Organised Crime in New Zealand Mike Byrne Experienced

Organised Crime in New Zealand Mike Byrne Experienced leader of operational risk, fraud, security, continuity and crisis for large New Zealand companies

Organised Crime in New Zealand • • • Illicit drugs Burglary, theft and links to organised crime Violence Kidnapping Illegal trade, possession and use of firearms Illegal migration Identity crime Money Laundering, Fraud, Electronic crime (e-crime) Environmental crime Intellectual Property crime (counterfeiting and piracy) Bribery and corruption Source ‘Organised Crime in New Zealand’ 2010 NZ Government

Recent Headlines “Hacking group steal $1 billion from banks worldwide” (Feb 15) “Massive Anthem health insurance hack exposes millions of customers' details” (Feb 15) “NZ websites under attack as holidays prove prime time for hackers” (Jan 15)

Recent Headlines “$22 million of methamphetamine seized at Auckland Airport” (Dec 14) “Properties, cash and cars seized in $10 million drug bust” (Nov 14) “Auckland pair charged with using fake cards to withdraw over $100, 000 in cash from ATMs” (Feb 14)

Recent Headlines “Police continue to build pressure on the Headhunters Outlaw Motorcycle Gang” (July 14) “Elderly man scammed into importing P” (Dec 13) “Police arrest 18 Black Power members” (Aug 13)

Recent Headlines “Card skimming scammers jailed” (Feb 13) “New Zealand arrests in US led global copyright infringement investigation” (Jan 12) “German poacher jailed for gecko smuggling” (Mar 12)

Insight on ATM Fraud • ATM skimming (hit NZ from 2006) • Well organised ‘fully funded’ summer holiday from Northern Hemisphere winter • Initially hard to prevent, slow to detect, reliant on the public • Perceived as non-violent crime against banks, deep pockets • Only ever dealing with the ‘pawns’ • Evolved prevention by design (ATM’s, cards, site placement) • Evolved real-time detection analytics and response • Collaborative approach across banks, customs, policing • Threats continue to evolve as fast as defences

Insight on Identity Fraud • Identity theft involving overseas students • Identity documents taken or handed over when leaving the country after studying • Used for fraud against retailers, banks, finance companies • Personal loans never repaid, power and phone accounts, hire purchases, mobile phones, insurance policies • Exploited customer friendly identity processes • Changes to prevention processes (strengthened ID rules) • Link analysis in identifying common data points • Collaborative approach across banks, service sectors, policing • Threats continue evolving as fast as defences

Health Insurance Fraud • • • Application fraud Non-disclosure of PECs Claiming for services not covered Altered documents/receipts Duplicate claims or altered billing Fictitious/exaggerated claims Over-servicing Identity fraud in treatments/claiming Upcoding of services • Exploring data, testing appetite, establishing precedents

Key Learnings • Prevention by design - know your appetite, build to deliver • Balance - risks vs convenience and ease of use • Intelligence is power - monitor, analyse, join dots, search for anomalies. Stay curious! • Threats move fast - 24 x 7 global connectivity and social media • Fraud prevention - now blends with information security, physical security, HR processes, user access management • Collaborate - Fraud prevention is in everyone’s best interests

Thanks for listening Questions? Happy to talk in the break