MOPAC C:? Programme for 2014/15 for the re-building of the MPS cyber capability to deliver a transformational

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1 Title: Funding Application 2014/15 Cyber Crime Unit JEQUE5T FOR DMPC DECISION - DMPCD DMPCDv3 June F / Signature Date The aboyçjçest has my approval. Authority. Any such interests are recorded below. take the proposed decision in compliance with the Code of Conduct for elected Members of the I confirm I have considered whether or not I have any personal or prejudicial interest in this matter and Deputy Mayor for Policing and Crime The DMPC approve the 2014/15 funding application from the National Cyber Security Programme to fund the MPS Cyber Crime Unit. C:? Recommendation: response to volume cyber and cyber enabled fraud investigations. Programme for 2014/15 for the re-building of the MPS cyber capability to deliver a transformational The DMPC is being asked to approve the funding application from the National Cyber Security Executive Summary: MOPAC MAYOR OFFICE FOR [OLlCI4G io CF WC OF LONDON

2 DMPCD v3 2 June a 1.1 The MPS has been the lead force for cyber-crime providing the operational response for the most 1. Introduction and background e-crime Unit and the National ecrime Programme part funded by the Home Office. case. 1.3 The MPS Cyber Crime Unit will deliver: Decision required supporting report PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC serious incidents that cause harm to the UK. Until October2013 the MPS hosted the Police Central 2. Issues for consideration 2.1 The MPS Cyber Crime Unit is the MPS response to the MOPAC Business Crime Strategy. 2.2 The cost of the MPS Cyber Crime Unit is anticipated to be E2.7m per annum. The Home Office have 2.3 By 201 6/17 it is expected that the MPS Cyber Crime Unit will be embedded into the MPS business as 2.4 The Home Office have advised that a bid of up to 1.956m may be submitted towards the cost of the 2.5 The MPS Cyber Crime Unit supports Project FALCON (Fraud and Linked Crime Online). This project is 2.6 The National Cyber Security Funding will fund 14 staff within the MPS Cyber Crime Unit and 1.2 In October2013 the national remit and functions transferred to the National Crime Agency, however, the MPS has retained its own cyher-crime capability part funded by the Home Office. indicated continued support for the next two years by way of a grant subject to an annual business usual as part of the Fraud and Cyber Investigative Capability. equipment and training. It will also support the development of the FALCON hubs, providing equipment and training for Cyber Champions. The Cyber Champions will support the hub in MPS Cyber Crime Unit. crime. FALCON aims to significantly improve the police response to victims and judicial disposals for the MPS response to London s businesses and individuals who are victims of online fraud and cyber those criminals operating online. also assist in the mainstreaming of cyber-crime training to front line staff by providing awareness investigating cyber enabled fraud by up-skilling approximately 50 staff across 4 sites. The staff will training and support and guidance when investigating mainstream cyber-crime offences Wide MPS Operational Support as part of the under developed Fraud and Cyber Investigative Assistance in critical cyber response to the London Regional Organised Crime Unit 4 Contribute to the objectives of the UK Cyber Security Strategy Dynamic operational investigative response for London measured against the MOPAC and MPS performance targets Capability

3 crime prevention. 3.2 Existing budgets will fund the gap between the annual cost of the Cyber Crime Unit and the Home Office funding. Public Order Act 1994, which allows the Secretary of State to make payments or grants in relation to 3.1 Funds will be released by the Home Office quarterly in arrears on receipt of statements of actual 4.1 The grant from the Home Office is being provided pursuant to section 169 of the Criminal Justice and expenditure. 4. Legal Comments DMPCD vj June Appendix 1 MPS Report 6. Background/supporting papers jurisdictions. It has no geographic barriers and does not impact any single community overly communities. Cyber techniques are also being used to enable a more varied criminal but no one community would be affected, negatively or otherwise, by the formation of this MPS unit. disproportionately, although it is recognised that different types or cyber-crime focus on different 5.2 Cyber Crime affecting London can be committed from both UK and international force areas and 5.1 There are no Equality and Diversity issues identified with this proposal. 5. Equality Comments 4.6 On the basis of the contents of the report, the Directorate of Legal Services are content with the recommendations to proceed. Home Office. The activities are not different to existing policing activities and should not be seen as 4.5 MOPAC will be liable for any actions of MPS officers whilst carrying out any activities funded by the or the MPS that fall outside of the existing statutory functions of the respective organisations. provides for a grant from the Home Office to MOPAC. It does not place any obligations on MOPAC 4.4 The Memorandum of Understanding is a fairly standard high level government document that onerous of problematic. transfer of certain property, rights and liabilities relating to the Police Central c-crime Unit from MOPAC to the NCA. policing body. Article 3 of the National Crime Agency Property Transfer Scheme 2013 relates to the 8 of which enables the Secretary of State to transfer designated property, rights and liabilities from a 04.3 The National Crime Agency was established pursuant to the Crime and Courts Act 2013 and Schedule above El 50k. Operating Officer authority to affix the common seal of MOPAC to agreements which are grants 4.2 The MOPAC s scheme of delegation gives the DMPC the authority to approve all grants and the Chief 3. Financial Comments

4 June Date V V V ar2fmno Until what date (if known): If yes, for what reason: Is the publication of this form to be deferred? NO ORNATlNGQFflCERflECLARA1iON: Information in this form is subject to the Freedom of Information Act 2000 (FOIA) and other legislation. If yes, for what reason: Public access to information Annabel Cowell has reviewed the request and is satisfied it is correct and consistent Part 1 of this form will be made available on the MOPAC website within 1 working day of approval. Any OFFICER APPROVAL with the MOPAC s plans and priorities. V included in Part 1 but instead on the separate Part 2 form. Deferment is only applicable where release facts/advice/recommendations that should not be made automatically available on request should not be Head of Unit: I before that date would compromise the implementation of the decision being approved. The MPS legal team has been consulted on the proposal. Legal Advice: I The Chief Finance Officer has been consulted on this proposal. Financial Advice: Equalities Advice: Equality and diversity issues are covered in the body of the report taken into account in the preparation of this report. I am satisfied that this is an appropriate request to be submitted to the Deputy Mayor for Policing and Crime. DMPCD v3 Chief Executive I have been consulted about the proposal and confirm that financial, legal and equalities advice has been Signature I 0 C /1_ct -i Tick to confirm statement (V) p

5 Provision of a grant from the Home Office crime (Police Central e-crime Unit (PCeU)) and the National e-crime Programme (NeCP), SUMMARY Section 5.6 of the MOPAC Scheme of Delegation (SoD) requires the Deputy Mayor for The MPS as lead force for Cyber Crime hosted the national policing response to cyber Policing & Crime to approve all bids for grants. Report by Director of Commercial & Finance on behalf of the Commissioner most serious incidents that cause harm to the UK. Until 7th October 2013, the MPS hosted the Strategic Defence and Security Review significant further funding was made available for a million per year between 2009 and Additionally and significantly in 2011 as a result of the Office financially supporting the ACPO led national e-crime programme, providing funding of Li growth of the PCeU from 10 officer s in 2008 to 42 in 2010 was as a direct result of the Home command (SC&O7) to provide this national response. In addition, the PCeU had a operational success, which resulted in securing a funding stream from the Home Office. The lead DAC Janet Williams. In February 2009, PCeU became operational, achieving instant 2. The PCeU was created in September 2008 under the stewardship of the then ACPO e-crime a UK terrorist related cyber incident. 1. The MPS has been the lead force for cyber crime, providing the operational response for the Memorandum of Understanding with the Counter Terrorism Command as the first responder to Police Central e-crime Unit (PCeU) sitting within the Specialist Organised & Economic Crime B. SUPPORTING INFORMATION 2. Note a component of the MPS Cyber Crime Response is the MPS Cyber Crime Unit. 4. Approve the request to bid for further available Home Office funding for the MCCU. C? Approve the acceptance of the Home Office grant for the development of the MCCU. 1. Note the PCeU has transferred to the National Crime Agency A. RECOMMENDATIONS - That the DMPC been extended to 2016 and the MPS was invited to make requests for continued funding within the NCA. Recognising the uniqueness of London in relation to business and for further grants to expand PeCU and the NeCP development programme through the from Programme (NCSP) was created by the Cabinet Office and the MPS was invited to apply In 2010 following the Strategic Defence and Security Review the National Cyber Security In October 2013, the National Crime Agency (NCA) was launched and the PCeU and NeCP function, staff and resources transferred to the National Cyber Crime Unit (NCCU) fill the policing gap created when the National Hi-Tech Crime Unit was dissolved and From 2008 the Home Office provided Lim per year towards PCeU and the National e Crime Programme to increase the capacity and capability to respond to cyber crime and to SOCA Cyber created. financial sectors and the MPS need to maintain a cyber crime unit the Home Office part funded by the Home Office. Home Office. This bid was successful and funding granted of 30m over 4 year years provided Elm for 2013)14 to replace equipment and to train new staff, The NCSP has 2015 with a year on year business case for the ongoing commitment. leading to a business as usual cyber crime response for London. Protectively Marked

6 incorporating a further 12 police officers at three regional cyber hubs. last three years. 3. Over the last four years the PCeU established a successful operating model that which four year programme to increase the PCeU to a strength of 100 police officer s and staff and 5. Since 2011 the NeCP, of which the PCeU was the operational strand has: Not Protectively Marked c 6. On 7th October 2013, the PCeU national remit and functions, external funding and externally 7. In anticipation of the NCA vesting, a number of shadow NCA units were established to build Created three regional PCeU operational hubs Financially supported the creation of a National Hash Set data base for Indecent Images of. Introduced to ACPO a process template to increase throughput and capacity in high tech Worked with the Centre of Applied Science and Technology to test forensic tools available Mapped the high tech capability of forces and regions nationally. Informed on the cyber development of the Strategic Policing Requirement. technical statements from victims, interviews technically astute suspects and provides written and verbal evidence at court in support of prosecutions. They are deployed to all crime scenes and currently lead the national response to live digital forensics. has trained officers in a cygnforcement team, supported by a cyber operational support arrest national and international suspects involved in cyber crime targeting the UK. This model captured areas of cyber intelligence and reporting that has been developed to identify and team with strong multi-agency relationships, and a cyber technical team that takes complex Created Police Performance Framework with Skills for Justice for cyber investigators and Developed a dedicated Cyber Specials process for cyber units fulfilling the requirements of Commissioned the College of Policing to: reduction target of 504m in the first 2 years (currently 1 billion) and over 245 arrests in the 4. This three legged operating model has achieved the 4-year Home Office financial harm funded designated equipment transferred to the NCA, through the National Crime Agency a fit for purpose substantive NCA on 7th October officers and ten MPS police staff from PCeU and NeCP accepted the option to permanently and governance included the ACPO national e-crime programmes of work. 48 MPS police Property Transfer Scheme 2013, with the formation of the NCCU. The transfer of functionality transfer their employment to the NCA from that date. and test the new structure and processes to ensure a smooth transition from precursor units to Children. crime units. on the open market. intelligence. independent patrolling status within a specialist command. Embed cyber through the professionalising policing programme A bespoke one week cyber course of investigators not on the development Creation of 4 cyber crime e-learning modules. programme

7 continue and develop operational delivery for London. MCCU is part funded by the Home Office to replace equipment transferred to the NCA and to October 2013, sitting within the new Specialist, Organised and Economic Command. The Crime Plan, on 18th March 2013, the MPS decided to retain its own cyber crime capability post 9. In further anticipation of the function of the NCA and in response to the MOPAC Police and on attachment to SOCA Cyber until the NCA inception on 7m October , a further 20 PCeU officers and staff transferred to the shadow NCCU. All MPS staff were precursor units, including 21 MPS PCeU operational staff and NeCP project staff. On 3Fd June from cyber crime. London SME business community, and increase the number of POCA seizures resulting Delivering MOPAC and MPS key performance, specifically reducing financial harm to the Contribute to the objectives of the UK Cyber Security Strategy. London focused capability to investigate serious cyber and cyber-enabled attacks both A dynamic London based response comprising of MPS staff complementary to but not competing with the NCCU. proactively and reactively. 14. The MCCU terms of reference are: Once matured, assistance in critical cyber response to the London Regional Organised Crime Unit: C. Wide MPS Operational Support as part of the under development Fraud and Cyber Investigative Capability; Dynamic operational investigative response for London measured against the MOPAC and MPS performance targets; 13. The MCCU will deliver: will be the training and education of staff to an MSc level in various specialist areas. 12.The MCCU is under development and will take some time to mature; part of the progression NCA forming the base for the new capability plus 12 attachments from the wider Command to 11. Currently the unit has 17 officers and one member of police staff who did not transfer to the providing operational development and wider MPS cyber operational advice and assistance. police officers and police staff, network investigators and IT specialists; a cyber enforcement team of 12 detectives; two Detective Inspectors and one Band C working to a Detective Chief Inspector; a cyber technical team of nine trained and experienced digital forensic examiners both a cyber operational support team of ten detectives, one analyst and one researcher 10.The structure of the MCCU mirrors, in a reduced format, the successful three legged PCeU operating model, comprising of 37 staff: support operational delivery whilst the MCCU recruits. 8. The shadow NCCU was stood up on 2nd March 2013, initially comprising of 40 staff from the Protectively Marked

8 31st forensic capability. capability. attachments and in the future managing MPS cyber specials and interns to enhance MPS operational units through presentations, work groups, borough single points of contact, supporting boroughs on NFIB Cyber referrals, raising awareness across the MPS Provide an operational support function to the wider MPS advising on lower level local the public through use of Cyber Security Prevention Advisors and local policing teams. local level, improvement of cyber crime prevention advice to London s SME s, industry and policing cyber and cyber enabled crime, providing advice and assistance to the MPS and A specialist response for London, developing partnerships with industry and business at a Not Protectively Marked C. OTHER ORGANISATIONAL & COMMUNITY IMPLICATIONS 2. The MCCU works within MPS guidance and policy in relation to standard operational practices 1. The Home Office has a published diversity strategy in relation to staff and in 3. Cyber crime affecting London can be committed from both other UK and international force 4. Therefore there are no Equality and Diversity issues identified with this proposal. 1. 1st April th October st October All components of this years funding has been included in a single grant and is now available By developing greater capability within London, the MPS will be better positioned to help delivering services to the public, a Diversity Strategy Programme Board and Diversity Champions similar to that of the Diversity & Citizen Focus Directorate in the MPS. Disseminate operational learning in coordination with other MPS cyber investigative and and procedure. community overly disproportionately, although it is recognised that different types of cyber areas and jurisdictions. It has no geographic barriers and does not impact any single Equality and Diversity Impact crime focus on different communities. Cyber techniques are also being used to enable a more otherwise) by the formation of this MPS unit. and varied criminal but once again no one community would be affected (negatively or The Home Office provided a grant 2.5m to fund the PCeU and 519,600 to fund the NeCP for this period. for invoicing subiect to a signed agreement. The Home Office provided a grant of 1,000,000 to replace equipment and software transferred to the NCA and to contribute to the establishment of a London wide Cyber operational capability of 36 officers. The grant funds the salary and related costs of 17 personnel and resources. The budget includes an estimate of the running costs for accommodation, vehicles, Financial Implications equipment, stationery and travel. to participate in cyber security affecting London. Linking with local academic institutions to harness knowledge and evidence the need for all protect the cyber security of London, provide an improved service to victims of crime and to, contribute if required, to the NCCU response to national cyber crime incidents. I ) March 2014

9 expenditures for that previous quarter. 6. Funds will be released quarterly in arrears on actual spend, on receipt of statements of Cabinet Office. statements of expenditure and forecasts will be provided to the Home Office to report to the 5. Accounting for the MPS will be carried out through internal accounting systems. Monthly the MPS that a bid of up to 1.956m may be submitted towards the cost of the MCCU. cases. By 2016/17 it is expected that the MCCU will be embed into the MPS as business as continued support for the next two years, by way of a grant, subject to year on year business usual as part of the Fraud and Cyber Investigative Capability. The Home Office has informed The cost of the MCCU is anticipated to be 2.7m per annum. The Home Office has indicated 4. 1st April st March 2016 The primary purpose of the MCCU post October falls squarely within the function of the MPS and MOPAC. However, it is acknowledged without the grant, the MPS would not be in a the first 2 years (currently 1 billion) and over 245 arrests in the last three years. The MCCU statutory functions of the respective organisations. 3. The National Crime Agency was established pursuant to the Crime and Courts Act 2013 and 5. It does not place any obligations on MOPAC or the MPS that fall outside of the existing 4. The Memorandum of Understanding is a fairly standard high level government document that supporting victims of crime and providing prevention advice and guidance, all building of the proven success of the PCeU. prevention. The PCeU achieved the 4-year financial harm reduction target agreed of 504m in and liabilities relating to PCeU from MOPAC to the NCA. Crime Agency Property Transfer Scheme 2013 relates to the transfer of certain property, rights liabilities from a policing body for, an England and Wales police force. Article 3 of the National grants in relation to crime prevention. Schedule B of which enables the Secretary of State to transfer designated property, rights and seal of MOPAC to agreements which are grants that are 150,000 or above. approve all grants and paragraph 6.23 requires the Chief Operating Officer to affix the common will continue to build on this achievement with a London centric focus. 5. The economic benefits of the project occur through the prosecution of offenders and the harm 3. The main economic rationale for the project is the need to increase national law enforcement 4. The National Cyber Security programme through the Home Office is funding that National 2. The MOPAC s scheme of delegation gives the DMPC the authority under paragraph 5.6 to Justice and Public Order Act 1994, which allows the Secretary of State to make payments or to provide an adequate response for the people of London does not fall within the function of the MPS, that said the majority of operations have had a London nexus. position to undertake the effective rebuilding of its cyber capability within the existing budgets capability to respond to cyber crime through by apprehending and prosecuting offenders, 1. The primary purpose of the PCeU and the NeCP 01/04/ The grant from the Home Office is being provided pursuant to section 169 of the Criminal 6/10/2013 as a natonal unit Value Statement Cyber Crime Unit and part funding Regional Organised Crime Units nationally to create ACPO Cyber Hubs. Legal Implications provides for a grant from the Home Office to MOPAC. L. Protectively Marked

10 therefore not be seen as onerous or problematic. proceed. the Home Office terminating or modifying the funding to MOPAC. the Home Office. The activities are no different to existing policing activities and should Not Protectively Marked 3. The MPS cyber capability has been supported by the ACPO Lead for Cyber Crime, Deputy 4. No consultation has been undertaken by the MPS in relation to the cyber crime build. 6. MOPAC will be liable for any actions of MPS officers whilst carrying out any activities funded by 2. Withdrawal of funding is a risk. However the programme is due to continue until 2016 and local 1. The policing activities of the MCCU uses standard techniques and proffers no additional risks Supporting Documents: Environmental Implications 1. There are no environmental implications for the MPS or MOPAC in relation to cyber crime 7. The MoU provides the ability for the MPS to cease carrying out work, but obviously leading to 8. On the basis of the contents of this report, DLS are content with the recommendations to Report author(s): Ceri Griffiths, Operational Support Manager, Cyber Crime, Pan London Services. Consultation undertaken operational cyber capability across policing regions. a PCeU decommissioning Board comprising DLS, Finance, Procurement, HR, Fleet and MIS. 1. The arrangements to move the national cyber responsibility and functionality were overseen by Chief Constable Goodman (Derbyshire) who has the national responsibility for the build of the1 funded unit. 2. The development of the subsequent MPS cyber capability was included in the strategic plans of to the MPS or MOPAC regarding any liabilities in relation to investigations carried out by the policing bodies are asked to look to build a plan for business as usual. Cyber crime is a tier one threat with many traditional crimes moving online to increase the yield. development. Risk (including Health and Safety) Implications Harvey Pitchford, Commercial Manager, Third Party Contracts,

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