In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with...

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acumen insight ideas ideas attention In The Trenches: Computer reach expertise Forensics and Data Mining depth John Mallery Managing Consultant BKD LLP agility talent BKD, LLP 816.221.6300

Transcript of In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with...

Page 1: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

insight

ideasideas

attentionIn The Trenches: Computer reach

expertiseForensics and Data Mining

p

depthJohn MalleryManaging ConsultantBKD LLP agility

talent

BKD, LLP816.221.6300

Page 2: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenAgenda insight

ideas

AgendaDescribe my perspective ideas

attentionDescribe my perspective

Talk about cell phonesreach

expertiseNew stuff I’m seeing

Data Mining p

depthData Mining

Lot’s of lively discussionagility

talent

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acumenCell Phone Forensics insight

ideas

Cell Phone ForensicsWe are seeing more and more requestsideas

attentionWe are seeing more and more requests for cell phone analysis.

P bl t d di ti it i reach

expertise

Problem – no standardization, so it is nearly impossible to keep up with cables

d t lp

depthand tools

No one tool does it all.agility

talent

Page 4: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenCell Phone Forensics insight

ideas

Cell Phone ForensicsBut backups can be recovered from theideas

attentionBut, backups can be recovered from the computers they sync to.

reach

expertisep

depth

agility

talent

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http://www.rapidrepair.com/guides/iphone3g/iphone3grepairguide.html

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acumenHowever insight

ideas

However…iPhone Backups are created every ideas

attentioniPhone Backups are created every time the phone is syncedWi d C \D t & reach

expertise

Windows – C:\Documents & Settings\USER\Application Data\Apple Computer\MobileSync\ Backup p

depthComputer\MobileSync\ Backup

Mac ~/Library/Application Support/MobileSync/Backup/ “hex folder agility

talent

Support/MobileSync/Backup/ hex folder name”

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acumenTools insight

ideas

ToolsBlack Bag Tech – ideas

attentionBlack Bag Tech http://www.blackbagtech.com

M bil S B reach

expertise

MobileSync Browserhttp://homepage.mac.com/vaughn/msync/p

depthiPhoneParserhttp://www.macosxforensics.com/Downloads/files/iPhone

agility

talent

Parser.app.zip

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acumeniPhoneParser

C t i h b k f ld D kt insight

ideas

Creates iphone_backup folder on Desktop

ideas

attention

reach

expertisep

depth

agility

talent

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acumen

insight

ideasideas

attentionLibrary_Safari_History.plistreach

expertisep

depth

agility

talent

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acumen

insight

ideasideas

attentionLibrary Maps Directions.plist

reach

expertise

Library_Maps_Directions.plist

p

depth

agility

talent

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acumenLibrary_SMS_sms.db http://sourceforge.net/projects/sqlitebrowser/

insight

ideasideas

attention

reach

expertisep

depth

agility

talent

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acumen

insight

ideasideas

attentionhttp://homepage.mac.com/vaughn/msync/

reach

expertisep

depth

agility

talent

Page 13: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenBut insight

ideas

But…With iTunes 9 you now have the ability toideas

attentionWith iTunes 9, you now have the ability to encrypt your iPhone backup

reach

expertisep

depth

agility

talent

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acumeniPhone Voice Memo App insight

ideas

iPhone – Voice Memo AppCreates voice memosideas

attention

Creates voice memos as m4a files.

Can be emailed asreach

expertise

Can be emailed as attachments

Attachments namedp

depthAttachments named “Memo.m4a”

Not keyword agility

talent

Not keyword searchable

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acumen

insight

ideasideas

attentioniPod Stuff reach

expertise

iPod Stuffp

depthDiagnostic and Disk Modes

agility

talent

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acumen

insight

ideasideas

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Page 17: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

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ideasideas

attention

reach

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Page 18: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

insight

ideasideas

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Page 19: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

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Page 20: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

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ideasideas

attention

reach

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Page 21: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenStranger Devices insight

ideas

Stranger DevicesCrane black box ideas

attentionCrane black box

Computer from a surgical robotreach

expertiseAutomatically records procedure as default

Patient dies p

depthPatient dies

Relevant video has been deleted

O agility

talent

Oops

Page 22: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenStill seeing insight

ideas

Still seeingTechnology implemented without any ideas

attentionTechnology implemented without any consideration to:

Legal requirements reach

expertise

Legal requirements

Document retention

D t/Fil tp

depthDocument/File management

Internal controls

agility

talent

Security or Privacy

Page 23: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenExample insight

ideas

ExampleDentist’s office has a backup of their ideas

attention

Dentist s office has a backup of their “system” on a hard drive in a safeSafe gets stolen reach

expertise

Safe gets stolenDentist’s office want’s to know if PII is

ibl p

depthaccessibleDeveloper says “no” our database is in a

agility

talent

proprietary and closed format.However…

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acumenExample insight

ideas

ExampleName address phone number SSN ideas

attentionName, address, phone number, SSN, patient notes, and patient id number all accessible by opening the backup file in areach

expertise

accessible by opening the backup file in a hex editor.

M h dit f !!p

depthMany hex editors are free!!

agility

talent

Page 25: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenAnother example insight

ideas

Another exampleNurses decide they don’t want to changeideas

attention

Nurses decide they don t want to change in the nurses dressing roomChange in an area monitored by a CCTVreach

expertise

Change in an area monitored by a CCTV cameraS f l h t p

depthSue for sexual harassmentUnable to view video files except on server

agility

talent

they were originally created uponCan’t be viewed by the court, lawers, etc.y , ,

Page 26: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenForensic Data Mininginsight

ideas

g

ideas

attention

reach

expertisep

depth

agility

talent

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acumenForensic Data Mininginsight

ideas

g“Advanced data analysis used to identify activity ideas

attentionpatterns in financial and customer data not discernible through a manual review process.”

reach

expertise“The process of discovering meaningful new p

depthThe process of discovering meaningful new

relationships, patterns and trends by sifting through data using pattern recognition

agility

talent

g g p gtechnologies as well as statistical and mathematical techniques.”

Page 28: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Data Mining Continuuminsight

ideas

g

H h i T i K l d Di ideas

attentionHypothesis Testing(Symptom-Based)

Knowledge Discovery(“Symptomless”)

reach

expertisep

depth

agility

talent

Page 29: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenWhy it is Effectiveinsight

ideas

Why it is EffectiveWhile 70% of all frauds are found by tips, accidental discovery and

disclosure ideas

attentiondisclosure…30% of all frauds are found by analysis

(David Coderre, “Fraud Detection”)

reach

expertiseMajority of data is in electronic format

D i i i d f i ip

depthData sets are massive in size and often proprietary in

format

agility

talent

“100% analysis is the most effective way to analyze for fraud” (Dr. Conan Albrecht, BYU)

Page 30: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenCommon Areasinsight

ideas

Common AreasFictitious (ghost) employees ideas

attentionShell companies and “phoenix operators”

Loan fraud and other banking schemesreach

expertiseMerger and acquisition due diligence

Foreign Corrupt Practices Act investigations p

depth

g p g

Money laundering

Insurance claims fraudagility

talent

Insurance claims fraud

Subprime lending

Embezzlement and financial statement fraudEmbezzlement and financial statement fraud

Page 31: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenForensic Data Mininginsight

ideasFraud Symptoms ideas

attention

reach

expertisep

depth

agility

talent

Page 32: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenFraud Symptomsinsight

ideas

Fraud SymptomsPayroll

ideas

attentionEmployees with no deductionsActivity subsequent to termination or before hireEmployee with no sick/vacation/timeoff reach

expertise

Employee with no sick/vacation/timeoffHigh pay vs department baselinesDuplicate phone number(s) p

depthDuplicate addressesDuplicate direct deposit accountsShort duration of hire/termination

agility

talent

Short duration of hire/terminationSame employee assigned to multiple departmentsTimecard anomalies (threshold punchouts)I ll b t t h li t ti l filIn payroll but not on phone list or active employee files

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acumenFraud SymptomsVendors or Customers (Companies Banks etc ) insight

ideas

Vendors or Customers (Companies, Banks, etc.)

Name similarity (phonetics, etc.)Acceleration (systematic spending increases) ideas

attentionAcceleration (systematic spending increases)Employee address matches customer/vendor addressCustomer Tax ID matches another customer Tax IDCustomer/vendor phone number matches employee phone

reach

expertise

Customer/vendor phone number matches employee phoneDuplicate invoices or slightly altered attributesSudden spike in invoice volume or activityMissing contact information (address, phone, names) p

depth

g ( , p , )High volume of transactions ending in 0 or 5Unusual activity compared to similar vendors or customersWeekend or holiday transaction dates

agility

talent

yTransactions processed at unusual hoursAddress is PO Box, maildrop, prison or high-risk ZIP code“Dormant” account suddenly active

Page 34: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenBank Data Mining Exampleinsight

ideas

Loan Master File

ideas

attention

reach

expertisep

depth

agility

talent

(1) Name similarity(2) Customer address matches CEO address(3) Customer phone matches CEO cell phone(3) Customer phone matches CEO cell phone(4) Customer TIN matches other customer TIN

Page 35: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenBank Data Mining Exampleinsight

ideasideas

attentionP & Q

reach

expertisep

depth

agility

talentCEO’s Personal Checking Account

Page 36: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenForensic Data Mininginsight

ideasLess Obvious Relationships: ideas

attentionLess Obvious Relationships:

Addresses and Geocodingreach

expertisep

depth

agility

talent

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acumenFictitious Companyinsight

ideas

p y

ideas

attention

reach

expertiseCross Reference Against:

Maildrops (Mailbox Services)C ti l F iliti

The UPS Store1221 East Kearneyp

depthCorrectional FacilitiesHigh-Risk ZIP Codes

ySpringfield, MO

agility

talent

Page 38: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenFictitious Companyinsight

ideas

p y

ideas

attention

reach

expertisep

depth

agility

talent965 Feet965 Feet

Page 39: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

Mapping Employee-Vendor Relationship

Employee Home

UPS Store

Employerp y

Page 40: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenGeocodinginsight

ideas

g

AP Manager ideas

attention

reach

expertisep

depth

agility

talentVinny’s Salvage YardYard

Page 41: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenVisual Mappinginsight

ideas

pp g

ideas

attention

reach

expertisep

depth

agility

talent

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acumenData Mininginsight

ideasideas

attentionBenford’s Law reach

expertise

Benford s Law(aka Digital Frequency Analysis)

p

depth

agility

talent

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acumenBenford’s Lawinsight

ideasideas

attention

reach

expertisep

depth

agility

talent1. Not random as one would expect2 Also works on 1st 2 digits 3 digits and decimals2. Also works on 1st 2 digits, 3 digits and decimals

Page 44: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

Benford’s Law

Normal Pattern0.35

FIRST DIGIT DISTRIBUTION

Population size: 500,000 Transactions

0.25

0.30

0.20

ST D

IGIT

0.10

0.15

FIR

S

0 00

0.05

0.001 2 3 4 5 6 7 8 9

PROPORTION

Actual Benford's Law

Page 45: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

Benford’s Law

0 18

0.20

SECOND DIGIT DISTRIBUTIONAbnormal PatternPopulation size: 300,000 Transactions

0.14

0.16

0.18

0.10

0.12

OR

TIO

N

0.06

0.08PRO

PO

0.02

0.04

0.000 1 2 3 4 5 6 7 8 9

SECOND DIGIT

Actual Benford's Law

Page 46: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

Expense Account Padding

Page 47: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenExpense Account Paddinginsight

ideas

p g

ideas

attention

reach

expertisep

depth

agility

talentSpending limit per meal without receipt is $25

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acumenData Mininginsight

ideas

gTime Series

ideas

attention

reach

expertisep

depth

agility

talent

Page 49: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenTime Seriesinsight

ideasVendor: JLM Plumbing AP Clerk: Janice McPhearson

1600 ideas

attention1200

1400

1600

Getting Greedy

reach

expertise800

1000

Acceleration as Confidence Builds p

depth200

400

600

Testing the Waters

agility

talent0

1/21/2006 2/21/2006 3/21/2006 4/21/2006 5/21/2006 6/21/2006 7/21/2006 8/21/2006

Page 50: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenName Manipulationinsight

ideas•Mick E. Mowse1. Acronym / Initials 3. Fictitious Names

ideas

attention

Mick E. Mowse•Princess Ariel•George Ruth

reach

expertise

•John Dough

p

depth2. Anagrams4. Others

•SubstitutionI ti O i iagility

talent

•Insertion or Omission•Transposition•Numb3r Subst1tut10nNumb3r Subst1tut10n

Page 51: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Fraud Triangle insight

ideas

The Fraud Triangleideas

attentionPerceived pressure

facing

Perceived opportunity t it reach

expertise

facing individual

to commit fraud

p

depth

agility

talentPerson’s rationalization or integrity

Page 52: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenFraud Triangle Analytics insight

ideas

Fraud Triangle AnalyticsOpportunityKey Words ideas

attentionPressure/Incentive O ScoreKey Words

Key Words• Override• Write-off• Recognize revenue

reach

expertiseRationalizationFraud

y• Meet the deadline• Make sales quota• Under the gun

Key Words p

depth

Fraud Score

Key Words• I think it’s OK• Sounds reasonable• I deserve

agility

talent

P Score R Score

Source: “Detecting Fraud by Integrating E-mail Analytics with the Fraud Triangle ” Fraud Magazine May/June 2009Source: Detecting Fraud by Integrating E-mail Analytics with the Fraud Triangle, Fraud Magazine, May/June 2009

Page 53: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumen

insight

ideasideas

attention

reach

expertisep

depth

agility

talent

Page 54: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Cutting Edgeinsight

ideas

The Cutting Edge“Symptomless Detection” – Finding answers to questions that haven’t even been ideas

attentionanswers to questions that haven t even been asked.

reach

expertise

Concept Searching – Detection based on tone, recurring themes and communication nuances

p

depthNon-Obvious Relationship Association (Colleen McCue)

Ne ral Net orks and Artificial Intelligence agility

talent

Neural Networks and Artificial Intelligence

Statistical-based prediction of events (Web Bot Project)

Page 55: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Cutting Edgeinsight

ideas

The Cutting EdgeNon-Obvious Relationship Association (NORA)Items related by degrees of separation ideas

attentionCarrie Fischer was in Star Wars with

Items related by degrees of separation

reach

expertise

withHarrison Ford who was in The FugitivewithTommy Lee Jones who was in Batman Forever p

depth

ywithVal Kilmer who was in Heatwith

agility

talent

Robert Dinero who was in SleeperswithKEVIN BACON!

Page 56: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Cutting Edgeinsight

ideas

g gNORA Example

ideas

attentionCustomer A Customer

BEmployee

reach

expertise

B

Customer A Shares Address With Customer B

Employee Shares Phone # With Customer A p

depth

agility

talentCustomer

C

Customer B Co-Signer For Customer CEmployee is Loan

Officer

a

For Customer C

Page 57: In The Trenches: Computer Forensics and Data Mining Meetings/100311 In The Trenches with Mallery.pdfacumen insight ideas In The Trenches: Computer attention reach expertise Forensics

acumenThe Cutting Edgeinsight

ideas

g gNeural Networks, Statistics and Concept ideas

attention• Uses mathematical algorithms to mimic the human l t k d “l ” th t l i

Searching

reach

expertise

neural network, and “learns” the conceptual meaning of words and phrases from a test set of documents (“digital bloodhound”). p

depth

( g )• The more documents the engine “sees”, the more

accurate its grasp of human language.agility

talent

• Adept at detecting current conditions and predicting likelihood of future events based on language and patterns in corporate documents and emailpatterns in corporate documents and email.

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acumenRead More About It insight

ideas

Read More About It…“Fraud Examination” – Steve Albrecht and Conan Albrecht

ideas

attention“Fraud Detection” – David Coderre

“Di it l A l i U i B f d’ L reach

expertise

“Digital Analysis Using Benford’s Law – Mark Nigrini

“Data Mining and Predictive Analysis” p

depthIntelligence Gathering and Crime Analysis - Colleen McCue

“Forensic Data Mining: Finding Needles in the Haystack” –agility

talent

g g yArchived Webcast at http://www.bkd.com/service/Forensics/Webcast/

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acumenQuestions? insight

ideas

Questions?ideas

attentionJohn MalleryBKD LLP reach

expertise

BKD, LLPTwelve Wyandotte Plaza

120 W. 12th Street, Suite 1200 p

depthKansas City, MO 64105

[email protected]

agility

talent

[email protected]