Federal Agencies Warn of Emerging Fraud Schemes Related to COVID-19 Vaccines

Source: Federal Bureau of Investigation (FBI) State Crime News

The Federal Bureau of Investigation (FBI), Department of Health and Human Services Office of Inspector General (HHS-OIG), and Centers for Medicare & Medicaid Services (CMS) are warning the public about several emerging fraud schemes related to COVID-19 vaccines.

The FBI, HHS-OIG, and CMS have received complaints of scammers using the public’s interest in COVID-19 vaccines to obtain personally identifiable information (PII) and money through various schemes. We continue to work diligently with law enforcement partners and the private sector to identify cyber threats and fraud in all forms.

The public should be aware of the following potential indicators of fraudulent activity:

  • Advertisements or offers for early access to a vaccine upon payment of a deposit or fee
  • Requests asking you to pay out of pocket to obtain the vaccine or to put your name on a COVID-19 vaccine waiting list
  • Offers to undergo additional medical testing or procedures when obtaining a vaccine
  • Marketers offering to sell and/or ship doses of a vaccine, domestically or internationally, in exchange for payment of a deposit or fee
  • Unsolicited emails, telephone calls, or personal contact from someone claiming to be from a medical office, insurance company, or COVID-19 vaccine center requesting personal and/or medical information to determine recipients’ eligibility to participate in clinical vaccine trials or obtain the vaccine
  • Claims of FDA approval for a vaccine that cannot be verified
  • Advertisements for vaccines through social media platforms, email, telephone calls, online, or from unsolicited/unknown sources
  • Individuals contacting you in person, by phone, or by email to tell you the government or government officials require you to receive a COVID-19 vaccine

Tips to avoid COVID-19 vaccine-related fraud:

  • Consult your state’s health department website for up-to-date information about authorized vaccine distribution channels and only obtaining a vaccine through such channels.
  • Check the FDA’s website (fda.gov) for current information about vaccine emergency use authorizations.
  • Consult your primary care physician before undergoing any vaccination.
  • Don’t share your personal or health information with anyone other than known and trusted medical professionals.
  • Check your medical bills and insurance explanation of benefits (EOBs) for any suspicious claims and promptly reporting any errors to your health insurance provider.
  • Follow guidance and recommendations from the U.S. Centers for Disease Control and Prevention (CDC) and other trusted medical professionals.

General online/cyber fraud prevention techniques:

  • Verify the spelling of web addresses, websites, and email addresses that look trustworthy but may be imitations of legitimate websites.
  • Ensure operating systems and applications are updated to the most current versions.
  • Update anti-malware and anti-virus software and conduct regular network scans.
  • Do not enable macros on documents downloaded from an email unless necessary and after ensuring the file is not malicious.
  • Do not communicate with or open emails, attachments, or links from unknown individuals.
  • Never provide personal information of any sort via email; be aware that many emails requesting your personal information may appear to be legitimate.
  • Use strong two-factor authentication if possible, using biometrics, hardware tokens, or authentication apps.
  • Disable or remove unneeded software applications.

If you believe you have been the victim of a COVID-19 fraud, immediately report it to the FBI (ic3.gov, tips.fbi.gov, or 1-800-CALL-FBI) or HHS OIG (tips.hhs.gov or 1-800-HHS-TIPS).

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U.S. Space & Rocket Center and FBI Sign MOU in Support of U.S. Cyber Camp

Source: Federal Bureau of Investigation (FBI) State Crime News

HUNTSVILLE, Ala.—The U.S. Space & Rocket Center (USSRC) and the Federal Bureau of Investigation are entering a joint agreement in support of U.S. Cyber Camp, the newest of the four STEM camp programs at the Rocket Center. FBI Associate Deputy Director Paul Abbate and USSRC Executive Director and CEO Louie Ramirez will sign the memorandum of understanding (MOU) at the Davidson Center for Space Exploration Wednesday, October 21, at 10 a.m.

The Rocket Center held its first U.S. Cyber Camp session in July 2017, with the help of Cyber Huntsville and the University of Alabama in Huntsville. Since that time, the Center has continued to expand the program designed to engage U.S. students in the critical fields of cyber security and computer science. With the agreement, the FBI joins the Rocket Center in those efforts by providing help with curriculum development that will include realistic cyber scenarios and real-life responses. U.S. Cyber Camp students will also hear from subject matter experts and get to tour the FBI facilities at Redstone Arsenal.

Cyber Camp students will also learn about the FBI’s cyber programs and cyber-focused career opportunities. Rocket Center staff will also support FBI youth cyber educational initiatives and public outreach efforts.

“This memorandum of understanding is formalizing the FBI’s interest in Cyber Camp,” said Ramirez. “Just as our Space Camp students learn about space exploration and the careers that support it, with the FBI’s help, our cyber program will educate students about the exciting and important field of cyber security and what it takes to be part of our nation’s top cyber-crime fighting agency.”

“In today’s complex cyber environment, partnerships at every level are absolutely essential,” said Abbate. “We’re in the fight against cyber threats together and we won’t succeed without each other. We’re very pleased at this opportunity to partner with the USSRC to cultivate a new generation of cyber talent.”

“The Birmingham Division of the FBI has been working with U.S. Space & Rocket Center leadership since the inception of U.S. Cyber Camp, and today’s memorandum of understanding solidifies the FBI’s partnership,” said Johnnie Sharp, FBI Birmingham special agent in charge. “It is my hope that this agreement and our partnership will encourage young people from across America to consider the FBI and service to their country as a career.”

Today’s memorandum of understanding with the U.S. Space and Rocket Center confirms the FBI’s commitment to developing future STEM professional talent and leadership to help carry out the FBI’s mission of protecting the American people and upholding the Constitution.

FBI Charlotte Seeking Information on Illegal Drone Activity

Source: Federal Bureau of Investigation FBI Crime News

The Federal Bureau of Investigation is seeking to identify the person(s) responsible for illegally flying a drone on multiple occasions near a flight path to Charlotte Douglas International Airport. Between October 30, 2020, and December 8, 2020, there have been at least five reports by commercial airline pilots of a drone flying at least 4,000 feet in the air in the Fort Mill area.

In 2018, The Federal Aviation Administration Reauthorization Act included 18 USC 39B, which federally criminalizes “Unsafe Operation of Unmanned Aircraft”. Specifically, knowing or reckless interference or disruption of a manned aircraft, and the operation of unmanned aircraft in close proximity to airports. While the drone(s) did not come into direct contact with an airplane or cause a pilot to make an evasive maneuver, the actions are illegal and extremely dangerous.

Anyone flying a drone as prohibited by law and described in 18 USC 39B can face federal criminal charges, fined and imprisoned for up to life or both. It is possible the drone operator(s) are not aware they are violating the law. We encourage anyone with knowledge of illegal drone flying, especially one or more in the Fort Mill area to contact the FBI at 704-672-6100.

As we get closer to Christmas, drones will be given and received as gifts. We encourage the public to abide by federal and state laws. You can learn more https://www.faa.gov/uas/.

Worldwide Threats to the Homeland

Source: Federal Bureau of Investigation FBI Crime News

Washington, D.C.

Statement for the Record

Good afternoon, Chairman Thompson, Ranking Member Rogers, and members of the committee. Thank you for the opportunity to appear before you today to discuss the current threats to the United States homeland. I am pleased to be here representing the nearly 37,000 dedicated men and women of the FBI.

While the COVID-19 pandemic has presented unique and unprecedented challenges to the FBI workforce, I am proud of their dedication to our mission of protecting the American people and upholding the Constitution. Hostile foreign actors, violent extremists, and opportunistic criminal elements have seized upon this environment. As a result, we are facing aggressive and sophisticated threats on many fronts. Whether it is terrorism now moving at the speed of social media, or the increasingly blended threat of cyber intrusions and state-sponsored economic espionage, or malign foreign influence and interference or active shooters and other violent criminals threatening our communities, or the scourge of opioid trafficking and abuse, or hate crimes, human trafficking, crimes against children—the list of threats we are worried about is not getting any shorter, and none of the threats on that list are getting any easier.

Counterterrorism

Preventing terrorist attacks remains the FBI’s top priority. However, the threat posed by terrorism—both international terrorism (IT) and domestic violent extremism—has evolved significantly since 9/11.

The greatest threat we face in the homeland is that posed by lone actors radicalized online who look to attack soft targets with easily accessible weapons. We see this lone actor threat manifested both within domestic violent extremists (DVEs) and homegrown violent extremists (HVEs), two distinct sets of individuals that generally self-radicalize and mobilize to violence on their own. DVEs are individuals who commit violent criminal acts in furtherance of ideological goals stemming from domestic influences, such as racial bias and anti-government sentiment. HVEs are individuals who have been radicalized primarily in the United States, and who are inspired by, but not receiving individualized direction from, foreign terrorist organizations (FTOs).

Many of these violent extremists, both domestic and international, are motivated and inspired by a mix of ideological, sociopolitical, and personal grievances against their targets, which recently have more and more included large public gatherings, houses of worship, and retail locations. Lone actors, who by definition are not likely to conspire with others regarding their plans, are increasingly choosing these soft, familiar targets for their attacks, limiting law enforcement opportunities for detection and disruption ahead of their action.

DVEs pose a steady and evolving threat of violence and economic harm to the United States. Trends may shift, but the underlying drivers for domestic violent extremism—such as perceptions of government or law enforcement overreach, sociopolitical conditions, racism, anti-Semitism, Islamophobia, misogyny, and reactions to legislative actions—remain constant. As stated above, the FBI is most concerned about lone offender attacks, primarily shootings, as they have served as the dominant lethal mode for domestic violent extremist attacks. More deaths were caused by DVEs than international terrorists in recent years. In fact, 2019 was the deadliest year for domestic extremist violence since the Oklahoma City bombing in 1995.

The top threat we face from domestic violent extremists stems from those we identify as racially/ethnically motivated violent extremists (RMVE). RMVEs were the primary source of ideologically motivated lethal incidents and violence in 2018 and 2019 and have been considered the most lethal of all domestic extremists since 2001. Of note, the last three DVE attacks, however, were perpetrated by anti-government violent extremists.

The spate of attacks we saw in 2019 underscore the continued threat posed by DVEs and perpetrators of hate crimes. The FBI works proactively to prevent acts of domestic terrorism and hate crimes. For example, in November 2019, the Denver Joint Terrorism Task Force arrested Richard Holzer on federal charges of attempting to obstruct religious exercise by force using explosives. This disruption is just one example of the strength of our Domestic Terrorism-Hate Crimes (DT-HC) Fusion Cell. Our Counterterrorism Division (CTD) and Criminal Division (CID), working together, were able to prevent a potential terrorist attack before it occurred and, for the first time in recent history, make a proactive arrest on a hate crimes charge. Through the DT-HC Fusion Cell, subject-matter experts from both CTD and CID work in tandem to innovatively use investigative tools and bring multiple perspectives to bear in combating the intersecting threats of domestic terrorism and hate crimes, preventing attacks and providing justice to victims.

We recognize that the FBI must be aware not just of the domestic violent extremism threat, but also of threats emanating from those responding violently to First Amendment-protected activities. In the past, we have seen some violent extremists respond to peaceful movements through violence rather than non-violent actions and ideas. The FBI is involved only when responses cross from ideas and constitutionally protected protests to violence. Regardless of the specific ideology involved, the FBI requires that all domestic terrorism investigations be predicated based on activity intended to further a political or social goal, wholly or in part involving force, coercion, or violence, in violation of federal law.

HVEs and FTOs have posed a persistent threat to the nation and to U.S. interests abroad, while their tradecraft, tactics, and target sets have evolved. The international terrorism threat to the U.S. has expanded from sophisticated, externally directed FTO plots to include individual attacks carried out by HVEs who are inspired by designated terrorist organizations. As stated above, the FBI assesses HVEs are the greatest, most immediate international terrorism threat to the homeland. These individuals are FTO-inspired individuals who are in the U.S., have been radicalized primarily in the U.S., and are not receiving individualized direction from FTOs. We, along with our law enforcement partners, face significant challenges in identifying and disrupting HVEs. This is due, in part, to their lack of a direct connection with an FTO, an ability to rapidly mobilize without law enforcement detection, and their frequent use of encrypted communications.

Many FTOs use various digital communication platforms to reach individuals they believe may be susceptible and sympathetic to violent terrorist messages. However, no group has been as successful at drawing people into its perverse ideology as ISIS, which has proven dangerously competent at employing such tools. ISIS uses traditional media platforms as well as widespread social media campaigns to propagate its ideology. Terrorists in ungoverned spaces—both physical and virtual—readily disseminate propaganda and training materials to attract easily influenced individuals around the world to their cause. With the broad distribution of social media, terrorists can spot, assess, recruit, and radicalize vulnerable persons of all ages in the U.S. either to travel to foreign lands or to conduct an attack on the homeland. Through the internet, terrorists anywhere overseas now have direct access to our local communities to target and recruit our citizens and spread their message faster than was imagined just a few years ago.

We remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda intend to carry out large-scale attacks in the U.S. Despite their territorial defeat in Iraq and Syria, ISIS remains relentless and ruthless in its campaign of violence against the West and has aggressively promoted its hateful message, attracting like-minded violent extremists. The message is not tailored solely to those who overtly express signs of radicalization. It is seen by many who use messaging apps and participate in social networks. Ultimately, many of the individuals drawn to ISIS seek a sense of belonging.

Echoing other terrorist groups, ISIS has advocated lone offender attacks in Western countries. Recent ISIS videos and propaganda have specifically advocated attacks against soldiers, law enforcement, and intelligence community personnel.

As noted above, ISIS is not the only terrorist group of concern. Al Qaeda maintains its desire for large-scale, spectacular attacks. While continued counterterrorism pressure has degraded the group’s Afghanistan-Pakistan senior leadership, in the near term, al Qaeda is more likely to focus on building its international affiliates and supporting small-scale, readily achievable attacks in key regions such as East and West Africa. Simultaneously, over the last year, propaganda from al Qaeda leaders seeks to inspire individuals to conduct their own attacks in the U.S. and the West. For example, the December 2019 attack at Naval Air Station Pensacola demonstrates that groups such as al Qaeda continue to be interested in encouraging attacks on U.S. soil.

The FBI regularly reviews intelligence to ensure that we are appropriately mitigating threats from any place by any actor, and the possible violent responses and actions. We are sensitive to First Amendment-protected activities during investigative and intelligence efforts so as to ensure that our investigative actions remain aligned with our authorities and are conducted with the appropriate protections in place for privacy and civil liberties.

As the threat to the United States and U.S. interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, tribal, and international partnerships. The FBI uses all lawful investigative techniques and methods to combat these terrorist threats to the United States. Along with our domestic and foreign partners, we are collecting and analyzing intelligence concerning the ongoing threat posed by violent extremists motivated by any ideology and desire to harm Americans and U.S. interests. We continue to encourage information sharing, which is evidenced through our partnerships with many federal, state, local, and tribal agencies assigned to Joint Terrorism Task Forces around the country. Be assured, the FBI continues to strive to work and share information more efficiently, and to pursue a variety of lawful methods to help stay ahead of these threats.

Election Security

In less than two months, Americans will exercise one of their most important and cherished freedoms: the right to vote in a democratic election. Our nation is confronting multi-faceted foreign threats seeking to both influence our national policies and public opinion and cause harm to our national dialogue. The FBI and our interagency partners remain concerned about, and focused on, the covert and overt influence measures used by certain adversaries in their attempts to sway U.S. voters’ preferences and perspectives, shift U.S. policies, increase discord in the United States, and undermine the American people’s confidence in our democratic processes.

Foreign influence operations—which include covert, coercive, or corrupt actions by foreign governments to influence U.S. political sentiment or public discourse or interfere in our processes themselves—are not a new problem. But the interconnectedness of the modern world, combined with the anonymity of the internet, have changed the nature of the threat and how the FBI and its partners must address it. This year’s election cycle, amid the COVID-19 pandemic, provides ample opportunity for hostile foreign actors to conduct disinformation campaigns and foreign influence operations in an effort to mislead, sow discord, and, ultimately, undermine confidence in our democratic institutions and values and in our government’s response to our current health crisis.

Foreign influence operations have taken many forms and used many tactics over the years. Most widely reported these days are attempts by adversaries—hoping to reach a wide swath of Americans covertly from outside the United States—to use false personas and fabricated stories on social media platforms to discredit U.S. individuals and institutions.

The FBI is the lead federal agency responsible for investigating foreign influence operations. In the fall of 2017, the Foreign Influence Task Force (FITF) was established to identify and counteract malign foreign influence operations targeting the United States. The FITF is led by the Counterintelligence Division and is composed of agents, analysts, and professional staff from the Counterintelligence, Cyber, Counterterrorism, and Criminal Investigative Divisions. It is specifically charged with identifying and combating foreign influence operations targeting democratic institutions and values inside the United States. In all instances, the FITF strives to protect democratic institutions and public confidence, develop a common operating picture, raise adversaries’ costs, and reduce their overall asymmetric advantage.

The task force brings the FBI’s national security and traditional criminal investigative expertise under one umbrella to prevent foreign influence in our elections. This better enables us to frame the threat, to identify connections across programs, to aggressively investigate as appropriate, and—importantly—to be more agile. Coordinating closely with our partners and leveraging relationships we have developed in the technology sector, we had a number of instances where we were able to quickly relay threat indicators that those companies used to take swift action, blocking budding abuse of their platforms.

Following the 2018 midterm elections, we reviewed the threat and the effectiveness of our coordination and outreach. As a result of this review, we further expanded the scope of the FITF. Previously, our efforts to combat malign foreign influence focused solely on the threat posed by Russia. Utilizing lessons learned over the last year and half, the FITF is widening its aperture to confront malign foreign operations of China, Iran, and other global adversaries. To address this expanding focus and wider set of adversaries and influence efforts, we have also added resources to maintain permanent “surge” capability on election and foreign influence threats.

We have also further refined our approach. All efforts are based on a three-pronged approach, which includes investigations and operations, information and intelligence sharing, and a strong partnership with the private sector. Through the efforts of the FITF  and lessons learned from both the 2016 and 2018 elections, the FBI is actively engaged in identifying, detecting, and disrupting threats to our elections and ensuring both the integrity of our democracy is preserved and the will of the American people is fulfilled.

Protecting policymakers is an important part of our efforts to combat malign foreign influence and protect our elections. As you are aware, the FBI and our interagency partners have been providing ongoing election security threat briefings to Congress. We will continue to do so throughout the fall and into the future, where there is actionable intelligence.

Lawful Access

I want to turn now to an issue continuing to limit law enforcement’s ability to disrupt these increasingly insular actors. We are all familiar with the inability of law enforcement agencies to access data, even with a lawful warrant or court order, due to “end-to-end” encryption. Increasingly, device manufacturers and communications service providers have employed encryption in such a manner that only the users or parties to the communications can access the content of the communications or devices. This is known as end-to-end encryption.

This development has meant that, in recent years, the FBI has observed a decline in its ability to gain access to the content of both domestic and international terrorist communications due to the widespread adoption of encryption for internet traffic and the prevalence of mobile messaging apps using end-to-end encryption as default.

The FBI certainly recognizes how encryption increases the overall safety and security of the internet for users. But in fulfilling the FBI’s duty to the American people to prevent acts of terrorism, this kind of end-to-end encryption creates serious challenges. Accessing content of communications by, or data held by, known or suspected terrorists pursuant to judicially authorized, warranted legal process is getting more and more difficult.

The online, encrypted nature of radicalization, along with the insular nature of most of today’s attack plotters, leaves investigators with fewer dots to connect. As was evident in the December 9, 2019, shooting at Naval Air Station Pensacola that killed three U.S. sailors and severely wounded eight other Americans, deceased terrorist Mohammed Saeed Alshamrani was able to communicate using warrant-proof, end-to-end encrypted apps deliberately to evade detection by law enforcement. It took the FBI several months to access information in his phones, during which time we did not know whether he was a lone wolf actor or whether his associates may have been plotting additional terrorist attacks.

If law enforcement loses the ability to detect criminal activity because communication between subjects—data in motion—or data held by subjects— data at rest—is encrypted in such a way making content inaccessible, even with a lawful order, our ability to protect the American people will be degraded. Providers and law enforcement must continue to collaborate to explore possible technical solutions that would provide security and privacy to those using the internet while also contributing to the FBI’s ability to complete its mission.

Despite the successes that result from the hard work of the men and women of the FBI, our Joint Terrorism Task Forces, and our partners across the government, terrorism continues to pose a persistent threat to the homeland and our interests overseas.

China Threat

The greatest long-term threat to our nation’s information and intellectual property and to our economic vitality is the counterintelligence and economic espionage threat from China. It is a threat to our economic security and by extension, to our national security.

As you have seen from the recent closure of the Chinese Consulate in Houston, this issue is not just an intelligence issue, or a government problem, or a nuisance largely just for big corporations who can take care of themselves. Our adversaries’ targets are our nation’s core economic assets—our information and ideas, our innovation, our research and development, our technology. No country poses a broader, more severe threat to those assets than China. It is the people of the United States who are the victims of what amounts to Chinese theft on a scale so massive that it represents one of the largest transfers of wealth in human history. If you are an American adult, it is more likely than not that China has stolen your personal data.

In 2017, the Chinese military conspired to hack Equifax and made off with the sensitive personal information of 150 million Americans—we are talking nearly half of the American population and most American adults. Our data is not the only thing at stake here—so is our health, livelihood, and security.

The FBI is opening a new China-related counterintelligence case approximately every 10 hours. Of the nearly 5,000 active FBI counterintelligence cases currently underway across the country, almost half are related to China. And at this very moment, China is working to compromise American health care organizations, pharmaceutical companies, and academic institutions conducting essential COVID-19 research. They are going after cost and pricing information, internal strategy documents, personally identifiable information—anything that can give them a competitive advantage.

It is important to be clear: This is not about the Chinese people as a whole, and certainly not about Chinese Americans as a group, but it is about the Chinese government and the Chinese Communist Party. Every year, the United States welcomes more than 100,000 Chinese students and researchers into this country. For generations, people have journeyed from China to the United States to secure the blessings of liberty for themselves and their families—and our society is better for their contributions. So, when the FBI’s refers to the threat from China, we mean the government of China and the Chinese Communist Party.

Confronting this threat effectively does not mean that we should not do business with the Chinese. It does not mean that we should not host Chinese visitors. It does not mean that we should not welcome Chinese students or coexist with China on the world stage. But it does mean that when China violates our criminal laws and international norms, we are not going to tolerate it, much less enable it. The FBI and our partners throughout the U.S. government will hold China accountable and protect our nation’s innovation, ideas, and way of life—with the help and vigilance of the American people.

Cyber

With the advent of the COVID-19 pandemic, the nature of the cyber threat has become increasingly concerning. As more individuals telework and increasingly use the cloud, we encounter less secure networks. As a result, the scope of our cyber threats has changed, the impact has deepened, and many of the players have become more dangerous as we have become increasingly vulnerable. We are still seeing hack after hack and breach after breach. We hear about it daily in the news. The more we shift to the internet as the conduit and the repository for everything we use and share and manage, the more danger we are in.

Today we are worried about a wider-than-ever range of threat actors, from multinational cyber syndicates to nation-state adversaries. And we are concerned about a wider-than-ever gamut of methods continually employed in new ways, like the targeting of managed service providers—MSPs—as a way to access scores of victims by hacking just one provider.

China’s Ministry of State Security (MSS) pioneered that technique and, as you saw in July, we indicted two Chinese hackers who worked with the Guangdong State Security Department of the MSS. These individuals conducted a hacking campaign lasting more than 10 years, targeting countries with high technology industries, to include the United States. The industries targeted included, among others, solar energy, pharmaceuticals, and defense.

Cyber crimes like these, directed by the Chinese government’s intelligence services, threaten not only the United States but also every other country that supports fair play, international norms, and the rule of law, and they also seriously undermine China’s desire to become a respected leader in world affairs.

Theft of intellectual property is not the only cyber threat presented by the People’s Republic of China (PRC) government. They are also working to obtain controlled defense technology and developing the ability to use cyber means to complement any future real-world conflict. All of them, and others, are working to simultaneously strengthen themselves and weaken the United States. And we are taking all these nation-state threats very seriously.

But as dangerous as nation-states are, we do not have the luxury of focusing on them alone. We also are battling the increasing sophistication of criminal groups that place many hackers on a level we used to see only among hackers working for governments. The proliferation of malware as a service, where darkweb vendors sell sophistication in exchange for cryptocurrency, increases the difficulty of stopping what would once have been less-dangerous offenders. It can give a ring of unsophisticated criminals the tools to paralyze entire hospitals, police departments, and businesses with ransomware. Often the hackers themselves have not become much more sophisticated—but they are renting sophisticated capabilities, requiring us to up our game as we work to defeat them, too.

Hackers have not relented under the COVID-19 pandemic. On the contrary, they have attempted to compromise the computer systems of hospitals and medical centers to obtain patient financial data, medical records, and other information. In addition, such attacks on medical centers may lead to the interruption of computer networks and systems putting patients’ lives at an increased risk when America faces its most dire health crisis in generations.

Conclusion

Chairman Thompson, Ranking Member Rogers and members of the committee, thank you for the opportunity to testify today. I am now happy to answer any questions you might have.

FBI Oversight

Source: Federal Bureau of Investigation FBI Crime News

Statement for the Record

Good morning Chairman Nadler, Ranking Member Collins, and members of the committee. Thank you for inviting me to appear before you today. I am honored to be here, representing the men and women of the FBI. Our people—nearly 37,000 of them—are the heart of the Bureau. I am proud of their service and their commitment to our mission. Every day, they tackle their jobs with perseverance, professionalism, and integrity.

In the past few years, I have had the chance to visit all 56 field offices. I have visited the home states of every member of this committee, talking with state and local law enforcement partners and people in your communities about the issues that matter most to them. I am grateful for their support and insights as we work together to keep 325 million American people safe and to help make our communities stronger.

Today’s FBI is a national security and law enforcement organization that uses, collects, and shares intelligence in everything we do. Each FBI employee understands that, to defeat the key threats facing our nation, we must constantly strive to be more efficient and more effective. Just as our adversaries evolve, so, too, must the FBI. We live in a time of acute and persistent terrorist and criminal threats to our national security, our economy, and indeed our communities. These diverse threats underscore the complexity and breadth of the FBI’s mission: to protect the American people and uphold the Constitution of the United States.

Counterterrorism

Preventing terrorist attacks remains the FBI’s top priority. However, the threat posed by terrorism—whether here or abroad—has evolved significantly since 9/11.

The most persistent threats to the nation and to U.S. interests abroad are homegrown violent extremists (HVEs), domestic violent extremists, and foreign terrorist organizations (FTOs). The international terrorism threat to the U.S. has expanded from sophisticated, externally directed FTO plots to include individual attacks carried out by HVEs who are inspired by designated terrorist organizations. We remain concerned that groups such as the Islamic State of Iraq and al-Sham (ISIS) and al Qaeda have the intent to carry out large-scale attacks in the U.S.

In recent years, prolific use of the Internet and social media by FTOs has greatly enhanced their ability to disseminate terrorist propaganda and training materials to attract and influence individuals in the U.S. to their cause. Through the use of online recruitment, indoctrination, and instruction, FTOs are no longer dependent on getting terrorist operatives into the United States to recruit and carry out acts of terrorism.

Despite their territorial defeat in Iraq and Syria, ISIS remains relentless and ruthless in its campaign of violence against the West and has aggressively promoted its hateful message, in order to attract like-minded violent extremists. The message is not tailored solely to those who overtly express signs of radicalization. It is seen by many who use messaging apps and participate in social networks. Ultimately, many of the individuals drawn to ISIS seek a sense of belonging. Echoing other terrorist groups, ISIS has advocated for lone offender attacks in Western countries. Recent ISIS videos and propaganda have specifically advocated for attacks against soldiers, law enforcement, and intelligence community personnel.

Through the Internet, terrorists anywhere overseas now have direct access to our local communities to target and recruit our citizens and spread their message faster than was imagined just a few years ago. Many FTOs use various digital communication platforms to reach individuals they believe may be susceptible and sympathetic to violent terrorist messages. However, no group has been as successful at drawing people into its perverse ideology as ISIS. ISIS uses traditional media platforms as well as widespread social media campaigns to propagate its ideology. With the broad distribution of social media, terrorists can use these platforms further in an effort to spot, assess, recruit, and radicalize vulnerable persons in the U.S. either to travel abroad or to conduct an attack on the homeland.

The threats posed by foreign fighters, including those recruited from the U.S., are very dynamic. We will continue working to identify individuals who seek to join ISIS or other groups abroad, those foreign fighters who may attempt to return to the United States, and HVEs who may aspire to attack the United States from within.

ISIS is not the only terrorist group of concern. Al Qaeda maintains its desire for large scale spectacular attacks. Continued counterterrorism pressure has degraded the group’s Afghanistan-Pakistan senior leadership, so in the near term, al Qaeda is more likely to focus on building its international affiliates and supporting small-scale, readily achievable attacks in key regions such as East and West Africa. Simultaneously, over the last year, propaganda from al Qaeda leaders seeks to inspire individuals to conduct their own attacks in the U.S. and the West.

Iran also continues to support Hizballah and other terrorist groups. Hizballah has sent operatives to build terrorist infrastructures worldwide. The arrests of individuals in the United States allegedly linked to Hizballah’s main overseas terrorist arm, and their intelligence collection and procurement efforts, demonstrate Hizballah’s continued interest in long-term contingency planning activities here in the Homeland. Hizballah Secretary-General Hasan Nasrallah has threatened retaliation for the death of IRGC-QF Commander Soleimani.

In addition to FTOs, domestic violent extremists collectively pose a steady threat of violence and economic harm to the United States. Trends may shift, but the underlying drivers for domestic violent extremism—such as perceptions of government or law enforcement overreach, socio-political conditions, racism, anti-Semitism, Islamophobia, and reactions to legislative actions—remain constant. The FBI is most concerned about lone offender attacks, primarily shootings, as they have served as the dominant lethal mode for domestic violent extremist attacks. More deaths were caused by domestic violent extremists than international terrorists in recent years.

The top threat we face from domestic violent extremists stems from those we now identify as racially/ethnically motivated violent extremists (RMVEs). RMVEs were the primary source of ideologically-motivated lethal incidents and violence in 2018 and 2019, and have been considered the most lethal of all domestic extremism movements since 2001.

The spate of attacks we saw in 2019 underscore the continued threat posed by domestic violent extremists and perpetrators of hate crimes. Such crimes are not limited to the United States and, with the aid of Internet like-minded hate groups, can reach across borders. To combat the threat at home, the FBI established the Domestic Terrorism-Hate Crimes Fusion Cell, in the spring of 2019. Composed of subject matter experts from both the Criminal Investigative and Counterterrorism Divisions, the fusion cell offers program coordination from FBI Headquarters, helps ensure seamless information sharing across divisions, and augments investigative resources.

We recognize the FBI also must be aware of threats and violence perpetrated by individuals in the context of otherwise peaceful First Amendment-protected activities. In the past, we have seen a small segment of the population respond to a peaceful movement—from a different violent extremist—with violence. The FBI is only concerned when responses cross from ideas and constitutionally protected protests to violence. Regardless of the specific ideology involved, the FBI requires that all domestic terrorism investigations be predicated based on activity intended to further a political or social goal, wholly or in part involving force, coercion, or violence, in violation of federal law.

The FBI regularly reviews intelligence to ensure we are appropriately mitigating threats and the possible violent responses and actions. We remain sensitive to First Amendment-protected activities during investigative and intelligence efforts so as to ensure our investigative actions remain aligned to and do not exceed the scope of our authorities and are conducted with the appropriate protections in place for privacy and civil liberties.

As the threat to harm the United States and U.S. interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, tribal, private sector, and international partnerships. The FBI uses all lawful investigative techniques and methods to combat these terrorist threats to the United States. Along with our domestic and foreign partners, we are collecting and analyzing intelligence concerning the ongoing threat posed by foreign terrorist organizations and homegrown violent extremists. We continue to encourage information sharing, which is evidenced through our partnerships with many federal, state, local, and tribal agencies assigned to Joint Terrorism Task Forces around the country. Be assured, the FBI continues to strive to work and share information more efficiently, and to pursue a variety of lawful methods to help stay ahead of these threats.

Counterintelligence

The nation faces a continuing threat, both traditional and asymmetric, from hostile foreign intelligence agencies. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students, researchers, or business people operating front companies, is prevalent. Foreign intelligence services not only seek our nation’s state and military secrets, but they also target commercial trade secrets, research and development, and intellectual property, as well as insider information from the federal government, U.S. corporations, and American universities. Foreign intelligence services continue to employ more creative and more sophisticated methods to steal innovative technology, critical research and development data, and intellectual property in an effort to erode America’s economic leading edge. These illicit activities pose a significant threat to national security and continue to be a priority and focus of the FBI.

Foreign influence operations—which may include covert actions by foreign governments to influence U.S. policy decisions, political sentiment or public discourse—are not a new problem. But the interconnectedness of the modern world, combined with the anonymity of the Internet, have changed the nature of the threat and how the FBI and its partners must address it. The goal of these foreign influence operations directed against the United States is to spread disinformation, sow discord, push foreign nations’ policy agendas, and ultimately undermine confidence in our democratic institutions and values. Foreign influence operations have taken many forms and used many tactics over the years. Most widely reported these days are attempts by adversaries—hoping to reach a wide swath of Americans covertly from outside the United States—to use false personas and fabricated stories on social media platforms to discredit U.S. individuals and institutions. However, other influence operations may include targeting U.S. officials and other U.S. persons through traditional intelligence tradecraft; criminal efforts to suppress voting and provide illegal campaign financing; concealing efforts to influence U.S. government activities, cyber attacks against election infrastructure, along with computer intrusions targeting government officials and others; and a whole slew of other kinds of influence, like both overtly and covertly manipulating news stories, spreading disinformation, leveraging economic resources, and escalating divisive issues.

Almost two years ago, I established the Foreign Influence Task Force (FITF) to identify and counteract malign foreign influence operations targeting the United States. The FITF is uniquely positioned to combat this threat. The task force now brings together the FBI’s expertise across the waterfront—counterintelligence, cyber, criminal, and even counterterrorism—to root out and respond to foreign influence operations. Task force personnel work closely with other U.S. government agencies and international partners concerned about foreign influence efforts aimed at their countries, using three key pillars.

Currently there are open investigations with a foreign influence nexus spanning FBI field offices across the country. Second, we are focused on information and intelligence-sharing. The FBI is working closely with partners in the intelligence community and in the federal government, as well as with state and local partners, to establish a common operating picture.

The FITF is also working with international partners to exchange intelligence and strategies for combating what is a shared threat. The third pillar of our approach is based on strong relationships with the private sector. Technology companies have a front-line responsibility to secure their own networks, products, and platforms. But the FBI is doing its part by providing actionable intelligence to better enable the private sector to address abuse of their platforms by foreign actors. For example, over the last year, the FBI has met with top social media and technology companies several times, provided them with classified briefings, and shared specific threat indicators and account information, so they can better monitor their own platforms.

This is not just an election-cycle threat. Our adversaries are continuously trying to undermine our country, whether it is election season or not. As a result, the FBI must remain vigilant.

In addition to the threat posed by foreign influence, the FBI is also concerned about foreign investment by hostile nation states. Over the course of the last seven years, foreign investment in the U.S. has more than doubled. Concurrent with this growth, foreign direct investment (FDI) in the U.S. has increasingly become a national security concern, as hostile nations leverage FDI to buy U.S. assets that will advance their intelligence, military, technology, and economic goals at the expense of U.S. national security. The Committee on Foreign Investment in the U.S. (CFIUS), an Executive Branch committee chaired by the Department of the Treasury, was statutorily created to address potential risks to U.S. national security resulting from foreign acquisitions or mergers with U.S. companies. As part of this process, the FBI provides input and analysis to the National Intelligence Council within eight days of a CFIUS filing and a risk assessment to the Department of Justice within 30 days of a CFIUS filing. As a result of the Foreign Investment Risk Review Modernization Act, which was enacted last year, the FBI anticipates its workload to increase dramatically.

Cyber Threats

Virtually every national security threat and crime problem the FBI faces is cyber-based or facilitated. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. On a daily basis, these actors seek to steal our state secrets, our trade secrets, our technology, and the most intimate data about our citizens—things of incredible value to all of us and of great importance to the conduct of our government business and our national security. They seek to hold our critical infrastructure at risk, to harm our economy, and to constrain our free speech.

As the committee is well aware, the frequency and severity of malicious cyber activity on our nation’s private sector and government networks have increased dramatically in the past decade when measured by the amount of corporate data stolen or deleted, the volume of personally identifiable information compromised, or the remediation costs incurred by U.S. victims. We expect this trend to continue. Within the FBI, we are focused on the most dangerous malicious cyber activity: high-level intrusions by state-sponsored hackers, global organized crime syndicates, and other technically sophisticated and dangerous actors. FBI agents, analysts, and computer scientists are using technical capabilities and traditional investigative techniques—such as sources, court-authorized electronic surveillance, physical surveillance, and forensics—to counter these threats. We continue to actively coordinate with our private and public sector partners to pierce the veil of anonymity surrounding cyber based crimes.

Botnets used by cyber criminals have been responsible for billions of dollars in damages over the past several years. The widespread availability of malicious software (malware) that can create botnets allows individuals to leverage the combined bandwidth of thousands, if not millions, of compromised computers, servers, or network-ready devices to disrupt the day-to-day activities of governments, businesses, and individual Americans. Cyber threat actors have also increasingly conducted ransomware attacks against U.S. systems, encrypting data and rendering systems unusable—thereby victimizing individuals, businesses, and even emergency service and public health providers.

Cyber threats are not only increasing in size and scope, but are also becoming increasingly difficult and resource-intensive to investigate. Cyber criminals often operate through online forums, selling illicit goods and services, including tools that lower the barrier to entry for aspiring criminals and that can be used to facilitate malicious cyber activity. These criminals have also increased the sophistication of their schemes, which are more difficult to detect and more resilient to disruption than ever. In addition, whether located at home or abroad, many cyber actors are obfuscating their identities and obscuring their activity by using combinations of leased and compromised infrastructure in domestic and foreign jurisdictions.

Such tactics make coordination with all of our partners, including international law enforcement partners, essential.

The FBI, in close cooperation with its federal partners, is engaged in a myriad of efforts to combat cyber threats, from improving threat identification and information sharing inside and outside of the government, to developing and retaining new talent, to examining the way we operate to disrupt and defeat these threats. We take all potential threats to public and private sector systems seriously and will continue to investigate and hold accountable those who pose a threat in cyberspace.

Criminal Threats

We face many criminal threats, from complex white-collar fraud in the financial, health care, and housing sectors to transnational and regional organized criminal enterprises to violent crime and public corruption. Criminal organizations—domestic and international—and individual criminal activity represent a significant threat to our security and safety in communities across the nation. A key tenet of protecting the nation from those who wish to do us harm is the National Instant Criminal Background Check System, or NICS. The goal of NICS is to ensure that guns do not fall into the wrong hands, and also to ensure the timely transfer of firearms to eligible gun buyers. Mandated by the Brady Handgun Violence Prevention Act of 1993 and launched by the FBI on November 30, 1998, NICS is used by Federal Firearms Licensees (FFLs) to instantly determine whether a prospective buyer is eligible to purchase firearms. NICS receives information from tens of thousands of FFLs and checks to ensure that applicants do not have a criminal record or are not otherwise prohibited and therefore ineligible to purchase a firearm. In the first complete month of operation in 1998, a total of 892,840 firearm background checks were processed; in 2019, over 2 million checks were processed per month.

While most checks are completed by electronic searches of the NICS database within minutes, a small number of checks require examiners to review records and resolve missing or incomplete information before an application can be approved or rejected. Ensuring the timely processing of these inquiries is important to ensure law-abiding citizens can exercise their right to purchase a firearm and to protect communities from prohibited and therefore ineligible individuals attempting to acquire a firearm. The FBI is currently processing a record number of checks; over 26 million were processed in 2019.

Violent Crime

Violent crimes and gang activities exact a high toll on individuals and communities.

Many of today’s gangs are sophisticated and well organized and use violence to control neighborhoods, and boost their illegal money-making activities, which include robbery, drug and gun trafficking, fraud, extortion, and prostitution rings. These gangs do not limit their illegal activities to single jurisdictions or communities. The FBI is able to work across such lines, which is vital to the fight against violent crime in big cities and small towns across the nation. Every day, FBI special agents work in partnership with federal, state, local, and tribal officers and deputies on joint task forces and individual investigations.

FBI joint task forces—Violent Crime Safe Streets, Violent Gang Safe Streets, and Safe Trails—focus on identifying and targeting major groups operating as criminal enterprises.

Much of the FBI criminal intelligence is derived from our state, local, and tribal law enforcement partners, who know their communities inside and out. Joint task forces benefit from FBI surveillance assets, and our sources track these gangs to identify emerging trends. Through these multi-subject and multi-jurisdictional investigations, the FBI concentrates its efforts on high-level groups engaged in patterns of racketeering. This investigative model enables us to target senior gang leadership and to develop enterprise-based prosecutions.

By way of example, the FBI has dedicated tremendous resources to combat the threat of violence posed by MS-13. The atypical nature of this gang has required a multi-pronged approach—we work through our task forces here in the U.S. while simultaneously gathering intelligence and aiding our international law enforcement partners. We do this through the FBI’s Transnational Anti-Gang Task Forces (TAGs). Established in El Salvador in 2007 through the FBI’s National Gang Task Force, Legal Attaché San Salvador, and the United States Department of State, each TAG is a fully operational unit responsible for the investigation of MS-13 operating in the northern triangle of Central America and threatening the United States. This program combines the expertise, resources, and jurisdiction of participating agencies involved in investigating and countering transnational criminal gang activity in the United States and Central America. There are now TAGs in El Salvador, Guatemala, and Honduras. Through these combined efforts, the FBI has achieved substantial success in countering the MS-13 threat across the United States and Central America.

We are committed to working with our federal, state, local, and tribal partners in a coordinated effort to reduce violent crime in the United States.

Transnational Organized Crime and Opioids

More than a decade ago, organized crime was characterized by hierarchical organizations, or families, that exerted influence over criminal activities in neighborhoods, cities, or states. But organized crime has changed dramatically. Today, international criminal enterprises run multi-national, multi-billion-dollar schemes from start to finish. Modern-day criminal enterprises are flat, fluid networks with global reach. While still engaged in many of the “traditional” organized crime activities of loan-sharking, extortion, and murder, modern criminal enterprises are targeting stock market fraud and manipulation, cyber-facilitated bank fraud and embezzlement, drug trafficking, identity theft, human trafficking, money laundering, alien smuggling, public corruption, weapons trafficking, extortion, kidnapping, and other illegal activities. TOC networks exploit legitimate institutions for critical financial and business services that enable the storage or transfer of illicit proceeds. Preventing and combating transnational organized crime demands a concentrated effort by the FBI and federal, state, local, tribal, and international partners.

While the FBI continues to share intelligence about criminal groups with our partners and combines resources and expertise to gain a full understanding of each group, the threat of transnational crime remains a significant and growing threat to national and international security with implications for public safety, public health, democratic institutions, and economic stability across the globe.

Illicit drug trafficking continues to be a growing threat. Large amounts of high-quality, low cost heroin and illicit fentanyl are contributing to record numbers of overdose deaths and life-threatening addictions nationwide. The accessibility and convenience of the drug trade online contributes to the opioid epidemic in the United States. Transnational criminal organizations are introducing synthetic opioids to the U.S. market, including fentanyl and fentanyl analogues. To address this evolving threat, we are taking a multi-faceted approach and establishing many initiatives and units across our criminal program.

In January 2018, the Office of the Deputy Attorney General directed the FBI and other federal law enforcement partners to develop a strategic plan to disrupt and dismantle the Darknet illicit marketplaces facilitating the distribution of fentanyl and other opioids. As a result, the FBI established the Joint Criminal Opioid Darknet Enforcement (J-CODE) Initiative, which brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, with federal, state, and local law enforcement partners from across the U.S. government. The J-CODE team has developed a comprehensive, multi-pronged criminal enterprise strategy to target the trafficking of fentanyl and other opioids on the Darknet and Clearnet. This strategy focuses on identifying and infiltrating the marketplace administrative team, analyzing financial information, locating and exploiting marketplace infrastructure, targeting vendors and buyers, and enabling field office success in the investigation and prosecution of these marketplaces. As a result, numerous investigations and operations have been initiated and several online vendors who are facilitating the trafficking of opioids via the Internet, to include fentanyl, have been disrupted.

The FBI is also addressing this threat through the Prescription Drug Initiative (PDI). The PDI was established in 2016 in response to the substantial and increasing threat associated with prescription drug diversion, and in particular, the staggering national increase in opioid-related deaths. The objective of the PDI is to identify and target criminal enterprises and other groups engaged in prescription drug schemes; identify and prosecute, where appropriate, organizations with improper corporate policies related to prescription drugs; and identify and prosecute, where appropriate, organizations with improper prescribing and dispensing practices. The PDI prioritizes investigations which target “gatekeeper” positions, to include medical professionals and pharmacies that divert opioids outside the scope of their medical practice and/or distribute these medications with no legitimate medical purpose. Since its inception, the PDI has resulted in the conviction of numerous medical professionals and secured significant federal prison sentences, to include life terms for physicians who cause harm or death to the patients entrusted to their care.

Beyond these two programs, the FBI has dedicated additional resources to address this expansive threat. We have more than doubled the number of Transnational Organized Crime Task Forces, expanded the Organized Crime Drug Enforcement Task Force Airport Initiative to focus on insider threats partnering with TCO actors, and created and led the Fentanyl Safety Working Group at FBI Headquarters, which has led to a new program to protect field agents and support employees with personal protective equipment and opioid antagonists (i.e., naloxone) from the threat of fentanyl exposure. The FBI participated, along with other federal partners, in the creation of the Heroin Availability Reduction Plan (HARP), takes part in monthly HARP implementation meetings hosted by the Office of National Drug Control Policy, and continues to provide training to our international law enforcement partners on successful identification, seizure, and neutralization of clandestine heroin/fentanyl laboratories.

Crimes Against Children and Human Trafficking

It is unthinkable, but every year, thousands of children become victims of crimes—whether it is through kidnappings, violent attacks, sexual abuse, human trafficking, or online predators. The FBI is uniquely positioned to provide a rapid, proactive, and comprehensive response; identify, locate, and recover child victims; and strengthen relationships between the FBI and federal, state, local, tribal, and international law enforcement partners to identify, prioritize, investigate, and deter individuals and criminal networks from exploiting children.

But the FBI’s ability to learn about and investigate child sexual exploitation is being threatened by the spread of lawless spaces online. For example, currently, there are at least 30 child pornography sites operating openly and notoriously on the Darknet, including the Tor network. Some of these child pornography sites are exclusively dedicated to the sexual abuse of infants and toddlers. The sites often expand rapidly, with one site obtaining 200,000 new members within its first four weeks of operation.

As was highlighted at a summit held at the Department of Justice on October 4 that focused on warrant-proof encryption and its impact on child exploitation cases, law enforcement stands to lose millions of leads a year due to the adoption of end-to-end encryption. This move will stop technology and social media companies from being able to detect and report child sexual abuse material being traded on their platforms. The spread of end-to-end encryption will not just dry up the leads. It will prevent companies from providing content to law enforcement in response to legal process—the content we need to actually find who and where a victim is. Unfettered online spaces beyond the protection of law allows dangerous criminals to abuse and exploit an untold number of children. By enabling dangerous criminals to cloak their communications and activities behind an essentially impenetrable digital shield, the deployment of warrant-proof encryption is already imposing huge costs on society. It is not just the reprehensible behavior of sexual predation on children, but myriad additional forms of serious crime enabled by end-to-end encryption. This technology is quickly extinguishing our ability to detect and prevent a wide range of criminal activity—from terrorism, to large-scale drug trafficking, to financial fraud, to human trafficking, to transnational gang activity. We realize this is a difficult and complex challenge. However, while we continue to embrace the use of strong encryption within our most critical sectors and infrastructure, we must seek a solution that allows us to protect our nations’ most vulnerable while at the same time addressing the equities of the larger national security community.

The FBI has several programs in place to arrest child predators and to recover missing and endangered children. To this end, the FBI funds or participates in a variety of endeavors, including our Innocence Lost National Initiative, Innocent Images National Initiative, Operation Independence Day, Child Abduction Rapid Deployment Teams, Victim Services, 80 Child Exploitation Task Forces, 53 International Violent Crimes Against Children Task Force Officers, as well as numerous community outreach programs to educate parents and children about safety measures they can follow.

The FBI combats this pernicious crime problem through investigations such as Operation Pacifier, which targeted the administrators and users of a highly sophisticated, Tor-based global enterprise dedicated to the sexual exploitation of children. This multi-year operation has led to the arrest of over 348 individuals based in the United States, the prosecution of 25 American child pornography producers and 51 American hands-on abusers, the rescue or identification of 55 American children, the arrest of 548 international individuals, and the identification or rescue of 296 children abroad.

Child Abduction Rapid Deployment Teams are ready response teams stationed across the country to quickly respond to abductions. Investigators bring to this issue the full array of forensic tools such as DNA analysis, trace evidence, impression evidence, and digital forensics. Through improved communications, law enforcement also has the ability to quickly share information with partners throughout the world, and these outreach programs play an integral role in prevention.

In addition to programs to combat child exploitation, the FBI also focuses efforts to stop human trafficking—a modern form of slavery. The majority of human trafficking victims recovered during FBI investigations are United States citizens, but traffickers are opportunists who will exploit any victim with a vulnerability. Victims of human trafficking are subjected to forced labor or sex trafficking, and the FBI is working hard with its partners to combat both forms.

The FBI works collaboratively with law enforcement partners to investigate and arrest human traffickers through Human Trafficking Task Forces nationwide. We take a victim-centered, trauma-informed approach to investigating these cases and strive to ensure the needs of victims are fully addressed at all stages. To accomplish this, the FBI works in conjunction with other law enforcement agencies and victim specialists on the local, state, tribal, and federal levels, as well as with a variety of vetted non-governmental organizations. Even after the arrest and conviction of human traffickers, the FBI often continues to work with partner agencies and organizations to assist victims in moving beyond their exploitation.

Earlier this year, the FBI announced the results of Operation Independence Day, which relied on more than 400 law enforcement agencies working on FBI Child Exploitation and Human Trafficking Task Forces in each of the Bureau’s 56 field offices. Agents and analysts at FBI Headquarters and in the field worked closely with the National Center for Missing & Exploited Children to identify young runaways, missing kids, and juveniles who may have been subjected to human trafficking. The sweep included undercover operations and has led to the opening of 60 new federal criminal investigations. In all, 103 juveniles were identified or recovered and 67 suspected traffickers were arrested.

The FBI commends the committee’s dedication to these efforts and appreciates the resources provided to combat these horrific acts.

Elder Fraud

As you may already be aware, the FBI participates in a number of working groups and task forces dedicated to combating significant frauds to include phone scams against our nation’s citizens. From health care fraud task forces to interagency groups, many of those resources are focused on preventing, detecting, and combating those frauds which harm senior citizens.

Unfortunately, though, frauds are limited only to the imagination of those who commit such egregious crimes.

Since the Elder Abuse Prevention and Prosecution Act was signed into law, the FBI and Department of Justice have participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Just last year, the FBI, the Department and our partners conducted the largest coordinated sweep of elder fraud cases in history. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly. The department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

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Finally, the strength of any organization is its people. The threats we face as a nation have never been greater or more diverse and the expectations placed on the Bureau have never been higher. Our fellow citizens look to the FBI to protect the United States from all of those threats, and the men and women of the FBI continue to meet and exceed those expectations, every day. I want to thank them for their dedicated service.

Chairman Nadler, Ranking Member Collins, and members of the committee, thank you again for this opportunity to discuss the FBI’s efforts to combat the myriad of threats it faces. I appreciate your continued support and look forward to answering any questions you might have.