Business urged to join fight against organised crime
by Ernie Davitt, National Affairs Editor, ASM
The global police agency, Interpol, is helping national police services combat the growing scourge of transnational crime.
Increasing penetration of legitimate business by organised crime, rapidly growing internet offences and a trend towards more financial sector fraud are among the major challenges facing Australian law enforcement agencies, according to a report Picture of Criminality in Australia (PoCA) produced by the Australian Crime Commission (ACC).
Some of the other disturbing trends within Australia include: a growing influence in Australia by transnational criminal groups; evidence of organised crime sending members to university to gain skills to keep ahead of law enforcement; and increasing use by criminals of professional facilitators and service providers such as migration agents, financial advisors and accountants.
Some of this occurs unwittingly and some could be the result of coercion through blackmail and intimidation.
ASM has had access to an abbreviated, declassified version of the report entitled Organised Crime in Australia, produced by the ACC for distribution to businesses and the wider public, highlighting key issues and trends.
ACC chief, Alastair Milroy, says the Australian community is largely unaware of how widespread organised crime is and how far it reaches into legitimate business activities.
“I urge the public and business community to be more aware, better informed, and to take an active role in reporting information or criminal intelligence on organised crime to either the ACC or your local policing service,” he said.
Mr Milroy estimates that organised crime costs the Australian economy around $10 billion annually.
Principal Criminologist with the Australian Institute of Criminology, Dr Russell G. Smith, told ASM there was clearly a need to raise awareness of the various risks associated with the internet, both for consumers and for business.
“The former was addressed in the Fraud Fortnight campaign conducted by the Australasian Consumer Fraud Taskforce earlier this year, details of which are on the AIC’s Website and from www.scamwatch.gov.au,” Dr Smith said.
“The AIC is also conducting a national survey of businesses to assess computer security risks, and this is being sent out shortly to a sample of more than 10,000 businesses of all sizes throughout Australia.
" The results will be available later in the year.”
Experts say the best defence against criminals for business is to either appoint their own security professional or to seek the services of specialist service providers.
The latest ACC report – intended as a critical decision-making tool for Australian law enforcement and government – shows that organised crime is becoming more involved in sectors or industries where there are fewer risks, less law enforcement attention and greater opportunities to generate large profits.
Along with the drug trade, crime groups are involved in high tech/computer crime and environmental crime, fraud and other crimes within the financial sector (including superannuation, banks and securities) and are moving into the telecommunication and insurance industries.
Internet technology has given organised criminals unprecedented powers to operate at arm’s length from their victims and across national borders, the report says.
The consequences of organised criminal activity included increased costs of services or damage to the reputation of an industry or institution. More visible effects included those from the sale of illicit drugs, theft of property or violence.
While the Australian-based groups dominate organised crime in Australia, international groups taking advantage of improved communication technology and more globalised trade are becoming increasingly influential.
When involved in ‘white collar’ crimes, the groups will often use some form of corruption, intimidation, extortion and/or implied or actual violence.
Organised crime groups will also collect intelligence about the people they seek to influence including business partners, public administrators and law enforcement officers.
Crime groups may blend their criminal activities with legitimate business structures or processes and will look for new technology that will give them an advantage.
“Invariably, organised crime will seek to protect itself by disguising its identity and using money laundering to make the proceeds of crime appear legitimate.
"The most successful organised crime groups operating in Australia are flexible, entrepreneurial and capable of resisting law enforcement,” the ACC says.
“Technology increases the ease with which money can be transferred offshore, enabling organised crime groups to undertake cross-border money laundering.
“New technology has also made it easier to move goods over large distances and between countries.
"As a result, more and more Australian-based organised crime groups are developing international networks to access and move illicit goods or commodities across state, national and international borders.
“This capacity is exposing Australia to international crime groups.
"It is also providing opportunities for crime groups operating in Australia to improve their access to illicit goods such as new types of drugs, drug production equipment and illicit firearms."
The ACC says that collaboration between law enforcement, government and industry is vital in Australia’s response to organised crime.
Mr Milroy said organised crime ‘pervades all parts of society and the concerning part is that many in business and the community in general do not realise how vulnerable they are to it.’
“As a community, we must be aware of organised crime.
"The Organised Crime in Australia publication is designed to raise awareness of organised crime, so we can all work together to disrupt it.
“By sharing this information and knowledge with the community, business entities and other affected groups, we create an opportunity for them to examine whether they are vulnerable to infiltration and attack by organised crime, and if found to be at risk, implement controls to combat organised crime.”
The publication created an opportunity for feedback from interested groups and the provision of more information and intelligence on organised crime.
“Organised crime is diverse and flexible, and encompasses a broad range of industries and activities including drug trafficking, corruption, violence, fraud, money laundering, high tech/cyber crime and other financial sector crimes,” Mr Milroy said.
The report said a growing number of Australian organised crime groups were using the services of professional facilitators and service providers such as migration agents, financial advisors and accountants.
In some cases these facilitators or service providers were aware of their link with organised crime but in other situations might not be fully aware of how their skills and services were being misused.
Their involvement could be the result of coercion through blackmail and intimidation.
“The use of professional facilitators allows crime groups to distance themselves from their criminal activity and avoid the attention of law enforcement agencies,” the report says.
“Facilitators enable criminal groups to carry out crimes in areas where they lack the necessary skills or knowledge, such as in a complex financial sector or through computer based crimes.
"This enhanced criminal capability creates significant challenges for law enforcement."
Organised crime had the capability to resist law enforcement efforts.
Law enforcement used special tools including coercive powers, covert intelligence, surveillance and a range of specialised analytical and investigative techniques to overcome this resistance.