Agenda - September 23, 2003
The Bay Tower Fairfield Room Sixty State Street, 33rd Floor Boston, MA 02109 USA (617) 723-1666
9:00 a.m. - 10:30 a.m.		Continental Breakfast Optional Pre-Session: Best Practices in Corporate and Strategic Investing How are corporate and strategic venture arms structured (permanent funding or annual allocations)? How are teams compensated (carried interest and/or bonus)? What hurdle rates are common? Is the mandate ROI-driven or strategic? How are investment committees structured? Do you take board seats, observer rights or nothing? What are your focus areas?
10:45 a.m. - 11:00 a.m.		Agenda Review & Introductions
11:00 a.m. - 1:00 p.m.		Presentation, Working Lunch and Discussion: New Measures To Protect Against Financial Fraud Guest Speaker - Ed Stroz, President, Stroz Friedberg, LLC. Over $800 billion of money is laundered worldwide through financial institutions and activity is steadily increasing. Broker/Dealers and insurance companies will spend an estimated $11 billion by 2005 on anti- money laundering initiatives. Identity theft, the fastest growing white-collar crime in the US, has cost the financial services industry $2.0 billion over the past five years. What new products and techniques will financial institutions adopt to combat pervasive and constantly evolving financial fraud schemes? How will FIs implement biometrics, single use numbers, digital signatures and other products to safeguard their assets?
1:00 p.m. - 1:15 p.m.		Break
1:15 p.m. - 3:15 p.m.		Deal Flow There are two parts to the deal flow discussion. In the first part, you are invited to tell the group about the best company in your portfolio that should be of interest to our members' institutions as potential customers. This is an opportunity to generate at least one sales lead for a portfolio company from the membership. In the second part, you are asked to share 1 or 2 investments that you are currently working on to: a) test the waters for feedback and advice on the company, market space, competition, deal terms etc.; b) generate sales leads; and c) identify potential co-investors. Please note, the success of this type of exchange is entirely dependent on the quality of the opportunities discussed and this is not a stage for garnering interest in non-performing investees.
3:30 p.m. - 3:45 p.m.		Break
3:45 p.m. - 4:30 p.m.		Wrap-up

Guest Speaker 

Edward Stroz
President 
Stroz Friedberg LLC 

Abstract:
Drawing from his first-hand experience with dozens of computer intrusions, Ed will provide an updated portrait of what happens to institutions victimized by various hacking schemes, and what was learned.  He will identify fraud techniques that are on the rise, both customer-based and insider-based, and why risk managers should distinguish those opportunists from predators.  A brief discussion will be held on data sniffers, keyloggers, ATM skimmers, identity-theft techniques, connections to organized crime, and money laundering considerations (currency and non-currency forms).  He will also focus on the threats to intellectual property, trade secrets and access devices as they relate to financial institutions and discuss the implications for identifying proper internal controls.  We will hear why it is important to connect physical security to information security, and to draw from the fields of technology, law, and behavioral science in crafting a winning strategy to prevent or respond to the risk of incidents.

Biography:           
Following a sixteen-year career as a Special Agent for the Federal Bureau of Investigation, Ed Stroz founded Stroz Friedberg, LLC in 2000.  As President, Mr. Stroz manages the firm's overall operations.  Mr. Stroz has advised clients in industries including banking, brokerage, insurance, media, computer and telecommunications, and has guided clients through problems including Internet extortions, denial of service attacks, hacks, domain name hijacking, data destruction and theft of trade secrets.  He has supervised numerous forensic assignments for criminal federal prosecutors, defense attorneys and civil litigants, and has conducted network security audits for major public and private entities.  An example of how Mr. Stroz has led the industry in merging behavioral science and computer security is his pioneering of audits of corporate web sites for content that could either stimulate or be useful in conducting an attack by a terrorist or other adversary.

In 1996, while still a Special Agent, he formed the F.B.I.'s Computer Crime Squad in New York City, where he supervised investigations involving computer intrusions, denial-of-service attacks, illegal Internet wiretapping, fraud, money laundering, and violations of intellectual property rights, including trade secrets.  Among the more significant FBI investigations Mr. Stroz handled were: Vladimir Levin's prosecution for hacking a US bank from Russia; the hack against the New York Times web site; the Internet dissemination by "Keystroke Snoopers," a hacking group, of a keystroke capture program embedded in a Trojan Horse; Breaking News Network's illegal interception of pager messages; the denial of service attack against a major business magazine; efforts to steal copyrighted content from the Bloomberg system; the hack of a telecommunications switch.  Mr. Stroz and his squad were also participants in the war game exercise called "Eligible Receiver."

Earlier in his career as an F.B.I. Special Agent, Mr. Stroz successfully investigated major financial crimes, including approximately two dozen bank frauds in west Texas; bank fraud and money laundering committed by the CEO of Arochem Corp. stemming from a $196 million oil-trading scheme; kickback schemes in the stock market through an undercover stock brokerage firm; and a $1.1 billion fraud scheme at Daiwa Bank in New York.

Mr. Stroz is a member of the American Institute of Certified Public Accountants, the Association of Certified Fraud Examiners and the American Society of Industrial Security.  He is also a Certified Information Technology Professional.  He is an active member of the United States Secret Service's Electronic Crimes Task Force, former Chairman of the Electronic Security Advisory Council and Chairman of the New York chapter of the F.B.I.'s Ex-Agents Society.