authorities wielding U.S. warrants following an investigation into
an allegedly crooked investment Web site known as the "Tri-West
Investment Club."
U.S. Attorney John Vincent and FBI Special Agent Richard Baker said
Canadian Alyn Richard Waage, 55, and Californian James Michael Webb, 39,
are each charged with mail fraud and securities fraud. Investigators said
the trio used the Tri-West Web site to pitch "no-risk" investment schemes
they called the "Bank Debenture Trading Program" and the "Prime Bank"
note program, guaranteeing returns of 120 percent a year.
The Web site also offered referral fees for those who brought other
investors to the club, investigators said.
 Internet Fraud is a Global Crime

  The IFCC is a
Clearing House for
  There is now
  on the Internet

Patrick M. Ford
Supervisory Special Agent

           fax 202.324.9863
        email - pford.fcs@fbi.gov

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