Web-Based Criminal Activity Overview

Web-Based Criminal Activity

• Computer crime involves more than Internet-based activities
• It includes financial losses, threats to personal security, industrial espionage, threats to international security, and threats to public safety
• Online crime includes interference with lawful use of computers, theft of information and copyright infringement, dissemination of contraband or offensive materials, threatening communications, fraud, and ancillary crimes.
• Examples of interference with lawful use of computers include eco-terrorism, DOS attacks, use of malware, cyber vandalism, cyber terrorism, spam, and etc.
• Examples of theft of information and copyright infringement include industrial espionage, ID theft, and ID fraud.
• Examples of dissemination of contraband or offensive materials include pornography, child pornography, online gaming, and treasonous or racist material.
• Examples of threatening communications include, extortion, cyber stalking, cyber harassment, and cyber bullying.
• Examples of fraud include auction fraud, credit card fraud, theft of services, and stock manipulation.
• Examples of ancillary crimes include money laundering and conspiracy.

Theft of Information, Data Manipulation, and Web Encroachment

• Traditional methods of proprietary information theft can occur due to insiders, social engineering, theft of equipment, and malware.
• Concerns about trade secrets and copyrights include having value independent of whatever owner produces and theft can come from disgruntled employees, competitors, and government entities.
• Seriousness of political espionage includes FBI estimates that over 120 foreign governments have intelligence operations targeting the U.S.

Cyber Terrorism

• A deliberate, politically, or religiously motivated attack against data compilations, computer programs, and/or information systems which is intended to disrupt and/or deny service or acquire information which disrupts the social, physical, or political infrastructure of a target
• Typical array of methods used against the U.S. Government include viruses and worms.

Neo-Traditional Crime

• Child pornography is difficult to define but refers to any visual depiction of a lascivious exhibition of the genitals or pubic area or sexually explicit conduct of a minor
• Child pornography is illegal in all states and is prohibited by federal law making it legally difficult to prosecute.
• Law enforcement has had great success with sting operations or "honeypots" by using the same strategy as predators of pretending to be a child and arranging for a meeting.
• Online pharmacies are used to make legitimate and illegitimate purchases privately and conveniently
• Ease of access for minors and open all day make online gambling popular
• e-Banking making it easier to play and potential for billions in profit also contributed to online gambling popularity.
• The Internet Gambling Prohibition & Enforcement Act of 2006 makes online gambling illegal but it is difficult to enforce due to lack of public, international cooperation.
• Web-Cramming is the unauthorized charging of consumers via monthly telecommunication fees.
• ISP Jacking is disconnecting individual users from their selected Internet service providers and redirecting them to illegitimate servers to generate long distance charges for those using dial-up.

Fraud via Data Manipulation

• Data Diddling is a method of fraud via data manipulation involving redirecting or rerouting data representing monies or economic exchanges.
• The salami technique is a method of stealing a fraction of a cent from millions of accounts, designed to go undetected.
• IP Spoofing is manipulation of data packets between computers to mimic a third party and falsely gain access to funds.

Securities Fraud and Stock Manipulation

• Instant access to stock values and statistics encourages day-trading, buying stock with little or no actual knowledge of the company
• Dissemination of false information is used to trick individuals to purchase stock at inflated prices.
• Insider trading involves individuals with access to confidential information unavailable to the public who use it to make stock purchases/sales, for personal gain.

Ancillary Crimes

• Money Laundering is an enterprise or practice of engaging in deliberate financial transactions to conceal the identity, source, and/or destination of income.
• Money Laundering is typically a critical element for organized crime.
• Steps in the money laundering process include: placement, layering, integration.
• Combating money laundering is accomplished by finding, freezing, and forfeiting.

Conclusions

• Technology both enhances and threatens modern society.
• Computer crime is increasing due to computers being equivalent to storage warehouses, Increasing connectivity & interdependence of infrastructures, technical expertise being decreasingly important, increasing number of threat groups with sophisticated methodologies & advance technology, and government apathy.

Web-Based Criminal Activity

• Computer crimes are not limited to Internet-based activities but can include financial losses, threats to personal security, industrial espionage, and threats to international and public safety.
• Online crime can include interference with lawful use of computers, such as eco-terrorism, denial of service (DoS) attacks, malware use, cyber vandalism, cyber terrorism, and spam.
• Online crime can also include theft of information and copyright infringement, such as industrial espionage, ID theft, and ID fraud.
• Dissemination of contraband or offensive materials, such as pornography, child pornography, online gaming, and treasonous or racist material is a common web-based crime.
• Threatening communications like extortion, cyberstalking, cyber harassment, and cyberbullying are frequent crimes.
• Online fraud such as auction fraud, credit card fraud, theft of services, and stock manipulation are other web-based crimes.
• Ancillary crimes, such as money laundering and conspiracy, can be facilitated by the internet.

Theft of Information, Data Manipulation, and Web Encroachment

• Traditional methods of information theft can occur through insiders, social engineering, theft of equipment, and malware.
• Trade secrets and copyrights are valuable forms of intellectual property subject to theft from disgruntled employees, competitors, and government entities.
• Political espionage is a serious concern, with foreign governments targeting the U.S. for intelligence gathering.

Cyber Terrorism

• Cyber terrorism is a deliberate, politically or religiously motivated attack against data compilations, computer programs, and information systems.
• The goal of cyber terrorism is to disrupt or deny service to a target or to acquire information that disrupts the social, physical, or political infrastructure of a target.
• Common methods used in cyber terrorism include viruses and worms.

Neo-Traditional Crime

Child Pornography

• It is challenging to define, but generally refers to any visual depiction of a lascivious exhibition of the genitals or pubic area or sexually explicit conduct of a minor.
• It's difficult to prosecute due to potential First Amendment issues regarding freedom of speech.
• It's illegal in all states and prohibited by federal law.

Child Enticement/Exploitation

• Law enforcement utilizes "honeypots" where officers pretend to be children to arrange meetings with potential predators.

Online Pharmacies

• Used for both legitimate and illegitimate purchases of substances like anabolic steroids, amphetamines, and painkillers.

Online Gambling

• Easy accessibility, including for minors.
• Operates 24/7.
• Facilitated by e-banking.
• Potentially generates billions in profit.
• The Internet Gambling Prohibition & Enforcement Act of 2006 makes it illegal, but enforcement is challenging.

Threatening and harassing communications

• Cyberstalking: Willful, malicious, and repeated following or harassing another person via electronic means.
• Cyberharassment: Focuses on the actual harm suffered, including defacement of character.
• Cyberbullying: Aggressive, intentional acts carried out using electronic forms of contact repeatedly and over time against a victim who cannot easily defend themselves.

Online Fraud

• Intentional deception, misrepresentation, or falsehood made with the intention of receiving unwarranted compensation or gratification.
• It affects people across various demographics.
• It exists in various forms, including internet auction fraud and online credit card fraud.

Internet Auction Fraud

• Nondelivery of goods.
• Misrepresentation of the condition of an item.
• Addition of hidden charges (fee-stacking).
• Shill bidding (where the seller submits bids to drive up the price).

Online Credit Card Fraud

• Skimming (installing devices to steal information from cards).
• RFID (taking information from "wave and pay" devices).

Ancillary Crimes

Money Laundering

• The practice of deliberately engaging in financial transactions to conceal the identity, source, and/or destination of income.
• Crucial for organized crime to function.

Process of Money Laundering

• Placement (point of entry of illicit funds).
• Layering (using networks to obscure the origins of funds).
• Integration (return of funds to the legitimate economy).

Combating Money Laundering

• Finding, freezing, and forfeiting funds.

Strategies Used to Combat Money Laundering

• Holding Internet service providers accountable for not maintaining adequate records.
• Making financial institutions responsible for insufficient security.
• Enforcing "Know Your Customers" regulations.

Conclusions

• Technology enhances and threatens modern society.
• Computer crime is increasing for various reasons, including:
  • Computers resembling storage warehouses of data.
  • Increased connectivity and interdependence of infrastructures.
  • Decreasing importance of technical expertise for committing crimes.
  • Rise in threat groups with sophisticated methodologies and advanced technology.
  • Government apathy.

Malware Evolution

• Malware has evolved through different eras, each with its own characteristics and impact.
• The Classical Era (1960s-1970s): Primarily involved pranks or accidental distribution.
• The Floppy Era (1980s-1990s): Targeted DOS machines and was disseminated mainly through floppy disks.
• The Macro Era (1990s-2000s): Targeted documents and templates instead of programs.
• The Internet Era (2000-present): Characterized by more sophisticated malware that exploits vulnerabilities in systems.

Worms, DoS, and Botnets

• Worms are used to facilitate large-scale DoS attacks.
• DoS (Denial of Service) and DDOS (Distributed Denial of Service) Attacks: Overwhelm servers, often through mail-bombing.
• Botnets and Zombie Armies: Compromised computers connected to the internet are used as a network (botnet) for theft, extortion, or DDOS attacks.

Spam

• Spam is the abuse of electronic messaging systems across multiple platforms, consuming resources.

Ransomware

• Ransomware is malware that makes digital resources inoperable or inaccessible, extracting payment from the victim.
• Its effectiveness is influenced by user education (less educated users are more vulnerable) and the sophistication of the ransomware (some are not easily addressed by standard software remedies).

Neo-Traditional Crime: Child Pornography

• Child pornography involves visual depictions of sexually explicit conduct of minors.
• It is difficult to define and prosecute due to First Amendment concerns about freedom of speech but is illegal in all states and prohibited by federal law.

Neo-Traditional Crime: Child Enticement/Exploitation

• Law enforcement utilizes "honeypots", posing as children to attract and apprehend predators.

Neo-Traditional Crime: Online Pharmacies

• Used to purchase both legitimate and illegitimate substances (anabolic steroids, amphetamines, painkillers).
• Provide convenience and privacy for users.

Neo-Traditional Crime: Online Gambling

• Offers ease of access, including for minors.
• It is available 24/7.
• e-banking facilitates participation.
• Generates significant profits.
• The Internet Gambling Prohibition & Enforcement Act of 2006 makes it illegal, but enforcing the law is difficult due to limited international cooperation.

Neo-Traditional Crime: Threatening and Harassing Communications

• Cyberstalking: Wilful, malicious, and repeated harassment via electronic means.
• Cyberharassment: Focuses on the harm inflicted, including defamation of character.
• Cyberbullying: Aggressive, intentional acts using electronic forms of contact, repeated over time against a victim who cannot easily defend themselves. It is illegal only in some states, not under federal law.

Neo-Traditional Crime: Online Fraud

• Intentional deception, misrepresentation, or falsehood for unwarranted compensation or gratification.
• Covers a wide range of practices.

Neo-Traditional Crime: Internet Auction Fraud

• Nondelivery of goods.
• Misrepresentation of the condition of an item.
• Hidden charges (fee-stacking).
• Shill bidding (seller submits bids to inflate the price).

Neo-Traditional Crime: Online Credit Card Fraud

• Skimming: Installing devices to steal card information (like at ATMs).
• RFID (Radio Frequency Identification): Taking information from "wave and pay" devices.

Neo-Traditional Crime: Web-Cramming/ISP Jacking

• Web-Cramming: Unauthorised charging of consumers via monthly telecommunication fees.
• ISP Jacking: Disconnecting users from their chosen internet service providers, redirecting them to illegitimate servers to generate long-distance charges.

Neo-Traditional Crime: Fraud via Data Manipulation

• Data Diddling: Any fraudulent method involving data manipulation.
• Salami Technique: Stealing small amounts from numerous accounts to avoid detection.
• IP Spoofing: Manipulating data packets to mimic a third party and gain access to funds.

Neo-Traditional Crime: Securities Fraud and Stock Manipulation

• Individuals with access to confidential information (insider trading) use it to gain an unfair advantage.
• False information is disseminated to trick individuals into buying stock at inflated prices.

Neo-Traditional Crime: e-Fencing and Fraudulent Instruments

• e-Fencing: Sale of stolen goods online.
• Fraudulent instruments: Counterfeiting and forgery using technology.

Ancillary Crimes: Money Laundering

• It involves concealing the source, identity, and/or destination of illegal income.
• Placement: Putting illegal funds into the financial system.
• Layering: Using networks to disguise the origin of funds.
• Integration: Reintroducing funds into the legitimate economy.

Ancillary Crimes: Combating Money Laundering

• Finding: Identifying money laundering activities.
• Freezing: Stopping transactions and holding accounts.
• Forfeiture: Confiscation of funds.
• Holding internet service providers accountable for inadequate record-keeping.
• Holding financial institutions responsible for inadequate security.
• Enforcing "Know Your Customers" regulations.

Conclusions

• Technology both enhances and threatens modern society.
• Computer crime is increasing due to:
  • Computers being data warehouses.
  • Increasing connectivity and interdependence of infrastructures.
  • Decreasing technical expertise required.
  • Increasing number of threat groups with sophisticated methodologies and advanced technology.
  • Government apathy.

Explore the vast realm of computer crime that extends beyond just Internet-related activities. This quiz examines the various forms of online crime including financial losses, threats to personal security, and the proliferation of harmful materials. Test your knowledge on topics such as cyber terrorism, industrial espionage, and online harassment.