McAfee Virtual Criminology Report Cybercrime Versus Cyberlaw The annual McAfee global study on organized crime and the Internet in collaboration with leading international security experts 454868 45 5 48 89 8 488 5545 6896 45645 866 665 4568 688 54 58 486 868 8 454868 45 5 48 4528782 89 8 488 5545 6896 44 822 656 4568 45 4582 688 54 58 486 86484 8 8 1 CONTENTS Foreword 1 Foreword 2 Introduction Cybercrime is a growing problem that negatively impacts everybody While a lot has been done to combat cybercrime over the past decade criminals still have the upper hand Some experts have argued that a cyberattack could be more economically devastating than the physical attacks on September 11 2001 so clearly something has to change This year s McAfee Virtual Criminology Report discusses what factors can drive that change 4 Chapter One Global Meltdown The Scale of the Problem Global cybercrime has a significant financial impact on businesses and consumers across the globe while wider use of technology in developing countries is further opening the window of opportunity for evildoers 10 Chapter Two The Frontline Fight Against Cybercrime As part of McAfee s effort in the fight against global cybercrime we recently launched the McAfee Initiative to Fight Cybercrime a wide ranging initiative aimed at closing critical gaps in the battle against cybercrime Although we have new cybercrime laws and recent indictments we believe there s still more progress to be made 18 Chapter Three International Cooperation Myth or Possibility You re about to read our fourth annual Virtual Criminology Report This year the report discusses the extent to which cyberwar is winning the battle over cyberlaw It highlights exactly why the McAfee Initiative to Fight Cybercrime is needed Virtual Criminology Report Contributors Dr Ian Brown Lilian Edwards Matthew Bevan Sharon Lemon Bob Burls MSc Peter Sommer Richard Clayton Philip Virgo Matthew Pemble James Blessing Peter Milford Dr Marco Gercke Marc Vilanova Haim Vismonski Ferenc Suba Erka Koivunen Eugene H Spafford Andrea Matwyshyn Mary Kirwan Leo Adler 24 Chapter Four Next Steps 26 Contributors For this report we consulted with more than a dozen security specialists from top institutions across the globe These individuals who are also on the front lines in the daily fight against cybercrime were invited to comment on the extent to which cyberlaw is keeping up with the crimes being committed and provide insight into how we can actually fight and win the battle against the perpetrators of cybercrime The conclusions Read on for the details but at the highest level the experts agree that international action on cybercrime law enforcement prosecution and judging is needed Fighting cybercrime is a 24 7 battle a global battle and it s only just begun Dr Paulo Marco Ferreira Lima Adriana Scordamaglia Fernandes Marins Renato Opice Blum Alana Maurushat Peter Guttman Andrew Adams Dave DeWalt President CEO McAfee Inc 1 Introduction The annual McAfee Virtual Criminology Report has traditionally tracked the emerging and looming trends in cybercriminal behaviour and exposed how it has become increasingly organized sophisticated and global in its approach and impact This year in collaboration with cybercrime experts from across the world the fourth annual McAfee Virtual Criminology Report reveals the extent to which cybercrime is winning the battle over cyberlaw and that a massive and coordinated global effort is required to redress the imbalance Commissioned by McAfee Dr Ian Brown from the Oxford Internet Institute and Lilian Edwards Professor of Internet Law at the University of Sheffield in the UK undertook extensive research with legal authorities law enforcement agencies and security experts across the globe to assess the current state of the fight against cybecrime and to evaluate the threats and challenges to gaining a global approach for the future Three Key Findings Emerged First cybercrime isn t yet enough of a priority for governments around the world to allow the fight against it to make real headway worldwide Added to that the physical threat of terrorism and economic collapse is diverting political attention elsewhere In contrast cybercriminals are sharpening their focus Recession is fertile ground for criminal activity as fraudsters clamour to capitalize on rising use of the Internet and the climate of fear and anxiety Are we in danger of irrevocably damaging consumer trust and in effect limiting the chances of economic recovery Second cross border law enforcement remains a long standing hurdle to fighting cybercrime Local issues mean laws are difficult to enforce transnationally Cybercriminals will therefore always retain the edge unless serious resources are allocated to international efforts Third law enforcement at every level remains ad hoc and ill equipped to cope While there has been progress there is still a significant lack of training and understanding in digital forensics and evidence collection as well as in the law courts around the world The cyberkingpins remain at large while the minor mules are caught and brought to justice Some governments are guilty of protecting their in country offenders The findings suggest there is an ever greater need to harmonize priorities and coordinate police forces across physical boundaries The report concludes with a look at suggested steps at both the local and international level to make the fight against cybercrime more effective 2 3 CHAPTER ONE Global Meltdown The Scale of the Problem The scale of the Internet s security problems increases rapidly Criminals have exploited vulnerabilities in both software and human psyche to spawn a broad range of threats including spyware phishing adware rootkits spam and botnets The last 12 months have seen the volume of malware rising dramatically yet cybercriminals are increasingly using tried and tested techniques to wreak havoc and solicit money How the Economic Downturn is Set to Exacerbate Security Issues The Gold Rush E gold is a digital gold currency that allows for the instant transfer of gold ownership Unlike in the case of credit cards all payments are final and irreversible There are currently more than five million e gold accounts worldwide Due to the anonymity provided to account holders it became a popular method for cybercriminals to turn illgotten proceeds into clean cash In July 2008 the brother of Joseph Yobo the vice captain of the Nigerian national soccer team and