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:
Recent Fraud and Cybercrime Reports

NEWS HIGHLIGHTS OF THE WEEK

1. World

The UN Security Council unanimously adopted resolution 1566, calling for all countries to prosecute or extradite anyone not already on a list of those belonging to or affiliated with Al-Qaida or Taliban found supporting or participating in any terrorist acts. The resolution was introduced by Russia following the Beslan attack and is meant to speed up extradition and prosecution of suspected terrorists. It decided against compiling a worldwide list of terrorist organizations beyond that already created in connection with sanctions programs. http://www.un.org/Docs/journal/asp/ws.asp?m=s/res/1566(2004)

The Security Council also discussed "The Rule of Law and Transitional Justice in Conflict and Post-Conflict Societies". They emphasized that countries must ensure there is no climate of impunity for those who have committed human rights abuses and that national or international criminal tribunals and truth and reconciliation commissions are useful options for nations looking to punish past violations and prevent future abuses. http://www.un.org/News/Press/docs/2004/sgsm9519.doc.htm

Wangari Maathai, a Kenyan environmentalist and human rights campaigner, has won the Nobel Peace Prize.

2. Africa

Locust swarms that have consumed up to four hectares of land in West Africa are moving north as the rainy season ends. Mauritania has been worst hit, followed by Mail, Niger and Senegal, and new swarms are expected to follow as eggs hatch. Libya and Senegal have already begun to see the immature locusts.

Democratic Republic of Congo's continued insecurity will be partially aided by an expanded UN peacekeeping force, but the numbers of troops are well below the level needed. Lack of international support to address the conflict is reflected in increasing numbers of cross-border clashes that raise the possibility of further regional conflict. DRC's long-running war was rooted in demands for its rich natural resources.
http://www0.un.org/apps/news/story.asp?NewsID=12108&Cr=democratic&Cr1=congo
http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/3727510.stm

In Guinea-Bissau, dozens of heavily armed soldiers demonstrated to demand immediate payment of the substantial salary arrears connected with their peacekeeping duties in Liberia. Army Chief of Staff Correia Seabra and human resources head Domingos de Barros were taken into custody by mutinous soldiers and killed. Other officers went into hiding. The mutineers made it clear the dispute was connected only to pay and not a coup and negotiations followed, resolving the situation after two days.

Niger government forces clashed with Tuareg rebels, killing one soldier and four rebels. The Air and Azaouak Liberation Front (FLAA) claimed responsibility for the attack in defense of the rights of minority peoples in accordance with the 1995 peace accords, but the government suggested the attackers were bandits.

Nigeria's Plateau State government's Committee of Rehabilitation and of Internally Displaced People investigated violence between September 7, 2001 (when more than a thousand people were killed) to the declaration of emergency rule on May 18 this year. Their newly issued report offers the first official death toll. They found that almost 19,000 men and more than 17,000 women and 17,000 children had been killed during 32 months of retaliatory violence between Christians and Muslims --- 53,787 deaths in all.
http://www.irinnews.org/report.asp?ReportID=43580

The conflict in the Sudan, if not properly addressed, could create the conditions for a widening regional, if not global, confrontation. This is the warning from the UN Special Representative for Sudan Jan Pronk in a briefing to the Security Council. He found no systematic improvement of human security in Darfur and no progress on ending impunity, stopping militia attacks against civilians, disarming armed groups, or prosecuting those responsible for the worst atrocities. Instead, he found frequent and sometimes atrocious attacks by the militias, numerous breaches of the ceasefire by both the Sudanese Government and the rebel groups, and an alarming rise in armed banditry. The Civilian Protection Monitoring Team separately reported on government abuse of civilians including looting, harassment and intimidation. Pronk is now in Kenya to participate in peace negotiations between the government of Sudan and the rebel Sudan People's Liberation Army (SPLA). The International Crisis Group urges a quick end to this southern conflict, where the draft agreement includes provisions that can assist in Darfur. http://www.un.org/News/Press/docs/2004/sc8206.doc.htm http://www.cpmtsudan.org/ http://www.un.org/apps/news/infocusRel.asp?infocusID=88&Body=Sudan&Body1=
http://ods-dds-ny.un.org/doc/UNDOC/GEN/N04/475/54/PDF/N0447554.pdf?OpenElement

3. Americas

Brazil was warned by Amnesty International that "Unless the authorities in Rio de Janeiro take immediate steps to restore order to the communities of Vigario Geral and Parada de Lucas in Rio de Janeiro, an escalation in fighting between rival drug gangs is inevitable and a 'blood bath' will ensue in which many innocent people are likely to die". http://web.amnesty.org/library/Index/ENGAMR190092004

Colombian right-wing paramilitaries of t he United Self-Defense Forces of Colombia (AUC) will demobilize 3,000 of their 20,000 members by yearend, as a goodwill gesture.

In Haiti, the sporadic violence that followed the devastating hurricane has escalated in scale and degree, led by radical supporters of ousted President Aristide operating out of slums in Port-au-Prince. Among at least 18 dead in the past few days are three policemen who were beheaded.

US Defense Secretary Donald Rumsfeld, Iraq's first US pro-consul Paul Bremer, and WMD inspector Charles Duelfer all offered information that further undermined the rationale for the US-led war in Iraq. WMD report. Rumsfeld, speaking at a Council of Foreign Relations meeting, said he had never seen "strong, hard evidence" linking Saddam Hussein and al Qaeda. Bremer told an insurance conference that in Iraq "We never had enough troops on the ground". Duelfer released the "Comprehensive Report of the Special Advisor to the DCI on Iraq?s WMD". This comprehensive 1,000-page report concluded that Saddam had no stocks of nuclear, chemical or biological weapons, no concrete plans to develop them, and that Saddam Hussein posed a diminishing threat at the time of the invasion. http://www.cfr.org/pub7424/louis_v_gerstner_jr_donald_rumsfeld/an_update_on_the_global_war_on_terror_with_donald_rumsfeld.php
http://www.defenselink.mil/transcripts/2004/tr20041004-secdef1362.html
http://www.washingtonpost.com/ wp-dyn/articles/A7053-2004Oct4.html
http://www.msnbc.msn.com/id/6194092/site/newsweek/
http://www.cia.gov/cia/reports/iraq_wmd_2004/index.html

The Center for Public Integrity has posted the classified documents that formed the basis of the Taguba report on Abu Ghraib. http://www.publicintegrity.org/report.aspx?aid=396&sid=100

The US House and Senate have released two measures to restructure intelligence agencies and address recommendations of the 9/11 Commission. http://intelligence.house.gov/ http://intelligence.senate.gov/leg108.htm

Venezuela's National Assembly erupted in a fistfight during debate over the draft "Radio and Television Social Responsibility Law" that is seen as an effort to control private media that is often opposed to the government. Proceedings were suspended for ten minutes and defused when the government withdrew the bill from the day's discussions.

4. Asia Pacific

The biennial Asia-Europe Meeting (ASEM) was held in Vietnam. http://www.asem5.gov.vn/

Australian Prime Minister Howard, just elected to a fourth term, has undertaken to establish a regional "Center for Counter-Terrorism Co-operation and Joint Intelligence Training".

Cambodia's National Assembly ratified legislation to set up a tribunal to try cases of genocide and crimes against humanity primarily in connection with the Khmer Rouge. The UN is backing the tribunal. http://www.cambodia.gov.kh/krt/english/index.htm Cambodia's King Norodom Sihanouk has abdicated due to ill health, an event not provided for in the constitution. The National Assembly has passed a new law to lay out procedures for succession that now must be approved by the senate and implemented by the Throne Council.

Indonesian election officials declared former general Susilo Bambang Yudhoyono winner of the presidential election, with 61 percent of the vote. He has talked about a new approach to Aceh separatism. Security forces launched military action in May 2003 that has been accompanied by torture, intimidation, and indiscriminate killing. Amnesty International has called on the new president, who was the chief security minister when the operation was launched, to investigate these abuses. http://web.amnesty.org/library/Index/ENGASA210332004

The Indonesian embassy in Paris was bombed with an explosive device inside a parcel placed outside the building. Ten people, including four embassy staff, were injured.

North and South Korea have restarted military talks that had been suspended for three months after a naval dispute. North Korea still refuses to participate in 6-party talks about its nuclear ambitions, but is discussing additional North-South transportation routes. The US has agreed to phase the withdrawal of troops from South Korea instead of pulling them out at once. 5,000 will this year; 3,000 in 2005; 2,000 in 2006; and 2,500 in 2007 and 2008, leaving about 24,500. http://www.pacom.mil/

Papua New Guinea will not be able to hold elections at the end of the year as planned, but the peace process and preparations for elections will continue with UN support. http://www.un.org/Docs/journal/asp/ws.asp?m=S/2004/771

French Polynesia's first separatist government has lost power after only four months following parliamentary approval of two censure motions.

Thai Prime Minister Thaksin reshuffled his Cabinet to deal with avian influenza and violence in the south. Fresh attacks killed two and wounded seven on Thursday and ten separate attacks on Friday killed six. Thailand has also announced another offensive against drugs, despite the death of 2,500 in a similar effort last year under circumstances that remain poorly understood.

Uzbekistan has detained 11 men suspected of being members of Hizb-ut-Tahrir.

5. Europe

Bosnia and Serbia-Montenegro played a World Cup qualifier football (soccer) match that ended in a 0-0 draw.

In Cyprus, the UN reports the improving security situation makes it possible to reduce the UN peacekeeping mission troop strength by a third, while extending the mandate until mid-2005 to support efforts towards a comprehensive settlement. http://www.un.org/Docs/journal/asp/ws.asp?m=S/2004/756

France has increased security around embassies following an explosion at the Indonesian embassy that injured ten.

In Russia, a parliamentary inquiry into the Beslan school siege is underway.

Spanish and French police continued raids against Basque separatist group ETA, uncovering explosives caches and arresting more than a dozen suspects.

October 12 marked the 20th anniversary of the 1984 Brighton bombing in which the IRA attacked the Conservative party conference with a 100 pound bomb at the Grand Hotel, that came close to wiping out Margaret Thatcher?s cabinet.
http://news.bbc.co.uk/2/shared/spl/hi/picture_gallery/04/magazine_brighton_bomb_20_years_on/html/1.stm

Northern Ireland's Social Democratic and Labour Party (SDLP) confirmed agreement with the Police Board that 17 police barracks will be de-fortified, making "police stations that are accessible and acceptable, not the oppressive forts that overshadow our towns and villages" and another ten have been approved for de-fortification.
http://www.sdlp.ie/prattwoodconfirmsdefortification.shtm

6. Middle East

In Egypt a series of explosions occurred at tourist locations on the Red Sea. Two bombs at Ras al-Satan killed three Israelis. The worst incident was a large truck bomb at the Taba Hilton, that has largely collapsed. At least 35 people were killed, most Israeli tourists, and more than 120 injured. Investigations continue to find those still missing in the rubble. Claims for responsibility have come from the Islamic Tawhid Brigades and Jamaa Al-Islamiya Al-Alamiya (World Islamist Group). These claims could not be verified. The style of multiple indiscriminate attacks is in the style of al Qaeda and seems to rule out Palestinian groups. Egyptian authorities have detained dozens of Bedouin tribesmen suspected of involvement, and local Islamic extremists, acting alone or with foreign assistance, are considered most likely to be responsible.

Israel's "Operation Days of Penitence" in the Gaza Strip has become the largest offensive against Palestinians since 2002. Israeli soldiers armed with Apache helicopters, armored bulldozers, and missiles that can fire drones, more than 100 Palestinians, half under age 18, have been killed since the operation was launched, in response to the death of two Israeli children killed by rudimentary Qassam rockets, on September 28. Others killed include two Islamic Jihad members including commander Bashir al-Dabbash, and three members of Al Aksa Martyrs Brigades. Five Israeli soldiers have been killed. The current violence is also creating a humanitarian crisis, with more than 50,000 people cut off from supplies, and humanitarian aid severely restricted. A UN resolution to end the military operation was vetoed by the US.

In Iraq, the body count is soaring due to a combination of a rapidly rising murder rate and the US/Iraqi military offensive. Another warning against the rising civilian death toll was issued, this time from the prominent Sunni group the Association of Muslim Scholars. Meanwhile reconstruction and economic recovery are lagging, with few reconstruction funds spent and some redirected to security. The Center for Strategic and International Studies reports that as little as 27 cents of every dollar spent on reconstruction has filtered down to beneficial projects, with most drained away to the cost of security, corruption, mismanagement, contractor profit, and US government expenses. ("Progress or Peril: Measuring Iraq's Reconstruction Progress" http://www.csis.org/isp/pcr/iraq_funds.pdf )

Despite reassuring words, Iraq is not getting safer and although 88 percent of Iraqis say they want to vote, they are skeptical that elections can be undertaken in the midst of a guerilla war and overseen by an occupation army. NATO's security training program will not start before the end of the year. UN staff associations have asked that even the small staff of 35 in Iraq be withdrawn because of unprecedented security concerns and the targeting of UN personnel. No country has yet offered troops to protect a UN team; US soldiers protect the current staff.

Last week the rationale for the US-led war in Iraq were further undermined by US Defense Secretary Rumsfeld, the first US pro-consul in Iraq Paul Bremer, and Charles Duelfer's WMD report. For details, see Americas, above.

A senior advisor to Israeli Prime Minister Sharon said that disengagement from Gaza would "freeze the diplomatic process", raising concerns that Israel was abandoning the international road map. Sharon later clarified this by saying he supports the road map but a diplomatic freeze is the responsibility of Palestinian actions and absence of a negotiating partner.

Syria has not withdrawn troops from Lebanon as called for by the UN Security Council resolution narrowly adopted last month. However, 3,000 troops have been re-deployed and the 14,000 that remain are based near the Syrian border not deep inside Lebanon. http://www.un.org/Docs/journal/asp/ws.asp?m=S/2004/777

7. South Asia

Afghanistan's historic presidential election had a high turnout and minimal violence. Voting was disrupted after complaints that the indelible ink used to mark fingers and prevent multiple votes was easily rubbed off. Candidates complained of fraud and briefly boycotted the election but it appears that most will accept the official results. Free and Fair Elections Foundation of Afghanistan (FEFA) said the polls were "fairly democratic" and Oganisation for Security and Co-operation in Europe (OSCE) observers cited some irregularities but not enough to void the election. It will take some time to collect and count the votes. For on site descriptions of the event, see the BBC reporters' logs at http://news.bbc.co.uk/2/hi/south_asia/3727878.stm

Violence in Assam and Nagaland continued through last weekend. Bombings, gun attacks and explosions at markets, an electrical grid and a gas pipeline in Assam killed some 6 people over the weekend. Responsibility is unconfirmed but the United Liberation Front of Assam (Ulfa) and the National Democratic Front of Bodoland (NDFB), acting alone and in concert, are suspected. On Wednesday violence broke out again when militants opened fire at a market, killing ten and injuring five. The federal government will provide support to tackle the violence. Also in Assam, flash floods have killed more than a hundred.

Peace talks between the Andhra Pradesh state government and rebels of the People's War Group (PWG) are scheduled for October 15. PWG and the Maoist Communist Center (MCC) along with about 150 other leftist organizations met for three days to discuss strategies and narrowing their ideological and tactical differences. At the end of the meeting, PWG, MCC and two smaller communist factions will merge into a new party.

In Pakistan, a remote-control car bomb and a similar device in a motorcycle were set off at a Sunni Muslim rally, killed at least 40 and injured more than 100. Another explosion was caused when a suicide bomber detonated a device at a Shia mosque. At least four people were killed, including a 13-year-old boy, and six people were injured. The recent space of sectarian violence -- six since May this year, with a death toll approaching 200 -- may be the result of a backlash by Islamic militants, including al Qaeda, that have been targeted by security forces. Police in Sindh province have posted guidelines on how to identify possible suicide bombers. In Karachi, prominent Sunni cleric Mufti Mohammed Jamil was shot dead by two gunmen on a motorcycle.

8. Cyberterrorism and Information Warfare

Out of more than 2500 new vulnerabilities found every year, the Sans Institute has published the list of the 20 most commonly exploited:

A new study from the British Columbia Institute of Technology (BCIT), "The Myths and Facts behind Cyber Security Risks for Industrial Control Systems", reports the number of cyber attacks on process control and Supervisory Control and Data Acquisition (SCADA) systems had increased by ten times since 2000. http://www.bcit.ca/news/releases/newsrelease100404883.shtml

The Netherlands Interior Ministry reported on the use of Dutch passports obtained by smugglers who help illegal immigrants alter their appearance to resemble the photographs. This year 700 people have been detained, but there are likely to be many more, following a threefold increase in the number of missing passports.

A Chechen rebel website, shut down by Lithuanian authorities where it had been hosted and also under attack by cyber-activists, has been reopened. Dutch hackers briefly shut down government websites with a denial of service attack.

Telephone frauds have attracted a strong response from businesses and government. British Telecom has blocked a thousand numbers connected with premium rate internet dialers in which dial-up internet users inadvertently download software that dials up huge telephone bills. http://www.btplc.com/News/Articles/Showarticle.cfm?ArticleID=d9679574-7869-4824-9965-76049a4c7233
In the US, the FBI announced results of Operation Roaming Charge to combat telemarketing fraud schemes including bogus lottery, prize and sweepstakes schemes; offers of nonexistent investments; bogus offers of 'pre-approved' credit cards or credit-card protection; employment and business opportunity swindles; tax fraud schemes; and 'recovery room' schemes. More than 100 individuals in the US and 35 abroad have been arrested. http://www.usdoj.gov/opa/pr/2004/October/04_crm_680.htm

The Hack In The Box Security Conference was held in Malaysia October 4-7.
http://conference.hackinthebox.org/index.php

The new acting head of the US National Cyber Security Division is Andy Purdy, the former deputy director.

The Financial Services Technology Consortium (FSC) has set up a 3-phase project to counter phishing attacks. http://www.fstc.org/projects/counter-phishing-phase-1/

9. Finance

The Saudi ministry of Islamic affairs has dissolved the Al-Haramain Islamic Foundation. It has been connected in the US to terrorist financing.

Denmark's Security Intelligence Service (PET) is undertaking an investigation into a possible al Qaeda cell following a request from Lebanon that believes the Danish cell may have been involved in terrorist financing.

The Association for Payment Clearing Services in the UK reports an increase of nearly 20 percent in credit and debit card fraud through July of this year with losses of GBP 478.8 million. Crimes connected to cards lost or stolen in the mail increased by 51 percent to GBP 61 million and identity fraud increased 66 percent to GBP 37 million. http://www.apacs.org.uk http://www.cardwatch.org.uk/pdf_files/cardfraudfacts2004.pdf

Law enforcement officials meeting at the Conference of Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) report that illegal trafficking of wildlife continues at high levels. It increasingly involves organized criminal networks, sophisticated poaching and smuggling techniques, fraudulent trade permits, corruption and violence against enforcement officers. National authorities often lack the necessary resources and experience to meet the challenge, and there is not enough coordination and information sharing among various enforcement authorities. After habitat destruction, this presents the greatest threat to endangered species. http://www.cites.org/eng/news/press_release.shtml

10. Human Rights

Professor Michael Pugh of Plymouth University has published " Drowning not Waving" in the Journal of Refugee Studies. He reports that up to 4,000 asylum seekers drown at sea every year as they flee persecution or poverty. He says that increased coastal patrols and fears of terrorism and migration have discouraged seafarers from stopping to help small boats in distress. http://www3.oup.co.uk/refuge/
http://www.guardian.co.uk/Refugees_in_Britain/Story/0,2763,1323311,00.html

In the US state of Texas, Ernest Ray Willis was freed after 17 years on death row after being convicted of arson and murder in a fire that wasn't arson. In a second case Edward Green III was executed despite the belief of 7 of 15 appeals judges that the man convicted of a robbery/murder deserved a new trial or to be freed because of problems at the police laboratory.

Amnesty International urged Belarus and Uzbekistan to end capital punishment. They are the only two former Soviet republics that still use the death penalty.

The United Nations and the International Criminal Court (ICC) signed an agreement that recognizes the status and mandate of each organization and ways in which the two institutions will cooperate on administrative and judicial matters and other issues of mutual interest. http://www.icc-cpi.int/home.html&l=en

ICC and Democratic Republic of Congo signed an agreement for ICC to begin investigations into war crimes and crimes against humanity committed within DRC. Crimes committed prior to July 2002 are outside of ICC's remit and will be dealt with by DRC's judiciary.

October 4 marked World Habitat Day featuring the theme "Cities: Engines of Rural Development". http://www.unhabitat.org/whd/2004/default.asp

11. Law and Legal Issues

Babar Ahmad, a British computer expert held in London, has been indicted in the US for supporting terrorism, conspiracy and money laundering. http://www.jud.state.ct.us/courts.htm

Charles Alamba, a former military prosecutor in Democratic Republic of Congo, has been sentenced to death by military court for masterminding a gang of rogue security forces that carried out a campaign of murder and extortion.

Saajid Mohammed Badat has been indicted by US federal grand jury of conspiracy with Richard Reid, the "shoe bomber". Badat, a British citizen, was arrested and is still detained in the UK in November 2003 where he was charged with conspiracy to destroy, damage or endanger the safety of an aircraft and unlawful possession of explosives and explosive devices. http://www.fbi.gov/dojpressrel/pressrel04/reid100404.htm

Ljubisa Beara, indicted more than two years ago for genocide related to the 1995 Srebrenica massacre, has surrendered to the war crimes tribunal in The Hague.

Abdelkader Bouziane, a radical Muslim preacher in France was expelled in April after saying Islam justified beating unfaithful wives. His deportation was twice suspended but now the State Council has annulled the prior decision and ruled the deportation order was lawful. He has now been deported to Algeria.

Munfiatun Al Fitri, second wife of Noordin Mohamed Top, has been arrested for sheltering her husband, who is a suspect in the Marriott Hotel bombing and other attacks.

Slimane Khalfaoui, Yacine Akhnouche, Rabah Kadri and Mohamed Bensakria have gone on trial in France on charges of planning a bombing the Strasbourg Christmas market in 2000. They are believed part of a radical Islamist cell based in Frankfurt and connected with al Qaida. Four colleagues were arrested in 2000 and sentenced to up to 12 years prison.

Gavin David McCartan has been sentenced by Belfast court to six months prison for failing to disclose information related to suspicion that his client was laundering drug money.

Naser Oric's war crimes trial has begun at the international tribunal in The Hague. The first Muslim charged in connection with atrocities in the Balkans in the 1990s, he is accused of murdering and torturing Bosnian Serbs and burning dozens of Serb villages around Srebrenica. He has pleaded not guilty to all the charges. http://www.un.org/icty/

Gabriel Puerta, connected with the Medellin and Norte del Valle drug cartels and on the US list of most-wanted drug traffickers, has been arrested in Colombia.

Saptu Roni has been arrested in Indonesia in connection with the Marriott Hotel bombing. A Malaysian citizen, he is accused of withholding information and forging documents under orders from two Malaysian colleagues (Azahari Husin and Noordin Mohamed Top) who are also the prime suspects in the Australian embassy bombing.

David Tomkins, a British mercenary who admitted trying to buy a plane to bomb Pablo Escobar's prison in 1991, has reached a plea agreement with US authorities for a 33-month jail sentence.

Christos Tsigaridas, Angeletos Kanas, Irini Athanassaki and Costas Agapiou, members of the Greek radical group the People's Revolutionary Struggle (ELA), have been convicted of complicity in 42 bombings and 48 attempted murders since 1983. Michalis Kassimis was acquitted.

Zardad Faryadi Sarwar, an Afghan warlord, is on trial in the UK on charges of conspiracy to torture and conspiracy to take hostages in connection with actions in the 1990s. He denies the charges. This is believed to be the first time an alleged torturer had been prosecuted in one jurisdiction for offences in another.

12. Transportation

Iraq has regained sovereignty over its territorial waters following the official US-led coalition's handover on Thursday. Meanwhile, a systematic survey in Iraq reveals that "hundreds of sunken ships ranging from large freighters and tankers to small tugs and dhows are blocking access to Iraq?s principal seaports and threatening the marine environment of the northern Persian Gulf". http://www.undp.org/dpa/pressrelease/releases/2004/october/pr4oct04.html

The Colombian navy has begun using a mobile outpost, tugged by a larger ship, to patrol sections of the Arauca River. They plan to implement four of these floating posts, housing up to 60 soldiers, supports border control.

The US House Subcommittee on Coast Guard and Maritime Transportation held hearings on "Maritime Domain Awareness" in which a witness disclosed that the Coast Guard is installing transponders on weather buoys but only ten stations are currently equipped to receive the radio identification signals. http://www.house.gov/transportation/

A Luftansa plane on its way to Israel received a bomb threat that German authorities determined was not serious. Israeli authorities disagreed and diverted the plane to Cyprus, using jet fighters to force the plane to land without clearance in Cyprus-administered air space. Prior to identifying the Luftansa flight they mistakenly buzzed a Swiss aircraft, forcing it to change altitude. Cyprus has protested the action to the International Civil Aviation Organization and other international bodies and summoned the Israeli ambassador to receive their strong protest. There were no explosives on the plane.

Norway's Civil Aviation Authority increased security measures, including searching hand luggage and locking cockpit doors, following an incident in which a passenger took an axe on board and attacked the pilots. Additional security measures had been in progress, scheduled for January 1, 2005.

Iran's parliament impeached Transportation Minister Ahmad Khorram for corruption and failing to improve safety. He had been responsible for selecting a Turkish-Austrian consortium to build and operate Tehran's new international airport. The army had closed the airport down in May because its foreign ownership was considered a security risk.

The American Civil Liberties Union (ACLU) of Northern California received 300 pages of documents pertaining to the "No Fly" list that were released under federal court order to the Department of Justice. From 16 names on September 11, 2001, the list now contains more than 20,000 and has been beset by "confusion, inter-agency squabbling and subjective criteria in placing names on the list". http://www.aclu.org/SafeandFree/SafeandFree.cfm?ID=16728&c=282

Yusuf Islam (formerly Cat Stevens) spoke with Larry King about accusations his charitable donations could have unknowingly gone to terrorist groups:

The Metropolitan Washington Airports Authority unanimously agreed to permit passengers and other airport visitors to carry guns, knives and other dangerous weapons around the grounds and parking lots of Reagan National and Dulles International airports. http://www.metwashairports.com/authority/pr/pr090104.htm (link to regulations)

13. Weapons of Mass Destruction

The UK Medicines and Healthcare products Regulatory Agency (MHRA) suspended Chiron Vaccines manufacturer's license for Fluvirin influenza vaccine manufactured in Liverpool for three months, effect immediately, because of potential contamination. This has reduced the vaccine supply in the US by more than half and led to rationing for only those at highest risk from a flue infection. This again reflects poor contingency planning on the part of US authorities, who had been warned of the potential shortage before the ban was in place. This is even more serious occurring at a time of heightened warnings of a new pandemic. http://www.mhra.gov.uk/
http://www.chironvaccines.com/company/vaccines_Press_Area_5_October_2004.php
http://www.hhs.gov/news/press/2004pres/20041005.html
http://www.cdc.gov/flu/

US Senate hearings were held to discuss improvements to the new BioShield law that came into effect in July. Issues included stronger liability protection and measures to encourage development of antibiotics. http://health.senate.gov/bills/hlh_58_bill.html

Iran's former president Hashemi Rafsanjani claimed that Iran had developed a satellite-launching rocket with a range of 2,000 km, putting it in range of Israel. Although Iran continues to maintain its work is for self-defense the claim has increased tension, particularly given continued developments in the nuclear program. Iran's parliament approved plans for peaceful nuclear technology. They have admitted processing 37 tons of raw uranium into uranium hexaflouride that could then be further processed into fuel (or weapon) grade uranium. The International Atomic Energy Agency is monitoring the process.

The controversial convoy of US weapons-grade plutonium safely crossed the Channel from the UK into France where a heavily guarded truck next transported it to the Cadarache reprocessing facilities.

Sweden will close a second reactor in 2005, continuing its phasing out of nuclear power.

14. Recently Published

David Cesarani, "Eichmann: His Life and Crimes" Heinemann

Giles Foden, "Mimi and Toutou Go Forth: The Bizarre Battle of Lake Tanganyika" Michael Joseph (In the US as "Mimi and Toutou's Big Adventure", Knopf, April 2005)

Bryan Hehir, et al "Liberty and Power" Brookings Institution Press http://www.brookings.edu/press/books/libertyandpower.htm

Sebastian Mallaby, "The World's Banker: A Story of Failed States, Financial Crises and the Wealth and Poverty of Nations", Penguin Press (in the UK from Yale University Press January 2005)

Michael Moore, "Will They Ever Trust Us Again? Letters from the Warzone to Michael Moore" Allen Lane Extracts at http://www.guardian.co.uk/Iraq/Story/0,2763,1319718,00.html

A. Lloyd Moote and Dorothy C. Moots, "The Great Plague: The Story of London's Most Deadly Year" Johns Hopkins University Press

Mark Sedgwick, "Against the Modern World: Traditionalism and the Secret Intellectual History of the Twentieth Century" Oxford University Press

FEATURE ARTICLE: Recent Fraud and Cybercrime Reports

This week we summarize a number of recent reports that shed light on new modalities and trends in fraud, targeting both individuals and institutions, and addressing core vulnerabilities that help make such fraudulent activities successful. These reports are somewhat US-centric, but we hope will contain useful data nonetheless. If readers would like to share local stories, we would be happy to hear from you -- email .

The US Federal Trade Commission (FTC) is mandated to ensure market competition that is unimpeded by fraud, deception or unfair business practices. Their achievements in the past year include measures to combat email spam and the very successful "do not call" list to manage telemarketing calls. They monitor consumer complaints and annually produce "Consumer Fraud in the United States", a statistical survey of fraud in the US. The latest report, released in August, shows that over 11 percent of the adult population - nearly 25 million people -- were victims of fraud. They reported that certain ethnic groups were more likely to be fraud victims with more than a third of indigenous Americans (tribes in the mainland and Alaska) affected and because of this finding, FTC will attempt to target frauds aimed at such higher risk communities.

The report said that the most frequently reported fraud were advance-fee scams. The "Nigeria Letters" are a classic example of advance fee fraud, but in this case the most common problem was from guaranteed loan or credit cards. 4.5 million consumers paid an advance fee without ever receiving the promised loan or credit card. Next most common advance fee fraud were unsolicited bills for memberships and publications, followed by credit card insurance and credit repair scams. For instance, companies will falsely claim they can remove negative credit report data. They can't - and their actions are illegal.

In this survey about a third of the victims learned of a fraudulent offer from print advertising, followed by 17 percent taken in by telemarketing, 14 percent through internet and email, and a little over 10 percent through television or radio advertising.

One of the most dangerous modes of fraud is when trusted institutions, most often financial services firms, are used to enable or mask criminal activities. In September the US Federal Bureau of Investigation (FBI) announced the results of "Operation Continued Action" that targeted organized groups and individuals committing fraud against financial institutions including mortgage and loan fraud; identify theft; financial institution failures; check fraud and check kiting; and insider fraud. Since 2000, the operations resulted in nearly 11,500 indictments, almost the same number of convictions, and approximately $8.1 billion in restitution orders.

Two major areas of interest are mortgage fraud and identity theft. With the recent fall in interest rates and high levels of refinancing, mortgage fraud increased sharply, with potential losses that could match the levels seen in the past savings and loan crisis. They list the top ten states for mortgage fraud as Georgia, South Carolina, Florida, Michigan, Illinois, Missouri, California, Nevada, Utah and Colorado.

Identity theft is the leading consumer complaint received by the FTC and the crime increasing at the fastest rate. Identity theft is particularly dangerous because it provides the foundation for many other frauds. The FBI is working with banks, credit card issuers, law enforcement, and regulatory agencies to establish a National Joint Identity Theft Center for better targeting and preventing this epidemic crime.

Back to mortgage fraud, the FBI notes that by its nature it requires the involvement of insiders. Both the US Secret Service National Threat Assessment Center (NTAC) and the Association of Certified Fraud Examiners (ACFE) have documented the serious nature of insider threats.

ACFE's "2004 Report to the Nation on Occupational Fraud and Abuse" defines the problem as "the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets". 508 cases of occupational fraud totaling over $761 million in losses were reported, but fraud examiners estimate that a typical US organization loses 6 percent of annual revenue to fraud, translating to total losses of $660 billion. Their detailed analysis revealed the value of confidential reporting mechanisms, like that required under Sarbanes-Oxley, since so many frauds are uncovered through tips: 60 percent from employees. It also finds that small businesses experience a median loss of $98,000, which is disproportionate relative to overall losses. Frauds committed by people in higher-level positions causes proportionally greater losses: "Frauds committed by owners and executives caused a median loss of $900,000, which was six times higher than the losses caused by managers, and 14 times higher than the losses caused by employees". Once committed, little is recovered, so ACFE recommends prevention as the most cost-effective way to deal with fraud.

NTAC worked with Carnegie Mellon's CERT Coordination Center to understand, for the first time, the behavioral and technical aspects of insider threats. They examined 23 insider attacks carried out by 26 financial industry insiders. Although a limited study, the findings are interesting:

The report suggests mitigation options for each of these findings, ranging from a culture of security, strong network security, background checks, activity monitoring and analysis, a multi-layered approach to security, and so on.

This report and others demonstrate that most often the mechanisms for undertaking such frauds are low tech: take the money and run. However there is a trend towards increasing technical sophistication that raises the possibility of larger-scale frauds that could prove more difficult to detect or prosecute.

One worrying trend is the rise in phishing attacks that use spoofed emails and fraudulent websites to trick a person into divulging personal data. The number of phishing attacks has been growing at a high rate and present threat of financial loss and identity theft. Up to five percent of people receiving these fraudulent lures reply to them, so it is an effective and very dangerous fraud. When combined with other computer vulnerabilities the threat can increase exponentially.

Symantec's biannual "Internet Security Threat Report" finds that in the first six months of this year, e-commerce was the most highly targeted industry; average time between public disclosure of a vulnerability and the release of an associated exploit was 5.8 days; and the number of distinct variants of bots rose by 600%. Symantec also warned of phishing attacks becoming a serious security concern.

The good news is that although new threats pose new problems, a good understanding of risk mitigation can have dramatic results. For example, CyberSource cites increased use of anti-fraud systems and manual review contributed to a decline from 3.6 to 1.7 percent of revenue lost to online credit fraud. Improved security measures are also given credit in the CSI/FBI cyber-crime survey that found declining losses.

Links to all these reports and related resources are detailed below.

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