Not Just A Picture Conference 15 th – 16 th September 2010 Concert Noble, Brussels

JIM GAMBLE, QPM CHIEF EXECUTIVE

European Financial Coalition Rob Wainwright Director - Europol Not Just a Picture Conference: Concert Noble, Brussels

For Visa Internal Use Only European Financial Coalition Valerie Dias Chief Risk and Compliance Officer Visa Europe

Presentation Identifier.5 Information Classification as Needed FUTURE LEGISLATIVE ISSUES

EFC PROGRESS REPORT JIM WARNOCK EFC CHAIR (CEOP)

EFC AIMS To support pan-European police operations focused on the commercial distribution of child abuse images, with cross-sector solutions targeting in particular the electronic payment systems used to purchase such material on the internet

EFC OBJECTIVES Encourage co-operation and co-ordination between sectors across Europe Gather and analyse intelligence on commercial websites Prevent by means of education, dissemination of best practice Reduce/eradicate supply by means of enforcement, disruption and confiscation

KEY DELIVERABLES Key deliverables met - Strategic Assessment produced - Financial Best Practice produced - Three plenary sessions held - Website developed and active - Final conference being held

MEMBERSHIP Steering Group 30 current members Range of sectors Continually seeking to strengthen the Coalition with additional membership

INTELLIGENCE PICTURE Strategic Assessment has been produced Brings greater understanding to the issue Key findings will be discussed this afternoon Panel session will follow Need to build upon this initial assessment

WORKING GROUPS Law Enforcement Payments Industry Legal Internet & Technology Awareness Raising

BEST PRACTICE From the payments industry Investigative guidance to law enforcement agencies (not available as a public document)

WHAT STILL NEEDS TO BE DONE Quality of membership Develop better understanding of motivations Implementing disruption strategies Effective cross-sector training to complement best practice Co-ordination of international law enforcement activity

CONCLUSION The EFC has completed on the key deliverables agreed under the contract Has also developed other areas such as law enforcement best practice and technology solutions Potential to develop a network providing a greater European coordinated focus on child protection

THE INTELLIGENCE PICTURE GIUSEPPE GILIBERTI SECONDED NATIONAL EXPERT EUROPOL

METHODOLOGY, LIMITATIONS DEFINITIONS & SECURITY

THE EXTENT OF THE PROBLEM

The US Financial Coalition Against Child Pornography (FCACP) reported a 50% decrease in the past year of reported commercial abuse websitesThe US Financial Coalition Against Child Pornography (FCACP) reported a 50% decrease in the past year of reported commercial abuse websites The US Treasury has also reported a significant reduction in the money flow from child abuse imagesThe US Treasury has also reported a significant reduction in the money flow from child abuse images FACS analysis shows a 78% decrease in traditional commercial CAI sitesFACS analysis shows a 78% decrease in traditional commercial CAI sites THE EXTENT OF THE PROBLEM

An independent expert company were asked to analyse its database of previously flagged sites suspected of linking to child abuse images. THE EXTENT OF THE PROBLEM

Extending the analysis over a longer period, commercial sites providing C.A.I. are showing a significant decrease across ´A´ sites THE EXTENT OF THE PROBLEM

The adverts and banners for C.A.I. web sites have also decreased quite dramatically THE EXTENT OF THE PROBLEM

This suggests commercial sites and advertisements for them are significantly decreasing from their peak in 2008 Images being readily available at no costImages being readily available at no cost Development of new technologiesDevelopment of new technologies Law enforcement actionLaw enforcement action Media attentionMedia attention THE EXTENT OF THE PROBLEM 88% Drop between 2008 & 2010

COMMERCIAL vs NON COMMERCIAL

THE DISTRIBUTORS Websites organisers and criminals operating commercial websites

THE DISTRIBUTORS

Subscription costs are normally given in US dollars, and the price has increased from approximately $29.99 a month, to generally closer to or over $100 a month. to generally closer to or over $100 a month. USD 29,99 USD 59,99 USD 99,99

THE DISTRIBUTORS Lack of demand Demand is high Price increasing from USD 29,99 to USD 99,99

THE IMAGES

Contemporary images appear on commercial C.A.I. websites. Historic images, often well known to law enforcement. Distributers are not responsible for the production. THE IMAGES

very little outlay for the organisers as they are not having to pay to have images produced, leaving them with only having to pay for their website and server costs less risk of a victim or abuser being identified if the images are historic.

CUSTOMERS & PURCHASERS

Why someone would spend money buying child abuse images when free images are available on different channels ? Buyers are ‘new’ to looking for child abuse images on the internetBuyers are frequently collectorsBuyers believe they are safer using commercial avenuesBuyers want new images

FINANCIAL PROCESSES

Traditional means of payment Western Union Paypal Accounts E-money Use of merchants Man in the middle

FINANCIAL PROCESSES It must be remembered these are the advertised payment methods and an attempt to actually use those methods may re-direct to alternative payment systems

CONCLUSIONS & RECOMMENDATION

CONCLUSIONS Difficulties with data gathering and differing methodologies within organisations make an accurate analysis problematic. Organisers of commercial child sexual abuse websites are distributing but not producing images. Images are generally historic and re-cycled time and time again.

CONCLUSIONS Not all distributors are from organised criminal networks, many of them are disorganised individuals working together and who may or may not have a personal sexual interest in children. Criminals from organised networks generally come from Eastern Europe.

CONCLUSIONS Commercial sites are generally not high profit; compared to other areas of online criminality online profits are actually quite low. There are numerous access points for child abuse images on the internet and offenders will adapt to the current technologies available.

CONCLUSIONS The producers of abuse images are likely to use small, secure areas of the internet that are password protected to share the images for free. There has been a significant decrease in the number of active commercial sites that can be identified.

RECOMMENDATIONS Recommendation 1 An in-depth de-brief interviews of convicted purchasers across Europe should be commissioned to understand the motivations behind the purchases of child abuse images. Recommendation 2 Convicted distributors of child abuse images should be de-briefed in order to identify their motivations, the systems utilised and the payment processes used. Recommendation 3 A central European database should be held of identified child abuse image sites, preferably by a central European law enforcement agency (Europol). Recommendation 4 Hotlines throughout Europe should be encouraged to share their data with Europol as well as INHOPE.

RECOMMENDATIONS Recommendation 5 A clear definition of what constitutes a commercial site providing child abuse images is required so that different agencies can utilise the same methodology. Recommendation 6 A more in-depth understanding of other access points is required in order to understand the relations between commercial and other access points and the effect targeting commercial sites may have on these other areas, and offender behaviour. Recommendation 7 Further research should be conducted into the ‘hidden’ commercial sites to identify if anecdotal evidence that the modus operandi of distributors has changed, can be converted into quantifiable evidence.

Giuseppe Giliberti Seconded National Expert from Italy Europol - Criminal Finances and Technology Unit

INTELLIGENCE BENEFITS PANEL DISCUSSION

PANEL MEMBERS Cathy Cummings ICMEC Sergio Staro Italian National Postal and Communication Police Steve Wilson VISA Valerio Papajorgji Europol Jane Thomas EFC Secretariat MODERATOR Keith Groves MasterCard

WELCOME TO DAY 2 Shaping and Influencing the future of the EFC Steve Wilson VISA Europe Co-Chair of the Payments Industry Working Group

Building a Global Network The European Financial Coalition: Not Just a Picture Conference September 2010

Agenda Sponsor Organizations US FCACP – History and Update Building a Global Movement Next Steps

International Centre for Missing & Exploited Children Works to combat child abduction and child sexual exploitation globally. Provides training and assistance to law enforcement, legal professionals, NGOs, and governments. Advocates for changes in laws, treaties, and systems to protect children worldwide.

National Center for Missing & Exploited Children Serves as the U.S. clearinghouse of information on missing and sexually exploited children. Works in cooperation with the U.S. Department of Justice and U.S. Department of Homeland Security to provide services for families and law enforcement

NCMEC’s CyberTipline The U.S. Congress asked NCMEC to become the for the Internet in Receives reports regarding child sexual exploitation from the public and ISPs.

Reality of Child Pornography A study out of the United States demonstrated that: 83% of arrested child pornography possessors had images of children 6 to 12 years old. 39% had images of children 3 to 5 years old. 19% had images of infants and toddlers under age 3.

Solutions Work with law enforcement Prosecute vigorously Adopt legislation Work with private industry

Financial Coalition Against Child Pornography (FCACP) Private Industry

Disrupt the Economics of the Child Pornography Business One Goal

America Online American Express Company Banco Bradesco Bank of America Bank of New York-Mellon Capital One Chase Paymentech Solutions CheckFree Citigroup CyberSource-Authorize.Net Deutsche Bank Americas Discover Financial Services LLC First Data Corporation First National Bank of Omaha Elavon Global Payments Inc. GoDaddy.com, Inc. Google Green Dot Corporation HSBC-North America JP Morgan Chase MasterCard Microsoft National Processing Company North American Bancard PayPal Premier Bankcard, LLC Propay Inc. Standard Chartered Bank Visa Wells Fargo Western Union Xoom.com Yahoo! Inc. FCACP Members

Develop a process for test card transactions in collaboration with law enforcement. Build out CyberTipline to accommodate information from financial companies. First Priorities

1.Built forums for dissemination of trend info and other data to select FCACP partners. 2.Published two thought-leadership pieces. 3.Aligned with the mobile industry. Other Accomplishments

Increasingly difficult for law enforcement to do a test transaction with a traditional payment tool. Fewer commercial sites being reports. Positive feedback from law enforcement. Some sites refusing U.S.-issued credit cards. How Do We Know It Is Working?

The Asia Pacific Financial Coalition Against Child Pornography Led by PayPal and ICMEC Singapore Allen & Overy research underway AFP, Australia Cards Risk Council Thai Bankers Association New Zealand Forum Building a Global Movement

Brazil MOU signed between government, private sectors, and NGOs Banco Bradesco-ICMEC event ABECS and Febraban leadership Building a Global Movement

Swedish Financial Coalition Driven by ECPAT Sweden, law enforcement, and Skandiabanken 12 banks are signed on Minister of Finance is Chairman Building a Global Movement

Next Steps Establish collaboration between US FCACP and the EFC Extend to other regions Create a global dialogue Building a Global Movement

Comments or Questions?

GABRIELLE SHAW HEAD OF INTERNATIONAL AND RELATIONS

STRATEGY DEVELOPMENT CHAIRS: Delphine Moralis – Red Group Keith Groves – Green Group Valerio Papajorgji – Blue Group Jean-Christophe Le Toquin – Yellow Group

Summary of Conference Sergio Staro Italian National Postal and Communication Police

Jakub Boratyński Head of Unit Directorate-General Home Affairs (DG HOME) Unit A2: Fight against Organised Crime European CommissionDirectorate-General Home Affiars

“ There’s nothing competitive in eradicating child abuse images….. ” Steve Wilson VISA Europe

“ This is a global problem and requires a global network to respond….. ” Cathy Cummings International Center for Missing and Exploited Children (ICMEC)

“ We have to stay ahead of the game – criminals are always trying to find new ways to get away with their crime ….. ” Maggie Lazarisdas South Eastern European Coalition, Smile of the Child

“There is a need for more organisations to get involved with the EFC…..” Jean-Christophe le Toquin Microsoft