Prosecuting White-Collar Crimes

amid Technological AdvancementsTan Ken Hwee

Chief Prosecutor, Financial and Technology Crime Division

Attorney-General's Chamber

Outline

• Greater use of technology in crime and the necessary response

• “New” types of crime associated with new schemes/grants

– Subsidy Fraud

– Identity Theft

• Scope for sophisticated “cybercrime”

• Harder detection VPNs, TOR, cryptocurrency

• Cross border challenges

Greater use of technology in criminal activity

• Prevalence of computers, handphones, tablets

• Ease of communications

• Encrypted

• Cross-border

• Digital Evidence

– Often needed, contemporaneous records from vendors/third parties

• Location based information

• Phone Logs

• Financial transaction records

Evidence in the Twenty-First Century

• Challenging

– Latency

– Volume

• Evidence gathering and evaluation

– Non-destructive imaging

– Predictive Coding or Technology Assisted Review (what is this?)

– Consider

• Email a/c – 300 emails

• Email a/c – 50,000 emails

Going Upstream

• Traditional method of working:

– Investigations distinct from legal assessment

– May require reiterative work

• Alternative:

– Early Involvement

– Resource Intensive

• Better focused investigations

• Synergistic

• Less re-work required– DPPs can provide guidance, close of unlikely avenues of enquiry, dig in and probe further for

promising areas

• Obtain screening records early, to see patterns and to correlate data

Outline

• Greater use of technology in crime and the necessary response

• “New” types of crime associated with new schemes/grants

– Subsidy Fraud

– Identity Theft

• Scope for sophisticated “cybercrime”

• Advanced Persistent Threats

• Harder detection VPNs, TOR, cryptocurrency

• Cross border challenges

Subsidy Fraud

• Productivity and Innovation Credit Scheme

– What it is

– How it has been abused

• SkillsFuture

– What it is

– How it has been abused

• Role of Data Analytics

Identity Theft

• SingPass

– Used for many Govt transactions

– Valuable for (a) selling; (b) stealing

– Can be used to apply for various Govt services

– Form of identity theft

– 2FA

– Longer term – even greater enhancements

• Other forms of Identity Theft

– Fake social media accounts

– Email impersonation with “almost alike” or spoof email a/cs

Outline

• Greater use of technology in crime and the necessary response

• “New” types of crime associated with new schemes/grants

– Subsidy Fraud

– Identity Theft

• Scope for sophisticated “cybercrime”

• Harder detection VPNs, TOR, cryptocurrency

• Cross border challenges

Sophisticated Cybercrime?

Not yet (really/significantly) seen in Singapore

• Advanced Persistent Threats

• Ransomware

• TOR/Dark Web

• “Anonymous (crypto)currencies”

– But, some are “virtual” cryptocurrencies

– Disguised Ponzi schemes

– Require quick reaction by enforcement agencies / financial institutions

Outline

• Greater use of technology in crime and the necessary response

• “New” types of crime associated with new schemes/grants

– Subsidy Fraud

– Identity Theft

• Scope for sophisticated “cybercrime”

• Harder detection VPNs, TOR, cryptocurrency

• Cross border challenges

Harder detection VPNs, TOR, cryptocurrency

• VPNs – use and abuse

• TOR

• Cryptocurrency – anonymous payments

w/o central clearing house

• The New Arms Race

– E.g. geographical location

– FBI takedown of Dread Pirate Roberts

Outline

• Greater use of technology in crime and the necessary response

• “New” types of crime associated with new schemes/grants

– Subsidy Fraud

– Identity Theft

• Scope for sophisticated “cybercrime”

• Harder detection VPNs, TOR, cryptocurrency

• Cross border challenges

Cross-Border

• Borderless nature of Internet – cuts both ways

– Business can spread beyond national borders

– Offenders often hide across borders

• Credit-for-Sex

– What is this?

– $3m in 2015; $1.7m in 2016

– Cooperation with remittance agents to spot likely victims

– Cooperation with Ministry of Public Security in China

• 140 suspects detained

• Traditional Mutual Legal Assistance route may not be responsive enough

– Alternative co-operation routes necessary

• Cloud evidence presents additional complexities

Conclusion

• Crime has evolved to take advantage of technology

– But the more things change, the more they stay the same

– E.g. cryptocurrency fraud may just be Ponzi in new clothes

• Nevertheless:

– Clear that appropriate evidence gathering and analysis is required

– Clearer understanding of digital forensics is essential

– Cross-border collaboration must be more nimble

Thank You

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