Executive summary
The ubiquitous computers use as well as other electronic devises is essentially creating a swiftly rising wave of firsthand as well as stored digital information. Roughly, 90 percent of the corporate information presently is in digital form. Corporations produce nearly 17.5 trillion documents that are in electronic form in every year. The additional types of electronic data come from online banking, internet-based electronic data, and stock trading among others. The information risks that are related with these data are numerous due to the rapid increase in online crimes and especially computer and credit card crimes.
The methods of collecting data used in this report included internet searches, use of library sources, surveys, and interviews. In analyzing the collected data, the first phase involved data cleaning where the aim was to correct the errors. The research employed exploratory approach in analyzing the data. The research identified that online crimes occur mostly in financial institutions and large companies. For this reason, there is a great urgency for the government to enact stringent rules to deal with online culprits.
In line with the contemporary technological advances, online crime is becoming more and more complex and sophiscated, with the criminals using the stolen credit cards and hacking into the computer systems to do internet transactions. Both individuals and businesses are equally at the risk of online crimes at workplaces and homes. This report was commissioned due to the increase in online crimes particularly credit cards and computer crimes. The report was needed to provide solutions to these modern threatening crimes.
1.2. Scope
This report extensively investigated the technological loopholes that result in hacking of individuals’ and company websites. Moreover, the report delved into the use of credit cards to defraud money through automated machines and gain access to buildings that have automated entrances. The report concentrated more on the use of coded language in computer programming that manipulate the original data .To gain comprehensive understanding ,the report featured several crime cases and their varied criminal techniques in achieving their dubious objectives. The role played by technocrats in manipulating the system and their corrupt relationship with company employees and website hosts. Finally, the report reviewed government efforts in curbing the crime.
1.3. Method
2.0. Procedure
2.1 Primary data
Primary data provided information on past and current experiences on online and credit crimes. Interviews and surveys formed the main source of the data.
2.1.1 Interviews
Under this segment, both direct and indirect interview was involved from selected segments of people. Some of these segments ranged from financial institutions, government departments, companies and several individuals. Direct interview involved open and closed interview. In open interview, interviewees had the discretion to respond to the questions to any length.Further, other interviewees had to respond to the questions in precise and chronological manner. This method facilitated collection of information beyond the expected limit.
Indirect interview was used especially in situations where it was difficult to interview. Phone conversations, E-mails and use of questionnaires methods were used in collecting data. The Questionnaire was drafted to include open and closed/multiple choice questions
2.1.2. Surveys
This method entailed collecting information through viewing reported case on online and cyber-crimes. Further, surveying the security details installed in companies and financial institution. This method could not cover all victims .Therefore using sampling method; in every segment, two were selected. For instance, American bank was selected to represent financial institutions while LinkedIn represented websites. Wells Fargo represented service providers who trade in the online.
2.2 Secondary data
This method involved use of trusted websites, journal articles on cybercrime, government reports and peer review articles. Zappon.com website was among the websites used as victims of online crime. New York Times journal had information about US banks and fraud crimes. FBI forensic department had information on reported case of cybercrimes and credit crimes.
3.0. Findings (Results)
The study found that in June 2012, eHarmony and Linkedln had in fact been attacked; encompassing 65 million passwords where 1.5 million passwords belonging to eHarmony were posted online and 30,000 passwords were fractured. In December the same year, a website belonging to Wells Fargo experienced a server attack denial possibly comprising 8.5 million active viewers and 70 million customers. The other banks comprised by this include PNC Financial Services, J.P. Morgan U.S. Bank, and Bank of America.
The study also identified that Zappos.com experienced security breach after over 24 million customers’ personal information, credit card numbers, shipping and billing addresses had been compromised. Moreover, the study found out that a hacking group by the name Masters of Deception (MOD) supposedly stole technical data and passwords from Nynex, Pacific Bell and other big credit agencies and telephone companies.
4.0. Interpretation
Credit cards and computer crimes is among the fastest growing forms of illegal activities in United States and internationally. Although internet links individuals together, it also offers endless opportunity to the offenders seeking to exploit others’ vulnerabilities. Online crime statistics are surprising. About 73 percent of the Americans have either attempted crime on web or encountered various forms of computer crime. These forms of crime are very hard to solve and at times, they take place without the victims realizing. Recently, the president of the United States was the victim of online crime when his email accounts were hacked.
The awareness that internet is rife with the security hazards and credit card fraud is growing and this presents serious problems in e-commerce. As the economy raises its reliance on internet, it is essentially exposed to numerous threats that are posed by online criminals. The bank transactions are done over the internet, purchases are done using the credit cards over the internet and stocks are traded over the internet. All the fraud instances in these transactions affect financial state of institutions affected and the entire economy. According to the reports sponsored by the Better Business Bureau Online, over 80 percent of the online purchasers cited security as a main worry when they are doing business over the internet. Approximately 75 percent of the online purchasers terminate an online business transaction when asked for the information about their credit card.
5.0. Conclusion
References
Broadhurst, R. (2006). Developments in the global law enforcement of cyber-crime. Policing-an International Journal of Police Strategies & Management.
Financial crimes: A threat to global security. (2012). Boca Raton, FL: CRC Press.
McIntosh, N. (2003). Cybercrime. Chicago, IL: Raintree.
Broadhurst, R. (2006). Developments in the global law enforcement of cyber-crime. Policing-an International Journal of Police Strategies & Management.
6.0. Appendix
2012 Scam Alerts and Public Service Announcements*
Fraud Alerts
November Scam Alert (www.ic3.gov/media/2012/121126.aspx)
• Top Nine Fraud Attacks Impacting ecommerce
• Fraud Targeting Direct Sales Companies
October Scam Alert (www.ic3.gov/media/2012/121023.aspx)
• Dating Extortion Scam
• Payday Loan Scams
• New TDSS/TDL4 malware Infects 46 of Fortune 500
• Top Words Cyber Criminals Use in Fake E-mails
September Scam Alert (www.ic3.gov/media/2012/120919.aspx)
• Triangle Credit Card Fraud
• New Twist to the Work-at-Home Scheme
• New Twist to the Hit Man Scam
August Scam Alert (www.ic3.gov/media/2012/120808.aspx)
• Fake Political Survey
• Online Phonebook
• Free Credit Service Website
• Citadel Malware Delivers Reveton Ransomware in Attempts To
Extort Money
• Spoofed Microsoft Update Includes Malware
• SYSRET 64-bit Operating System Privilege Escalation
Vulnerability on Intel CPU Hardware
• Malicious PowerPoint File Contains Exploit, Drops Backdoor
May Scam Alert (http://www.ic3.gov/media/2012/120523.aspx)
• Exposing Bad Clients in the Escort Community
• US Airways Phishing E-mail Containing Malware
April Scam Alert (www.ic3.gov/media/2012/120420.aspx)
• Investment Scam
• Blackhole Exploit Kit 1.2.3 Released
• Termination of Your Certified Public Accountant (CPA)
License Spam Campaign Containing Malware
• Want to Get Paid to Drive Your Own Car?
• Online Property Rental Scenarios
March Scam Alert (www.ic3.gov/media/2012/120327.aspx)
• Fraudulent Utility Bill E-mail
• Businesses Targeted with E-mail Purportedly from the Better
Business Bureau (BBB)
• Moving Company Scams
• Browser Bot Infection
• HTML Attachments Used to Spread Malware
February Scam Alert (www.ic3.gov/media/2012/120217.aspx)
• Mystery Shopper Scam to Evaluate Wire Transfer Services
• Spam Referencing U.S. Military Members and Gaddafi
• Pox Party Online Advertisements
Public Service Announcements
Citadel Malware Continues to Deliver Reveton Ransomware in
Attempts to Extort Money
www.ic3.gov/media/2012/121130.aspx
Fraud Alert – Cyber Criminals Targeting Financial Institution
Employee Credentials to Conduct Wire Transfer Fraud
www.ic3.gov/media/2012/FraudAlertFinancialInstitutionEmployee
CredentialsTargeted.pdf
Fraud Alert Involving E-mail Intrusions to Facilitate Wire
Transfers Overseas
www.ic3.gov/media/2012/E-mailFraudWireTransferAlert.pdf
Holiday Shopping Tips
www.ic3.gov/media/2012/121120.aspx
Joint FBI and DHS Public Service Announcement: Best Practices
for Recovery From the Malicious Erasure of Files
www.ic3.gov/media/2012/120120.aspx
Justice Department Officials Raise Awareness of Disaster Fraud
Hotline
www.ic3.gov/media/2012/121101.aspx
Lawyers’ Identities Being Used for Fake Websites and Solicitations
www.ic3.gov/media/2012/120914.aspx
Malware Installed on Travelers’ Laptops through Software
Updates on Hotel Internet Connections
www.ic3.gov/media/2012/120508.aspx
New Variation on Telephone Collection Scam Related to
Delinquent Payday Loans
www.ic3.gov/media/2012/120221.aspx
Smartphone Users Should Be Aware of Malware Targeting
Mobile Devices and Safety Measures to Help Avoid Compromise
www.ic3.gov/media/2012/121012.aspx
Timeshare Marketing Scams
www.ic3.gov/media/2012/120125.aspx
U.S. Law Firms Continue to be the Target of a Counterfeit
Check Scheme
www.ic3.gov/media/2012/120312.aspx
* Note: No Scam Alerts were issued in January, June, July and
December.
