SRA211 // Chapter 6
How the police catch money laundering criminals
- Bank Secrecy Act - Money Laundering Control Act - U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).
What is the Internet Fraud Schemes Federal Law?
- Computer Fraud and Abuse Act ("CFAA") - how computer fraud schemes are prosecuted
methods for stealing people's identity
- Dumpster diving - people go through trash to find personal information left on bills, etc. - Direct theft of mail - Shoulder surfing - "eavesdropping" on people to get personal information - Hacking information from corporate databases - Bribing of employees who have internal access to customer identifiers - Skimming devices- can be attached to an ATM and steal information about people
Internet Fraud Schemes
- fraud schemes committed over the internet - also called Confidence schemes - many through email
Money Laundering
- hiding the source of money that has been illegally obtained - try to make the money look like it is legal
Trade Based Money Laundering (TBML)
- money is laundered through the physical movement of goods around the world - organized crime uses this system
Why is it harder to embezzle today?
- more information is online and fewer people have the skills to access the information they need and hide what they are doing
why has corporate espionage increased?
- more valuable information is now on computers and people can access it if they know how - there is more global commerce on the internet also
examples of white collar crime
- public corruption - money laundering - bank fraud and embezzlement - fraud against the government - election law violations - health care fraud - mortgage fraud - financial institution fraud, mass marketing fraud
Money Laundering Control Act
- requires banks and other financial institutions to report any suspicious banking transactions - the amount of money in the transaction does not matter
identity theft
- someone uses someone else's identity illegally - most frequent type of consumer fraud
Corporate Espionage
- stealing business information through spying or deception - using the information stolen to benefit yourself or a competitor of the company
embezzlement
-when someone has access to money, property or something of value that is not theirs and they use it for their own personal use -it is usually a crime that happens on the computer
examples of internet fraud
Financial institution fraud Online auction fraud Nigerian 419 scheme Phishing/Email scams
Online auction fraud
When an item purchased through an online auction is never delivered after payment, or the item is not what the seller says it is - example - EBAY
Phishing/Email scams
people are lured/hooked to visit a fraudulent website where they give their personal information
Nigerian 419 scheme
people send money and are promised to get more money back but they never do
