Class NotesCrimes in the Technology System• Approximately 44% of viruses are from the inside of the organizationo Virus introduction is a WCC• Cyber-terrorism?• Child pornographyo Only a WCC if viewed at work• Theft can include funds (fraud or embezzlement) inside info or intellectual property• Unauthorized access:o Hackers: access computer databases for skillo Crackers: access computer database for chaos and sabotageCybercrime: Hacking• Types of hackers:o White Hats: “ethical” hacker; one who exploits the weakness of computer systems to point out vulnerabilities but not for personal gaino Black Hats: seek out vulnerabilities and exploit them for malicious purposes such as personal gain or to steal/destroy data• An increasing proportion of theft includes stealing info, pirating software and electronic products and copying intellectual propertyo An estimated 1/3 of business software is pirated• Kevin Mitnicko One of the most wanted computer criminals in the USo Gained unauthorized access to dozens of computer networks FBI, IBM, Motorola & Nokiao Copied valuable proprietary software from each of these companieso Intercepted and stole passwords and read private emailso After serving 5 years in prison now runs Mitnick Security Consultants LLCCybercrime: Viruses and Malicious Code• Viruses operate in 4 primary environmentso File viruseso Boot viruseso Macroviruseso Network viruses• Wormso A more malicious standalone piece of code which does not change computer files and can reproduce itself and transfer from computer to computero Can be delivered in the form of a joke program or softwareo More damaging than a virus• Trojan horseso Refer to unauthorized program contained within a legitimate program that performs functions unknown by the usero Trojans to not replicate or copy themselves but causes damage or compromises the security of the computero Often included in file sharing files; internet chat programs, attachments or FTP sitesCybercrime: Identity Theft• Advances in technology have led to new opportunities to commit identity theft which has grown in recent decadeso Access to personal info and social security numbers online makes theft easier for some• Identity theft has been the primary charge in over 90% of arrests made by the Secret Service Financial Crimes Division since the 1990s• Costs of identity theft and fraud to American institutions surpass $50 billion annually• Identity theft methods:o Low tech methods “Dumpster diving”: rummaging through private or commercial trash to find personal info Direct theft of mail Change of address forms in order to receive personal infoo High tech methods Hacking info from corporate databases for online transactions• TIX corporationso A group of hackers broke into a database and stole at least 94 million customer credit card accounts costing $1 billion in damagesCybercrime: Internet Fraud• Internet represents a fresh new ground for perpetrating crime• Nigerian “419” fraudo Spam emails promising monetary compensation for personal information• Auction fraudo Misrepresentationo Non-delivery of goodso “Shill billing”: fake billing done by seller to inflate the priceo 64% of all reported internet fraud• Phishing: one activity of a social engineero Attempt to lure or hook victims to fraudulent websites in order to gather sensitive personal informationo Fraudulent emails may appear as if they are from credible financial institutions Estimated cost of phishing schemes in 2007: $3 billion• Click fraudo Advertisers pay for each “click” on their adso Competitors may be deliberately driving their advertising costs by fraudulent clickingProsecution of Internet Fraud• Computer Fraud & Abuse Act (CFAA), 1984o Designed to protect classified info contained on government computerso Expanded in 1986 and 1996 to cover most fraudulent business practices which are conducted over the internet• 2000: Internet False Identification Prevention Act• 2001: USA Patriot Act added amendments to the 1996 lawo In response to 9/11o A lot of cyber-terrorismSoftware Crime• 4 types of software crime:o 1: Theft of softwareo 2: Counterfeiting software Unauthorized copying, reproduction and manufacturing of software productso 3: Copyright violations Illegally altering, selling or misrepresenting software programso 4: Piracy Theft of copyright protected electronic info i.e.: Movies and musicInternet Crimes: Summary• Offenses committed at workplace or sent to the workplace through the internet• Examples:o Identity thefto Fake emailso Non-delivered merchandiseDifficulties in Catching Computer Crime• Why is it so difficult?o It happens very quicklyo Difficult to find the source Could be internationalo Hard to detect victimization Could take dayso Always a new IP address or location• The typical computer offender is very intelligent and well educated (self-trained or taught)• Napster: music downloading websiteo Sharing music over the internet Revolution on the interneto Over 90 million joinedo Music industry saw it as piracy Copyright infringemento Shut down after major lawsuito Changed the way music downloading went Apple jumped on this trainChapter 9: Corporate Crime• Corporate crime is any act committed by a corporation that is punished by the state, regardless whether it’s punished under administrative, civil or criminal law• In order to organize this large group of WCC we will consider the primary victims as a way to split it upHistory of the Corporation & Corporate Crime• Earliest corporations: churches, towns, universities• Trading corporations played a role in many massively harmful actso i.e.: The devastation of Native Americans and slave trading of AfricansCorporation in Modern Society• There’s a dark side to corporations that was recognized by Karl Marx• Marx regarded corporations as capitalist systems that exploit and de humanize workers and deprives them of fair return of labor• Pursuit of profit is the principle rationale for corporations History of Corporate Crime• Industrial revolution gave rise to powerful and wealthy capitalist with little regulation• The Robber Barons (Rockefeller, Carnegie) were involved in every manner of bribery, fraud, stock manipulation, price gouging, exploitation of labor, etc…• These corporations were largely invulnerable to legal control until the Sherman Anti-Trust Act of 1890Sherman