Verisk Analytics, Inc. · NASDAQ:VRSK
Verisk Analytics — Emerging Issues webinar: Widening the Lens on Human Trafficking (April 2024)
33 slides from Verisk Analytics's conference presentation, Apr 3, 2024
Slide 1: Widening the Lens on Human Trafficking
Widening the Lens on Human Trafficking An Emerging Issues Presentation 4/3/2024 © Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Policy Statement
Policy Statement The policy of Verisk Analytics and subsidiary companies is to comply in all respects with federal and state antitrust laws. With this in mind, we want to mention that during all seminars held under our auspices, this policy prohibits discussion of certain topics. Because we want to
Slide 3: Today's agenda
Widening the Lens on Human Trafficking Today’s agenda • Human Trafficking: An Overview • Update on Select Legislative and Regulatory Trends • Human Trafficking in the U.S. at a Glance • Commercial Sex Trafficking: Emergent and Emerging Risks • Forced Labor and the U.S. Border Crisis • Artificial Ens
Slide 4: Human Trafficking: An Overview
Human Trafficking: An Overview © Verisk Analytics, Inc. All rights reserved. 4
Slide 5: Trafficking: Defined
Human Trafficking: Defined A global and multifaceted challenge “Human trafficking involves the use of force, fraud, or coercion to obtain some type of labor or commercial sex act.” U.S. Department of Homeland Security © Verisk Analytics, Inc. All rights reserved. Sources: See Appendix 5
Slide 6: Trafficking: Types and Targets
Human Trafficking: Types and Targets Understanding the methods of exploitation Forced Labor Sexual Exploitation Other Forms of Modern Slavery • A scourge affecting • Another form of forced • Forced marriage both illicit and private labor economies worldwide • Child labor & • Survivors often exploita
Slide 7: Trafficking: A Global View
Human Trafficking: A Global View By the numbers • Nearly 50 million people were living in modern slavery worldwide, as of 2021 • More than 25 million subjected to forced labor • Of those engaged in forced labor, more than 17 million were exploited in the private sector—more than 6 million were invol
Slide 8: Legislative and Regulatory Landscape
Legislative and Regulatory Landscape Laura Panesso Assistant Vice President © Verisk Analytics, Inc. All rights reserved. CONFIDENTIAL 8
Slide 9: Past Trends in Legislative & Regulatory Activity
Past Trends in Legislative & Regulatory Activity • Criminal provisions addressing: – Traffickers – Facilitators – Demand (the act of buying commercial sex acts with a minor) • Criminalization of domestic minor sex trafficking • Protective provisions for minor victims • Criminal justice tools for inv
Slide 10: Federal Activity
Federal Activity • Trafficking Victims Protection Act of 2000 (TVPA) – First comprehensive federal law to address human trafficking – Created the Interagency Task Force • Since then, Congress has passed a number of comprehensive bills • More recently, on 2/5/2024, the House passed the Enhancing Dete
Slide 11: State Activity
State Activity • Individual states started passing human trafficking laws in 2003 • Some laws did not include: – Prostitution-related and obscenity-related activities – Commercial sexual exploitation – Sex trafficking of minors • Over 1,600 bills on human tracking between 2023-2024 – Funding – Educa
Slide 12: State Activity Continued
State Activity Continued Current Trends in Legislative and Regulatory Activity • Statute of Limitations for child sexual abuse • Civil cause of action for non-profit organizations against human traffickers • Services and treatment • Disqualification for a commercial driver license (e.g., lifetime) •
Slide 13: Trafficking: U.S. at a Glance
Human Trafficking: U.S. at a Glance © Verisk Analytics, Inc. All rights reserved. 13
Slide 14: Trafficking in the United States
Human Trafficking in the United States A Snapshot • A 49 percent increase in human trafficking referrals over 10 years (despite an overall population decline in that same span) • Federal prosecutions more than doubled in same stretch of time • DOJ researchers warn that data may be undercounted and i
Slide 15: High Risk Industries (Q1 2024): Verisk Maplecroft
Human Trafficking in the United States High Risk Industries (Q1 2024): Verisk Maplecroft Industry Trafficking in Persons Rating Agricultural Products 2.75 Metals & Mining 3.21 Meat, Poultry & Dairy 3.44 Engineering & Construction Services 3.94 Apparel, Accessories & Footwear 3.96 Electrical & Electr
Slide 16: Common Risk Pathways
Human Trafficking in the United States Common Risk Pathways Sex Trafficking • Accounted for 96 percent of new federal human trafficking cases in 2022 • Has led to litigation against hotel chains and respective insurance providers People Smuggling • High-profile cases in recent years involving migran
Slide 17: Commercial Sex Trafficking: Emergent and Emerging Risks
Commercial Sex Trafficking: Emergent and Emerging Risks © Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Sex Trafficking in the United States
Sex Trafficking in the United States A Brief Overview • Typically includes escort services, pornography, illicit massage businesses, brothels, and outdoor solicitation • Most federal cases involve only one defendant • Victims tend to be trafficked by loved ones or intimate partners • More than half
Slide 19: A Tech and Social Blindspot?
Sex Trafficking in the United States A Tech and Social Blindspot? • Since 2000, traffickers have recruited 55 percent of victims online • Popular social media apps and instant messaging platforms are used to recruit and operate trafficking schemes • Decrease in content moderation on platforms may le
Slide 20: Forced Labor and the U.S. Border Crisis
Forced Labor and the U.S. Border Crisis © Verisk Analytics, Inc. All rights reserved. 20
Slide 21: A Burgeoning Forced Labor Crisis?
A Burgeoning Forced Labor Crisis? What We Know • More than 70 percent subjected to forced labor in U.S. enter country lawfully • Undocumented workers account for roughly half of agricultural labor force • A spike in forced labor violations was fueled in part by the migrant crisis, according to Veris
Slide 22: Potential Risk Pathways
A Burgeoning Forced Labor Crisis? Potential Risk Pathways Potentially inconsistent oversight Record- Reportedly breaking flawed migrant migrant sponsorship crossings program Increased risk of fines Potential litigation Reputational damage © Verisk Analytics, Inc. All rights reserved. Sources: See Ap
Slide 23: Artificial Enslavement: Possible Tech Supply Chain Risk
Artificial Enslavement: Possible Tech Supply Chain Risk © Verisk Analytics, Inc. All rights reserved. 23
Slide 24: Trafficking in Tech
Human Trafficking in Tech A 21st century challenge • Nearly two-thirds of forced labor cases linked to private sector supply chains worldwide • Demand for raw materials needed for smartphones and solar panels continues to grow • Increased need for data labeling services also fueling forced labor cas
Slide 25: Trafficking in Tech: A Case Study
Human Trafficking in Tech: A Case Study The complex case of cobalt • Lustrous, magnetic metal powers smartphone batteries, laptops, and EVs • IEA estimates demand for the metal could increase between 1.5 and 7 times by 2030 • Roughly half of the world’s cobalt resides in the DR Congo • A federal app
Slide 26: Trafficking in Tech: Sounding a GenAI Alarm
Human Trafficking in Tech: Sounding a GenAI Alarm The innovative tool faces a generative problem • Demand for data-annotation services creating potential for labor exploitation • Cases of child labor have been reported in Pakistan, Kenya, and the Philippines • Workers report arbitrarily delayed or w
Slide 27: Trafficking and Insurance
Human Trafficking and Insurance The money laundering nexus • Life insurance: Traffickers may launder through loans against a policy. – Traffickers may change “beneficial owner” • High value goods: Illicit money may move through insurance on high-value goods. – Traffickers may insure diamonds, artwor
Slide 28: Trafficking: Resources
Human Trafficking: Resources Federal Government Resources • Department of Health and Human Services (HHS) - Look Beneath the Surface Campaign • Department of Homeland Security (DHS) - Blue Campaign • Department of State - Know Your Rights Campaign • Department of Justice - Office for Victims of Crim
Slide 29: What's New at Emerging Issues
What’s New at Emerging Issues core.verisk.com/ei © Verisk Analytics, Inc. All rights reserved. 29
Slide 30: Appendix: Sources
Appendix: Sources Slide 5 – Human Trafficking: Defined Slide 14 – Human Trafficking in the United States “Human Trafficking Data Collection Activities, 2023,” U.S. Department of Justice, October 2023. "Human Trafficking Crimes Are Punishable by Federal Law," Homeland Security. https://bjs.ojp.gov/do
Slide 31: Appendix: Sources (Cont.)
Appendix: Sources (Cont.) Slide 18 – Sex Trafficking in the United States Slide 21 – A Burgeoning Forced Labor Crisis? "HUMAN TRAFFICKING" Polaris Project. https://polarisproject.org/human- “What Is Human Trafficking?” Department of Homeland Security. trafficking/#:~:text=Sex%20trafficking%20is%20th
Slide 32: Appendix: Sources (Cont.)
Appendix: Sources (Cont.) Slide 24 – Human Trafficking in Tech Slide 26 – Human Trafficking in Tech: Sounding a GenAI Alarm “THE GLOBAL SLAVERY INDEX 2023, Walk Free, 2023. “Underage Workers Are Training AI,” Wired, November 2023. https://www.wired.com/story/artificial-intelligence- https://cdn.walk
Slide 33: Thank you! Questions?
Thank you! Questions? Contact us: [email protected] “This material was used exclusively as an exhibit to an oral presentation. It may not be, nor should it be, relied on as reflecting, a complete record of the discussion. No part of this presentation should be copied or distributed without p