1. ASIC Australian Securities & Investments Commission Electronic Enforcement Keith Inman October 2000

2. ASIC Corporations Law watchdog “Promoting honesty and fairness in securities and futures markets and in company affairs.”

3. ASIC ASIC regulates: Companies Investment advisers Superannuation funds Managed investments Insurance agents and brokers Company auditors and liquidators Life and general insurance companies Australian Stock Exchange Ltd (ASX Ltd), Sydney Futures Exchange and other authorized markets Deposit-taking by banks, credit unions, building societies, friendly societies

4. ASIC Law enforcement agency 400+ investigative staff 400+ investigative staff criminal and civil actions criminal and civil actions

5. ASIC ASIC & Cyberspace Entry barriers to crime have dropped Entry barriers to crime have dropped –easy to use –cheap –access to a very large consumer base –anonymous

6. ASIC Old economy scams + New economy scams + New economy scams = Significant increase in volume = Significant increase in volume Trend?

7. ASIC E-Scams –Illegal Investment schemes IPOs without prospectus Free Stock offers High Yield Schemes Exotic Schemes –Market Manipulation (Pump & Dump) –Unlicensed advice (Financial Gurus) –Non-Disclosure of interests –Hawking Trading software Exaggerated claims Unlicensed advice

8. ASIC Spam Email Bulletin Board Postings

9. ASIC Independent Relay Servers

10. ASIC IP 1IP 2 Suspect 1 #1#2 Suspect 2 Spam Email Bulletin Board Postings ISPs

11. ASIC The Challenge? Trace the source Trace the source –Postings on BBs –SPAM emails Understand the technology Understand the technology –Content Providers –ISPs –Telecommunication Carriers Gather & present evidence Gather & present evidence

12. ASIC Dog years !!! Dog years !!! –1 day = 1 month The Challenge?

13. ASIC What is ASIC doing? ASIC

14. Leverage Web technologies Internal Learning & Development Internal Learning & Development Consumer Education Consumer Education “Self Help” Resources “Self Help” Resources Detection Detection

15. ASIC Electronic Enforcement Unit (EEU) Small, national team Small, national team  “Centre of expertise” Dedicated resources Dedicated resources  Legal  Investigative  Technical

16. ASIC National volunteer network of 60 staff National volunteer network of 60 staff Specialized web tracing/forensic computing training Specialized web tracing/forensic computing training Linked through an intranet site Linked through an intranet site ASIC

17. EEU Intranet

18. ASIC ASIC Scam Site?

19. ASIC 11,000 visitors between April 1 and April 30 11,000 visitors between April 1 and April 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?

20. ASIC ‘Self Help’ Resources On-line consumer advice On-line consumer advice Due diligence searches Due diligence searches –“Look left and right before you click..”

21. ASIC Detection ASIC’s “Web Hound” Project ASIC’s “Web Hound” Project Automatically Automatically –identify “high risk” web sites –assess & aggregate the risk –analyze risk associated to mentioned entities –identify and refer high risk matters

22. ASIC Public Secure Internet Public Search Engines Content Gathering Data Collection Query Collect Risk Assessment Analyse Report Corporate DBs AIR GAP

23. ASIC Sought after tools Use of equipment for search warrants Use of equipment for search warrants –Mirror Imaging Retention of ISP records Retention of ISP records Monitoring by ISP Monitoring by ISP Removal of internet material Removal of internet material Removal if ISP services Removal if ISP services New offence for SPAMMING New offence for SPAMMING

24. ASIC Electronic Enforcement Keith Inman October 2000