CYBER CRIME: EFFECTS ON IMPORTING & EXPORTING SUFFOLK COUNTY POLICE DEPARTMENT PRESENTED BY: DEPUTY INSPECTOR, GERARD X. MCCARTHY COMMANDING OFFICER SPECIAL SERVICES BUREAU DETECTIVE RORY FORRESTAL COMPUTER CRIMES

GRATEFUL APPRECIATION TO DR. JEAN- PAUL RODRIGUE FROM HOFSTRA UNIVERSITY FOR PROVIDING SLIDES ON WORLD TRADE. SLIDES TAKEN FORM FROM HIS BOOK

Disclaimer THE FOLLOWING PRESENTATION IS PREPARED FOR THE LONG ISLAND IMPORT EXPORT ASSOCIATIONS AND REPRESENTS THE OPINIONS OF THE PRESENTERS. IT SHOULD NOT BE RELIED ON AS LEGAL ADVICE,OR RECOMMENDATIONS FOR ANY PARTICULAR COMPUTER SECURITY SYSTEMS.

INTRODUCTION Changing complexity of law enforcement caused by growth in world trade and computer crimes. TWO ESSENTIAL ISSUES: Import/Exports are being used to launder criminal proceeds Intellectual property/communications being intercepted. Examine your distribution chains Black Markets: not limited to U.S. Can be anywhere anytime change in existing business environment - look for a black market Discussion: contraband cigarette market Examples: Excise taxes, unemployment, tightening of credit conditions, currency devaluations Cyber Crimes - need for more due diligence. Easy to form corporations/id theft

L.I.E.A – LONG ISLAND IMPORT EXPORT ASSOCIATION ACTIVE MEMBERS ESTEE LAUDER 2009 ANNUAL REPORT: As part of our strategy, we plan to shift our category mix towards higher margin categories with greater global growth potential. Skin care, our most profitable category, is a strategic priority for our innovation and investment spending, particularly in the Asia/Pacific region. We also plan to strengthen our geographic presence by seeking share growth in large, image-building cities within core markets such as the United States, the United Kingdom, France, Italy and Japan. In addition, we will continue to prioritize efforts to expand our presence and accelerate share growth in emerging markets such as China, Russia, the Middle East and Eastern Europe We manufacture, market, and sell beauty products including those in the skin care, makeup, fragrance and hair care categories which are distributed in over 140 countries and territories….

FORREST LABORATORIES 2009 ANNUAL REPORT Our ability to generate the revenue necessary to support our investment in acquiring and developing new product opportunities, as well as the commitment of resources to successfully market our products, greatly depends on effective intellectual property protection … We also rely on trade secrets and proprietary know-how that we seek to protect, in part, through confidentiality agreements with our partners, customers, employees and consultants. It is possible that these agreements will be breached…. AUDIOVOX 2009 ANNUAL REPORT We purchase our products from manufacturers principally located in several Pacific Rim countries, including Japan, China, Hong Kong, Indonesia, Malaysia, Taiwan, Singapore, and the United States. *Risk factors: We import most of our products from suppliers in the Pacific Rim. Countries in the Pacific Rim have experienced significant social, political and economic upheaval over the past several years...

MILTON FRIEDMAN

SOURCE: FINCEN 1997

CONTAINER TRAFFIC

MARITIME PIRACY

Hackers Attack 2, 411 Firms Global Offensive Snagged Corporate, Personal Data; Operation Is Still Running