Respected Chairman, Dignitaries on the dais and distinguished delegates. This is a brief presentation on “New Generation Crimes”. All of us are aware that there are three main factors which prevent any potential criminal from committing any crime. These are individual’s conscience, social controls and State sanctions. Today, due to disturbed family life, anonymity in society and loopholes in Criminal Justice System, the conventional deterrence mechanism is not working effectively. As a consequence potential criminals are unfolding themselves. With the changing time, the scope and complexity of crime has also changed, thus making the task of law enforcement agencies more difficult.To handle such eventuality law enforcement agencies will have to adapt accordingly. The focus of my presentation today, therefore, would be new patterns of crime as well as new breed of criminals.
The whole presentation has been divided basically into four parts:- In the beginning, Broad Categories of New Generation Crimes will be discussed. After that, Characteristics of such crimes would be described followed by few slides explaining inadequacy of law enforcement agencies in facing such crimes and finally there will be deliberations on future strategies.
There is no universally accepted definition of New General Crimes. Such crimes mostly are the products of technological, economic, social and political developments and keep changing from time to time. New Generation Crimes can be broadly divided into six categories: Technology Centered Technology Facilitated Resulting from lifestyle changes Terrorism-Related Resulting from Globalization Corporate frauds I will discuss each of them in detail in the later part of the presentation.
“ Knowledge is Power”, it is an old proverb. The software revolution has rediscovered this proverb. Economies where knowledge is power are booming. With new developments in Information Technology and storage techniques, a different type of wealth, i.e. digitized wealth, is being created. Computer is one of the most important components of this system. This has given birth to entirely a new set of crimes in which the storage places and processing of such information are being attacked. All of us are aware about new types of computer related crimes, commonly known as cyber crime. Exponential growth of internet has resulted in growth of virtual space where cyber criminals operate freely. Now hacking, denial of service attacks, phishing, botnets are very common. Added to this, the earlier forms of crime, such as virus attacks and trojan horse also continue to play havoc with the computer systems and the world.
In very brief, I will explain few examples of such crimes.
Estonia is a small country in Europe with a population of 1.3 million. It has an extremely high dependence on computers, so much so, that 90% of the bank transactions are done online. It has established set up of CERT, I mean Computer Emergency Response Team; and it is also a member of European Union as well as NATO. It is better equipped than most others to respond to any large-scale cyber threat. In a nutshell, Estonia perhaps exemplifies what most of states aspire to be in near future. However, in April-May this year, Botnet guided distributed denial of service attacks paralyzed nearly all Government, media and banking sites. The attacks originated from places as diverse as SE Asia, and USA. Unable to track the precise origin of these attacks ISPs worldwide were persuaded to block the dubious traffic. Virtually, Estonia cut itself off from rest of the world, in the same way as a kingdom would lock itself in a fort to evade a rampaging enemy. It was only after a week, that too, with assistance from ISPs located in foreign countries, the problem could be solved. The world had perhaps its first experience of a cyber war – a war which can be orchestrated by a few individuals but could have effects as devastating as a full-fledged conventional war.
In brief, I will just touch upon a case which was recently registered with CBI. It is an unique instance of looting the Government money by manipulating the computer data related to supplementary Duty Drawback against the exports by a large number of firms. In this case, in all about 45000 transactions were made for claiming Supplementary Duty Drawbacks amounting to Rs. 150 crores related with 300 exporters. Data manipulation was done by computer network officials at the backend of the computer system.
CBI has recently also registered two cases of theft of source code in which it was alleged that ex-employees of a DATA RECOVERY SOFTWARE COMPANY stole the source code of their recovery softwares. These ex-employees, subsequently floated their own companies and put up the stolen software with minor modifications for sale through their websites based in US. One of the accused sold the source code to a US based firm also, which is now selling it through its website, thus, adding an international dimension to the investigation.
Advancement in technology has also facilitated some of the traditional crimes, in a simple way but on a large scale. All of us must have experienced such crimes like selling of pornographic material on internet, cheating and fraud through e-mail commonly known as Nigerian Letter Fraud. Intellectual Property Right violations have become prolific particularly in respect of entertainment products and computer software. Voice over internet Protocol internet technology is being abused for setting up illegal telephone exchanges. World wide web is being misused for peddling of drugs and other forms of contraband goods. Money laundering is only a click away, thanks to the electronic channels of money transfer.
The third category of New Age Crimes are related mainly to the changing life style pattern. Urbanization is increasing and populations of cities are exploding at the seams. In typical metro life, anonymity is the order of the day. Nobody knows who is staying next door. Round the clock job opportunities have come up. In many places, old people are staying alone as their children have migrated to some other places. This has resulted in change in living patterns in the society. Omni present advertisements and the availability of wide variety of choices of goods has led to increase in consumerism and materialism. Due to these changes in circumstances, new type of crimes are taking place like murder of old people staying alone, neo-affluent sections of the society taking to drugs, etc. Moreover erosion of value systems and peer pressure are also driving misguided youth towards taking up hi-tech frauds for quickly getting rich.
Recent rise in fundamentalism and terrorism worldwide has contributed to increase in smuggling of arms & explosives, money laundering, smuggling of Fake Indian Currency Notes, use of Internet hate campaign etc. In recent past incidents of serious Bomb blasts in several parts of country have also emerged as a big challenge for Law Enforcement Agencies. Increasing globalization has eased the transborder movement of goods and humans. Internet has increased the level of anonymity and reach of criminals. As a consequence, the terrorists have been indulging in a variety of crimes for funding their movements and propagating their ideology.
In last two years, suddenly there has been a spurt in smuggling of FICNs as indicated by large seizures at different places including some neighbouring countries. Particularly, some of the seizures in past 7-8 months are really alarming. Some examples are there in front of you on screen. Total FICN seizures in India in past 7 months have crossed 10 crores, which may be just tip of the iceberg. There is evidence of involvement of organized crime syndicates in this crime. Hand of foreign agencies is also suspected. Now, in FICNs most of security features are being replicated.
End of cold war and globalization of economies in the 90s has resulted in porous international borders. Movement of persons and goods is easier across the borders now than ever before. This has resulted in Transnational drug trafficking, Security breeches in BPO operations, Human Trafficking, Smuggling of Antiques and Wild life crime, etc. Globally, an estimated 2 million persons are being trafficked annually for the purposes of sexual exploitation and forced labour generating a business of 9.5 billions US dollars. Recently, cases have been registered against high ranking public servants for their alleged involvement in Human Trafficking.
Wildlife crime is another prolific form of transnational organised crimes in the recent past. Organised criminals are getting attracted towards this crime because of lesser attention of the enforcement agencies, lighter punishments and huge profits. The crime is mostly demand driven. There is a huge market for tiger products in China for the preparation of traditional Chinese medicines. In Tibet Tiger and Leopard skins are used for making apparel by name chhupa. If we analyse the trends from some of the recently investigated cases, we find that City based Traffickers like Sansar Chand engage members of the Nomadic Hunting tribes for poaching and then collect the booty to smuggle it out to buyers. The economics of such crimes is mind boggling.
New type of Economic Crimes are being committed in fast changing pattern of our growing economy. With increasing liberalization and growth in market capitalization, white collar criminals are entering in this arena. For making fast buck, new modus operandi are being used by such criminals.
Although the New Generation Crimes have a lot of characteristics similar to the traditional crimes, yet there are a few features which are typical for such type of crimes. These are: Unlike traditional crimes, most of the new age crimes are transnational in character and the evidence collection is more susceptible to roadblocks due to international barriers. The evidence is often intangible and volatile. It requires a higher response speed than that of dealing with; traditional crime. Victims may often would not know or know very late that they have been victimized. More often, especially in economic crimes, the victim may be the society at large, rather than one individual. Therefore, it is difficult to receive complaints. Some of the new age crimes are demand driven, such as drug trafficking, trafficking in antiques, Hawala etc. As a result, the transactions are collusive in nature hence easily escape the eyes of the Law Enforcement Agencies. New age criminals are often highly educated and have no criminal history. It is very difficult to profile their behavior patterns or appearance.
Before, I conclude my presentation, to flat the certain issues, I will like to recall certain sailent features of New Generation Crimes. These are :
Having looked into the distinctive characteristics of New Generation Crime and the present incapability of law enforcement agencies to handle such crimes, it is apparent that there is urgent need for intervention. The solutions have to be multifaceted encompassing all the aspects like training, logistical and budgetary support and organizational reforms.
With the objective of sensitization to underlying technology, skill formation and up-gradation of technological skills, specific training module can be designed. Besides aforesaid points, training module should also take care of information pertaining to criminal gangs and their modus operandi , interagency coordination, legal issues and trans-border investigations. These training modules should not be only limited to selected executive staff rather it should also include constabulary, supervisory police officers, prosecution officers, executive magistrates as well as judiciary.
We are all aware that in handing the New Generation Crime particularly in which modern gadgetry have been used by the criminals, we require specialized gadgetries for quick and effective response. Some of these things are available in the market but, of course, technologies keep on changing. Thus, it requires periodic up-gradation. Hence, there is an urgent need to have our own research and development facilities so that there can be customized product as per our requirement. In the investigations involving mobile telephone, computers, internet traffic, digitally recorded audio & video evidences, our requirement keeps on changing from one crime to another crime. Apart from the investigational aspects, we are also required to gear up on the preventive aspect particularly in the internal security matters. Needless to say, for handling these gadgetries and also for advance research and development, there is need for budgetary support and specialized manpower with adequate incentives and periodic training.
And finally, on this issue, I will also like share my envision with the August House. These are….. The fact remains that there can not be an ideal crime free society, yet prompt and proper response on part of Law Enforcement Agencies will be widely appreciated.
New Generation Crimes Securing Asia 2013
New GenerationNew Generation
( Need for Capacity Building)( Need for Capacity Building)
New Generation CrimesNew Generation Crimes
Broad categoriesBroad categories
Inadequacies in Law EnforcementInadequacies in Law Enforcement
Road AheadRoad Ahead
New Generation CrimesNew Generation Crimes
Technology CenteredTechnology Centered
Technology FacilitatedTechnology Facilitated
Resulting from lifestyle changesResulting from lifestyle changes
Resulting from GlobalizationResulting from Globalization
Corporate fraudsCorporate frauds
Technology Centred CrimesTechnology Centred Crimes
Creation ofCreation of
Miniaturization ofMiniaturization of
storage mediastorage media
Digitized wealthDigitized wealth
Denial of Service attaDenial of Service atta
Virus AttacksVirus Attacks
Trojan HorseTrojan Horse
Case Studies:Case Studies:
1. Estonia Incident1. Estonia Incident
2. Fraudulent Duty Draw Back through Computer2. Fraudulent Duty Draw Back through Computer
3. Source Code Theft3. Source Code Theft
Estonia Incident:Estonia Incident:
the Cyber War!the Cyber War!
– Very high dependence on computersVery high dependence on computers
– Has a CERTHas a CERT
– Member of both NATO as well as EUMember of both NATO as well as EU
– Typical of any State in times to comeTypical of any State in times to come
The crisis in April-May 2007The crisis in April-May 2007
– Botnet DDoS attack paralyzes critical infrastructureBotnet DDoS attack paralyzes critical infrastructure
– Initial defence by isolating itselfInitial defence by isolating itself
– Rogue IP blocked with cooperation of foreign ISPsRogue IP blocked with cooperation of foreign ISPs
– It took about 2 weeks to be fully functional againIt took about 2 weeks to be fully functional again
A Cyber war!A Cyber war!
Fraudulent Duty Draw Back CaseFraudulent Duty Draw Back Case
Fraudulent payment ofFraudulent payment of
supplementary duty drawbackssupplementary duty drawbacks
Supplementary Duty Drawback ofSupplementary Duty Drawback of
around 150 crores was paid toaround 150 crores was paid to
around 300 exporters.around 300 exporters.
Data manipulation was done byData manipulation was done by
Computer Network officials at theComputer Network officials at the
backend of the computer system.backend of the computer system.
Source Code TheftSource Code Theft
A reputed firm developed data recoveryA reputed firm developed data recovery
Ex-employees stole the source code ofEx-employees stole the source code of
the software and started selling themthe software and started selling them
through their own companiesthrough their own companies
Stolen software also sold to a US basedStolen software also sold to a US based
company, which is selling it in US.company, which is selling it in US.
Technology FacilitatedTechnology Facilitated
Advancements inAdvancements in
technology havetechnology have
facilitated commission offacilitated commission of
some of the traditionalsome of the traditional
economic crimes in aeconomic crimes in a
simpler way and on ansimpler way and on an
unprecedented largerunprecedented larger
Internet PornographyInternet Pornography
Nigerian Letter FraudsNigerian Letter Frauds
Counterfeiting of currencyCounterfeiting of currency
IPR CrimesIPR Crimes
VoIP CrimesVoIP Crimes
Internet GamblingInternet Gambling
Drug-peddling throughDrug-peddling through
Internet sitesInternet sites
Money laundering throughMoney laundering through
e-banking channelse-banking channels
Blackmailing by MMS /Blackmailing by MMS /
morphed photographsmorphed photographs
Crimes resulting from lifestyleCrimes resulting from lifestyle
Changing ValueChanging Value
Crimes takingCrimes taking
advantage ofadvantage of
Drug peddling inDrug peddling in
affluent sections ofaffluent sections of
Organ TransplantsOrgan Transplants
Credit card / ATMCredit card / ATM
Frauds/ E-CommerceFrauds/ E-Commerce
Frauds for sustainingFrauds for sustaining
expenses on luxuriesexpenses on luxuries
Terrorism-related CrimesTerrorism-related Crimes
Rise in FundamentalismRise in Fundamentalism
and Terrorismand Terrorism
Specialised needs of theSpecialised needs of the
Terrorist groupsTerrorist groups
Easier transborderEasier transborder
Development in theDevelopment in the
Internet andInternet and
Arms & ExplosivesArms & Explosives
Terrorist fundingTerrorist funding
through e- channelsthrough e- channels
Use of internet forUse of internet for
Generation of fundsGeneration of funds
by trafficking ofby trafficking of
contraband goodscontraband goods
Suicide bombersSuicide bombers
Spurt in FICN circulationSpurt in FICN circulation
Very high value seizures in last decadeVery high value seizures in last decade
– 2.67 crores in Colombo (Dec. 2006)2.67 crores in Colombo (Dec. 2006)
– 2.34 crores in Hyderabad (Aug. 2007)2.34 crores in Hyderabad (Aug. 2007)
– 1.67 crores in Kualalampur (July, 2007)1.67 crores in Kualalampur (July, 2007)
– 1 crore from Kathmandu (July, 2007)1 crore from Kathmandu (July, 2007)
Total FICN seizures in India in the past haveTotal FICN seizures in India in the past have
crossed 10 crorescrossed 10 crores
Evidence of involvement of organized crimeEvidence of involvement of organized crime
Role of foreign agencies suspectedRole of foreign agencies suspected
Most of security features being replicatedMost of security features being replicated
Crimes resulting fromCrimes resulting from
End of cold warEnd of cold war
Globalization ofGlobalization of
Porous internationalPorous international
Transnational DrugTransnational Drug
Breach of security by theBreach of security by the
BPO employeesBPO employees
Human traffickingHuman trafficking
Smuggling of antiques, andSmuggling of antiques, and
wild life products bywild life products by
transnational organizedtransnational organized
crime syndicatescrime syndicates
Wildlife CrimeWildlife Crime
Demand driven crimeDemand driven crime
Global trade estimated at US $20-30Global trade estimated at US $20-30
Chain comprises Nomadic Hunting tribesChain comprises Nomadic Hunting tribes
of poachers, city based middlemen andof poachers, city based middlemen and
international buyersinternational buyers
An estimated 350 tiger skins, 2350An estimated 350 tiger skins, 2350
leopard skins and 3800 otter skins wereleopard skins and 3800 otter skins were
smuggled by Sansarchand gang alonesmuggled by Sansarchand gang alone
in the past twenty yearsin the past twenty years
Corporate FraudsCorporate Frauds
Growth inGrowth in
Liberalised rulesLiberalised rules
of lendingof lending
constraints ofconstraints of
Frauds in stockFrauds in stock
Emergence of fly-Emergence of fly-
Bank fraudsBank frauds
Characteristics of NewCharacteristics of New
Generation CrimesGeneration Crimes
Transnational character requiring transTransnational character requiring trans
border investigationsborder investigations
Volatile evidenceVolatile evidence
Ignorant VictimsIgnorant Victims
Demand driven: Collusive natureDemand driven: Collusive nature
Educated/ First time criminalsEducated/ First time criminals
New Generation CrimesNew Generation Crimes
New Generation crimes are here toNew Generation crimes are here to
They need different type ofThey need different type of
There are serious gaps in theThere are serious gaps in the
The situation requires urgentThe situation requires urgent
Where do we stand ?Where do we stand ?
Cutting edge level not techno-savvyCutting edge level not techno-savvy
Lack expertise and motivationLack expertise and motivation
Deficient in comprehension ofDeficient in comprehension of
nature of emerging challengesnature of emerging challenges
Few IssuesFew Issues
How to change local mindset intoHow to change local mindset into
global mindset ?global mindset ?
From functional expertise to broaderFrom functional expertise to broader
Individual to teamworkIndividual to teamwork
Change as surprise to change asChange as surprise to change as
From local competency to globalFrom local competency to global
Versatile Transnational PolicingVersatile Transnational Policing
Few IssuesFew Issues
Integrating technology with workIntegrating technology with work
Creating a knowledge-based transparentCreating a knowledge-based transparent
Technology as an HRD ToolTechnology as an HRD Tool
Target GroupsTarget Groups
– Sensitization toSensitization to
underlying technologyunderlying technology
– Criminal Gangs and theirCriminal Gangs and their
Modus operandiModus operandi
– Skill formation in use ofSkill formation in use of
technological aidstechnological aids
– Legal issuesLegal issues
– Interagency coordinationInteragency coordination
Logistics and Budgetary SupportLogistics and Budgetary Support
Modern GadgetryModern Gadgetry
R&D for customization of off the shelfR&D for customization of off the shelf
Budgetary support and proceduralBudgetary support and procedural
Incentives, Extra pay, Foreign training,Incentives, Extra pay, Foreign training,
What we envisionWhat we envision
Even the remotest Police Station is in aEven the remotest Police Station is in a
position to understand the dimensions ofposition to understand the dimensions of
the crimethe crime
Every state has at least one specialised unitEvery state has at least one specialised unit
to handle such crimesto handle such crimes
At national level there is a nodal agency forAt national level there is a nodal agency for
Criminal Laws are sufficient to address theCriminal Laws are sufficient to address the
There should be well equipped trainingThere should be well equipped training
institutions at the central and state levelsinstitutions at the central and state levels