VZCZCXRO5095
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHBM #0560/01 1931409
ZNR UUUUU ZZH
P 111409Z JUL 08 ZDK
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC PRIORITY 8479
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC PRIORITY
RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC PRIORITY
RHMCSUU/FBI WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 BUCHAREST 000560 
 
DOS FOR EUR/NCE 
DOC FOR KNAJDI 
DHS FOR SECRET SERVICE 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EINT EFIN EINV ECON PGOV KCRM KIPR RO
SUBJECT:  ROMANIA: U.S. COMPANIES ENGAGE ON CYBER CRIME 
 
REF:  07 BUCHAREST 1301 
 
Sensitive but Unclassified; not for Internet Distribution. 
 
¶1. (SBU) Summary.  As part of an initiative spearheaded by eBay, 
representatives of several American financial services, software, 
and e-business companies visited Bucharest on June 10th and 11th, 
2008 to discuss ways to enhance existing cooperation with the 
Romanian authorities in combating financial crime, cyber fraud, and 
computer piracy.  The group identified the need to focus on specific 
cases, increase law enforcement capacity through additional 
training, and begin a public outreach program to change the Romanian 
mindset when it comes to cyber and financial crime.  End Summary. 
 
¶2.  (SBU) Post, in particular through the offices of the U.S. Secret 
Service and Legal Attache, has had long-standing cooperative 
programs with Romanian law enforcement to improve the Romanians' 
ability to investigate and prosecute cyber crime and other types of 
financial fraud.  These efforts were intensified in late 2007 and 
early 2008 to successfully track and arrest (in April) notorious 
suspected hacker "Vladuz" for repeated cyber attacks on eBay 
corporate systems and customers.  The Vladuz case (reported reftel) 
required extensive, close coordination with eBay, and seeking to 
build on that experience, eBay undertook to organize a follow-up 
visit by a wider group of U.S. companies concerned about cyber crime 
and other forms of fraud connected to Romania.  The group wished to 
explore specific ways the private sector could assist and complement 
training programs for Romanian officials, and to seek opportunities 
for joint public outreach on the dangers and social harm caused by 
cyber crime.  Joining eBay executives in the visit were 
representatives of MasterCard, Visa, American Express, PayPal, 
Skype, Microsoft, and Western Union. 
 
¶3. (SBU) In an opening briefing with relevant Embassy offices, the 
group members laid out some of their primary concerns with regard to 
Romania.  Visa, MasterCard, and American Express presented a united 
position that Romania-linked criminal elements throughout Europe and 
the United States are responsible for a substantial portion of their 
fraud losses, particularly in connection with Internet transactions. 
 They noted that they have been able to trace illicit money flows 
directly back to Romania, and expressed a desire to work with 
Romanian authorities on mechanisms for seizing these ill-gotten 
assets.  While agreeing that cooperation with law enforcement in 
actual cases must remain a priority, eBay (together with PayPal, 
Skype, and Microsoft) emphasized the need to change the tone of the 
conversation in Romania - focusing on law enforcement training and 
more public outreach. 
 
¶4.  (SBU) Subsequently the group met at Victoria Palace in a meeting 
chaired by the Prime Minister's State Counselor and Director of the 
Cabinet, Mihnea Constantinescu, with several GOR agencies 
represented.  In welcoming the group, Constantinescu said the GOR 
had learned from the Vladuz case that it needs to strengthen 
public-private sector cooperation in combating cyber crime, both in 
terms of law enforcement as well as raising public awareness of the 
problem, particularly among Romania's youth.  The companies 
described in some detail the fraud problems they have connected to 
Romania, stressing this was not a criticism but a reality. 
Constantinescu acknowledged the companies' frustrations in dealing 
with the Romanian bureaucracy and said he wanted to work with them 
to create a new framework for cooperation that would encompass both 
law enforcement and outreach elements.  The companies outlined 
proposals to work with various GOR agencies on law enforcement and 
prosecutorial training, recommended changes to the criminal code, 
and a public outreach strategy.  Constantinescu welcomed the 
training assistance and suggested the companies work with the GOR to 
organize a joint forum on cyber crime as a first step in outreach 
efforts. 
 
¶5.  (SBU) The group also held meetings with Prosecutor General Laura 
Kovesi and with the organized crime division of the National Police. 
 During these meetings the group committed to provide additional 
training for the police and prosecutors, focused on teaching 
Romanian law enforcement about their corporate systems and 
developing best practices for sharing relevant information in future 
cases.  Kovesi assured the group that she wanted to work closely 
with them, but explained that there are some real limitations in 
Romanian law, one being that all personal assets are presumed to be 
legitimate unless a prosecutor can prove they were illegally 
acquired.  This sets a high bar for any asset seizures.  As a way to 
move forward, Kovesi encouraged the group to propose amendments to 
the Romanian criminal code.  She believed that a joint effort on the 
 
BUCHAREST 00000560  002 OF 002 
 
 
part of multinational corporations would allow her to submit the 
proposed code changes to the Justice Ministry as an "urgent" 
ordinance, increasing the likelihood that the changes would be 
quickly adopted. 
 
¶6.  (SBU) Comment:  As an outgrowth of long-standing USG efforts to 
assist and train Romanian authorities in the battle against cyber 
crime, this June visit marks an important milestone in strengthening 
our efforts by more directly involving a broader mix from the 
private sector.  Post's objective is to foster a continuing dialogue 
among the corporate victims of financial and cyber fraud, USG 
agencies and their Romanian Government counterparts, and Romanian 
civil society to combat this proliferating and highly damaging form 
of organized criminal activity.  While the group expressed a 
disparate range of priorities and interests, it is a hopeful sign 
that they were able to cooperate on an agenda for the visit, driven 
by the need to combat losses linked to Romania.  Post has, with some 
success, actively sought to move the involvement of corporate fraud 
and hacking victims including eBay away from simple blaming of the 
Romanian authorities, and towards a more forward-looking, 
collaborative approach.   If we can sustain momentum, post believes 
this approach will bolster Romania's law enforcement capabilities 
and improve the country's battered reputation in this regard, while 
also directly addressing the losses these companies have 
experienced.  End Comment. 
 
TAPLIN