Cyber Fraud in Finance: Armenia’s Weak Provisions Leave Room for Exploitation

Armenia’s Criminal Procedure Code, implemented in 1998, lacks key provisions to effectively combat cyber fraud in finance. The code fails to incorporate important definitions and measures outlined in the Budapest Convention, a widely-adopted international treaty aimed at combating cybercrime.

Lack of Specific Legislation

Despite its obligations under the convention, Armenia has not introduced specific legislation governing the preservation of stored computer data, traffic data, or content data. Instead, authorities rely on search and seizure procedures as an alternative measure to obtain evidence. This approach can lead to delays and inefficiencies in investigations.

Inadequate Provisions for Production Orders

Furthermore, Armenian law lacks provisions for production orders, which are essential for obtaining stored computer data from individuals’ possession or control. Search and seizure measures are used as a default option, but these do not provide the necessary protections for electronic evidence.

Insufficient Search and Seizure Measures

The country’s procedural legislation also fails to address specific search and seizure measures for computer-related crimes. As a result, traditional powers of search and seizure for tangible objects are applied, which can compromise the integrity of digital evidence.

Unclear Distinctions in Data Collection

Moreover, Armenian law does not distinguish between real-time collection of traffic data and interception of content data, despite the clear distinctions outlined in the Budapest Convention. This lack of clarity creates uncertainty and potential risks for individuals whose data is being collected or intercepted.

Memorandum of Understanding with Internet Service Providers

In a move to improve cooperation with internet service providers, the Investigative Committee signed a Memorandum of Understanding in 2015. The agreement aims to streamline the process of executing court decisions and introduce technical capabilities. However, the Memorandum does not address key issues related to cyber fraud in finance.

Consequences for Armenia’s Financial Sector

The lack of robust legislation and regulations has significant implications for Armenia’s financial sector, leaving it vulnerable to cyber attacks and fraud. It is essential that the government takes concrete steps to strengthen its laws and institutions to prevent and combat cybercrime effectively.