IBLS Speaker's Corner : e-banking

An Explosion in Cyber crime Sets Off Alarms in Europe

Maricelle Ruiz — Tue, 29 May 2007 02:15:00 GMT

A video circulates on the Internet linking several individuals accused of the largest terrorist attack in Europe, the 2004 Madrid train bombings, to the incident. It is attributed to Iraqi-based, terrorist organization Ansar el Islam. The video shows pictures of an alleged planner and several of the suspected executers of the attack. It also shows graphic images of the attack and its aftermath as well as maps of the Madrid train system and of Al-Andalus, the area of the Iberian Peninsula governed by Muslims centuries ago. This video and similar websites are said to be used by terrorists to recruit supporters for their cause.

The European Union wants Member States, third countries and the private sector to join forces to put an end to the use of cyberspace for criminal purposes, including the incitement to terrorism. To that end, it has released the Communication “Towards a General Policy on the Fight against Cyber Crime;” scheduled conferences on public and private cooperation; and is considering the adoption of targeted legislation. Besides dealing with cyber terrorism, the European Union wants to tackle skyrocketing online child pornography and financial fraud, particularly identity theft for the fraudulent use of credit cards, as well as cyber attacks.

The European Union urges countries to adopt the Council of Europe’s Convention on Cybercrime of 23 November 2001 and the EU’s Council Framework Decision 2005/222/JHA of 24 February 2005 on Attacks against Information Systems.

The European Union is in the process of collecting regional statistics on the magnitude and cost of cyber crime, which officials predict to be enormous, judging by the following data. The UK-based Internet Watch Foundation reports a 1,500 percent rise in child pornography sites accessible from this country in an eight-year period. In Norway, 7,000 people are said to be looking at child pornography on the Internet every day. Cyber crime losses in the United States, meanwhile, account for up to $400 billion per year. In the United Kingdom, 89 percent of businesses have been attacked in a year. Estonia was recently subjected to weeks of cyber attacks forcing the shut down of key public and private sites. The UK Financial Services Authority reports an 8,000 percent increase in bank fraud within a two-year period.

The wild hunt for e-evidence in high-profile cases

Maricelle Ruiz — Fri, 04 May 2007 15:39:00 GMT

Even if you’re really mad…it may not be such a good idea to hack, that is, to illegally access another’s computer. The pursuit of electronic evidence to reach beneficial divorce settlements and close lucrative business deals was reportedly out of control in some United Kingdom circles…until law enforcement officers decided to look into the activities of a well-known heir. After being questioned by the police, the heir and his detectives recently ended in a London Court.

US banking heir Matthew Mellon is charged with conspiring to cause unauthorized modification of computer material. He allegedly hired a UK detective agency, which reportedly used a computer virus to hack into his wife’s computer in search of financial information during divorce proceedings. Mellon’s now ex-wife – Tamara Mellon – is the head of fashion company Jimmy Choo. Matthew Mellon denies any wrongdoing.

“The agency carried out the usual things like tracking people down, looking for information for solicitors. They also had a lucrative sideline involving hacking into people’s computers and tapping into their phones, which is illegal in this country,” prosecutor Miranda Moore told the Court, according to The Guardian, during the case against Mellon and the UK firm involved in the alleged plot. The company is accused of using viruses, among other methods, to obtain data to enable clients to reach beneficial divorce settlements and close lucrative business deals. It also denied wrongdoing.

The use or attempted use of e-evidence in divorce proceedings is not a new occurrence. In the US state of Florida, a wife reportedly installed spyware on her husband’s computer and later tried to use information obtained in divorce proceedings. She was not allowed because Florida bans the interception of these communications. However, in New Jersey, a wife was granted $7,500 during divorce proceedings after her husband wiretapped her computer to keep track of her transactions and emails.

Europe adopts legislation to expedite e-payments

Maricelle Ruiz — Fri, 27 Apr 2007 17:39:00 GMT

The European Union is in the process of integrating national payment systems to create a Single Euro Payments Area or SEPA. The initiative intends to facilitate electronic payments and services, such as direct debit and e-invoicing, throughout the EU and to protect consumers using this system. It also intends to bring into the system additional payment-service providers not only to foster competition and improve services to consumers, but also to comply with anti-money laundering and anti-terrorist financing standards.

The legal foundation for this initiative is the Payment Services Directive. The European Parliament, which recently approved the text for this Directive, has forwarded the document to the EU Council for final adoption. Member States must transpose said Directive into national law by November 1st 2009. The launching of the Single Euro Payments Area is scheduled for January 1st 2008 and expected to have reached a critical mass of users by the end of 2010.