3                   Keynote Address by

         4           U.S. Attorney General Janet Reno on

         5              High-tech and Computer Crime



         8       Delivered at the Meeting of the P-8 Senior

         9                    Experts' Group on

        10              Transnational Organized Crime



        13                Tuesday, January 21, 1997

        14                   Chantilly, Virginia










         1                  P R O C E E D I N G S

         2               ATTORNEY GENERAL RENO:  Thank you,

         3     Mark.  I'm very touched by that introduction

         4     and I hope I can live up to it.  I want to

         5     welcome you all to the United States for this

         6     first Plenary session of 1997.  I am very

         7     pleased to be with you today.

         8               Not only is this meeting the first

         9     P-8 meeting under the U.S. Presidency, it is

        10     the first multilateral meeting of President

        11     Clinton's second Administration.

        12               As you know, yesterday the President

        13     took the oath of office for his second term.

        14     His re-election brings with it the opportunity

        15     for me to continue to work with international

        16     and domestic law enforcement to bring security

        17     to the citizens of our countries, and I

        18     consider this a very special privilege.

        19               Besides the historic significance of

        20     this day, I want to share with you the

        21     excitement and the enthusiasm I feel about and

        22     toward the P-8.  I view this group like no


         1     other:  The P-8 countries are a special group

         2     made up of the world's most powerful

         3     democracies.  We are global leaders in so many

         4     ways -- economically, technologically, legally,

         5     and politically.  Our small number allows us to

         6     act quickly, and our unique membership offers

         7     an opportunity to lead the world community that

         8     is rarely found in our history.  And we are

         9     often on the cutting edge -- for example -- in

        10     responding to international terrorism, to

        11     international money laundering, to precursor

        12     chemicals.  This group has so much promise.

        13     Through your work, giant strides are being made

        14     in several critical areas that have significant

        15     global implications.

        16               No area of criminal activity is more

        17     on the cutting edge or has greater global

        18     implications than crime involving technology

        19     and computers.  The importance of emerging

        20     technologies and the significance of global

        21     computer networks cannot be overstated.  If

        22     properly developed and properly protected, they


         1     will be used in virtually all personal

         2     communications, financial transactions,

         3     information sharing, medical care, and a myriad

         4     of other applications.  It is, indeed, a very

         5     exciting time.

         6               But while new technologies allow us

         7     to do things that were previously impossible,

         8     they can also be misused in creative ways to

         9     threaten public safety and national security.

        10     The same technologies that facilitate

        11     lightning-fast and ultra-reliable transactions

        12     between computers can be misused by hackers,

        13     that is, by those who access computers without

        14     or in excess of authority.  They can access

        15     confidential information, steal economic data,

        16     disrupt telephone networks, and interfere with

        17     the delivery of government and other vital

        18     services.

        19               So while the information age holds

        20     great promise, law enforcement has a

        21     responsibility to ensure that the users of

        22     networks are not victimized in new ways.


         1               To protect honest, law abiding

         2     citizens, law enforcement must keep pace with

         3     advances in computer and telecommunications

         4     technologies.  We must work to ensure that the

         5     international law enforcement community can

         6     keep pace with the criminals.  This is

         7     especially true in the case of computer

         8     offenses, which differ from traditional crimes

         9     in a number of ways and, as a result, create

        10     new and very challenging problems:

        11               First, international computer crimes

        12     are easier to commit.  Hackers are not hampered

        13     by the existence of international boundaries,

        14     since information and property can be

        15     transmitted covertly via telephone and data

        16     networks.  A hacker needs no passport and

        17     passes no checkpoints.  He simply types a

        18     command to gain entry.  And there is little

        19     need for manpower since a sole hacker, working

        20     alone, can effectively steal or erase as much

        21     information as he can read, or he can cause

        22     extensive damage to global networks.


         1               Secondly, until recently, computer

         2     crime has not received the emphasis that other

         3     international crimes have engendered.  Even

         4     now, not all affected nations recognize the

         5     threat it poses to public safety or the need

         6     for international cooperation to effectively

         7     respond to the problem.  Consequently, many

         8     countries have weak laws, or no laws, against

         9     computer hacking -- a major obstacle to solving

        10     and to prosecuting computer crimes.

        11               Thirdly, law enforcement faces new

        12     procedural challenges, many of which are

        13     impossible to address without international

        14     consensus and cooperation.  Consider, if you

        15     will, merely locating a hacker whose

        16     transmission passes from his computer to a

        17     local service provider, then through a

        18     telephone network, then crosses an ocean via

        19     satellite, and then passes through a university

        20     computer on its way to a corporate victim.  To

        21     make matters worse, this hacker could be in his

        22     car, using wireless communications.  How do we


         1     go about finding this individual?  How do we

         2     collect the evidence and preserve it in a way

         3     that will be useful at trial?

         4               Fourth, law enforcement will be faced

         5     with significant technical challenges, such as

         6     the widespread use of encryption.  In such

         7     cases, we will have to find innovative and

         8     effective ways to preserve government access to

         9     the plain text of encrypted data.  We can do

        10     this, in part, by supporting international

        11     efforts and national policies which promote the

        12     development of the emerging key management

        13     infrastructure and the use of products which

        14     allow for data recovery, as well as by

        15     assisting each other in this very difficult

        16     area.

        17               I think that these threats and these

        18     problems call for the particular experience and

        19     the expertise of this group.  While important

        20     work in the high-tech area is being done under

        21     the auspices of other organizations, one thing

        22     that sets the P-8 apart from other multilateral


         1     groups is its common-sense focus on practical

         2     solutions.

         3               And the great thing about practical

         4     solutions is that they usually produce real

         5     results.  Since computer crime is so important

         6     to all of our interests, there are several

         7     areas that I hope P-8 Experts will address.

         8     First, we need adequate laws which will allow

         9     us to prosecute hackers and other computer

        10     criminals.  Second, we need the technical

        11     ability to find these individuals, wherever

        12     located.  Third, we must develop legal

        13     procedures that permit timely cooperation in

        14     the collection of evidence.  And fourth, we

        15     need to train law enforcement personnel and

        16     devote these technically literate experts to

        17     the task at hand.

        18               When countries have inadequate legal

        19     structures to combat computer crimes, they

        20     provide safe havens for computer criminals, and

        21     they can create a major obstacle to obtaining

        22     international assistance in multijurisdictional


         1     cases.  As you know, in 1990, the Council of

         2     Europe recommended that European nations adopt

         3     harmonious computer crime laws.  As a result,

         4     several P-8 countries have enacted new laws and

         5     joined international efforts to encourage other

         6     countries to enact or to strengthen their

         7     computer crime laws.  However, much work

         8     remains to be done in this area.

         9               We need to reach a consensus as to

        10     which computer and technology-related

        11     activities should be criminalized, and then

        12     commit to taking appropriate domestic actions.

        13     This would also aid in providing the inevitable

        14     legal assistance required to investigate and

        15     prosecute these cases.  I think it is also

        16     important to think about a global legal support

        17     regime, which could be used to avoid ad hoc

        18     approaches to multiple prosecutions.  The

        19     unique nature of computer crimes and the

        20     unusual problems that can result would make

        21     such a regime very useful.  Further, it would

        22     provide practical solutions as countries


         1     determine the best place for a prosecution, the

         2     order of prosecutions in a case where multiple

         3     countries are affected, and the most fair way

         4     to vindicate interests when a crime affects a

         5     large number of nations.

         6               When a hacker attacks, the first

         7     investigative step is to locate the source of

         8     the attack.  To do so requires tracing the

         9     electronic trail from the victim back to the

        10     attacker.  However, in today's communications

        11     environment, one telecommunications carrier

        12     does not carry a communication from end to end.

        13     As in the example I mentioned before, a

        14     hacker's communication will pass through an

        15     array of carriers, often in less than a second,

        16     and tracing the electronic trail from victim

        17     back to attacker may be difficult or impossible

        18     unless the hacker is actually on-line.

        19               One practical solution that our

        20     technologically advanced countries should

        21     pursue is maintaining access to source

        22     information for each link in the chain of


         1     transmission.  Some countries, including the

         2     United States, have required that technical

         3     standards be adopted which ensure that "call

         4     set-up information" for normal telephone calls

         5     is accessible, so that the source of the call

         6     can be identified.  I think it would be

         7     productive for P-8 Experts to consider whether

         8     all carriers should carry this kind of

         9     information, whether other communications

        10     technologies should be similarly designed, and

        11     what would be required for countries to share

        12     this information with one another.  This is a

        13     critical time for this issue, as all of us are

        14     upgrading our telecommunications systems,

        15     because it is far easier to build such

        16     requirements into new machines rather than to

        17     retro-fit existing equipment.

        18               Finding a criminal who plies his

        19     craft through an array of carriers becomes much

        20     more challenging when wireless communications

        21     are used.  In the past, when a perpetrator used

        22     a phone to commit a crime, law enforcement


         1     could easily find out the exact location that

         2     the call came from.  They could find out the

         3     name of the person who was being billed for the

         4     phone line, because the caller would be

         5     physically attached to a telephone wire.  But

         6     today, mobile phones can allow an individual to

         7     commit crimes while roaming around a city or

         8     even a country.

         9               Even identifying the owner of a

        10     particular mobile phone may be difficult,

        11     because mobile phones can be altered to

        12     transmit phony identifying information.  Here,

        13     as in most of the areas we discuss, governments

        14     would be well-served to work on this problem

        15     with the help of industry.  Our technical

        16     experts tell us that there are practical

        17     solutions to the problems created by wireless

        18     communications, such as encouraging the

        19     encryption of cellular electronic identifiers.

        20     I hope that P-8 Experts will work to see that

        21     law enforcement is not overtaken by technology

        22     in this area, but instead uses technology to


         1     thwart crime.

         2               As the globalization of computer

         3     networks continues, and as computer criminals

         4     become more sophisticated, law enforcement

         5     increasingly will need timely access to

         6     computer or telecommunications information in

         7     all our countries.  Up until this point, our

         8     regime of mutual legal assistance has served

         9     our countries well.  But in a hacker case, the

        10     trail of evidence sometimes ends abruptly and

        11     permanently as soon as the hacker goes

        12     off-line.  We should consider whether mutual

        13     legal assistance treaties and letters rogatory

        14     need to be supplemented with procedures that

        15     will facilitate the immediate collection and

        16     review of evidence, or whether other avenues

        17     should be explored.  As mechanisms are

        18     developed, specially trained lawyers within

        19     countries' Central Authorities may be necessary

        20     to ensure rapid response to requests for

        21     assistance, particularly while a hacker is

        22     on-line.  Again, the experience and the


         1     expertise of the P-8 makes it well-suited to

         2     tackle these very difficult problems.

         3     Practical solutions are out there -- we must

         4     work together to find them.

         5               One idea I believe worthy of

         6     consideration is formalizing international

         7     expedited procedures that protect electronic

         8     evidence on foreign soil from alteration or

         9     destruction.  These could be in the form of

        10     "preservation of evidence requests," or

        11     "protected seizures," whereby an international

        12     request freezes a scene until a domestic

        13     judicial search mechanism can be used.  Just

        14     like technological advances are the product of

        15     creativity and ingenuity, our legal work in

        16     this area must likewise be imaginative and

        17     forward-leaning.

        18               Also in the area of evidence

        19     collection, I encourage this group to address

        20     the issues involved in analyzing electronic

        21     evidence -- evidence which can be easily

        22     altered or destroyed.  We must be able to


         1     analyze this evidence in ways that preserve its

         2     integrity and make its authenticity

         3     irrefutable, both for purposes of domestic

         4     prosecution and international cooperation.  The

         5     ease with which digital evidence can be

         6     manipulated has already led to the development

         7     of scientific protocols for searching computers

         8     and for analyzing data.  But we now must strive

         9     to ensure that such procedures are

        10     internationally accepted.

        11               None of the advances I have discussed

        12     are possible without ensuring that law

        13     enforcement personnel are capable of addressing

        14     high-tech crime by understanding two emerging

        15     and converging technologies simultaneously:

        16     Computers and telecommunications.  The

        17     complexity of these technologies, and their

        18     constant and rapid change, suggest that

        19     countries need to designate investigators and

        20     prosecutors to receive appropriate and ongoing

        21     training.  They, in turn, need to work these

        22     cases on a full-time basis, immersing


         1     themselves in computer-related investigations

         2     and prosecutions.  Efforts along these lines

         3     will dramatically expand enforcement

         4     capabilities to solve high-tech crimes.  I hope

         5     that when you return home, each of you will

         6     strongly advocate devoting significant

         7     resources to this area, and that we can share

         8     our expertise through international training

         9     and coordination efforts.

        10               The issues confronting us are very,

        11     very difficult, but we can solve them.  What

        12     will make it all come together in a cohesive

        13     way is law enforcement's continued willingness

        14     to recognize the new challenges that lay ahead

        15     in cyberspace.  Whether the challenge is

        16     protecting trade secret information, defending

        17     intellectual property rights, prosecuting an

        18     international hacker, if we do our job right,

        19     the people of the world will enjoy the benefits

        20     of the information age without becoming its

        21     victims.

        22               In closing, I pledge to you my full


         1     support in this very critical area.  I consider

         2     high-tech crime to be one of the most serious

         3     issues demanding my attention, and I am doing

         4     everything in my power to ensure that the

         5     United States actively responds to these

         6     challenges.  I have instructed Mark Richard to

         7     keep me apprised of your work, and I would

         8     enjoy the opportunity to contact my

         9     counterparts in your countries, if and when the

        10     need arises.  In fact, this past November, I

        11     discussed the threat of high-tech crime with

        12     the British Home Secretary, Michael Howard, and

        13     he enthusiastically pledged his support to P-8

        14     efforts in this area.  Likewise, our Deputy

        15     Attorney General had a similar meeting with the

        16     German State Secretary of the Interior,

        17     Professor Doctor Kurt Schelter, in October of

        18     last year.  It's an old cliche, but united we

        19     stand; divided we fall, and we look forward to

        20     working with you in every way we can to address

        21     this very important and very complex issue.

        22               Thank you.