asic australian securities & investments commission electronic enforcement keith inman october...
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ASICAustralian Securities & Investments Commission
Electronic EnforcementElectronic EnforcementKeith InmanKeith Inman
October 2000October 2000
ASIC
ASIC & CyberspaceASIC & CyberspaceEntry barriers to crime have droppedEntry barriers to crime have dropped
– easy to use easy to use
– cheap cheap
– access to a very large consumer base access to a very large consumer base
– anonymous anonymous
ASIC
Old economy scamsOld economy scams
++ New economy scams New economy scams
== Significant increase in Significant increase in volumevolume
Trend?Trend?
ASIC
E-ScamsE-Scams– Illegal Investment schemes Illegal Investment schemes
• IPOs without prospectus
• Free Stock offers
• High Yield Schemes
• Exotic Schemes
– Market Manipulation Market Manipulation (Pump & Dump)(Pump & Dump)
– Unlicensed advice Unlicensed advice (Financial Gurus)(Financial Gurus)
– Non-Disclosure of interestsNon-Disclosure of interests
– Hawking Trading software Hawking Trading software
• Exaggerated claims
• Unlicensed advice
ASIC
The Challenge?The Challenge?Trace the sourceTrace the source
– Postings on BBsPostings on BBs
– SPAM emailsSPAM emails
Understand the technology Understand the technology – Content ProvidersContent Providers
– ISPsISPs
– Telecommunication Carriers Telecommunication Carriers
Gather & present evidenceGather & present evidence
ASIC
Leverage Web Leverage Web technologiestechnologies
Internal Learning & DevelopmentInternal Learning & Development
Consumer EducationConsumer Education
““Self Help” ResourcesSelf Help” Resources
DetectionDetection
ASIC
Electronic Enforcement Electronic Enforcement Unit Unit (EEU)(EEU)
Small, national teamSmall, national team““Centre of expertise”Centre of expertise”
Dedicated resourcesDedicated resourcesLegalLegalInvestigativeInvestigativeTechnicalTechnical
ASIC
National volunteer network of 60 National volunteer network of 60 staffstaff
Specialized web tracing/forensic Specialized web tracing/forensic computing trainingcomputing training
Linked through an intranet siteLinked through an intranet site
ASIC
ASIC
11,000 visitors 11,000 visitors between April 1 and April between April 1 and April
30 30
1200 asked for more information 1200 asked for more information
233 wished to invest 233 wished to invest
$4.02 million pledged to scam$4.02 million pledged to scam
ASIC
ASIC Scam Site - results?ASIC Scam Site - results?
ASIC
‘‘Self Help’ ResourcesSelf Help’ Resources
On-line consumer advice On-line consumer advice Due diligence searches Due diligence searches
– ““Look left and right before you click..”Look left and right before you click..”
ASIC
DetectionDetection
ASIC’s “ASIC’s “Web HoundWeb Hound” Project” Project
Automatically Automatically – identify “high risk” web sitesidentify “high risk” web sites
– assess & aggregate the riskassess & aggregate the risk
– analyze risk associated to mentioned analyze risk associated to mentioned
entitiesentities
– identify and refer high risk mattersidentify and refer high risk matters
ASIC
Public
Secure
InternetPublic
Search EnginesContent Gathering
Data Collection
Query Collect
RiskAssessment
Analyse Report
CorporateDBs
AIR GAP
ASIC
Sought after toolsSought after tools
Use of equipment for search Use of equipment for search warrantswarrants– Mirror ImagingMirror Imaging
Retention of ISP recordsRetention of ISP recordsMonitoring by ISPMonitoring by ISPRemoval of internet materialRemoval of internet materialRemoval if ISP servicesRemoval if ISP servicesNew offence for SPAMMINGNew offence for SPAMMING