Cyber Threats: Lecture 6 - Theft and Identity Fraud (Jan 2024)

Cyber Threats Lecture 6: Theft and Identity Fraud Chapter 5 Jan 2024 Dr Areej Algaith Learning Objectives: After reading this chapter, you will be able to do the following: Gain a quick clarification of terms related to identity theft and fraud....

Cyber Threats Lecture 6: Theft and Identity Fraud Chapter 5 Jan 2024 Dr Areej Algaith Learning Objectives: After reading this chapter, you will be able to do the following: Gain a quick clarification of terms related to identity theft and fraud. Understand the difference between identity theft and identity fraud. Explore the five types of identity theft/fraud. Investigate the virtual and Internet methods in which computer criminals steal an identity. Develop a knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed Identity Theft/Fraud Identity Theft has been used to describe any use of stolen personal information. However, such characterization fails to provide a comprehensive picture of the totality of possibilities surrounding that construct known as identity. identity fraud, which encompasses identity theft within its purview , may be defined as the use of a vast array of illegal activities based on fraudulent use of identifying information of a real or fictitious person. Thus, it provides for the creation of fictitious identities. Initiated from a single “breeder” document (i.e., fictitious or stolen identifiers), identity fraud is committed when a credible identity is created by accessing others’ credit cards, financial or employment records, secure facilities, computer systems, or such. Upon development of the credible identity, the criminal possibilities are endless. Identity Theft/Fraud Typologies of identity theft/fraud Distinguishing between Identity Theft and Identity Fraud Identity theft—illegal use or transfer of a third party’s personal identification information with unlawful intent. Identity fraud—a vast array of illegal activities based on fraudulent use of identifying information of a real or fictitious person. Types of Identity Theft/Fraud Typologies of identity theft/fraud There are five main types of identity theft/fraud occurring: 1. Assumption of identity 2. Theft for employment and/or border entry 3. Criminal record identity theft/fraud 4. Virtual identity theft/fraud 5. Credit or financial theft Types of Identity Theft/Fraud Typologies of identity theft/fraud 1. Assumption of identity This is the rarest form of identity theft/fraud and occurs when an individual simply assumes the identity of his or her victim, including all aspects of the victim’s lives. It must be noted that this type of activity is atypical as it is significantly more difficult to accomplish. Types of Identity Theft/Fraud Typologies of identity theft/fraud 2. Theft for employment and/or Border entry This type of identity theft/fraud is increasingly common due to the growth of illegal immigration and alien smuggling. It involves the fraudulent use of stolen or fictitious personal information to obtain employment or to gain entry into another country.. Types of Identity Theft/Fraud Typologies of identity theft/fraud 3. Criminal record identity Theft/fraud This This type is often overlooked in discussions of identity theft, perhaps because it is not as common or because the immediate financial repercussions are not significant. It has been used historically by individuals attempting to evade capture or criminal prosecution. reverse criminal record identity theft occurs when a criminal uses a victim’s identity not to engage in criminal activity but to seek gainful employment.. Types of Identity Theft/Fraud Typologies of identity theft/fraud 4. Virtual identity Theft/fraud A relatively new phenomenon, virtual identity theft/fraud involves the use of personal, professional, or other dimensions of identity toward the development of a fraudulent virtual personality. Unlike physical identities which are tied to social networks, legal documentation, and biological characteristics, virtual identities are largely personally constructed. Physical and virtual identity theft: Although the consequences may be the same, physical and virtual identity theft are not synonymous. In. the physical world, an individual’s identity is inherently tangible—supported by social networks, legal documentation, and biology. Virtual identities, however, are supported solely through digital input. In either event, identities are typically verified in one of three ways: presentation of identification documents, verification of secret knowledge, or satisfaction of physical recognition. Thus, identity crime can only be accomplished through deception or the circumvention of such safeguards. Types of Identity Theft/Fraud Typologies of identity theft/fraud 5. Credit identity Theft/fraud By far the most common type of identity theft/fraud, credit identity theft/fraud, is also the most feared by the public. It may be defined as the use of stolen personal and financial information to facilitate the creation of fraudulent accounts. This definition, specific by design, requires the affirmative act of securing additional credit. Types of Identity Theft/Fraud Typologies of identity theft/fraud An accounting of the prevalence of identity theft/fraud has been confounded by additional factors, including the following: 1. Delayed notification or awareness of victimization 2. The vested interest of private companies to exploit consumer fear 3. The lack of mandatory reporting and inconsistent application by federal agencies 4. Lack of national standards in measurement There are four primary sources of information on identity theft/ fraud data: Credit reporting agencies, software companies, popular and trade media, and government agencies. Types of Identity Theft/Fraud Prevalence and Victimology (The Costs Associated with Victimization ) Types of Identity Theft/Fraud Physical Methods of identity theft 1. Mail Theft 2. Dumpster Diving 3. Theft of Computers 4. Bag Operations 5. Child Identity Theft 6. Insiders 7. Fraudulent or Fictitious Companies (Fake companies which are engaged in the processing or collection of personal financial information ) 8. Card Skimming, ATM Manipulation, and Fraudulent Machines Types of Identity Theft/Fraud Virtual or Internet-Facilitated Methods 1. Phishing Although phishing attacks vary based on characteristics of intended targets, they may be grouped into several broad categories: Spoofing, pharming ,redirectors , advance-fee fraud or 419 fraud , phishing trojans and spyware , Floating windows and botnets 2. Spyware and Crimeware 3. Keyloggers and Password Stealers 4. Trojans Types of Identity Theft/Fraud Crimes Facilitated by Identity Theft/Fraud : Crimes Facilitated by Identity Theft/Fraud : it comes in a four-phase process: 1. Stolen identifiers are procured. 2. A breeder document (e.g., passport, birth certificate, driver’s license, and social security card) is created or obtained. 3. The breeder document is used to create additional fraudulent documents and solidify an identity. 4. The fraudulent identity is employed in the commission of a criminal act. The crimes which are directly facilitated by ID theft/fraud are largely limited to those associated with fraud, illegal immigration, or terrorism A. Insurance and Loan Fraud B. Immigration Fraud and Border Crossings Summary of Identity Theft/Fraud 1. Typologies of Identity Theft/Fraud 2. a. Assumption of Identity 3. Prevalence and Victimology 4. Physical Methods of Identity Theft 5. Virtual or Internet-Facilitated Methods 6. Crimes Facilitated by Identity Theft/Fraud