AUTHOR:
TerrorismCentral Editorial Staff
TITLE:
TerrorismCentral Newsletter - December 08, 2002
SOURCE:
TerrorismCentral, December 08, 2002
TEXT:
Last week we honored World AIDS Day with a feature on the progression of this epidemic and its impact on global security. This week we return to the theme identity and the balance between privacy (human rights) and safety (collective security). We also cover highlights of the weeks’ news, including the latest attacks in Bangladesh, more news on the Kenya bombings, and recent developments in the Middle East.
CONTENTS:
NEWS HIGHLIGHTS OF THE WEEK:
1. World
2. Africa
3. Americas
4. Asia Pacific
5. Europe
6. Middle East
7. South Asia
8. Cyberterrorism and Information Warfare
9. Finance
10 Human Rights
11. Law and Legal Issues
12. Narco-terrorism
13. Transportation
14. Weapons of Mass Destruction
15. Recently Published
FEATURE ARTICLE:
Busting the Ring
About half of the conflicts in the world last year were spurred by conflicts over natural resources, especially affecting poor countries. This topic is elaborated in an excellent article by David R. Francis, “Fueling War” in The Christian Science Monitor, December 5, 2002. This article follows a report by UN Secretary General Kofi Annan, who cites the plundering of natural resources on of the three leading challenges to protecting civilians in wartime. The other two are the sexual exploitation of civilians and terrorism. See his report athttp://daccess-ods.un.org/access.nsf/Get?OpenAgent&DS=S/2002/1300&Lang=E&Area=UNDOC"target="blank"
The report “People, Poverty and Possibilities: Making Development Work for the Poor”, also by the UN (http://www.unfpa.org/swp/swpmain.htm) calls for reductions in the gender gap in health and education and finds a link between lower fertility and slower population growth and faster economic expansion.
Tuberculosis is an easily spread infectious disease that is increasingly drug resistant and deadly. It has dramatically re-emerged in wealthy countries. Reports last week indicate that some parts of the UK have rates of TB infection higher than parts of China, India or Africa. Global investment in prevention and treatment are needed. For an important contribution to this goal, see the article “Global Drug-Resistance Patterns and the Management of Latent Tuberculosis Infection in Immigrants to the United States” by Kamplan Khan, Peter Muennig, Maryam Behta and Joshua Graff, and “Latent Tuberculosis Infection” by Robert M. Masmer, Payam Nahid and Philip C. Hopewell. Both are published in The New England Journal of Medicine, December 5, 2002.
The latest statistics on refugees show that Iraq leads in asylum requests, with a third more than the number two, Yugoslavia. For details see the UNHCR report at http://www.unhcr.ch/cgi-bin/texis/vtx/home?page=news
A major survey spanning 44 countries and 38,000 interviews has found large and growing increases in anti-American feelings around the world. The study, conducted by the Pew Research Center, found this trend strongest in Muslim countries.
One of the major sources of increasing anti-American feeling is US policy on Iraq. Some of the articles covering key issues this week include:
* BBC News. “Where the world stands on Iraq” December 3, 2002. http://news.bbc.co.uk/1/hi/world/2240570.stm
* Ben Brown. “Surreal search for Iraq’s weapons” BBC News, December 7, 2002. http://news.bbc.co.uk/1/hi/world/from_our_own_correspondent/2551391.stm
* John F. Burns, “Equipment Missing at Iraq Arms Site” in The New York Times, December 3, 2002
* John F. Burns, “Iraq Arms Quest Uncovers a Zest for Drink” in The New York Times, December 7, 2002
* John F. Burns, “Iraq Denounces Visit to Palace by U.N. Team” in The New York Times, December 5, 2002
* John F. Burns, “Iraq Says Report to the U.N. Shows No Banned Arms” in The New York Times, December 8, 2002
* John F. Burns, “Test of Power: Inspectors Tour an Iraqi Palace” in The New York Times, December 4, 2002
* Marc Champion and Guy Chazan, “Divisions Resume on Iraq Inspections” Wall Street Journal December 6, 2002
* C. J. Chivers, “Uprooted Iraqis See War as Path to Lost Homes” The New York Times, December 5, 2002
* Stephen Fidler, “Documents to be picked over for clues” Financial Times, December 6, 2002
* Kim Ghattas, “Iraqis resigned to war” BBC News, December 8 http://news.bbc.co.uk/1/hi/world/middle_east/2556191.stm
* Michael R. Gordon and Neil MacFarquhar “Iraq’s Neighbors Seem To Be Ready To Support a War” The New York Times, December 2, 2002
* Roula Khalaf and Peter Spiegel “USD poised to reveal fresh intelligence on Iraqi arms” Financial Times December 6, 2002
* Ewen MacAskill and Nick Watt “Anger over Straw’s dossier on Iraqi human rights” The Guardian, December 3, 2002. http://politics.guardian.co.uk/Print/0,3858,4559372,00.html
* Ewen MacAskill “Criticised weapons inspectors insist that stealthy visits are getting results” The Guardian, December 6, 2002. http://politics.guardian.co.uk/Print/0,3858,4562019,00.html
* Barnaby Mason. “Analysis” Weapons declaration” BBC News, December 3. http://news.bbc.co.uk/1/hi.world/middle_east/2540075.stm
* Julia Preston, “U.S Compromises to Continue Iraq Oil-for-Food Program” in The New York Times, December 5, 2002
* Julia Preston, “Weapon Inspector Asks U.S. To Share Secret Iraq Data” in The New York Times, December 7, 2002
* David E. Sanger, “U.S. Tells Iraq It Must Reveal Weapons Sites” The New York Times, December 6, 2002
* Kim Sengupta, “Conciliatory Saddam says let inspectors do their work” The Independent, December 6, 2002 http://news.independent.co.uk/world/middle_east/story.jsp?story=358925
* Patrick E. Tyler “U.S. Is Pressuring Inspectors in Iraq to Aid Defections” The New York Times, December 6, 2002
* Sjoerd Vogt “Iraqi Weapons of Mass Instruction: Is the U.N. information embargo against Iraq accomplishing its goal?” Information Today, December 2002 (http://www.infotoday.com)
More news in the country sections below
2. Africa
Unprecedented levels of food emergencies have consumed the resources of the UN World Food Program, pushing aside longer-term goals. 38 million Africans are at risk of starvation. The causes of this emergency include economic collapse, political and ethnic violence, weather conditions and AIDS. In addition, only half of the aid promised has been delivered.
Kenyan President Daniel arap Moi and Ethiopian Prime Minister Meles Zanawi met with US President George Bush in Washington. With security at the top of their agenda, the US has promised greater sharing of intelligence to help prevent future terrorist attacks.
Burundi’s government and the main rebel group the Forces for the Defense of Democracy (FDD) signed a ceasefire. The rival rebel National Liberation Forces (FNL) has rejected the ceasefire.
Cameroon and Nigeria are hosting meetings with a UN team investigating remaining questions regarding the disputed border between the two countries, including the disputed Bakassi region, known for its rich oil reserves.
Democratic Republic of Congo will have 3,000 more UN peacekeeping troops to help assure the security of the country as they proceed with disarmament, demobilization and resettlement of the formerly warring factions and displaced persons.
Violence in the Ivory Coast is unabated. Rebels have seized more of the western cocoa-growing region, leading to sharp volatility in cocoa trading on the world markets. Two new rebel groups that emerged last week have suggested they would join the main Patriotic Movement of Ivory Coast (MPCI). The government has launched major offensives against the rebels. While the outcomes in terms of political control are unclear, there is no doubt on the impact the fighting has had on the civilian population. Streets in the contested towns are littered with bodies and a mass grave has been found. There are over 30 thousand refugees. The conflict is in danger of pulling in neighboring countries. Already, South Africa is investigating reports that both sides of the conflict are using South African mercenaries.
Kenya has buried its dead and is beginning to recover from the aftermath of last week’s terrorist attacks. The investigation is proceeding, led by local authorities. An increasing number of people have been taken into custody for questioning, drawing attention to arbitrary arrests of refugees from neighboring countries. The attacks on a country that is a noncombatant in attacks directed against the US and Israel has led to diplomatic complications and local resentment exacerbated by the local political and economic conditions. Al Qaeda has taken credit for the attack, and it looks increasingly likely that their claim is merited.
Namibia is trying to get more local control over its diamond trade, including asking De Beers to support local polishers. See James Lamont’s article “Namibia starts to play rough over control of diamond trade” in the Financial Times, December 3, 2002.
Nigeria’s Operation Fire-for-Fire to crack down on armed crime in Lagos led to unintended civilian casualties. Authorities have instituted a new rule that officers will not be issued firearms until they have five years experience, hoping this will eliminate the many accidental discharges and unintended deaths.
Sudanese refugees in Ethiopia began fighting that mirrors that in Sudan, with deadly violence claiming the lives of dozens. The UN will help Ethiopia investigate those responsible for the shootings and other ways to help resolve refugee problems.
In Swaziland, government interference with the courts is threatening the rule of law and leading to the threat of international political and economic consequences from NEPAD and the UN as well as local trade unions.
3. Americas
Colombia is to receive increased military support from the US to help stop illegal drugs and fight terrorism, but the aid comes with a warning that there is no excuse for human rights abuses. Meanwhile a unilateral ceasefire by the right-wing paramilitary group United Self-Defense Forces of Colombia (AUC) has begun. Another paramilitary group, the Bloque Metro, with about a thousand members, has refused to join the ceasefire.
Guatemala is the subject of a sharp warning from the UN Verification Mission in Guatemala that insists it stop the transfer of funds to the Presidential Guard and instead disband that group, instead putting funds into the police and judicial systems to ensure security for civilians.
A general strike in Haiti has added to the pressure on President Aristide. Violence between his supporters and opponents continue to lead to deaths and injuries.
A man detained by the US military in Guantanamo Bay, Cuba, has died in custody. No details are available.
In the US, plans for war with Iraq continue to proceed even while weapons inspections are taking place. The Pentagon is preparing for a major call-up of reservists, with up to 10,000 joining over 50,000 that were mobilized after September 11.
With the new federal terrorism insurance program signed, insurers are trying to calculate its impact. See Christopher Oster and Dean Starkman’s article “Cost of Terror Insurance Is Weighed” The Wall Street Journal, December 6, 2002. And on the subject of compensation, see Lisa Belkin’s article “Payout” in The New York Times Magazine, December 8, 2002
The joint commission of the US congress investigating intelligence failures will recommend that an intelligence official be appointed to the Cabinet. Portions of the final report will be released soon.
An indefinite general strike in Venezuela has crippled the oil industry and led to more violent clashes between security forces, supporters and opponents of President Chavez.
4. Asia Pacific
Australian Prime Minister Howard announced he is ready to undertake preemptive actions against terrorists in neighboring countries. Indonesia, Malaysia, the Philippines and Thailand joined the regional outcry against the statement that threatens existing and proposed bilateral agreements in the area. The conservative government is also preparing new laws that would give expanded powers to detain suspects to the Australian Security Intelligence Organisation (ASIO).
Burma’s former military dictator General Ne Win has died while under house arrest. He was 91.
China and Russia held meetings this week pledging friendship and joint foreign policies. As a start, they called on North Korea to abandon attempts to acquire nuclear weapons and on the US to honor its previous agreements with North Korea. For an excellent review of contemporary Chine, see John Thornhill’s “China is embracing capitalism and flexing its political muscle. No wonder its neighbours are getting nervous” Financial Times, December 3, 2002.
In Hong Kong, opposition to the new anti-treason laws has come from unlikely sources including the Roman Catholic Church, the Falun Gong spiritual group, and a number of foreign banks concerned about restrictions on the free flow of information and other human rights violations.
Calm was restored to East Timor following violent demonstrations that killed two. The causes and security implications are being reviewed by the government with UN assistance.
Even while Indonesia nears a peace accord with the Free Aceh Movement, violence between Christians and Muslims in central Sulawesi is unchecked. There were another two bombings, on in a McDonald’s restaurant that killed two, and a second in a car showroom. Violence by Indonesia militias is blamed for unchecked violence and for the mistrust in Aceh towards the government. Meanwhile, investigations into the Bali bombing have proceeded further with the arrest, on other terrorism charges related to Jemaah Islamiah, of Ali Ghufron (“Mukhlas”), the elder brother of Amrozi who was arrested in connection with Bali last month.
Malaysia responded to Australia’s threat of unilateral action with a threat to break off its anti-terrorism cooperation and that it would consider any incursion an act of war.
North Korea has rejected the UN call to allow in weapons inspectors.
A new method that contributes to the effort to eradicate filariasis is described in “Mass Treatment to Eliminate Filariasis in Papua New Guinea” by Moses J. Bockarie, Daniel J. Tisch, Will Kastens, Neal D. E. Alexander, Zachary Dimber, Florence Bockarie, Ervin Ibam, Michael P. Alpers and James W. Kazura, in The New England Journal of Medicine, December 5, 2002.
South Korea is asking for changes to the agreement with the US that gives its military jurisdiction in criminal cases involving US forces. His request follows violent protests around the country after two soldiers were acquitted in the death of two girls in a June incident.
Thailand is featured in a World Report in the Financial Times of December 6. http://www.ft.com/thailand2002
5. Europe
France will close the Sangatte refugee center four months earlier than scheduled, by the end of the year. Under a joint agreement, the UK will give work permits to a thousand Iraqi Kurds and some Afghans.
German officials pursuing al Qaeda links in the Mounir el-Motassadeq investigation, found the business card of a Saudi Arabian embassy member but US and Saudi officials have refused to cooperate in following up on that lead. Germany is the topic of an Economist Survey published on December 7.
Hungary is the subject of a World Report in the Financial Times, December 4, 2002 http://www.ft.com/hungary2002
Bombs were found at two Ikea furniture stores in the Netherlands. One of the devices found later blew up at the police station, injuring two. The bombs were an attempt at extortion but again raised consciousness regarding the wide availability of soft targets for terrorist activities.
In a joint declaration Russia and India stated their opposition to unilateral military action against Iraq. Russian President Putin is also proposing the sale of Russian arms, including a nuclear submarine
Russia also held meetings in China this week pledging friendship and joint foreign policies. As a start, they called on North Korea to abandon attempts to acquire nuclear weapons and on the US to honor its previous agreements with North Korea.
In Chechnya, UN representatives are concerned over the fate of Chechens who had been in the Ingushetia refugee camp that is now virtually empty. It had held 1,500 refugees and their current location and conditions are unknown.
Elections in Serbia’s presidential race have still not attracted a large enough turnout to meet the requirements for a valid poll.
A car bomb went off in a parking garage in Santander, Spain. A warning was received from the Basque separatist group ETA that gave enough time for police to evacuate the area.
Switzerland is the subject of a Financial Times World Report published December 4. http://www.ft.com/switzerlandbfi2002
Turkey faces serous financial pressure on the part of the US to guarantee its participation in a war on Iraq. US authorities have promised millions would be invested in military bases in advance of a war. Turkey continues to say it would only assist in a UN-backed war.
The UK published a report documenting human rights abuses in Iraq. The detailed report, perhaps designed to keep up pressure on the Iraqi government, was received with mixed emotions by human rights advocates who ask if this is genuine concern for human rights, why action was not taken sooner and why only abuses in Iraq were singled out.
A former emergency planning official in the UK said more training and coordination was necessary to cope with a terrorist attack.
In Northern Ireland, the Apprentice Boys parade turned violent leading to a number of arrests. Loyalist paramilitary attacks have also continued. There is still little progress towards restoring devolution. In Ballykelly, County Londonderry, the village commemorated the 20th anniversary of the Dropping Well bomb of 1982 that killed 17.
6. Middle East
al Qaeda spokesman Sulaiman Abu Ghaith claimed responsibility for the attacks in Kenya and threatened new attacks against the US and Israel. His statement was broadcast on al-Jazeera television and posted on an Islamist web site. Al-Qaeda has also said it has established a branch to support Palestinian militants. If so, this is likely to further damage the Palestinian cause. Palestinians have accused Israeli’s Mossad of setting up a false al Qaeda cell to help justify continued attacks.
A group of UN workers have petitioned the Israeli government to hold its troops accountable for their safety. Their request follows the killing of aid worker Ian Hook two weeks ago. An Israeli raid destroyed a warehouse storing badly-needed food and another raid in Gaza that left ten dead, including two UN workers, led to UN General Secretary Kofi Annan asking the Israeli government to restrain the military. The UN has also lodged a formal protest against new travel restrictions imposed on aid workers staff in the Gaza Strip.
The UN General Assembly passed a series of resolutions to expedite aid, ensure compliance with UN resolutions and promote human rights.
In the occupied Gaza Strip, overwhelming force on the part of Israeli troops have led to “targeted killings” of dozens of suspected militants, missile strikes, the destruction of a UN food warehouse, demolition of civilian homes, including one whose elderly occupant was unable to escape.
In addition to the assassinations, an attack on the al-Bureij refugee camp killed ten, including two UN aid workers, on the Muslim holy day of Eid. This led to angry demonstrations but no letup in the violence. A Palestinian woman was killed and three of her children injured when soldiers opened fire on them as they walked through the refugee camp.
Palestinians were furious at allegations that Al Qaeda was operating in the Gaza Strip and Lebanon, which was called an attempt to discredit legitimate Palestinian aims.
Iran’s student protests continue, with thousands taking to the streets and confronting Islamic hardliners and the police.
American and British warplanes bombed the no-fly zone in southern Iraq, hitting the offices of an oil company and killing four civilians.
Israeli Prime Minister Sharon outlined a proposal for a Palestinian state that would use about 40 percent of the West Bank and 70 percent of the Gaza Strip, with Israeli control of security areas and a demilitarized Palestine. Palestinians rejected anything less than the pre-1967 borders.
Kuwait dismissed an apology by Iraqi President Hussein for his 1990 invasion. Earlier in the week, an Iraqi ship fired on two Kuwaiti coastal patrol boats, causing a collision and minor injuries.
Qatar is hosting a huge US military exercise, slated to begin this week.
The Saudi Arabian ambassador to the US has strongly denied that he or his wife were involved in terrorist financing. There is widespread anger in Saudi Arabia over the continued US criticisms and charges of terrorist support. The Saudi government has announced additional security measures, including audits of charities and additional anti-money laundering steps.
In the occupied West Bank, Israeli soldiers shot at a taxi killing the 95-year-old Palestinian woman who was the passenger in it.
Yemeni authorities freed 36 suspected militants that had been held after the September 11 attacks after they renounced extremism.
7. South Asia
December 5 marked one year since the signing of the Bonn agreement ending the war against the Taliban.
In Afghanistan, American B-52 bombers were used to fire massive bombs to protect security forces from factional fighting. For an intriguing insight into the effectiveness of US military efforts, read Robert Fisk’s “With runners and whispers, al-Qaida outfoxes US forces” The Independent December 6 http://news.independent.co.uk/world/asia_china/story.jsp?story=358926
The US plans to build security enclaves to protect military and aid officials in major Afghan cities, showing a new focus on rebuilding rather than continuing attacks.
Bangladesh suffered a series of bomb blasts in four cinemas in the north, killing at least 15 and injuring hundreds. Although Islamic militants are suspected, there is no knowledge of who is responsible for these attacks, of similar bombings in the last year that have killed nearly a hundred people, all in public functions.
In a joint declaration India and Russia stated their opposition to unilateral military action against Iraq. India has also expressed concern about the safety of nuclear devices, particularly those in Pakistan.
Authorities have prepared tight security for the tenth anniversary of the destruction of the Ayodhya mosque that led to bloody national riots. In Bombay, India, at least two were killed in a bus bombing. Responsibility for the attack in unknown. In the southern state of Tamil Nadu, time ran out for negotiations over the kidnapping of former minister Nagappa. The bandit Veerappan, stating that Negappa was wounded in police gunfire, left his body in the jungle where it was retrieved by special forces.
Indian-administered Kashmir has reopened some mountain peaks to foreign climbers. Clashes with militants continue, however. Police broke up a demonstration and fired on a house suspected of hiding militants, killing one. In another battle, six militants were killed.
Nepalese Maoist leader Pranchandra has called for new peace talks. In new rebel attacks on police stations and other government targets, three policemen were killed. A land mine blew up a bus, killing five, including two soldiers.
In Karachi, Pakistan, three people were found in the Macedonian consulate. They were found in the office tied up, gagged and killed before an explosion was set off. The motive may be revenge for a Macedonian attack against Pakistanis, but the attack is still being investigated. In a landmine explosion in the northwest, four people were killed.
Conflicts within the Tamil Tigers have cast a faint shadow over peace talks that have otherwise been enormously successful. A breakthrough agreement on regional autonomy was reached surprisingly early in the talks.
8. Cyberterrorism and Information Warfare
Warnings of new hacker attacks were issued on web sites associated with radical Islamic groups. The warnings coincided with the end of Ramadan.
The US General Services Administration is offering a free software patch notification service to registered civilian agencies (http://www.gsa.gov)
A number of vendors with tools to help eliminate errors in code (that cost the US economy over $59 billion a year) demonstrated their tools at the Embedded Systems Conference. For a review of these systems, see Nicolas Mokhoff’s “High cost of bugs ignites quest for exterminators” in Electronic Engineering Times, December 2, 2002 (http://www.eet.com)
Bank of America is implementing secure messaging that will help not only secure the messages but also help compliance with the Gramm-Leach-Bliley privacy regulations
9. Finance
An EU plan for tax enforcement cooperation fell apart over Swiss bank secrecy laws. See Alison Langley’s article “Swiss Won’t Yield on Secrecy, Stalling Bank Plan” The Wall Street Journal, December 4, 2002
The Saudi government has announced additional security measures, including audits of charities and additional anti-money laundering steps.
The UN Security Council unanimously voted to continue the ban on rough diamonds from Sierra Leone.
Life insurance companies will be subject to tougher regulations in light of a new trend to use life insurance policies as a new way to launder money. See Eric Lichtblau’s “New Hiding Place For Drug Profits: Insurance Policies” The New York Times, December 6, 2002
A US software company based in Massachusetts, Ptech, was raided for possible connections to terrorist financing. A former employee sent in a tip that the company had ties to a Saudi national whose assets had been frozen. The company develops enterprise architectures for government agencies, including the FBI, FAA, Air Force and others. There is no indication that the allegations are true or that any software development by Ptech presents any security risk.
10. Human Rights
The government of Chad has waived former President Habre’s immunity, opening the way for his indictment and extradition to face human rights charges.
The eight judges in the UN special tribunal for war crimes in Sierra Leone were sworn in. Trials are expected to start next year.
11. Law and Legal Issues
George Aboujawdeh of Florida has been accused of a hate crime for setting fire to a sign that announced a new mosque would be built. Anti-Muslim hate crimes have dramatically increased in the US in the last year.
Govinda Basumatary, general secretary of the outlawed National Democratic Front of Bodoland (NDFB) was arrested in India.
Kerim Chatty who had been suspected of planning a hijacking has pleaded guilty to illegal possession of firearms, but the hijacking charges were unfounded.
Jerome Courtailler, Abdelghani Rabia, Amine Mexbar and Saaid Ibrahim are being tried in the Netherlands on charges of terrorist plots against Americans. They were initially detained on September 13,2001.
Dr. Khaled Nazem Diyab, a Red Cross and Red Crescent worker, was detained briefly in Israel then expelled to Jordan. The US State Department dismissed Israeli charges that he was tied to terrorist financing and al Qaeda, although they later modified their statement without explanation. It was decided not to arrest Dr. Diyab, indicating evidence, if any, was slight. See Michael Wine’s article “U.S. and Israel Clash, Briefly, Over U.S. Doctor Detained, Briefly” The New York Times, December 5, 2002.
ElcomSoft, a Moscow-based software development firm, is on trial in the US under the controversial Digital Millennium Copyright Act (DCMA). (For quick background to this case see The Economist, December 7.)
Victor Patino Fomeque (“the Chemist” has been extradited from the US to Colombia to face charges in connection with his role in the Cali cocaine cartel.
The continued detention without charge of those held by the US military at Guantanamo Bay has been challenged again by a group of human rights lawyers. They have appealed on behalf of 12 Kuwaitis and several Australian and British prisoners, challenging the idea that there was nowhere in the world with jurisdiction over these actions. A US federal appeals court will review this latest challenge.
Ali Ghufron (“Mukhlas”) has been arrested in Indonesia on charges related to his alleged leadership of the operations of the Jamaah Islamiah. His younger brother, Amrozi, was arrested in connection with the Bali bombings and another brother is still wanted. The arrest of this senior member is believed to have dealt a serious blow to the organization and to help unravel the ties of militant Islam and al Qaeda in southeast Asia.
Saad Eddin Ibrahim, a human rights activist, has been freed by Egyptian court pending a new trial on charges of defaming the country.
James Kilgore, former member of the Symbionese Liberation Army, has agreed to a negotiated deal in which he will serve a 6-year sentence for his part in a 1975 bank robbery in which one woman was killed. This will proceed after South Africa (where he and his family live) approves his extradition to the US.
Chris Chong Kim has been charged with four counts of grand theft and 26 counts of fraudulent auctions in connection with his massive Internet auction swindle.
The trial of James Monaghan, Martin McCauley and Niall Connolly, the three suspected IRA members thought to have helped train Colombian guerillas, has been adjourned until February 7. The three accused refused to leave their cells, saying conditions for a fair trial were not met, and two prosecution witnesses failed to appear in court.
John O’Hagan, arrested in connection with charges on possessing documents useful for terrorists, including a “hit list” of possible targets, has been denied bail.
A US district judge has held that Jose Padilla (the alleged “dirty bomber”) could be detained but has the right to an attorney. The decision will be appealed by the Bush administration.
Stefano Savorani, the former Italian policeman with a history of mental illness who had attempted to hijack plane on November 27, has committed suicide in his jail cell in France.
Akhmed Zakayev, prominent Chechen envoy, was released from detention in Denmark. The Danish said there was no credible evidence to justify his extradition to Russia. Mr. Zakayev traveled to the UK, where at the request of Russia he was again arrested but is now free on bail.
In the war crimes trial of former Yugoslav leader Slobodan Milosevic, the identity of key witness Milan Babic was revealed. He had been testifying in secret but decided to reveal his identity to help the process of reconciliation.
12. Narco-terrorism
Life insurance companies will be subject to tougher regulations in light of a new trend to use life insurance policies as a new way to launder money. See Eric Lichtblau’s “New Hiding Place For Drug Profits: Insurance Policies” The New York Times, December 6, 2002
A US military official in South Korea alleges that narcotics trading has become North Korea’s main source of foreign currency. See Andrew Ward’s article “North Korea involved in narcotics trade, says US” Financial Times, December 4, 2002
News of the narcotics trade is provided in Kirk Semple’s article “Farmer unrest imperils US drug fight in Peru” in The Boston Globe, December 2, 2002
Victor Patino Fomeque (“the Chemist” has been extradited from the US to Colombia to face charges in connection with his role in the Cali cocaine cartel.
13. Transportation
Controversy over US plans for maritime security are expected to surface at the next meeting of the International Maritime Organisation. See Toby Shelley’s article “Squall brewing over the costs of tighter maritime security” in Financial Times, December 6, 2002.
The US Transportation Security Administration is preparing two pilot projects for smart card identification programs.
Kerim Chatty who had been suspected of planning a hijacking has pleaded guilty to illegal possession of firearms, but the hijacking charges were unfounded.
Stefano Savorani, the former Italian policeman with a history of mental illness who had attempted to hijack plane on November 27, has committed suicide in his jail cell in France.
14. Weapons of Mass Destruction
Belgium’s lower house of parliament has voted to phase out its seven nuclear reactors by 2025 and instead invest in renewable energy sources and gas.
The US National Research Council released a report expressing concern over America’s chemical weapons arsenal. They say that fears over continued storage should outweigh concerns over the destruction of the weapons.
A recent simulation of a dirty bomb scenario is documented by Gary Fields “An Ominous War Game: Outcome of Dirty-Bomb Scenario Is an Economic Catastrophe” The Wall Street Journal, December 4, 2002
Risk of the release of a virulent smallpox strain by a Soviet scientist, now deceased, is documented in “C.I.A. Hunts Iraq Tie to Soviet Smallpox” by Judith Miller, The New York Times, December 3, 2002
The use of non-lethal weapons is explored in two articles by Stephen Fidler, “Suicide terrorism revives quest for safe knock-out gas” and “Military looks again at non-lethal arms” in the Financial Times, December 4 and 5, 2002
Although there is no evidence of any link to terrorism, the recent infections on board US cruise ships have drawn attention and concern to the easy transmission (and difficult disinfecting) of cruise ships. For an excellent summary of this story, see the article by Denise Grady, Joseph B. Treaster and Dana Canedy “Virus Rattles Cruise Industry and Health Officials” in The New York Times, December 6, 2002.
FEATURE ARTICLE: Busting the Ring
Teledata Communications provides automated access to credit information and analysis to help make it easier for small or mid-sized lenders, such as car dealerships or property managers, to obtain credit information. Instead of a small company needing to go directly to multiple information providers and develop their own information analysis and case management tools, they can use Teledata’s web-based products, including Creditscreener, Decisionlender, Employmentscreener and Tenantscreener.
Clients have a choice of desktop or web access and use both personal subscriber codes and confidential passwords for access to the system. The communication lines are also protected with standard security protocols.
Described this way, you can begin to see how this type of service aggregation has a lot in common with the account aggregation services discussed in the case study and supporting materials reviewed in the feature published on November 24. And unfortunately, it turns out to be subject to the same types of risk. The techniques used are also reflective of those discussed in the article on social engineering, published November 17. (If you have not yet picked up a copy of the Art of Deception, be sure to do so.)
The case of the identity theft ring led by Philip Cummings does not reflect on Teledata, a company that takes normally acceptable precautions in protection of data and monitoring of employees. But as a recent case, it is instructive in offering some new insights into how easy these thefts are and perhaps in offering suggestions for additional levels of security.
According to the FBI complaint, Mr. Cummings was charged “with wire fraud and conspiracy in connection with his participation in a massive identity theft scheme that spanned nearly three years and involved more than 30,000 victims”.
Mr. Cummings worked on TCI’s Help Desk from mid-1999 to mid-2000. Help desks commonly have high turnover, so this short tenure and his reasonable explanation that he was moving from New York to Georgia raised no red flags. Also in common with the industry, although calls are monitored, detailed analysis of calls is only undertaken in the case of a dispute. In addition, many companies use sampling techniques rather than recording all calls. (Note the video monitors used at ATMs and so on are used for similar purposes.)
The FBI complaint goes into further detail:
“CUMMINGS agreed to provide credit reports to a co-conspirator who is now a cooperating witness in the investigation (“CW”), in return for money. CW knew individuals who were willing to pay up to $60 per credit report, and CW offered to split that money with CUMMINGS....Thereafter, CW dealt with 20 or more individuals in the Bronx and Brooklyn, who would bring lists to CW filled with names and addresses and/or Social Security numbers and would ask CW to provide credit reports in those people’s names....
[W]hen CW began receiving lists from these co-conspirators in the beginning, he would contact CUMMINGS, and CUMMINGS would bring a laptop computer to the CW’s home in New York and download the credit reports and give them to CW..... and then later giving a pre-programmed laptop computer to CW for CW to use to download the reports. He also allegedly taught CW how to access the Credit Bureaus and download the reports....
...CUMMINGS provided passwords and codes to CW that enabled CW to access all three Credit Bureaus -- Equifax, TransUnion and Experian -- over time. At various points in the scheme, when CW found that a code and password that CW had been using no longer worked, he allegedly called CUMMINGS. CUMMINGS would then allegedly give him a new password and code to use to continue the scheme....
One entity whose confidential TCI password and subscriber code were allegedly misappropriated in the scheme was Ford Motor Credit Corp. at its Grand Rapids, Michigan, branch. That branch’s password and code were used for approximately 10 months to download approximately 15,000 credit reports from Experian. Ford discovered the scheme after reviewing bills sent by Experian for those credit histories and receiving numerous complaints from consumers who had been the subject of identity theft and fraud. After searching its databases, Experian found that the passwords and subscriber codes of Washington Mutual Bank in Florida and Washington Mutual Finance Company in Crossville, Tennessee, had also been compromised, resulting in approximately 6,000 more credit reports for consumers being improperly downloaded.
According to the Complaint, Equifax determined that the password and subscriber codes for Ford’s Decatur, Illinois, branch had been used improperly to download 1,300 credit reports form its databases in September and October 2002. The passwords and codes of Washington Mutual finance’s branch in St. Augustine, Florida, were used to download another 1,100 credit reports, and more than 4,000 additional credit reports were downloaded using the passwords and codes of six more entities: Dollar Bank in Cleveland, Ohio; Sarah Bush Lincoln Health Center in Illinois;’ the Personal Finance Company in Frankfort, Indiana; the Medical Bureau in Clearwater, Florida; Vintage Apartments in Houston, Texas; and Community Bank of Chaska in Chaska, Minnesota.
As alleged in the Complaint, Central Texas Energy Supply’s codes were used improperly to download approximately 4,500 credit reports form TransUnion in September 2002.”
In all, the number of victims exceeds 30,000 and the damages calculated to date exceed $2.7 million. These numbers rise as the investigation continues. The damages have included many varieties of fraud: “...bank accounts holding tens of thousands of dollars in savings have been depleted; credit cards have been used to the tune of thousands of dollars without authorization; address changes have been made to accounts at various financial institutions’ checks, debit cards, ATM cards, and credit cards have been sent to unauthorized locations’ and identities of victims have been assumed by others.”
With such massive identity theft, one is left to wonder how many of the stolen identities have gone to support terrorism. Investigations are under way, including possible links to an unspecified group of Nigerians and hundreds of criminal users, but no terrorist links have yet been uncovered.
So what are the lessons learned from this incident?
1. TCI no longer assists customers with system access problems, eliminating the need to provide secure subscriber or password information to the TCI helpdesk. In general, secure data should never be sent over unsecured phone lines to or from unverified callers. Individual users need to be aware of this risk and company employees need to follow stringent policies regarding use of any such data.
2. Cummings and his cohorts were caught because they got greedy and a customer with significant billing disputes started asking questions. How would you identify lower levels of fraud? This is the question facing financial services firms efforts with anti-money laundering and the requirement to report suspicious activities.
3. Suspicious activities can often be identified proactively rather than reactively. That’s how credit card purchases work, and it is advisable that companies engaged in sensitive activities invest in better analytical tools that can help identify such areas of fraudulent behavior BEFORE the FBI knocks on the door. These efforts provide compliance with provisions of the US Patriot Act and are also good business practice for risk mitigation and management.
4. Insiders continue to pose the greatest threat. Background checks and audit trails are essential. Implementation of multi-level access controls is also important. This can limit the access to particular functions to particular users. This would allow a first level help desk employee to support only certain types of inquiries while requiring an additional level of authentication before, for example, allowing them to reset a password or perform some other more sensitive activity. (Access control levels help make audit trails and proactive activity analysis more manageable, as well.)
5. A company is only as strong as its weakest link. Regulated financial companies like banks and credit agencies implement strong security systems, but leave themselves wide open to these types of activities with smaller companies with fewer resources and by individual end users. It is essential that these large providers establish codes of conduct throughout their extended enterprises, to start to close off these loopholes. Security guidelines and training for end-users is also essential, and large firms should begin to put pressure on software, hardware, and telecommunications companies to begin building greater security into their products as well. Proactive monitoring of suspicious activities is also recommended.
Watch for more coverage on security issues in forthcoming articles. Email with comments or questions.
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