CRJ 317 Chapter 6 Exam

Introduction

Edwin Sutherland was the first to highlight the disparities between "street crimes" and crimes of the privileged class. He defined acts committed by corporate executives, corrupt politicians, and unscrupulous professionals as "white-collar crimes." He suggested the crimes are largely ignored because the perpetrators of the offenses comprised society's elite.

Embezzlement

Embezzlement is essentially a theft in violation of a trust, embezzlement has been defined as the "unlawful misappropriation for personal use of money, property, or some other thing of value that has been entrusts to an offender's care, custody, or control. Historically the embezzler has not been a person of high social status. Embezzlement can be classified as a "computer-assisted" crime rather than a "computer-focused" crime, the traditional embezzler was often limited by the physical nature of the act, modern embezzlement schemes often use computerized records - and may not involve physical theft or anything - technology has narrowed the pool of potential embezzlers to those individuals who posses the specialized skills required to use computer information systems Modern embezzlement schemes often use computerized records and may not involve physical theft of anything, technology has narrowed the pool of potential embezzlers to those individuals who posses the specialized skills required to use computer information systems

dumpster diving (cybercrime)

In the world of information technology, dumpster diving is a technique used to retrieve information that could be used to carry out an attack on a computer network. Dumpster diving isn't limited to searching through the trash for obvious treasures like access codes or passwords written down on sticky notes.

shoulder surfing (cybercrime)

Shoulder surfing occurs when someone watches over your shoulder to nab valuable information such as your password, ATM PIN, or credit card number, as you key it into an electronic device. When the snoop uses your information for financial gain, the activity becomes identity theft.

corporate espionage

corporate espionage involves any theft of proprietary business information through spying or deception, particularly the theft of "trade secrets." - corporate spies can be divided into insiders and outsiders, most (85%) of corporate is committed by insiders - several factors have combined to increase the occurrences of corporate espionage - the corporate community's increasing use of information and computer technology to conduct business has provided corporate spies easier access to valuable proprietary information, global commerce has increasingly been conducted electronically over the internet. increases in spy tactics among corporate rivals, companies victimized by corporate espionage can pursue civil actions, (example: Cadence Designs Systems and Avant!) economic espionage act of 1996

corporate espionage (part 2)

corporate espionage involves any theft of proprietary business information through spying or deception, particularly the theft of 'trade secrets' - corporate concerns regarding espionage and the theft of business secrets have grown over the course of the last two decades, primarily because of two factors: 1. growth in the use of computer and information technologies by corporations has increased the availability of trade secrets, especially the use of emails within and between corporations 2. global commerce has increasingly been conducted conducted electronically over the internet corporate spies are classified as either 'insiders' or 'outsiders' or independent contractors. the most prevalent avenue corporations use ti redress corporate espionage crimes are the civil courts, although these remedies can be painstakingly slow and expensive to pursue - more recently, spying activities attributed to state-affiliated attackers have gained increased attention. These state-affiliated spies are categorized as 'external threat actors' and the proportion of attacks attributed to external actors has been on the rise and now accounts for the vast majority of espionage-related attacks - while the majority of financially motivated attacks originate from the U.S or Europe, almost all of the espionage cases (96%) were attributed to actors in China. The data suggest that china has become the most active source of national and industrial espionage today. The most prevalent other countries of origin include Romania, the u.s, Bulgaria, Russia, and the Netherlands (cadence design systems and avant! corporation are example & economic espionage act of 1996)

embezzlement (part 2)

embezzlement is essentially a theft in violation of a trust. It commonly involves the unlawful misappropriation for personal us of money, property, or some other thing of value that has been entrusted to an offender's care - traditionally, embezzlement has involved the physical theft of property or money by employees engaged in managing the assets of persons or organizations. The advent of the computer age, and the ubiquitous use of computers in personal and corporate finance have transformed the methods used by embezzlers and have expanded the opportunities that are available to commit embezzlement schemes. (embezzlers need to now have specialized computer skills)

introduction (part 2)

historically the field of criminology has emphasized the need to explain the occurrence of what has commonly been referred to as traditional "street crime." Crimes such as homicide, rape, armed robbery, and aggravated assault have garnered a vast amount of public and media attention, and crime justice policies have been designed mainly to counteract these personal violent crimes. As a result, crimes that do not fall under traditional definitions or those that are committed by persons by persons who do not fit the public's common perception of the typical criminal have received much less attention. The rise of new technologies and newer forms of crime committed with the use of computers should increase the focus of attention on crimes that have been referred to as "white collar" offenses - in the late 1940's, noted criminologist Edwin Sutherland was the first to highlight the disparities between "street crimes" and crimes of the privileged class - he attempted to describe and define a class of behaviors very different fro those of traditional street crimes, including acts committed by corporate executives, corrupt politicians and unscrupulous professionals. He defined these acts as "white-collar crimes" and suggested that they are largely ignored because the perpetrators of these offenses comprised society's elite- people with the economic wherewithal and status to shape the criminal law in their favor and avoid detection and punishment.

identity theft (part 2)

identity theft involves the fraudulent use of individual information such as social security numbers, dates of birth, and credit card numbers by thieves who are intent on using this information for personal gain. Alarming increases in the incidence of identity theft can partly be attributed to the increasing use of social security numbers as personal identifiers: 1. identity theft is the most frequent type of consumer fraud complaint 2. information may be obtained through 'dumpster diving' and shoulder surfing' 3. online black markets sell personal information 4. 'carding markets' facilitate identity fraud 'skimming' devices that can be attached to ATM's to steal pass codes, and buy and sell fraudulent passports and driver's licenses - federal law enforcement agencies and the criminal justice system have begun to respond to the increasing threat posed by identity thieves through new legislation and consumer awareness programs. In 1998 congress passed the identity theft and assumption deterrence act (in addition to this law, federal agencies have implemented numerous consumer awareness programs designed to stem the incidence of identity crimes

internet fraud schemes

many fraud schemes committed over the internet are simply new takes on old schemes (chain letter hoaxes, confidence schemes, bait-and-switch con games), There are several types of internet fraud (financial institution fraud, online auction fraud, Nigerian 419 scheme, phishing) - the computer fraud and abuse act has become the primary vehicle for the prosecution of internet fraud crimes (IC3 received over 16,000 complaints about the Nigerian scheme alone in 2008)

internet fraud schemes (part 2)

many fraud schemes committed over the internet are simply new takes on old themes - chain letter hoaxes, confidence schemes, and bait-and-switch con games that are now performed over an electronic medium rather than in person or over the telephone. whether in old or new form, it is clear that the increasing use of the internet has given rise to an alarming growth in fraudulent schemes - these schemes include financial institution frauds, investment frauds, and communication frauds, the most prominent confidence scams performed over the internet have been the Nigerian 419 scheme and various on-line auction fraud scams, less damaging internet fraud schemes have also appeared especially chain letter hoaxes and 'urban legions' - phishing attacks involve the distribution of e-mails that appear to be from a legitimate financial institution or credit card company - the computer fraud and abuse act (CFAA) has become the primary vehicle for the prosecution of internet fraud crimes. The CFAA was initially enacted by congress in 1984, primarily as a means to protect classified information contained on government computers. The scope of the CFAA was expanded in 1986, and again in 1996, the 1996 amendments to the act worked to Incorporated all computers that are involved in interstate and/or foreign commerce.

Money Laundering

money laundering is the act of concealing the source of assets that have been illegally obtained (the primary object in laundering is to hide the source and ownership of such funds through the creation of a seemingly legitimate history of paper trail) and (it is impossible to know the extent to which money laundering occurs) - traditionally money laundering was accomplished through 3 primary means 1. cash that was illegally obtained could be transported from its place of origin to a jurisdiction that had less stringent banking and reporting requirements 2. the laundering could quickly transform had currency into legitimate real property 3. laundering often turned to a method commonly referred to as "smurfing" the increasing use of technology has provided a wealth of new opportunities for the money launderer (electronic cash transfers, electronic cash exchange systems - E-cash) Law enforcement authorities have several tools at their disposal to enforce money-laundering crime (bank secrecy act, money laundering control act, u.s. treasury department's financial crimes enforcement network -FinCEN) Trade based money laundering (TBML) launders money through through the physical movement of goods around the world - organized criminal groups use this trade system - TBML is vulnerable - transportation of large volumes goods obscures the nature and character of any single trade transaction - nations have limited resources to verify the exchange of goods across borders

money laundering (part 2)

money laundering is the act of concealing the source of assets that have been illegally obtained, like embezzlement, money laundering is an 'old' crime whose opportunities have expanded greatly with the increasing use of technology in the marketplace, the current explosion in e-commerce and the influence of the internet has provided launderers even greater opportunities through the introduction of 'e-cash' instruments (experts estimate that about $300 billion in cash is laundered each year, the amount of illegal money laundering associated with the drug trade alone is thought to be anywhere from $5 to $15 billion annually) - traditionally money laundering is accomplished 3 ways: 1. cash that was illegally obtained could be physically transported from its place of origin to a jurisdiction that had less stringent banking and reporting requirements 2. the launderer could quickly transform hard currency into legitimate real property, and 3. launderers often turned to a method commonly referred to as 'smurfing' - the electronic revolution that has occurred in the banking industry, especially the large scale movement of cash in electronic forms, has made laundering easier (liberty reserve example) - law enforcement officials have 3 primary ways to control and prosecute money laundering crimes: 1. the bank secrecy act of 1970 2. the 1986 money laundering control act 3. the us treasury department's financial crimes enforcement network (FinCEN) - trade based money laundering (TBML) is increasingly abused by organized criminal groups

smurfing

smurfing involves the division of large amounts of cash into smaller denominations so as to conceal its common origin

identity theft

the exponential growth in the incidence of identity theft can largely be attributed to the creation of opportunities that are directly linked to technological and commercial advances - identity theft remains the most frequent type of consumer fraud complaint - complaints of identity theft leaked in 2007 and 2008, but decreases in 2009 and 2010 identity thieves use a variety of methods to steal personal information (dumpster diving, direct theft of mail, shoulder surfing, hacking information from corporate databases, bribing of employees who have internal access to customer identifiers, skimming devices federal law enforcement agencies have begun to respond to the increasing threat posed by identity thieves through new legislation and consumer awareness programs (identity theft and assumption deterrence act, federal trade commission established the identity theft clearinghouse)