Computer Fraud & Security Bulletin March 1990

Nonetheless, BSA Australia has marshalled its arguments in a booklet, and sent 3000 copies to top companies and state and federal government departments. For those who cannot be induced to buy through persuasion, the booklet mentions the heavy fines under the copyright act for companies and individuals guilty of software theft.

One country where copyright legislation has made a successful and dramatic impact is Brazil, where pressure from the US resulted in software legislation being enacted in May 1988. At the start of 1989 ABES, a Brazilian software companies' trade association, launched a $150 000 anti-piracy campaign in the media and through direct mail shots to announce the changes in the law. This was followed up be legal notifications and litigation against some offenders.

The resulting rush by companies to purchase legitimate copies of their business software has resulted in an unprecedented sales boom for suppliers and has revealed the extent to which piracy was being used in Brazil. It is estimated that ten pirate copies of software were in circulation for every one which was legal, this compares with ratios of between one and two for most other countries.

EUROPEAN INITIATIVES

International computer crime is set to grow rapidly as trans-border computer links become more common. To tackle the problem the laws of the EC member states need urgent review and harmonization if criminals are not to be given a free hand, according to a Dutch computer crime expert. Speaking to a conference organized by the commisssion of the EC on trans-lrontier fraud, Hendrik van Brummen of the Ministry of Justice in the Hague said that "harmonization of laws is an absolute necessity."

According to van Brummen, it is impossible to determine the extent of computer fraud, but he confidently predicted that the

problem will get worse and, to make matters even more difficult, the legal situation is lagging behind the technology.

To start tackling the problem the Dutch police have launched an ambitious training programme. Some 13 million guilders (about $25 million) has been allocated for the first stage of the programme. This will allow 5000 police officers to receive basic training in computers so that they will understand some of the jargon and operations involved in computer systems.

Another 2500 officers will get a more detailed training course and 100 specialists will be given extensive training in specific areas. For example, all the major operating systems will be covered by groups of these experts.

In West Germany well-publicized cases, such as hacker espionage, have resulted in considerable concern being shown by government authorities. The creation of a central authority to guard against illegal entry into state and industrial databases has been approved by the federal cabinet. The new authority will be responsible for analysing security risks for government authorities and businesses, developing security standards and issuing security certificates for computers and software.

Interior Minister Wolfgang Sch&uble, who presented the plan to the cabinet, told journalists that the aim of the office was to limit "the vulnerability of the modern computerized society." According to government sources some DM260 billion in financial transactions is conducted by computer in the city of Frankfurt alone.

Paul Gannon and Tina Monk

FRENCH FRAUD FIGURES RELEASED

Meanwhile in France, computer losses reached a record Ffr 8130 million in 1988, up

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March 7990 Computer Fraud C? Security Bulletin

3% on the previous year. The latest figures are provided by APSAIRD, an association of insurance companies, and show that 47.5% of losses came from fraud, sabotage and other related acts. A total of 1400 cases were reported during the year.

Fraud and sabotage of software accounted for Ffr 2300 million in losses, up

15% on 1987, and unauthorized use of data cost an estimated Ffr 480 million, up 26%. Premiums paid to insurance companies rose 17.8% to Ffr 980 million.

Phillip Hill

VIRUSES INVADE SOUTHEAST ASIA

An epidemic of computer viruses has

struck Bangkok in the last few months causing havoc to an estimated half of the PCs in Thailand’s capital, according to reports in Asia Technology. The viruses are thought to have been picked up in pirated software, the production of which is a thriving cottage industry in a country which has no copyright laws covering software. Eight varieties have so

far been reported, of which the Israeli and Pakistani strains are the two most prevalent.

Three groups in Indonesia are working on hardware and software capable of destroying viruses. The Jagad Semesta Co. is marketing a chip which it claims will destroy an invading

virus, even if it is lodged in the central command file. It costs $90. The Institute of Technology, Bandung and lnfocomputer magazine are both planning to market anti-virus products.

SPONSORSHIP FOR SECURITY RESEARCH

The Asis Foundation annually sponsors a research competition to stimulate contributions to the body of knowledge for the security profession. Academics, practitioners and

institutions are asked to submit research projects, either applied or theoretical, for the 1990 awards. Since 1986, the foundation has granted over $50 000 in research funds, and projects to benefit from this include:

‘Strategies and tactics for security profes- sionals for addressing, preventing and resolving ethical problems’, Dr Michael H. Miller.

‘Prevention, detection and investigation of fraud by the combined resources of audit and security’, T.L. Williams.

‘The reporting and collection of manage- ment and employee fraud data: current practices and developing trends in American business’, Regis W. Becker.

‘Crime in large corporations by employees’, Marc J.M. Cools.

Previous awards have been in the $3000 to $5000 range, however the foundation will accept proposals for larger projects. Interested parties can request an application form from the ASIS Foundation, 165 North Fort Myer Drive, Suite 1200, Arlington, Virginia 22209, USA. Telephone enquiries are welcome, contact Jacky Hemphill on +l 703 522 5800. The proposal deadline is 1 July 1990.

MARKETPLACE

One of Europe’s major firms in the high security Tempest market has completed a management buyout from its US parent. The management takeover at Data Delta Systems was led by the chairman, Sir James Glover, who was recently Commander-in-Chief of the UK’s land forces. It was previously a wholly owned subsidiary of Data Delta Systems Corp. of Maryland, USA. The new company will be known as IT Security International. The new company aims to meet demands not only for radiation and signal suppression, but also for data encryption, access control systems, fault tolerance and physical security requirements. For more information phone Colin Hanmore on +44 (0)707 333833.

01990 Elsevier Science Publishers Ltd