Part 6: Chapter 17

Research shows that organizations are more vulnerable to people with what following described characteristics?

-Age. Most perpetrators are young and more educated in college and universities, where computers attacks are more common and sometimes condoned as educational activity. -Skills and knowledge. Most suspects are among the most skilled and higher performing technologists. This is seen in particular in organizations in which a worker is overqualified for the work he or she is doing. -Positions of trust. In most cases, perpetrators perform their acts while working at their jobs. Investigators should anticipate that vulnerabilities identified will usually result in the most qualified person taking advantage of them. -Assistance. Perpetrators in many types of computer crimes have been known to need assistance. This is because computer crimes are required more knowledge and access than one person usually possesses. -Differential association. Frequently, people working together may encourage each other to engage in unauthorized acts that escalate into serious crimes. -Robin Hood syndrome. Most computer crime perpetrators interviewed in the study differentiated between harming people and organizations, the latter of which was easily condoned. In addition, they rationalized that they were only harming a computer, not causing any loss to people or organizations.

What are some crimes that either feed off check in card font or facilitate its Commission? (PAGE 490)

-Drug trafficking. -Identity theft. -Mail fraud. -Burglaries, robberies and thefts from cars. -Pickpocketing. -Fencing. -Extortion. -Organized crime. -Local gang related crime. -Cons and scams. -Financial crimes against the elderly. -Shoplifting. -Car thefts.

What are certain care measures that are required for common types of computer evidence?

-Magnetic tape and disc. These must be handled with care. This type of evidence is also easily destroyed by exposure to magnetic fields such as stereo speakers and printers. -Printed computer listings. New restrictions on storage are required for paper printouts of computerized data, except that they should not be stored in direct sunlight. This practice will reduce the chance of fading. -Computer. All types of computers are sensitive. Be careful. Even when a computer is turned off, disruption by moving it may occur. If there's a hard drive, it should be parked before being moved to avoid destroying information contained on the disk. -Additional computer hardware. Investigators should document the configuration of the computer while add on equipment is involved and how it should be disconnected. This equipment may include telephone modems, auto dialers and printers. Investigators must also remember that the owners of the computer related evidence may have special problems when the evidence is removed from their possession. Such material may be necessary for continuing the legitimate business or other activities. One manner of dealing with this situation is to arrange for copying the material. After this is accomplished, the copy, not the original, is returned to the rightful owner.

What are some recent cases of money laundering?

-On February 29, 2012, in Amarillo, TX, Amy Fernandez was sentenced to 12 months in prison and ordered to pay a money judgment of $99,950 for structuring financial transactions to avoid the reporting requirements. Fernandez admitted that she purchased cashier's check from four separate financial institutions each day during the week of February 22 2010, through February 26th, 2010. In order to avoid federal reporting requirements, Fernandez purchased these cashier's check in either $3,000 or 2,950 amounts, for a combined total of $59,550. Fernandez tendered, cash that she removed from large gallon size plastic bags that she carried in her purse. During one transaction, she stated that she had to make certain that she stayed under the $3000 threshold. -On April 12, 2012, Joseph P Loomis of Holdman, Wisconsin, was sentenced to 240 months in prison. Loomis was the leader of a drug organization that distributed between 15 and 50 kilos of cocaine in lacrosse, Wisconsin area from approximately April 2006 September 2008. He also distributed large quantities of marijuana from 2006 through the spring of 2012. Loomis maintained stash houses and used other persons to pick up, package, store and distribute drugs. He also used another individual to collect drug debts. Loomis laundered drug proceeds by using a Netspend stored value card. He deposited large sums of cash onto the card and then use the cards to purchase items. -On April 26, 2012, in Charlotte, NC, Eric Mark Giles was sentenced to 169 months in prison for drug, money laundering and firearm charges. Giles a student at the University of North Carolina, UNC, led a large marijuana distribution organization which generated drugs proceeds in excess of $1,000,000 in a 2 1/2 year time. Giles was primarily responsible for the shipment of high grade marijuana from Santa Cruz, CA to distributors based in the UNC Charlotte area. The group used bank accounts to launder their drug proceeds by making large cash deposits in branches in North Carolina and corresponding cash withdrawals in California. The coconspirators kept their individual transactions under $10,000 in an effort to avoid federal currency transaction reporting requirements. These cases illustrate that when criminals have a large amount of illegal income, they have to do something with it in order to hide it from the IRS. They attempt to launder it to make it appear as if it was from a legitimate source, allowing them to spend it or invest it in assets without having to worry about the IRS and tax consequences.

What are the four main categories of computer crime that have been identified?

1. The introduction of fraudulent records or data into a computer system. 2. Unauthorized use of computer related facilities. 3. The alteration or destruction of information or files. 4. The stealing, whether by electronic means or otherwise, of money, financial instruments, property, services or valuable data. Computer crime has also been classified by the types of information loss, including modification, destruction, disclosure and the use or denial of use. These violations may involve changing information, prohibiting access information, and will removing or copying it wrongfully.

What is the smurfing process?

1. The trafficker provides cash to Smurfs. 2. The Smurfs by cashier's check in denominations under $10,000. 3. The Smurfs then turned the checks over to an intermediary. 4. The intermediary deposit checks in the traffickers domestic or foreign bank account. Smurfing allows the trafficker to deposit $500,000 in bank and circumvent bank reporting requirements.

What is a common countermeasure for credit Card fraud?

A common countermeasure is to require the user to key in some identifying information, such as the users zip or postal code. This method may deter casual theft of a card found alone, but if the card holders wallet is stolen, it may be trivial for the thief to discuss the information by looking at other items in the wallet. For instance, a US driver license commonly has the holder's home address and zip code printed on it. Visa Inc offers merchants lower rates on transactions if the customer provides the ZIP code. Card issuers have several countermeasures, including sophisticated software that can, prior to an authorized transaction, estimate the probability of fraud. For example, a large transaction occurring a great distance from the cardholders home might seem suspicious. The merchant may be instructed to call the card issuer for verification or to decline the transaction, or even hold the card and refuse to return it to the customer. The customer must contact the issuer and provide who they are to get their card back. If it is not fraud and they are actually buying a product.

What is computer viruses?

A computer virus is a set of computer instructions that would reproduces itself in computer programs when they are executed within unauthorized programs. The programs may be inserted through a special program designed for that purpose or through use of a Trojan horse. Hidden instructions insert into a computer program that the victim uses. Then the virus multiplies itself into other programs when they are executed, creating new viruses. Such programs can lie dormant in computer systems for weeks or even months, and may in fact entire computer networks, rendering them useless. Although the first three cases of computer viruses were reported in November 1987, hundreds of subsequent cases have since appeared in various academic and research cultures. Some cases have emerged as a result of disgruntled employees of computer program manufacturers who have contaminated products during delivery to customers. Investigators should first interview the victims to identify the nature of the suspected attack. They should then use the necessary tools to examine the contents after a suspected event.

What is computer crime? under paragraph

A decade or so, if a college student used a camera to spy on his gay roommate and pass the pictures around, hardly anyone would have made a fuss, least of all the criminal justice system. It might have been passed off as a youthful prank. The perpetrator would probably not have been arrested and prosecuted, much less convicted and sentenced to jail. But in 2010, just such a case set off a firestorm focusing national attention on cyber bullying faced by gay and lesbian teens.

What is logic bombs?

A logic bomb is a set of instructions inserted in a computer program that looks for specific errors in a computers normal functioning. After it has been identified, the logic bomb kicks into action and exploits the error identified. The end result is the victim computer reacting in certain ways that might result in crashing of the program.

What is trapdoors?

A trap door is a technique in which programmers insert debugging aids that break security codes in the computer and then insert an additional code of their own. This enables entry into the program for such purposes as false data entry.

What is a typical example of a false data entry or data diddling?

A typical example of a false data entry or data did delaying is the case of a time keeping clerk who filled out data forms of hours worked by 300 employees in a real world Company department. He noticed that all data on the forms entered into the time keeping and payroll system on the computer included both the name and employee number of each worker. However, the computer used only employee numbers for processing. He also noticed that the outside the computer, all manual processing and control were based only on employee names because nobody identified people by their numbers. He took advantage of this situation by filling out forms for overtime hours worked, using the names of employees who frequently worked overtime, but entering his own employee number. This scheme was successful for years until detected by an auditor examining W-2s who noticed the clerks unusual high annual income. A subsequent examination of the time keeping computer flies, files and data forms and the discussion with the Clerks Supervisor revealed the source of the income.

What is a pyramid scheme example?

A typical operation swept California during the 1970s. In the scheme, two players paid an entry fee of $1000 apiece. Half this amount, $500 went to the top of the pyramid, while the remaining $500.00 from each of the two new players went to the player who recruited them. So the first pair got his money or her money back and then waited to move up another rung on the pyramid. As each of the new two players recruited two more players that they could also recover their initial. $1000 investment. At each step of the pyramid was mounted, the initial player moved from rung16 to rung 18, to rung four, to rung two and finally to rung one. After reaching the top rung, the player received the money that accumulated at the top for him or her, which was $16,000. Although it may seem fairly easy for new players to induce 2 new players to the scheme, the numbers become astronomical. Essentially, each player on rung 16 creates 2 entirely new pyramids and the progression gets bigger and bigger. For example, there are 16 players on the bottom rung and it takes 32 new players to get them to advance to the next rung. Each of these 32 players must now recruit 2 new players, bringing the total number to 64. Those 64 must now recruit 2 new players, each totaling 128 people. The total then jumps to 256, at which the time the original 16 players have reached the top of the pyramid. However, for the players on the next rung, 512 players are needed for them to advance to the next rung. For the next group the required number is 1024 and so on. The California Pyramid scam finally died out as cons were unable to attract enough gullible people to keep it alive.

What is the definition of cybercrime?

According to one definition, cybercrime is the destruction, theft, or authorized use, modification, or copying of information program, service equipment, or communication networks.

According to the Bureau of Journal Statistics, white Collar crime is what?

According to the Bureau of Journal Statistics, white Collar crime is not an official crime category, but it represents a unique area of criminality that differs from other categories of criminality, such as violence and property crime.

According to the National Institute of Justice what do state and federal criminal codes contain about the definition of computer crime?

According to the National Institute of Justice, State and Federal Criminal courts contain more than 50 different definitions of computer crime, each somewhat different from the other. For the sake of simplicity, let's define computer crimes as the violations of criminal law that require knowledge of computers for their perpetration. Internal computer crimes are alterations to computer programs that result in the performance of unauthorized functions within the computer program. Such crimes have been around for years and have acquired names such as Trojan horses. Logic bombs and trapdoors indicate different programming techniques designed to carry out the unauthorized functions.

What is an example of masquerading?

An example of a cover masquerade occurred when the young man posed as a magazine writer and called the Telephone Company, indicating that he was writing an article on the computer system used by the phone company. The conversation revealed a detailed briefing on all of computer facilities and application systems. As a result, the perpetrator was able to seal more than $1,000,000 worth of telephone equipment from the company.

Check and card fraud as a crime?

Apart from the obvious financial loss caused by check and card fraud, it is a serious crime that affects multiple victims and significantly contributes to other types of crimes. At the most basic level, fraud is easy to commit and the chances of apprehension and punishment are minimal. Thus, check and credit card fraud is an ideal entry level crime from which people may get graduate to more serious crimes. When a credit card is stolen or lost, it can be used until the owner notifies the issuer that the card is missing. Most issuers have free 24 hour telephone numbers in encourage prompt reporting. Still, it is possible for a thief to make unauthorized purchases on a card until it is cancelled. Without other security measures, a thief could potentially purchase thousands of dollars in merchandise or services before the card holder or the card issuer realizes that the card is in the wrong hands. The only common security measure on all cards is a signature panel, but signatures are relatively easy to forge. Some merchants will demand to see a picture ID, such as a driver's license to verify the identity of the purchaser, and some credit cards include the holders picture on the card itself. However, the card holder has a right to refuse to show additional verification, and asking for such verification is usually a violation of the merchants agreement with the credit card companies. Self-serve payment systems by gas station and kiosk are common targets for stolen cards as there is no way to verify the card holders identity

What is the pyramid Get rich quick scheme?

As in Ponzi schemes, the money collected from newer victims of the fraud is paid to earlier victims to provide a veneer of legitimacy. In pyramid schemes, however, the victims themselves are induced to recruit further victims through the payment of recruitment commissions. More specifically, pyramid schemes are also referred to as franchise fraud or chain referral schemes are marketing investment frauds in which an individual is offered a distributorship[ or franchise to market a particular product. The real profit is earned not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. The heart of each pyramid scheme is typically a representation that new participations can recoup their original investments by inducing two or more prospects to make the same investment. Promoters failed to tell the prospective participants that this is mathematically impossible for everyone to do, since participations drop out, while others recoup their original investments and then drop out. Theoretically, a pyramid scheme can continue indefinitely, but it actually bubbles and soon collapses because of sheer numbers involved.

What is evidence considerations?

As in the preparation of any case for criminal prosecution, the collection and Perseveration of evidence are critical evidence. Experience has shown that the most typical defense played in a computer crime case is to attack the admissibility of evidence sized Such attacks often result in the suppression of evidence that might otherwise easily incriminate the suspect.

What is the definition of computer crime?

As indicated, many different types of crimes are committed through illegal use of the computer. Computer crime, however, is not well understood in the criminal justice community, partially because of its newness on the criminal frontier and the level of competency required for many such offenses. Other factors also contribute to the confusion about the crime, such as media sensationalizing Of events involving computers. Because of this, a consensus of the definition of computer crime is difficult to obtain.

What are confidence games?

As with corporate crime, so-called confidence games are crimes that betray the trust of the victim. For decades, criminals have practiced the art of getting something for nothing by stealing from a trusting person. When reading the following con artist scams, it may be difficult to believe that intelligent people could actually fall victims of such manipulation. Indeed they do. Let's examine some of the more common con games.

What is the preliminary investigation of computer crimes?

As with the preliminary investigation, each department standard operating procedures should be followed regarding dealing with victims, evidence and suspects. Investigators should remember that computer crimes involve persons who communicate in a language that may be difficult to understand. Because of this, a computer expert should be identified to assist the investigator in the course of the investigation. Indeed, it is imperative that every aspect of the investigation be fully understood throughout the inquiry. The degree of cooperation by the victim will also vary from one investigation to another. Precluding to the possibility that the victim is also a suspect in the case, it is imperative that the victim understands that maximum cooperation is required to achieve both positive results and to avoid wasting much valuable time. Another problem encountered in crime computer cases is that often midway through the investigation the victim will decide to settle for restitution and not pursue the prosecution further. Therefore, investigators should be assured by the victim that they will see the case through to the end and be willing to testify in court. Jurisdiction is another important variable to consider early in the investigation of computer crimes. Often a suspect computer will have been used Facilitating a crime in another jurisdiction because of complex computer networking. It is necessary, therefore, to determine what federal, state or local laws might apply to the type of computer crime committed.

What are classifications of computer crimes?

Because computers have been used in almost all types of crimes, their classifications extend beyond the simple category of white collar crime. Computer crimes involve the use of both computer hardware and software.

How do the detection and investigation of computer crimes differ than traditional crimes?

Computer crime investigations are dynamic in nature. Therefore, their detection and investigation differ in several respects from that of other, more traditional crimes. These differences include the following. -Physical evidence in computer crimes is different from that in traditional crimes. -The volume of evidence encountered in computer crimes can be burdensome. -Offenders can commit their crimes with ease. Offenders can destroy evidence with ease.

What is the nature of computer crime?

Computer crime is difficult, if not impossible to detect. According to the FBI, it is believed to cause private and public businesses anywhere from $40 to $100 billion yearly. The gradual evolution of occupations in this field has created new opportunities for criminals who benefit as computer programmers, operators, tape librarians, and electronic engineers. Here, criminality is removed from the streets and resides in the privacy of the homes of computer criminals, many of which have raised flooring, lowering ceilings, flashing lights and air conditioning motors. Hence the methods of crime have changed. A new computer Jargon has now developed has identified automated criminal methods such as data diddling, Trojan horses, logic bombs, salami techniques, super zapping, scavenging, data leakage and Asynchronous attacks. Targets or victims of computer crime have also taken on a non typical effigy. For example, electronic transactions and money, as well as paper and plastic money. Credit cards are typically targets for automated loss. Financial transactions are. Typically conducted over telephone lines where money is debated and credit card inside computers. In essence, the computer has become the vault for the business community. Physical assets such as warehouse inventories and materials leaving factories are also tracked through the use of computers.

What do computer criminals today pose as?

Computer criminals they have posed as financial advisors or licensed brokers under Internet and solicited investments in fictitious Mutual funds. In some cases, they have attempted to extort money from their victims. In one of the biggest cases of cyber extortion, a computer hacker stole credit card numbers from an online music retailer, CD Universe, and released thousands of them on a website when the company refused to pay $100,000 ransom. In January 2000, the New York Times reported that the hacker claimed to have undertaken the numbers of 300,000 CD Universe customers. The hacker turned out to be a 19 year old from Russia, going by the name of Maxim

What is examining evidence for criminal content?

Computers can maintain an extremely large amount of information in a small amount of space. A floppy disk is small enough to fit inside a pocket and can easily be hidden in books or taped to the bottom of a keyboard. The contents of a "flash drive" can hold more than enough information to make a case by providing direct evidence or direction to evidence. If there is printer activity, this information can require a great deal of time to sort through. It is important not to blindly push this potential evidence aside; doing so may very well cost a case. Buried deep inside the amount of paper could be the secret bank account number where the suspects have hidden their assets or their list of past, present, and future victims for rape and murder.

What is an example of money laundering?

Consider, for example, the 2011 money laundering conviction of US Representative Tom Delay. On October 3rd, 2005, a Travis County, Texas grand jury indicted US Representative Tom Delay on a felony conspiracy charge to move $190,000 in corporate donations to Republican candidates in the Texas State legislature in 2002. On October 20th, 2005, Delay turned himself into the Harris County Sheriff Office. The day after, a warrant was issued for his arrest. He was released after posting a 10,000 bonds. On November 24th, 2010, a jury in Austin, TX found delay guilty of money laundering and conspiracy to commit money laundering. On January 10th, 2011, the lady was sentenced to three years in prison and 10 years probation.

What is the contest cons?

Contest cons usually begin by sending a computerized personal letter to the victim stating that he or she has just the one in new car, a diamond necklace, a food processor, and so on. All the victim needs to do to collect the prize is visit a timeshare resort. If the victim does so, however, he or she will be subjected to high pressure sales tactics to buy one of the units. Then when prizes are given, they are usually cheap imitations of the real thing. Letters of this sort may appear urgent and may represent companies with names that resemble official organizations.

What is corporate crime?

Corporate crime is a form of white collar crime whereby trusted executives working within a company mishandle funds or otherwise betrayed the trust of customers or other consumers.

What is the travel scams?

Dear consumer, you have just won a free vacation for five days and four nights in the Bahamas. Just call this 800 number for details. Postcards with messages such as this are becoming more common throughout the United States. The way this game works is that when the victim calls the number, she is told that she will receive a package in the mail detailing the vacation offer. The operator then asked victim for her credit card number, telling her that a small service charge will be made to her account if she accepts the vacation offer. The victim is assured, however, that she received a review period to decide if she wants the package before her account is billed for the service charge. The company is slow in sending the vacation package materials, and when it does arrive, the review period, according to the company, has already expired. The company then quickly builds the victims credit card for hundreds of dollars for its service fee.

What is Preserving computer crime evidence?

Determining if the evidence can be collected and preserved for future analysis is not as easily as it sounds. Investigators must check their warrants constantly for what they can and cannot seize. If something is found that is needed but is not covered in a search warrant, the wording must be amended before seizure of that item can proceed. Seizing materials not included in a search warrant could cost an investigator the success of an entire investigation. Some types of computer evidence require special care and attention. Because of this, storage areas must be controlled and special care must be given to protect the evidence from physical damage.

What has the Internet become ?

Disturbingly, the Internet has become a popular hunting ground for child predators of all ages. It allows them to hide their identities and assume the roles of virtually anyone they choose. As a result, such criminals hide in chat rooms as sign up for popular social networking sites for children and teens socialize. Pretending to be teenagers, predators talked to kids and teens in the meeting them where they have been known to rape, molest and sometimes murdering them.

What is double invoicing?

Double invoicing is yet another popular method of hiding illicit financial gains. In this technique, a company orders merchandise from a foreign subsidiary at an inflated price. The difference between the inflated price and the actual price is deposited by the subsidiary in a special offshore account. Occasionally, the same technique is used in reverse. The company sells merchandise at an artificially low price, and the difference between the two prices is deposited in a secret foreign bank account maintained by the company.

During the mid 1970s, the firewall government attempted to amend the US Criminal Code to make crimes of ...... what?

During the mid 1970, the federal government attempted to amend the US Criminal Code to make crimes of unauthorized acts in, around and with the use of computers.

The extent that computer crime can result in violent crime is seen in what?

Extent that computer crime can result in violent crime is seen in the Craigslist killer case. In 2009, the Craigslist website came under intense scrutiny and criticism after Philip Markoff, a 23 year old Boston University medical student, was arrested as a suspect in the death of Julissa Brisman of New York City. Brunsman advertised her erotic massage services on Craigslist. Philip Markoff quickly became known in the popular media as the Craigslist pillar. Craigslist is the centralized network of online communities featuring free online classified advertisements. It has sections for jobs, housing, personal ads for sale, ads, services, community gigs, resumes and discussion forums. The investigation revealed that Markoff had not been sexually assaulting his victims, but instead robbing them to pay off gambling debts, and was keeping his victims underwear as souvenirs of his crimes. Brisman is the only reported death in the alleged crime spree. Craigslist defended the site, insisting that the murder is not the direct result of the erotic services ad that without that section, those types of services would propagate all over the site in other sections. They argue that the erotic section was a good way to contain adult related ads in one affordable place. Markoff's wasn't the only case that caused concern. After investigating her months in the spring of 2009, Connecticut police filed harassment and computer crimes against 38 year old Jonathan Medina, A former or CVS pharmacist who stole a woman's personal information from the pharmacy computer and posted it online in a fake Craigslist erotic services posting. The victim stated that the morning after visiting the pharmacy, she started receiving numerous phone calls from men looking for a good time. On May 13, 2009, Craigslist closed the Erotic services section of its site, replacing it with it with an adult services section, where the postings would be reviewed by Craigslist employees. The Craigslist cases are examples of how criminals can target victims by using legitimate computer networking businesses that offer dating or other personal services.

What are two ways the Trojan horse technique can be prevented?

First, sunline or block mode types of commands can be removed from all terminals allowed to access to the computer. Next, a logic filter can be placed in the computer to prevent all control character commands from being sent in terminal to terminal messages. The Trojan horses can be detected by comparing a copy of the operational program under suspicion with a master or other copy known to be freed of unauthorized charges. The suspect program can be tested with a wide range of data that might expose the purpose of the Trojan horse.

The amount of money attended by drug trafficking organizations and laundered through money laundering schemes is staggering. What is an example?

For example, in 2005, Drug Enforcement Administration study determined that during 2003 and 2004 there were excess U.S. dollars present in Mexico that could not be accounted for from legitimate sources, telling at least $9.2 billion $10.2 and billion respectively. It is estimated that the four major drugs that are smuggled into the United States from Mexico. Generate as much as $22 billion dollars per year for the sources of supply. Syndicates earn huge profits on the legal goods and services they sell to the public and through their extortionary relations with the business world. Much of this profit is in the form of cash, and virtually all of it must be converted to legitimate forms before it can be invested or spent. Drug traffickers and other racketeers who accumulate large cash inventories facers risk of confiscation and punishment if considerable unexplained hordes of cash are discovered. For these criminals to enjoy the fruits of their illegal enterprise, they must first convert those cash proceeds to medium that is both easier than cash to use in everyday commerce and that avoids pointing even indirectly to the illegal activity that it produced.

What is the history of cybercrime?

For obvious reasons, cybercrime has a relatively short history. Although electronic crime has been somewhat of a problem for the past three decades, it wasn't until the 1970s that a new term entered the public lexicon hacker. Early hackers began using school computers for a number of misdeeds, the least of which was altering grades. By the end of the decade, modems devices linking computers to telephone lines and computerized bulletin board services emerged. Although the first generation of hackers during the 1980s seemed more mischief than criminal, their emergence was the predecessor for a far more insidious type of computer crime. Many large corporate computers are now hacked, not as a prank, but as a target of large scale theft. Indeed, computers have provide opportunistic criminals with a new genre in which to play their crimes, and many of today's criminals are quite computer literate.

What is hardware?

Hardware is generally considered the physical computer itself and any peripherals associated with it, such as printers, telephone modems, and external disk drives.

What is an example of a Trojan horse technique?

In 1981, one Trojan horse technique, the electronic letter bomb attack, received considerable news media attention because its use would have made most computers with terminal to terminal communication vulnerable to compromise. The attack method consisted of sending message to other terminals with embedded control characters ending with the send line or the block Mode control command. When the messages reached the intelligent terminals, the send line or block mode Control command is sensed and entire message is sent back to the computer for execution of the embedded control character commands as though they came from the victim at the receiving terminal with all of his or her computer access authority.

In 2000 Visa International estimated. What about fraud?

In 2000, Visa International estimated that the yearly cost of fraud worldwide was about 0.05% per every dollar spent. This small amount works out to an estimated $1 billion in the United States. Since 1995, the amount of fraud losses on payment cards has consistently risen in the United States. The losses from online credit card fraud alone were estimated to reach $3.2 billion in 2007.

The Dictionary of Criminal Justice data terminology offers what following definition of white collar crime?

In an effort to understand this criminal phenomenon better, the Dictionary of criminal justice data terminology offers the following definition of white collar crime: "nonviolent crime for financial gain committed by means of deception by persons whose occupational status is entrepreneurial, professional, or semiprofessional, and utilizing their special occupational skills and opportunities." Simply put, white collar crime could be explained as nonviolent crime committed for financial gain and accomplished by means of deception.

What is computer hacking?

In its most favorable use, the term computer hacker signifies a compulsive computer programmer who explores, tests, and pushes the computer to its limits, regardless of its consequences. In reality, hacking may involve the destruction of valuable data, resulting in massive costs. According to a report issued by the NIJ, the typical computer hacker is a juvenile possessing a home computer with a telephone modem who uses electronic bulletin boards for a variety of illegal purposes. Such criminals may become involved in crimes such as credit card fraud and using unauthorized numbers to arrange mail order purchases to vacant homes with the delivery can be intercepted and kept.

What is the bank examiner scheme?

In this scam, con artist poses FBI agents, bank examiners, police officers, detectives or bank officials. The victim is then contacted by them pretending to need help in conducting an investigation. The column asked the victim to verify his or her present balance, which is, say $5000. After doing so, the victim is advised that the banks record reflect a lesser amount and is suggested that someone might be tampering with the account. Con Man one instructs the victim to meet him at the bank and conman 2 remains in the neighborhood and observes the victim leaving. After arriving at the bank, conman one meets the victim and accompanies him or her to the teller, where the money is withdrawn. During this process, the victim is told that one of the tellers might be the thief and not to act nervous. After the withdrawal, conman one advises the victim just hang on to the money until the bank contacts him or her. Later that day, Con Man 2 ghost to the home of the victim and explains that a sting operation will occur to apprehend the suspect teller and that the victim should now give the money to con man too so that he can read deposit at the suspects tellers window. Conman 2 then uses the victims phone to call the bank and speak with Con Man 1. The victim is then allowed to speak to the con man, one who reassures the victim that the money will be kept safe. As a valued bank customer, and upstanding citizen, the victim complies and the money and the cons are never seen again.

What is money laundering?

It allows criminals to infuse money obtained illegally into the stream of commerce, thus corrupting financial institutions and the money supply. While many definitions for money laundering exist, it can be defined very simply as any knowing use of the proceeds of criminal activity.

What is obtaining computer crime evidence?

It is fairly easy to obtain documents in computer crime cases because such documents are easily identified by non-computer experts. These include computer manuals, program documentation, logs, data and program input forms, and computer-printed forms. Ascertaining whether they are complete, originals, or copies can be determined by document custodians. Requesting specific program documentation may require assistance and knowledge of computer concepts to determine the extent and types of documentation required. In addition, taking possession of other computer media may be more complicated. Magnetic tapes and diskettes, for example, are unusually labeled externally. Additionally, a large tape or disk file may reside on more than one reel or cartridge. In this case, assistance may be needed to check the contents of a tape or disk by using a comparable computer. The search for information inside a computer is usually highly complex and probably requires the aid of an expert. Preparing a search warrant for this task also requires expert advice. In both cases, expert advice can come from the following sources: - Systems analysts - Programmers who wrote the programs - Staff who prepared the data in computer-readable form - Tape librarians - Electronic maintenance engineers who maintain the hardware. Advice and help from such people aid the investigator in his or her role in the investigation. When the case goes to court, the same people can offer expert testimony to establish the integrity and reliability of the evidence seized.

What is combating the money laundering problem?

It is ironic that the very institutions that could do the most to stop money laundering seemed to have the lease incentive to do so. For example, whereas the basic fee for recycling money of a suspicious origin averages 4%, the rate for drug cash and other hot money may range from 7 to 10%. Perhaps one could inquire why the investment of drug money in legitimate businesses should be cause for concern. Considered very nearly, the influx of large amounts of cash has provided some short term financial benefits for Latin America debator nations, as well as domestic beneficiaries of illegal drug money. It cannot be overemphasized, however, that this flood of money is not only a consequence of the drug problem, but is also a major problem in its own right. For example, the money that enters the local economy is a primary cause of inflation. Even the banks that stand to gain from accommodating drug traffickers ultimately bear the cost of any losses that drug related transactions generate. Part of the problem in the United States has regarding money laundering activities is that US drug users are primarily consumers rather than producers of drugs. Additionally, the US is used as a repository for large amounts of drug proceeds. Most drug profits are funneled to upper echelon members of drug cartels rather than the low level producers and growers. Therefore, it is because of the tremendous profits of drug trafficking organizations than new members are constantly being lured into this illicit business. Unfortunately, profits are also so large that any losses owing to forfeitures by the government can usually be easily absorbed through future illicit dealings, making it unlikely that drug organizations will actually be put out of business. Presumably, dealers considered that the risk of imprisonment or loss of asset is a mere risk of conducting business. Therefore, if we assume that the motivation behind the illicit drug trade is profit, we should conclude that government action against such a lucrative class of crime must include an attack against the proceeds of that criminal act. The success enjoyed by drug traffickers poses somewhat of a dilemma for them. How to reduce the likelihood of detection and subsequent asset seizure by law enforcement officials. This is accomplished by a criminal technique known as money laundering, in which illegal cash proceeds are made to appear legitimate or the sources of illegal proceeds are disguised. As money laundering laws become increasingly more effective against the leaders of drug organizations, the risk of detection of such leader is more likely.

What are typical forms of computer crimes?

Many computer crimes take the form of traditional crimes. They may, however, also concern special crimes in which the computer is the primary tool of the criminal of such crimes. These crimes have been labeled according to their criminal function and include computer hacking, scanning, masquerading false and data entry , Trojan horses and computer viruses.

What is asynchronous attacks?

Many computers function rely on the asynchronous functioning of a computer to complete certain functions, such as calling for the output of certain reports in a predesignated order. Frequently, many such actions are programmed into the computer at once. The asynchronous attack confuses the computer system, making it unable to differentiate one job from another.

What is masquerading?

Masquerading is the most common activity of computer system intruders. It is also one of the most difficult things to prove after the case goes to trial. It is the process of one person assuming the identity of an authorized computer user by acquiring items, knowledge, or characteristics. For one to have physical access to a computer, terminal or system, many such systems require that a user enter a specific identifier, such as a security code or password. Anyone possessing the correct security code or password can masquerade as another person. Evidence showing the act of masquerading is difficult to obtain. When an intrusion occurs, the investigator must obtain evidence identifying the masquerader at a terminal as performing the acts producing the events in the computer. This task is especially difficult when network weaving connections through several switched telephone systems interfere with tracking devices.

What is money laundering?

Money laundering conceals the source of the illegal money and gives that money legitimates history and paper trail. Despite extensive media saturation on the topic, our knowledge of money laundering problem remains limited. Estimates of how much money is laundered are virtually impossible to make with any precision. The Presidents Commission on Organized Crime estimates that billions of dollars in illegal drug profits are laundered in the United States each year. The Commission further asserted that between $5 billion and $15 billion of those drug profits are laundered through international financial channels. Illegal drug transactions are usually cash transactions, commonly using large amounts of currency to pay off the various actors in each drug deal and to purchase sophisticated equipment. It is important for the trafficker to legitimize his or her cash proceeds in a fashion that permits the trafficker to spend it wherever and whenever he or she desires without attracting suspicion. Obviously the trafficker could choose to store the cash in a strong box or wall safe, but such methods would not be possible for the trafficker who generates hundreds of thousands or even millions of dollars in illegal cash each year. To combat this technique, the Treasury Department implanted the CTR, requiring banks to report cash transactions of $10,000 or more. In 1989, the US government processed an estimated 7 million CTR, compared with an estimated 100,00 , 10 years earlier. Traffickers quickly circumvented this requirement by developing such activities as corrupting bank employees.

How does money laundering differ from other types of criminal acts?

Money laundering differs from other types of criminal acts, and that is not a standalone crime. The laundering of funds is typically a secondary criminal act. Typically, without proceeds from an underlying crime. There can be no money laundering. To many money laundering is a criminal activity undertaken only by drug traffickers and terrorists, but it is in fact extended to all segments of society.

Define Money laundering?

Money laundering is defined as the process of concealing or disguising the proceeds of a crime, or converting those proceeds into goods and services.

Money laundering associated with what crimes?

Money laundering is usually associated with crimes that provide a financial gain. This includes, but is not limited to, bank fraud, insurance fraud, mortgage fraud, healthcare fraud, securities/ commodities fraud. Advanced fee schemes. High yield and prime bank note schemes, Ponzi schemes, government fraud. Corporate and occupational frauds, cyber crimes, public corruption, drugs, organized crime and the financing of terrorism.

What are the forms money laundering can take on?

Money laundering process can take many forms, including simply merging illicit money with a legitimate cash source, which usually uses a business that generates large amounts of cash, and using sophisticated international money laundering techniques. The goal of the financial investigation is to reduce the rewards achieved through drug trafficking and therefore immobilized drug trafficking organizations.

What is money laundering using money orders?

Money orders have proven to be a versatile vehicle for money laundering. Their use has been seen in crimes including narcotics trafficking, firearms trafficking and depositing illicit proceeds from alien smuggling and corporate fraud. In the legitimate world, money orders are used by approximately 30 million people annually to conduct business, such as paying bills and sending money to families in foreign countries. It is estimated that more than 830 million money orders in excess of $100 billion are issued annually. The money order industry is small and easier to assess for criminals. 80% of all money orders are issued by the US Postal Service, Western Union and travelers expense/ MoneyGram. The remaining 20% are issued by smaller regional companies scattered throughout the United States. The greatest volume of money order activity is currently seen in New York/ New Jersey, Los Angeles, El Paso, Dallas, Miami, Boston and San Francisco. The extent that money orders are used is seen in National Statistics. For example, the OCD ETF has constantly reported that approximately 20% of its newly initiated money laundering investigations contains a money order component. Law enforcement has documented a steady stream of money order used by law launderers moving bulk cash from narcotics transactions to Mexico and other regions of Latin America.

What is automatic teller machine frauds?

Most states that have a computer crime statute include a provision for fraudulent use of automatic teller machines. Typically, ATM fraud involves persons with legitimate bank accounts who made fraudulent deposits and then withdrawing money from those accounts based on those deposits. Although most banks now use cameras to photograph customers, cases are difficult to Make become suspects are difficult to locate. No ATM's are also becoming targets of theft by criminals who simply sealed the entire ATM machine. This decreases their risk of being shot while committing the crime and often enables them to steal more money than in any other types of commercial robberies.

What are motivations for corporate crimes?

Motivations for corporate crimes include gaining or increasing power or realizing personal wealth through mishandling funds. Corporate crime may also affect a small number of persons, or millions, depending on the extent of the actions of the players involved.

What are techniques of money laundering? Example?

On April 20th, 2009 in Denver, Co, Edgar Diaz Calderon was sentenced to prison for conspiracy to launder money and possession with intent to distribute cocaine. The investigation, which result in 53 arrests and the seizure of over $1 million in cash, showed that Diaz Calderon was associated with organized gang activity that involved the distribution of more than 150 kilograms of cocaine in the metro Denver area between 2005 and 2006. Using trusted runners and couriers, the cocaine was purchased in Mexico and transported to Denver. The cash proceeds of the legal sales were then returned to Mexico to sustain the importation distribution business cycle. The Diaz Calderon case is typical of money laundering efforts by drug traffickers and demonstrates how much money can go undetected if not properly investigated.

What is one early example of cybercrime?

One early example of cybercrime involved the planting of an authorized program known as Trojan Horse, which automatically transferred money to an illegal account whenever a legal transaction was made. Too many thieves and hackers this was akin to striking pure gold

What are some aids to law enforcement attempts to stop money laundering?

One great aide to law enforcement attempts was the passing of the money Laundering Control Act of 1986, which gave investigators more latitude in investigating this type of criminal activity and in uncovering these myriad techniques. Although investigations of money laundering are routinely performed by such agencies as the Federal Bureau of Investigation, DEA and Internal Revenue Service, Are recently established investigative unit housed under the Department of the Treasury called the Financial Crimes Enforcement at. Also conducts such investigations.

What is examples of money laundering? Under the paragraph?

One look at the Daily News is proof that the crimes dealing with or motivated by money make up the majority of criminal activity in the nation. Tax evasion, public corruption, healthcare fraud, money laundering and drug trafficking are all examples of types of crime that revolve around money. In these cases, a financial investigation often becomes the key to a conviction. Money laundering investigations focus for the underlying conduct is a violation of the income tax laws or violations of the Federal Bank Secrecy Act. Money laundering is the means by which criminals of aid paying taxes on illegal income by concealing the source and the amount of profit. Essentially, money laundering is tax evasion in progress. We should remember that when no other crimes could be pinned to Al Capone, a conviction was obtained for tax evasion. As the astonished Capone left the courthouse, he said this is preposterous. You can't tax illegal income. But the fact is, under federal law, income from whatever source arrives, legal or illegal, is taxable income. Hide the money laundering statues been on the books in the 1930s? Capone would have least been charged with the money laundering. However, since October 1986, with the passage of the Money Laundering Control Act, organized crime members and many others have been charged and convicted of both tax evasion and money laundering.

What are ways to launder illegal proceeds?

One of the ways to launder illegal proceeds is to move them out the money out of the United States and then bring it back in in a clean form of, often disguised as, loan proceeds. Another method is to channel or Co mingle the money through various business activities to give the appearance that the money was derived from a legal source.

What other corruption cases have also gained national prominence?

Other corruption cases have also gained national prominence. For example, Adelphia Communications Corporation, named after the Greek word brothers, was the fifth largest cable company in the United States before filing for bankruptcy in 2002 as a result of internal corruption. Adelphia was founded in 1952 in the town of Coudersport, Pennsylvania by John Rigas, which remained the company's headquarters until it was move to Greenwood Village Colorado shortly after filing for bankruptcy. The majority of the companies revenue generating assets were officially acquired by the Time Warner Cable and Comcast on July 31st, 2006. LFC an Internet based real estate marketing firm auctions off the remaining company real estate assets. As a result of this acquisition, The company no longer exists as a cable provider. The company's long distance telephone business with With 110,000 customers in 27 states, telephone and long distances were sold to Pioneer Telephone for about $1.2 million. Had the 110,000 telephone customers been shut off versus being sold to Pioneer Telephone, those customers would like more than likely left the Adelphia cable and high speed Internet services. The potential financial damage to the creditors of Alafia was more than $150 million. Although the purchase price by Pioneer Telephone was relatively small, the transaction was very significant. Upon divesting its cable assets, Adephia remained a skeleton crew of 257 employees to handle its remaining bankruptcy issues. It still exists as a corporate entity, continuing largely to settle ongoing financial obligations and litigation claims, as well as to consummate settlements with the SEC and the US Attorney. Another case revolved around metaboLife International Inc. An American corporation based in San Diego, CA that manufacturers dietary supplements. Metabolife best selling product, an ephedra based supplement called Metabolife 356 once generated hundreds of millions of dollars in annual sales. However, metalbolife 356 and other ephedra containing supplements were linked to thousands of serious adverse events, including deaths. These deaths cost the US Food and Drug Administration to ban the sale of ephedra containing dietary supplements in 2004. Subsequently, metal Bottle Life founder was convicted of lying to the FDA and concealing evidence of ephedra dangers, and the company, and its owners were both convicted Of income tax evasion. A Congressional investigation found that metal bottle life had received thousands of reports of serious adverse events, many occurring in young and otherwise healthy people. And that metal bottle life concealed the reports and acted with indifference to the health of consumers. In 2005, former Tyco International Chairman and chief executive Dennis Kolowski and former Chief Financial Officer Mark H Schwartzer. Were accused of the theft of more than $150 million from the company. During the trial in March 2004, they contended that the Board of Directors authorized it as compensation. During jury deliberations, juror Ruth Jordan, while passing through the courtroom, appeared to make an OK sign with the fingers to the defense table. She later denied she had intended that gesture, but the incident received much publicity, And the jury received threats after name became public. Judge Michael Obus declared a mistrial on April 2nd, 2004. On June 17th, 2005, ever after a retrial, Kolowski and Swartz were convicted on all but one of the more than 30 counts against them. The verdicts carried potential jail terms of up to 25 years in state prison. Kolowski himself was sentenced to no less than eight years and four months, and no more than 25 years in prison. Then, in December 2007, New Hampshire Federal District Court Judge Paul Barbadoro approved the class action settlement whereby Tyco agreed to pay $75 million to a class of defrauded shareholders.

What is one of the most frightening stats about all of cyber/ internet crimes?

Perhaps one of the most frightening statistics about all of this is that in 100% of the cases, the victims meet up willingly with their attacker, thinking they were meeting someone entirely different.

What is computer program piracy?

Piracy is the unauthorized copying and use of computer programs in violation of copyright and trade secret laws.

What is the pigeon drop con game?

Probably the most practice confidence game of all time, the pigeon drop comes in many varieties. In this scam, a lot of losers pay a few winners. Although these scams were conducted in different ways, most seemed to follow the basic pattern. Here's how it works. Con Man one finds a wallet, purse, attach case, or even a paper bag apparently filled with money. An unsuspected victim standing by nearby witnesses the discovery. At that time, con man two appears and claims that he is entitled to a share of the loot just as much as the other. It should occur to the victim at this point that he or she should share in in the proceeds. An argument then breaks out about whether they should divide the money immediately or check it out to see if it is stolen. Con Man One says his boss has police connections and can check. A quick phone call is then made by a con man, one who then says the money was probably dropped by some drug dealer, a big time gambler, and that they should divide it between them. The boss offers to hold the money until all three can produce a substantial amount of their own money to show that they are acting in good faith and can be trusted to keep the secret. Con man two, apparently determined not to be cut out of the deal, produces a large sum of money on the spot to prove his reliability. Con man one and the victim then hurry off to get their part of the money. When the victim returns and hands over his shoe, it is the last he or she sees of the cons, the money, or the boss. The key to the success of this scam is the powerful acting between the cons, in particular the bickering between the two men that makes the victim feel that he or she will be left out unless they abide by the conditions of the agreement. The reliability of the boss is the convincer sometimes this character portrays a police detective. The amount of money in question is also always so great that the victim wants to believe.

What are photo sharing scams?

Recently there has seen an increase in cyber criminals who use online photo sharing programs to perpetrate scams and harm victims computers. In one investigation, criminals advertised vehicles online but did not provide pictures in the advertisement. Instead, they say they will send photos on request. Sometimes the photo is a single file sent as an e-mail attachment, and sometimes the victim receives a link to an online photo gallery. The photos often contain malicious software that infects the victims computer, directing the user to fake websites that look at nearly identical to real sites where the original advertisement was seen. The cybercriminals run all aspects of these fake websites, including tech support or live chat support and any recommended escrow services. After the victim agrees to purchase the item and makes the payment, the criminal stop responding to correspondence. The victim never receives any merchandise.

What is scanning?

Scanning is a process of presenting sequentially changing information to an automated system to identify those items receiving a positive response. The method is typically used to identify telephone numbers that access computers users identifications, passwords that facilitate accessing computers, and credit card numbers that are used illegally for purchasing merchandise or service through telemarketing. Many computer systems can deter scanners by limiting the number of access attempts and therefore create a long delay designed to discourage the scanning process.

What is software?

Software, conversely, reverse to the media on which information is stored, like computer tapes, and floppy disk.

Some of the fastest growing crimes in the country are now labels as what?

Some of the fastest growing crime in the country now are labeled as cyber crimes or crimes that take place over the Internet.

What is structuring? Smurfing.

Structuring is also known as smurfing. It is. It is a method of placement whereby cash is broken into smaller deposits of money used to avoid a suspicion of money laundering and to avoid anti money laundering reporting requirements. A subcomponent of this is to use smaller amounts of cash to purchase bearer instruments such as money orders, and then ultimate deposited in small accounts. In practice, a trafficker provides several individuals or Smurfs with cash from drug sales. Each Smurf goes to different banks and purchases cashier's check in denominations of less than $10,000, thus bypassing the reporting requirement. The Smurfs then turned the checks over to a second person who facilitates their subsequent deposit into domestic banks or transport them physical to banks in Panama or Colombia. In some instances the monetary instruments are pre marked for deposit only, making them nonnegotiable to a Courier.

What do investigations of computer crime require?

Such investigations require a greater amount of technical expertise by investigators and prosecutors. Despite the contrast cited earlier, certain approaches of the computer crime investigation remained consistent. For example, such investigations generally require considerable investment of time, sometimes taking from one month to full year in duration. This is due in part to the fact that identification and analysis of data are necessary to organize information for complicated search warrants. In addition, the investigation of computer crimes requires interaction between investigators and victims. Victims, because of their knowledge of computer systems, can aid the investigator in providing technical expertise. Another commonality in computer crime investigations is that they are largely investigative in nature, using an estimated 90% traditional police work and 10% technical skill. Yet another distinguishing attribute of computer crime investigations is that they are typically proactive in nature. Proactive initiatives include the monitoring of electronic bulletin boards and regular contact with local schools and businesses to help prevent and detect possible crimes with computer.

What is profile of the computer criminal?

Suspects of computer crimes can sometimes be identified on the basis of characteristics of known computer criminals who have been interviewed in computer abuse studies

What is an example of corporate crime?

The 21st century has not been immune to corporate scandals. One of the best-known corporate scandals is that Enron scandal of 2001. Before its bankruptcy in 2001, Enron the Houston based Enron Creditors Recovery Corporation ( Formerly Enron Corporation; former NYSE ticker Symbol ENE) employed approximately 22,000 people and was one of the world's leading electricity, natural gas, pulp and paper and communications company with claims revenues of nearly $101 billion in 2000. fortune named Enron America's most innovative company for six consecutive years. At the end of 2001 it was revealed that Enron's Reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. Known as the Enron scandal. Enron has since become a popular symbol of willful corporate fraud and corruption. The scandal was also considered a landmark case in the field of business fraud and brought into question in the accounting practices of many corporations throughout the United States. The company filed for bankruptcy protection in the Southern District of New York in late 2001. It emerged from bankruptcy in November 2004 after one of the biggest and most complex bankruptcy cases in U.S. history. On September 7, 2006, the company sold Prisma Energy International Inc its last remaining business to Ashmore Energy International Ltd. After the scandal, lawsuits against the company's directors were notable because the director settled the suits by paying very significant sums of money personally. The scandal is also caused the dissolution of the Arthur Andersen accounting firm affecting the wider business world. After a series of revelations involving irregular accounting procedures bordering on fraud perpetrated throughout the 1990s involving Enron and its accounting firm Arthur Anderson, Enron stood on the verge of undergoing the largest bankruptcy in history by mid November 2001. A white Knight rescue attempt by a similar, smaller energy company, Dynegy, was not viable scandal unraveled, the company shares dropped from more than $90 to just pennies. The company has been considered a blue chip stock, so this was an unprecedented and disastrous event in the financial world. The company's plunge occurred after it was revealed that much of its profits and renovate were the result of deals with special purpose entities. The result was that many of the company's debts and the losses its suffers were not reported in this financial statements. The company filed for bankruptcy on December 2nd, 2001. In addition, the scandal cost the dissolution of Arthur Andersen, which was one of the world's top accounting firms at the time. The firm was found guilty of obstruction of justice in 2002 for destroying documents related to the company's audit and was forced to stop auditing public companies. Although the US Supreme Court throughout the conviction in 2005, the damage to the Anderson name was prevented it from returning as a viable business. Enron also withdrew a naming rights deal with the Houston Astros Major League Baseball club to have its name associated with this new stadium, which was formally known as Enron Field. Enron had created offshore entities units that may be used for planning and avoidance of taxes, increasing the profitability of a business. This provided ownership and management with full freedom of currency movement and the anonymity that allowed the company to hide losses. These entities, made from Enron looked more profitable than it actually was and created a dangerous spiral in which each quarter. Corporate officers would have to perform more and more contorted financial deception to create the illusion of billions in profits while the company was actually losing money. This practice drove up the company stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stock. The executives and insiders are Enron knew about the offshore accounts that were hiding losses for the company. However, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led the team that created the off books companies, and he manipulated the deals to provide himself, his family and his friends with hundreds of millions of dollars in guaranteed revenue at the expense of the corporation for which she worked and its stockholders.

In 1986, the President Reagan authorized another law outlining the illegal use of computers, which was which act?

The Electronic Communications Privacy Act. This law basically prohibits eavesdropping on electronic mail conversations on cellular phones, video conference calls and computer to computer transactions.

The Financial Crimes Enforcement Network was established?

The Financial Crimes Enforcement Network, established in 1990, is a multi agency support unit that analyzes intelligent information that develops suspects in money laundering schemes. In addition to providing assistance to federal agencies, the financial Crimes Enforcement Network also offer services to state and local police organizations investigating financial crimes, specially those associated with violations of the Bank Secrecy Act and the Money Laundering Control Act.

What are Trojan horses?

The Trojan horse method is a secret placement or alteration of computer instructions so that the computer will tell a second computer how to perform illegal functions. It is unique in that it will usually allow also the victims computer to perform most or all of the functions for its original intended purposes. The Trojan Horse program is also the primary method used for inserting instructions for other abusive acts such as logic bombs, salami attacks and viruses. Many local police computers are linked with state and National Crime information networks.

What is false data entry or data diddling?

The false data entry type of computer crime is usually the simplest, safest and most commonly used method. It involves changing data before or during their input to computers. Generally, anybody associated with or having access to the process of recording, encoding, examining, checking, converting, updating, or transferring data that ultimately are entered into a computer can change these data.

What is the home repair scams?

The home repair scam begins with a coworker who goes door to door offering repair services for a modest fee. Service include driveway repair and roof repair. Scammers accept money for repair jobs that they never finish or fail to honor warranties or home improvement projects. One such scam is the asphalt scam. Here, the worker offers to use the remaining asphalt from one job to repay with a second driveway. More often than not, the worker either starts a job and then claims it will cost hundreds of thousands of dollars more to complete, or he will just lay black paint instead of all on the drive way and leave town with the victims money. Elderly people are prime targets for such scams because many of them own their own homes and many of those are older homes. Many such homes actually are in need of repairs and the crafty corner artist look for this. The criminal will generally ask for a large down payment before he or she begins to work, and there have been cases in which the worker will accompany the victims of the bank to withdraw the money. The con will sometimes use the obituaries to seek out elderly persons living alone. The Con then claims to be building or health inspector who is there to check out the furnace. Once in the basement, the Khan either causes damage or claims that the health or safety threat exists. Then they demand money from the victim for either repairs or reassembly.

What is the magazine subscription scam?

The magazine subscriptions scam begins with a phone call asking the victim if he or she would like to receive 5 magazines for two years at no cost. The offer is that all the victim has to pay is a nominal fee, say $1.75 per week as a service charge. The caller will then request the victims Credit card number. Victims may find that they are charged several $100 of fees that are unwarranted. The scammers are so slick that consumers are unaware that they have purchased magazines until they receive the bill. Some salespeople avoid identifying themselves as magazine subscription sales people or with the name of their company. Others encourage consumers to make purchases without giving the total cost or asks of consumer for a credit card number for verification purposes and then use the number to charge for unwanted subscriptions. Because crime scenes are virtually nonexistent in cases in including fraud and competence games, investigators should focus on learning as much as possible about the victim and those who are responsible for the crime. In addition, records and documents should be identified and examined for possible clues as to the identities of the perpetrators. Investigative efforts to identify suspects in the case are often stymied by the victims inability to remember details about the swindler

What are laundering techniques?

The many different techniques for laundering illicit proceeds are limited, but only by a traffickers, imagination and cunningness. An entire wash cycle to transform small denominations of currency to businesses, money market deposits or real estate may take as little as 48 hours. This method, chosen by any given trafficker, will no doubt affect his or her own situation and any unique circumstances involved. Money laundering techniques illustrate the ingenuity of the drug trafficker and hiding millions of dollars of illicitly revenues. Money laundering techniques include bank methods, smurfing, currency exchanges, double invoicing, and acquisition of financial institutions.

What is the bank method?

The most common method for laundering money is called bank methods. In this basic technique, the traffickers take their cash to a bank and conduct several transactions that usually involve trading currency of small denominations for larger ones. This is done for obvious portability purposes. It is also common for cash to be exchanged for Treasury bills, bank drafts, letters of credit, travelers checks or other monetary instruments. During the early 1980s in Miami ( Consider the hub of cocaine banking business) which we daily shipment to be deposited in numerous accounts, but they would then be dispersed immediately through the writing of checks payable to true of nominee names. Ultimately, these funds were deposited into domestic accounts in the same or different banks or wire transfer to offshore bank accounts in foreign countries with strict bank secrecy laws. Ironically, there is no requirement to report these transactions because the BSA's Reporting requirements don't pertain to interbank transfers. Therefore, the biggest problem posed to the traffickers is the initial deposit of the currency into banks. After funds are deposited, a trafficker can communicate with the bank through a fax machine, personal computer and route the funds all over coming face to without speaking with a banker. One method of conducting mass deposits, called Smurfing, first appeared during the mid 1980s and is discussed next.

What is the variety of methods used by criminals to launder money?

The number and variety of methods used by criminals to launder money render it impossible to provide a complete listing. The means to launder money is limited only by the creativity and ability of the launderers themselves. Increasingly new technology provides ever more avenues for criminals to launder money.

What is the history of money laundering?

The practice of money laundering began in Switzerland during the 1930s as concerned Europeans began funneling their capital beyond the clutches of Hitlers third Reich. In time, Switzerland's infamous numbered accounts became an enormously profitable business. Today, Swiss bank secrecy laws has been relaxed because of numerous criminal cases involving money laundering. Criminals are therefore seeking other financial havens in which to deposit their ill gotten gains. The flooding of entire regions with drug money is one of the more sinister and surreptitious types of drug related crime. The term flooding tracked by the Regional Federal Reserve banks seem to describe this phenomenon with great precision. In 1985, another scandal surfaced involving the prestigious First National Bank of Boston. In this case, federal prosecutors charged that the bank was making unreported cash shipments of $1.2 million. It was received that $529,000 in small bills and send $690,000 in bills of $100 or more. The bank was fined $500,000 for violating federal reporting requirements under the Bank Secrecy Act (BSA). In 1991 in New York State grand jury indicted the London-based Bank of Credit and Commerce International and its two principal officers for fraud, bribery, money laundering and grand larceny after a 2 year investigation. BCCI had looted depositors out of more than $5 billion, which was called the largest bank fraud in history. In this case, bank officials knowingly made billions of dollars in loans to Confederates who had no intentions of repayment.

How are law enforcement combating this problem of internet predators?

The problem of Internet pressures has become so great that many police departments have established dedicated units investigate such crimes. In this capacity, undercover police also monitor chat rooms and try to attract predators by pretending to be teenage girls or other types of persons that might attract predators. They are then arrested. Investigations also discover Internet Predators by acting on tips from parents or teens who have encountered or who have believed that they have come across an online predator.

What is salami techniques?

The salami technique is an automated form of the Trojan horse method where a small amounts of assets are taken from specified amount accounts or sources and where the whole appears to be unaffected. In this way, over time a substantial amount of money can be diverted to the thieves personal account while going undetected.

How did the timing of computers crimes also greatly differ from traditional crimes?

The timing of computer crimes also differs greatly from traditional crimes. From a traditional standpoint, most crimes are measured in minutes, hours, or even days. In contrast, some computer crimes are measured in milliseconds, as little as 0.003 of a second. Another atypical dimension to computer crime is that geographical constraints do not hinder the computer criminal, as with many other types of crime. A telephone with an attached computer terminal modem in one country can easily be used engaged in a crime in a different nation. All of these factors and more should be considered in dealing with the problem of computer crimes.

What do these money laundering techniques represent?

These techniques represent only a few of the ways such traffickers hide their illicit revenues from drug sales. It is generally thought that traffickers, regardless of their national origin, make regular use of these techniques. The fact that so many different and unique mechanisms exist for money laundering makes Investigations of these crimes difficult and presents many unique challenges to investigators.

What is acquisition of financial institutions?

This fifth money laundering method, possibly the most difficult to detect, simply involves acquiring a domestic or international financial institution. By controlling an entire institution, traffickers can go far beyond the immediate aim of concealing illicit earnings. They effectively take over part of the local banking system and divert it to their own needs. Such operations, which have been identified in South Florida and Southern California, enabled traffickers to manipulate correspondent banking relations, making overnight deposits, arrange euro dollar loans and take advantage of the abuse list.

What is trade based laundering?

This involves under or overvaluing invoices to disguise the movement of money. For example, the art market has been accused of being an ideal vehicle for money laundering due to several unique aspects of art, such as the subjective value of artworks, as well as the secrecy of auction houses about the identity of the buyer and seller.

What will check in credit card fraud section discuss?

This section will discuss fraud involving all types of checks and plastic cards, including debit, charge, credit and smart cards. Each can involve a different payment method. While there are some obvious differences between check and card fraud, the limitations and opportunities for fraud and its prevention and control by local police are similar enough to warrant addressing them together. Furthermore, some cards are used in processed in a similar way to checks, and electronic checks are processed in a similar way to cards, so that the traditional distinct between cards and checks is eroding.

What is super zapping?

This super zapping technique stems from Super zapper, a micro or utility program used in most IBM mainframe computer centers as a systems tool. Most computer centers have a secure operating mode that requires a break glass in case of emergency program that will bypass all controls to the disclose any of the contents of the computer. Illegal use of the Super Zapper program enables thieves, for example, to tinker with the program so that checks can be issued to their private accounts.

What is currency exchange?

Traffickers may also use either money exchanges or brokerage houses for facilitating movement of their money. Foreign currency exchanges are frequently set up as storefronts that deal regularly in large cash transactions. In using the exchange, the trafficker can avoid using traditional banking institutions and therefore avoid risky reporting requirements. Banks traditionally deal with exchange companies and customarily don't question large transactions from them. The currency exchange business can also move money in other ways for the trafficker. In particular, money sent to other jurisdictions and payment for foreign drug shipments is common. Using a dummy corporation, a trafficker will sometimes contact his or her lawyer and request that the lawyer accept a huge deposit into the lawyers for an account. The lawyer will then wire the money directly into the dummy account, where it remains unsuspected.

What is a cyber-bullying examples?

Tyler Clementi Was an 18 year old student at Rutgers University in Piscataway, NJ who jumped to his death from the George Washington Bridge on September 22nd, 2010. Without clementi's knowledge, on September 19th his roommate Dhahrun Ravi and a fellow student Molly Wei used a webcam on Ravi's computer and a computer in Wei's dorm room to view Tyler kissing another man. On September 21st, the day prior to the suicide, Ravi notified friends of followers on Twitter to watch, via his whipped cram, a second encounter between Tyler and his friend. Ravi and Molly were indicted for their roles in the webcam incidents, though they were not charged with involvement in the suicide itself. Molly accepted a plea agreement on May 6, 2011, allowing her to avoid prosecution. On March 16, 2012, Ravi was found guilty of 15 counts involved involving crimes of invasion of privacy, attempted invasion of privacy, bias intimidation, tampering with evidence, and witness tampering. He was given a sentence including a 30 day jail term. The death of Tyler Clementi followed another computer related cyberbullying case involving Megan Meier. Megan was an 13 year old girl from Dardenne Prairie MO. Soon after opening an account on Myspace, Megan received the message from Lori drew an assumed a false identity of 16 year old boy Josh Evans. Megan and Josh became online friends but never met in person or spoke. Megan thought he was attractive and began to exchange messages with fabricated Josh Evans. She was described by family as having had her spirits lifted. On October 15, 2006, the tone of the messages changed, with drew, saying via the account. I don't know if I want to be friends with you anymore, because I've heard that you are not very nice to your friends. Similar messages were sent. Some of Megan's messages were shared with others and bulletins were posted about her. After telling her mother Tina, about the increasing number of her full messages, the two got into an argument over the Vulgar language Megan used in response to the messages and the fact that she did not log off when her mother told her to. After the argument, Megan ran upstairs to her room. According to Megan's father, Ronald, and a neighbor who had discussed the hoax with drew, the last message sent by the Evans account read, everybody in O'Fallon knows how you are. You are a bad person that everybody hates. You have a shitty rest of your life. The world would be a better place without you. Megan responded with a message reading. You're the kind of boy of a girl would kill herself over. The last few correspondents were made via AOL Messenger instead of Myspace. She was found 20 minutes later hanging by the neck in a closet. Despite attempts to revive her, she was pronounced dead the next day. Both the Tyler and Megan cases are sobering reminders that modern day computer crime is not limited to criminals with the profit motive. Rather, they are evidence that cyber criminals are out for revenge or other motives, are keenly aware of potential victims who are young and impressionable. Worse yet, such criminals are often able to hide behind the false identities while calling the Internet in avoiding detection by the police.

What is white collar crime definition?

White collar crime is a somewhat generic term meaning different things to different people. Although white collar offenses are less visible than crimes such as burglary and robbery, their overall economic impact may be considerably greater. The appropriate definition of white collar crime has long been a matter of dispute among criminal justice practitioners. A particular point of contention is whether it is defined by the nature of the offense or by the status, profession, or the skills of the offender.

Is white collar crime a victimless crime?

White collar crime is not a victimless crime. As we see with the Bernie Madoff Ponzi scheme, a single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars. Today's fraud schemes are more sophisticated than ever and it is the responsibility of the criminal investigator to identify the offenders and stop scams and schemes before they start. Examples of some of the most notable white collar crimes are insider trading, money laundering, confidence games, and computer crime.

Cybercrime is now a mainstream social problem. Why?

With the personal computer now in many households, and mainframe computers acting as the epicenter of almost all Fortune 500 computers, the problem of computer crime or cybercrime is now a mainstream social problem.