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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. Transportation
13. Weapons of Mass Destruction
14. Recently Published

FEATURE ARTICLE:
From Jackal to Phishing: 30 Years of Identity Theft

NEWS HIGHLIGHTS OF THE WEEK

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1. World

The collapse of World Trade Organization talks last week generated a wide range of reactions and analysis. Many developing countries and their advocates cheered the show of influence of poor countries, but other voices pointed out there will be more delays in trade reform and that the world's poor will yet again be the victims. The talks have not been abandoned, but it seems that changes in the rules of negotiation will be needed before progress can be made.

Meanwhile, poverty is on the agenda for the World Bank and the International Monetary Fund. They are meeting in the Middle East to discuss economic development. The IMF has issued its latest World Economic Outlook http://www.imf.org/external/pubs/ft/weo/2003/02/data/index.htm as well as the economic outlook in the Middle East and North Africa, including necessary political reforms to support development goals http://www.imf.org/external/np/tr/2003/tr030918a.htm

For an excellent overview and background to current international economic issues, see "Flying on one engine: A survey of the world economy" in The Economics, September 20.

North Korea has reacted angrily to US deployment of Patriot missiles in South Korea, a measure unlikely to build goodwill to accept the call of the International Atomic Energy Agency (IAEA) to dismantle any nuclear weapons, cooperate with the IAEA, and reach a peaceful solution to the nuclear crisis.

In Iraq, the constant attacks are growing increasingly sophisticated, including some techniques that could indicate the influence of Hezbollah. Security on the ground has not improved. With more than 30 murders per day, Iraq has become the murder capital of the world. In addition, there are hundreds of rapes each day, a crime almost unheard of under the old regime. As the costs of the occupation rise in both lives and dollars, the US is looking for international support. Discussions among UN members and the Security Council now are focusing on the issue of how quickly to end the occupation and put Iraqis back in charge. In the meantime, tribal leaders are called on to fill in the gaps.

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2. Africa

The UN launched the Commission on HIV/AIDS and Governance in Africa (CHGA) to focus on the long-term economic, social and political threats of the virus, 70 percent of whose sufferers are in Africa.

Algerian soldiers were ambushed with homemade bombs by suspected militants of the Armed Islamic Group (GIA), killing nine.

Burundi peace talks collapsed without agreement on power sharing. The government has closed two private radio stations for interviewing rebel spokesmen, though one has been reopened. Fresh fighting between rebel Forces for the Defense of Democracy (FDD) and National Liberation Forces (FNL) factions in Bujumbura have led to at least 30,000 internally displaced people, more than 15 deaths and a curfew.

Central African Republic has begun national reconciliation talks with 350 delegates from a variety of political, social, professional, and religious groups. The UN Peace-building Support Office has been extended for one year.

Democratic Republic of Congo UN peacekeepers fired at local militiamen in self-defense, wounding two. Sporadic fighting in the area has killed six. An interesting interview with Petronille Vaweka, the interim administrator of Ituri district, is available at http://www.irinnews.org/print.asp?ReportID=36645

Equatorial Guinea's oil and gas reserves have gained the attention of the US. See the Department of Energy report at http://www.eia.doe.gov/emeu/cabs/eqguinea.html. The US reopened its embassy last year despite continued widespread corruption, repression and torture on a large scale even by the standards of other African dictatorships.

Guinea-Bisseau's bloodless coup won political approval inside the country, but condemnation of unconstitutional change by the UN Security Council. Ousted President Kumba Yala had delayed elections for nearly a year but establishment of a transitional government is well under way, with parliamentary elections planned for early next year.

Ivory Coast has marked the first anniversary of the uprising that caused turmoil and bloodshed in the country previously considered Africa's most stable. A French force continues to monitor the fragile peace, and progress has been made.

Liberia's reconstruction will be helped with a new UN mission. The Security Council has approved up to 15,000 military personnel and 1,115 civilian police. Initially for one year, it will replace the West African multinational force currently in place.

Liberian ex-president Charles Taylor has been warned by the government of Nigeria that if he meddles in Liberian politics, as recent reports indicate he is, that he will no longer be granted asylum. Several people have expressed the hope that Taylor will continue to interfere in Liberia, opening the possibility for him to face war crimes charges in Sierra Leone.

Moroccan schools have begun to teach the language of the majority Berbers for the first time, in addition to the official language Arabic.

In the Niger Delta region of Nigeria, armed youths and security forces clashed for three days, killing one gang-member and several civilians.

Sierra Leone's UN peacekeeping mission has had its mandate extended another six months. The Bangladeshi battalion will be transferred to Liberia.

Somali peace conference delegates adopted an interim constitution but groups opposed to the agreement jeopardize the peace.

In Sudan, armed attacks by the government against rebel-controlled areas have continued despite the ceasefire. The government and rebels of the Sudan People's Liberation Movement have reached agreement to permit humanitarian access in the Darfur region. There are hopes that the outstanding issues of the peace agreement can be resolved and that the peace agreement may be finalized soon.

In Zambia, the ruling Movement for Multiparty Democracy (MMD) has won a majority in parliament following four local by-elections. The opposition United Party for National Development (UPND) rejected the results because of alleged voting irregularities. There were violent clashes in the run-up to the elections.

The Zimbabwean government, in defiance of a court order, has closed the nation's only independent newspaper, the Daily News.

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3. Americas

Argentina has provided 2,500 pages of evidence to the British government in support of the extradition of former Iranian ambassador Hadi Soleimanpour, charged in connection with the 1994 Jewish community center bombing.

Colombian troops and helicopters have been searching for the eight foreign tourists kidnapped last week. The Revolutionary Armed Forces of Colombia (FARC) were initially blamed for the kidnapping but they deny responsibility and attention will turn instead to the national Liberation Army (ELN). The Colombian government is also inquiring into why the tourists were visiting a zone well known for guerilla activity, including numerous kidnappings.

Meanwhile, the UN reports that drug cultivation in Colombia has declined by 30 percent. The decline in Colombia is somewhat tarnished by increases in cultivation in neighboring Peru and Bolivia.

US President Bush has reported there is no evidence that Saddam Hussein was involved in the September 11 attacks. The comment comes after an opinion poll showing nearly 70 percent of Americans believe Saddam Hussein was personally involved, and an interview by the Vice President in which he refused to rule out a link.

The US Congress is becoming more involved as requests for money and new legislation arise. They are reviewing the request for $87 million primarily for military efforts in Iraq. Congress killed the Terrorist Information Awareness program in committee and has also removed a plan to screen air cargo from the proposed Homeland Security spending bill.

Homeland Security funding was also the subject of a US Conference of Mayors survey showing that 90 percent of cities had no federal funding to help first responders preparations for terrorist attacks or other emergencies. Another take on the funding quandary can be found in a Special Edition of the Homeland Defense Journal (September 2003) that focuses on grants and funding, called "Desperately Seeking Support" http://www.homelanddefensejournal.com

On the intelligence front, the Bush administration has announced plans for the Terrorist Screening Center that would be run by the FBI and used to consolidate the dozen or so terrorist watchlists now maintained by multiple agencies. As part of this initiative, the State Department will transfer its list of more than 100,000 known and suspected terrorist associates. It will be the foundation of the new FBI-run database and will also be integrated into the CIA's Terrorist Threat Integration Center. http://www.dhs.gov/dhspublic/display?theme=43&content=1598

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4. Asia Pacific

Australia and Papua New Guinea have signed an agreement for Australia to deploy 200 police to help restore order as well as advisors to help improve public services. The agreement, as well as Australia's other interventions, notably in the Solomon Islands, have been attacked as "neo-colonialism".

A Cambodian court has tried 58 people charged with rioting against Thai interests in January. More than fifty were found guilty of minimal charges and set free. Two people found guilty of inciting racial hatred were sentenced to 8-9 months, of which most of the time had been served.

China has transferred control of the border with North Korea from the police to the army.

Indonesia's Aceh province has seen more violence, killing 14 people and reportedly bringing the death toll to 870 rebels, 319 civilians, 47 soldiers and 15 police.

Thailand has been paid US $10 million for its capture of suspected terrorist Hambali.

Uzbekistan militant Azizbek Karimov describes his life with Islamic radicals in "A Confessed Bomber's Trail of Terror" by Peter Baker, Washington Post, September 18
http://www.washingtonpost.com/ac2/wp-dyn/A27185-2003Sep17.html

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5. Europe

In Bosnia, forensic investigators have confirmed the discovery of the largest mass grave yet discovered in the area. Of an estimated 500, about 350 bodies have been exhumed so far.

In Denmark, a car bomb killed one man, Mickey Borgfjord Lars who is linked to a motorcycle gang. Police are treating it as a targeted killing and not the start of a renewed gang war.

German police arrested ten people in connection with a neo-Nazi plot to bomb a Munich synagogue on the anniversary of the 1938 Nazi pogrom, Kristallnacht. Officials warn of a dramatic increase in the threat from neo-Nazis. The al Qaeda trials in Germany are discussed in a report by Emmanuel Mourlon-Druol, "The Al-Qaida 'Hamburg cell' and September 11th first trials" http://www.ifhe.de

In the breakaway Russian republic of Chechnya, a truck bomb exploded outside regional police headquarters, killing at least two and injuring 25. Chechen rebels are suspected.

Spanish police have arrested 35 men charged with involvement in the September 11 attacks. There has been some skepticism over the charges and details are unclear, but the judge in the case has also issued an international arrest and extradition warrant for Osama bin Laden.

Turkish police have arrested three people suspected of planning suicide bombings. Two were members of the Revolutionary People's Liberation Party/Front (DHKP/C).

British authorities are reviewing the 2,500 pages of evidence provided by Argentine in support of the extradition of former Iranian ambassador Hadi Soleimanpour, charged in connection with the 1994 Jewish community center bombing. Britain's embassy in Iran has been attacked with gunshots three times this month and diplomatic relations between the UK and Iran have been adversely affected by the extradition dispute, as well as other Middle East policy concerns.

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6. Middle East

The Middle East roadmap to peace is stalled, according to US President Bush, who blames Palestinian leader Yasser Arafat for its failure. The US looks increasingly isolated following its veto of a UN Security Council resolution that Israel would neither harm nor expel Arafat. The UN General Assembly later voted overwhelmingly in favor of a similar resolution. These proposals had been submitted following Israeli Vice Prime Minister Olmert's declaration that killing Arafat is an option, a statement that led to diplomatic outrage and Israeli backpedaling.

The International Monetary Fund (IMF) has published their report "West Bank and Gaza: Economic Performance and Reform under Conflict Conditions" http://www.imf.org/external/np/tr/2003/tr030920.htm

OPEC has invited Iraq to attend its next meeting, the first time Iraq has participated since the US-led war.

In the Gaza Strip, Israeli troops raided a refugee camp, killing Jihad Abu Suheireh of Hamas and demolishing his family home. Palestinian forces also battled with Hamas gunmen, wounding at least 13 Palestinians.

Iran has said it is committed to the Nuclear Non-proliferation Treaty and signals continued cooperation with the IAEA, but the ultimatum demanding additional proof they are not producing weapons has led to anger and accusations of western (particularly US) pressure that may lead to reduced cooperation.

The Iraqi interim administration has announced that foreign investors will be allowed to buy control of Iraqi businesses and industries that were previously state-controlled, except for oil.

Saudi Arabia has denied reports they are considering the acquisition of nuclear weapons as a response to security conditions in the region. The government has also defended its counter-terrorism efforts, following US criticism they are not doing enough.

Syria was the subject of another attack by the US as Under Secretary John Bolton reported on an alleged program to develop weapons of mass destruction as well as support for terrorism. Syria rejected the accusations that were not designed to conciliate this important neighbor of Iraq

In the West Bank, Israeli troops shot dead Islamic Jihad leader Majid Abu Dosh. Rival al-Aqsa Martyrs Brigades members have killed each other in a gun battle.

Yasser Arafat's offer of a truce or ceasefire has been rejected out of hand.

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7. South Asia

Afghan and US forces have responded with aggressive military initiatives against resurgent Taliban and other guerilla attacks, some associated with battles for control of the drugs trade. There has been almost no progress on longer-term security initiatives that would help stabilize the country outside of Kabul, although President Hamid Karzai is beginning work on military reforms. In the meantime, human rights violations have been increasing, including the scandalous seizure of land from the poor in order to build luxury compounds in Kabul, an act for which Kabul's security chief has been dismissed.

Indian deputy Prime Minister Advani has been freed from charges related to the 1992 Ayodhya mosque destruction. In connection with this incident that killed up to two thousand people Gujarat state court has agreed to retry 21 Hindus who had been acquitted of murder. The agreement was reached after a blistering rebuke by the Indian Supreme Court.

In Indian-administered Kashmir, suspected Islamic rebels attacked and killed former Ikhwan-ul Muslimeed leader Kuka Parrey. Police killed senior Jaish-e-Mohammad militant leader Nasir Mehmood Ahwan "Ansar" in an overnight raid. In gun battles along the Line of Control, at least 12 more militants were killed. Suspected separatist rebels planted a bomb on the highway that killed three civilians and wounded 11 and a bomb planted in a videocassette recorder killed four and injured 20 civilians.

The Maldives experienced an unprecedented riot between police and local people who blames police for the death in jail of two men.

Nepal's Maoist rebels held a 3-day general strike. Fighting prior to the strike killed more than 50 and wounded dozens more.
Sri Lankan rebel Tamil Tigers have been encouraged to resume peace talks to help speed international aid, but the process is still in limbo.

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8. Cyberterrorism and Information Warfare

A new worm, called Swen or Gibe, exploits a 2-year-old security hole in Internet Explorer. It pretends to be a Microsoft security update and if the attachment is opened, it can spread over chat (IRC), Kazaa, and with self-replication. It turns off anti-virus and firewall software and mails itself to addresses found on the infected computer, running every time the system boots up. This is considered a greater risk to individuals who may not be as careful about patching and updating software as companies. Of greater risk is the vulnerability in Microsoft's RPC subsystem that could allow another Blaster-type attack.

A new law in the UK makes it a criminal offense to send unwanted email (spam).

The US Department of Homeland Security has selected Amit Yoran, a former Symantec vice president, to replace former cybersecurity chief Richard Clarke.

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9. Finance

Another excellent article by Glenn R. Simpson and Erik Portanger reports "U.A.E. Banks Had Suspect Transfers: Central-Bank Documents Show Gulf State Could Be Site for Money Laundering" in The Wall Street Journal, September 17. Mr. Simpson also reports that "U.S. Details an Alleged Terror-Financing Web: Defunct New Jersey Firm Called Hub of Connections" on September 15.

Jordan decided to freeze assets of Hamas leaders but later retracted its decision.

The National Council of Resistance (NCR) and People's Mujahedin of Iran (PMOI) have been listed as aliases of Mujahedin-e Khalq (MEK), a US Specially Designated Global Terrorist organization, and these organizations have been added to the list of Specially Designated Nationals (SDN) freezing their assets and prohibiting trade.

The US Treasury has issued the final results of Patriot Act Section 326 notice of inquiry and final regulations related to the requirement for financial services institutions to validate identity.

Pakistan has received kudos from the US for measures taken to control hawala banking cash transfers.

The US Bush administration will withhold a portion of loan guarantees for Israel because of continues settlement construction.

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10. Human Rights

A human rights tribunal in Indonesia has begun hearings into the 1984 killing of several hundred Muslim protestors.

The enter for Justice and Accountability has filed a lawsuit against Alvaro Rafael Saravia in connection with the murder of Archbishop Oscar Romero in El Salvador. This is the first case regarding the El Salvador death squads, believed responsible for some 75,000 killed at the hands of right-wing death squads.

US prosecutors are pursuing the death penalty in the case of juvenile sniper suspect Lee Malvo. The judge ruled that international laws and treaties do not prohibit the state of Virginia from executing juveniles.

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11. Law and Legal Issues

Alfredo Astiz, the "Blond Angel of Death", was convicted in absentia in France of the 1977 murder of two French nuns. An Argentine judge has rejected France's extradition request so that he can face trial in Argentina for other human rights offenses.
Ahmed Bilal and Muhammad Bilal have pleaded guilty to conspiracy in US court. They were accused of conspiracy to levy war but this charge was dropped in exchange for pleading guilty to helping al Qaeda and the Taleban during the Afghan war and to weapons charges.
Ibrahim Coulibaly and five colleagues were released by a French court that found insufficient evidence to continue holding them. Of 12 men arrested on suspicion of recruiting mercenaries for a coup or acts of terrorism in Ivory Coast, only four are still in custody.

Adermis Wilson Conzalez hijacked a domestic Cuban plane and forced it to fly to the US. A Florida court has now sentenced him to 20 years in prison after an unsuccessful defense that the US had no jurisdiction over the crime, initiated in Cuba.

Shlomo Dvir, Yarden Morag and Ofer Gamliel have been found guilty in Jerusalem court of planning to blow up an Arab girls' school.

Ali Imron has been found guilty of participating in the 2002 Bali bombings. Because of his remorse he was given a life sentence rather than the death penalty.

Santigie Kanu "Brigadier 55" "Five-Five" was indicted in the Special Court for Sierra Leone on 17 counts of war crimes.

Cyril Kendall has been sentenced to more than ten years in jail by a New York court for falsely claiming his fictitious son died in the September 11 attacks and then defrauding charities of $160,000.

Milorad Krnojelac, former Bosnian Serb prison commander, had been sentenced to 7.5 years in prison but on review, appeals judges have doubled the sentence to 15 years.

Slobodan Milosevic, the former Yugoslav president, has been given three months to prepare his war crimes defense, rather than the two years he had requested from the Hague war crimes tribunal.

Pierre Robert, a French national, has been sentenced to life in prison by a Moroccan court for their role in planning terrorist attacks in Tangiers. Two Moroccans were also sentenced to life in prison, and 30 other defendants received sentences up to 30 years. Two were found innocent.

Per-Olof Svensson has been arrested in connection with the murder of Anna Lindh in Sweden. He is suspected of neo-Nazi ties.

James Yee "Yousef", a Muslim chaplain for prisoners held in Guantanamo Bay, has been detained on suspicion of espionage.

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12. Transportation

JetBlue Airways gave records of their over one million passengers to a Defense Department contractor so they could test a security system. Although unrelated to the Computer Assisted Passenger Pre-screening System II, the incident raised concerns regarding use of personal information, data security, and the connection between the data and its purported use.

The theft of two mainframes from the airport in Sydney, Australia, has been found to be just theft and did not represent any threat to aviation or national security. Two men have been arrested and charged.

The US Department of Homeland Security plans to spend $200 million to investigate the feasibility of anti-missile devices for commercial airliners.

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13. Weapons of Mass Destruction

The US Senate has approved proposed plans for research into battlefield nuclear weapons. The House had earlier rejected the move and reconciling the disagreement will present an interesting political battle.

West Nile virus has been detected in blood samples and will be investigated further.

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14. Recently Published

Frank Barnaby "How to Build a Nuclear Bomb and Other Weapons of Mass Destruction" Granta

Paul McGeough "Manhattan to Baghdad: Despatches from the Frontline in the War on Terror" Allen and Unwin

Liz Martinez DeFranco "The Retail Manager's Guide to Crime and Loss Prevention" Looseleaf Law Publications

Mark Essig "Edison and the Electric Chair" Walker

Mark Fuhrman, "Death and Justice: An Expose of Oklahoma's Death Row Machine" Morrow

Kevin Rushby "Children of Kali: Through India in Search of Bandits, the Thug Cult, and the British Raj" Walker

Allister Sparks "Beyond the Miracle: Inside the New South Africa" University of Chicago Press

Joseph E. Stiglitz "The Roaring Nineties: A New History of the World's Most Prosperous Decade" WW Norton

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FEATURE ARTICLE: From The Jackal to Phishing: 30 Years of Identity Theft

In 1971 "The Day of the Jackal" first brought identity theft to the attention of the general public. In this novel, author Frederick Forsyth describes how the vicious assassin, The Jackal, visits cemeteries to find a dead child of approximately the same age and use that to obtain a legitimate passport. He also steals identity and forges identity documents.

More than thirty years later, these simple techniques still work. When Forsyth published his book, identity theft operated in the criminal underground or was a street crime. In the past five years or so, sophisticated new techniques have contributed to a massive increase in the degree of the problem and the sophistication of the threat.

In 1999, the US Federal Trade Commission (FTC) entered 1,380 reports in the Identity Theft Data Clearinghouse. By 2002 there were 161,819, and this year will likely exceed 200,000. This represents only the small fraction of identity theft that reaches law enforcement agencies. In fact, the FTC's annual report reveals that identity theft affected nearly 10 million people and cost businesses and consumers nearly $53 billion in 2002.

The massive increase in crimes associated with identity theft was not sufficient to cause governments to close the loopholes first described by Forsyth. It is the connection of identity theft with terrorism that has forced governments to begin examining more secure techniques for establishing identity.

The extent of the problem was vividly described in congressional testimony given this month by Robert Cramer, Managing Director, Office of Special Investigations, General Accounting Office, who described a 3-year security investigation:
"... we created fictitious identities and counterfeit identification documents, such as driver's licenses, birth certificates, and Social Security cards. We did this using inexpensive software and hardware that are readily available to any purchaser.... [W]e found that (1) government officials generally did not recognize the documents we presented as counterfeits, (2) some government officials failed to follow security procedures and were not alert to the possibility of identity fraud, and (3) identity verification procedures are inadequate. Our investigations revealed that homeland security is vulnerable to identity fraud and, unless action is taken, individuals who intend to cause harm can easily exploit these vulnerabilities...."

The increased adoption of the internet, web and email has led to a plethora of new fraudulent schemes. One of the most popular new techniques is "Phishing". This is the latest way to trick a consumer into providing personal financial information.

A Phishing scam sends a mass email (spam) that pretends to be from a company with which you do business. For example, they could send it to your internet service provider, a bank, an online payment service, large retailers, and so on. The email warns that there has been some sort of problem and the customer's account will be closed if they don't quickly update or validate their information.

This is not simple spam. Instead, the fraudsters build a look-alike web site that mimics the genuine company. The consumer is tricked into entering their personal information, including financial details, social security numbers and more, to a site they believe is genuine but instead is a perfect collection agent for identity thieves.

This is also an example of the new trend to combine the techniques of virus-writers, spammers, and others to create new, more convincing, and more serious ways to deceive.

Companies that have been phished include Barclays Bank, Citibank, Best Buy, PayPal, Swiftpay, Amazon, and many other well-known and respected names. To combat online identity theft, a new organization of internet retailers, financial services and security companies has been formed, called the Coalition on Online Identity Theft.

Private industry is driven by the need to protect its commercial base. Governments are concerned with the national security implications. Even this month, a huge fraudulent passport ring was uncovered in the UK. UK authorities are evaluating the use of biometric identity cards. In the US, administration officials and congress are considering a number of measures, including free annual credit reports, one-call notification of all credit bureaus, and consumer education. (There will be more on government measures next week.)

To help protect against identity theft, follow these steps:

If a theft does occur:

Additional Resources: