Class Notes Crimes in the Technology System Approximately 44 of viruses are from the inside of the organization o Virus introduction is a WCC Cyber terrorism Child pornography o 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 skill o Crackers access computer database for chaos and sabotage Cybercrime 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 gain o 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 property o An estimated 1 3 of business software is pirated Kevin Mitnick o One of the most wanted computer criminals in the US o Gained unauthorized access to dozens of computer networks FBI IBM Motorola Nokia o Copied valuable proprietary software from each of these companies o Intercepted and stole passwords and read private emails o After serving 5 years in prison now runs Mitnick Security Consultants LLC Cybercrime Viruses and Malicious Code Viruses operate in 4 primary environments o File viruses o Boot viruses o Macroviruses o Network viruses Worms o A more malicious standalone piece of code which does not change computer files and can reproduce itself and transfer from computer to computer o Can be delivered in the form of a joke program or software o More damaging than a virus Trojan horses o Refer to unauthorized program contained within a legitimate program that performs o Trojans to not replicate or copy themselves but causes damage or compromises the functions unknown by the user security of the computer o Often included in file sharing files internet chat programs attachments or FTP sites Cybercrime Identity Theft Advances in technology have led to new opportunities to commit identity theft which has grown in recent decades o 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 info o High tech methods TIX corporations Hacking info from corporate databases for online transactions o A group of hackers broke into a database and stole at least 94 million customer credit card accounts costing 1 billion in damages Cybercrime Internet Fraud Internet represents a fresh new ground for perpetrating crime Nigerian 419 fraud o Spam emails promising monetary compensation for personal information Auction fraud o Misrepresentation o Non delivery of goods o Shill billing fake billing done by seller to inflate the price o 64 of all reported internet fraud Phishing one activity of a social engineer o Attempt to lure or hook victims to fraudulent websites in order to gather sensitive personal information o Fraudulent emails may appear as if they are from credible financial institutions Estimated cost of phishing schemes in 2007 3 billion Click fraud o Advertisers pay for each click on their ads o Competitors may be deliberately driving their advertising costs by fraudulent clicking Prosecution of Internet Fraud Computer Fraud Abuse Act CFAA 1984 o Designed to protect classified info contained on government computers o 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 law Unauthorized copying reproduction and manufacturing of software products o 3 Copyright violations o 4 Piracy Illegally altering selling or misrepresenting software programs Theft of copyright protected electronic info i e Movies and music Internet Crimes Summary Offenses committed at workplace or sent to the workplace through the internet Examples o In response to 9 11 o A lot of cyber terrorism Software Crime 4 types of software crime o 1 Theft of software o 2 Counterfeiting software o Identity theft o Fake emails o Non delivered merchandise Difficulties in Catching Computer Crime Why is it so difficult o It happens very quickly o Difficult to find the source Could be international o Hard to detect victimization Could take days o Always a new IP address or location The typical computer offender is very intelligent and well educated self trained or taught Napster music downloading website o Sharing music over the internet Revolution on the internet o Over 90 million joined o Music industry saw it as piracy Copyright infringement o Shut down after major lawsuit o Changed the way music downloading went Apple jumped on this train Chapter 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 up History of the Corporation Corporate Crime Earliest corporations churches towns universities Trading corporations played a role in many massively harmful acts o i e The devastation of Native Americans and slave trading of Africans Corporation 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 1890 Sherman Anti trust Act 1890 Sherman Anti Trust Act was based on the constitutional power of Congress to regulate interstate commerce A federal statute established to limit monopolies or trusts A fine of 500 and