Forensic and Investigative AccountingSlide 2Culture Helps Determine Laws and Ethical StandardsEthical PrinciplesSlide 5Slide 6Information Rights: Privacy and Freedom in the Internet AgeU.S. Federal Privacy LawsCommunications with ChildrenSanrio’s Approach to COPPA ComplianceEthical IssuesEthical Issues (continued)Slide 13Slide 14Slide 15Property Rights: Intellectual PropertySlide 17Jurisdiction on the InternetJurisdiction on the Internet (continued)Subject-matter JurisdictionForum Selection Clause on the Qpass Web SiteUse and Protection of Intellectual Property in Online BusinessWeb Site Content IssuesDomain Names, Cybersquatting, and Name StealingDomain Names, Cybersquatting, and Name Stealing (continued)Protecting Intellectual Property OnlineDefamationDeceptive Trade PracticesU.S. Federal Trade Commission Advertising Guidance pageOnline Crime, Terrorism, and WarfareIntroduction to CybercrimeNet FraudsSlide 33Intangible AssetsSlide 35Cybercrime or Not?International LawSlide 38Federal Statutes Related to CybercrimesUSA Patriot Act of 2001Slide 41State LegislationFighting CybercrimeSlide 44Slide 45Slide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Slide 54Slide 55Slide 56Slide 57Filing Reports of CybercrimesSlide 59Slide 60Slide 61End Ch. 15 Resources Listed BelowForensic and Investigative AccountingChapter 15Cybercrime Management: Legal & Ethical IssuesChapter 15Forensic and Investigative Accounting2Professor’s Note:I have incorporated material from other sources into this presentation to include ethical issues.Chapter 15Forensic and Investigative Accounting3Culture Helps Determine Laws and Ethical StandardsChapter 15Forensic and Investigative Accounting4Ethical Principles•Golden rule:Golden rule: Do unto others as you Do unto others as you would have them do unto youwould have them do unto you•Immanuel Kant’s categorical Immanuel Kant’s categorical imperative:imperative: If an action is not right for If an action is not right for everyone to take, then it is not right for everyone to take, then it is not right for anyoneanyoneChapter 15Forensic and Investigative Accounting5Ethical Principles•Descartes’ rule of change:Descartes’ rule of change: If an action If an action cannot be taken repeatedly, then it is not cannot be taken repeatedly, then it is not right to be taken at any timeright to be taken at any time•Utilitarian principle: Utilitarian principle: Put values in rank Put values in rank order and understand consequences of order and understand consequences of various courses of actionvarious courses of actionChapter 15Forensic and Investigative Accounting6Ethical Principles•Risk aversion principle: Risk aversion principle: Take the Take the action that produces the least harm or action that produces the least harm or incurs the least costincurs the least cost•Ethical “no free lunch” rule: Ethical “no free lunch” rule: All All tangible and intangible objects are owned tangible and intangible objects are owned by creator who wants compensation for by creator who wants compensation for the workthe workChapter 15Forensic and Investigative Accounting7Information Rights: Privacy and Freedom in the Internet Age•Privacy:Privacy: Claim of individuals to be left Claim of individuals to be left alone, free from surveillance or alone, free from surveillance or interference from other individuals, interference from other individuals, organizations, or the stateorganizations, or the state•Fair information practices:Fair information practices: Set of Set of principles governing the collection and principles governing the collection and use of information on the basis of U.S. and use of information on the basis of U.S. and European privacy lawsEuropean privacy lawsChapter 15Forensic and Investigative Accounting8U.S. Federal Privacy LawsGeneral Federal Privacy LawsGeneral Federal Privacy Laws•Freedom of Information Act, 1968 Freedom of Information Act, 1968 •Privacy Act of 1974Privacy Act of 1974•Electronic Communications Privacy Act of Electronic Communications Privacy Act of 19861986•Computer Matching and Privacy Protection Computer Matching and Privacy Protection Act of 1988Act of 1988•Computer Security Act of 1987Computer Security Act of 1987•Federal Managers Financial Integrity Act of Federal Managers Financial Integrity Act of 19821982Chapter 15Forensic and Investigative Accounting9Communications with ChildrenChildren’s Online Privacy Protection Act of 1998 (COPPA)Provides restrictions on data collection that must be followed by electronic commerce sites aimed at childrenRequires schools that receive federal funds to install filtering software on computersChapter 15Forensic and Investigative Accounting10Sanrio’s Approach to COPPA ComplianceChapter 15Forensic and Investigative Accounting11Ethical IssuesWeb businesses find ethical issues are important to consider when making policy decisionsDifferences in cultures throughout the world have resulted in different expectations about privacy in electronic commerceChapter 15Forensic and Investigative Accounting12Ethical Issues (continued)Principles for handling customer dataUse data collected to provide improved customer serviceDo not share customer data with others outside your company without the customer’s permission Tell customers what data you are collecting and what you are doing with it Give customers the right to have you delete any of the data you have collected about themChapter 15Forensic and Investigative Accounting13Chapter 15Forensic and Investigative Accounting14Ethical IssuesUnder what conditions should the privacy Under what conditions should the privacy of others be invaded? of others be invaded? What legitimaizes intruding into others’ What legitimaizes intruding into others’ lives through unobtrusive surveillance, lives through unobtrusive surveillance, through market research, or by whatever through market research, or by whatever means? means?Chapter 15Forensic and Investigative Accounting15Ethical IssuesDo we have to inform people that we are eavesdropping? Do we have to inform people that we are using credit history information for employment screening purposes?Chapter 15Forensic and Investigative Accounting16Property Rights: Intellectual PropertyIntellectual property: Intangible creations protected by lawTrade secret: Intellectual work or product belonging to business, not in public