Download Techno-Crime in America spring 2016

Techno-Crime in America: New
Opportunities, Techniques,
Offenders, and Victims
Lecture:
Professor James Byrne
Spring 2016
New Opportunities for Crime
• The old world adage still applies – crime follows
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opportunity.
New technologies create provide new
opportunities for crime.
Today, computers provide new opportunities for
crime and victimization
Almost a century ago, it was the invention of the
car
Cars and Criminal Opportunity: A
Case Study
• In the 1920s private cars became widely affordable. This
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technology embodied the following characteristics:
- affordability – wide spread across socio-economic
groups
- speed – cars were much faster than any previously
available private transport (ie the horse)
- distance – cars could travel long distances without
resting (like a horse would have to)
- carrying capacity – cars could carry much more than a
horse
- anonymity – occupants of a car could not be as easily
recognized as someone on horseback or on foot.
Cars and Crime
• The result was significant growth in
certain types of crime, including:
• - bank robberies and housebreaking;
• - abduction;
• - smuggling and other transport of illicit
goods;
• and new crimes: theft of cars themselves.
Cars and Criminal justice
• NEW regulatory and law enforcement countermeasures included:
• - introduction of number plates, chassis and engine serial numbers;
• - introduction of motorcycle police and patrol and pursuit cars;
• - improved premises security including burglar alarms and security
patrols; and
• - improved cross – jurisdictional arrangements.
• Some of the countermeasures were aimed at specifics new crimes,
BUT most were aimed at counteracting old crimes using new
technology.
Computers and Criminal
Opportunity
• E-commerce is –global; accessible; automated, immediate; capable of
operating without the “collateral info” we have all relied upon in the past;
can be hidden from scrutiny through encryption and all these things
together create new business models – new ways of doing business.
• electronic crime IS AN OUTGROWTH OF E-commerce:
• - global; criminals can operate around the world literally;
• - accessible in ways never before seen and to people who, in the past, may
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never have led lives of crime;
- automated
- lots of small crimes can be effected wherein the past that would have
been all too hard;
- immediate- criminals can move fast!;
- anonymous, or as good as; OFFENDERS ARE HIDDEN.
The Link Between E-Commerce and
Electronic Crime
• E-Crime is a variation on an old theme– old
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scams, old crimes done in new ways.
So, just as the motor car became a vehicle for
facilitation of crime – COMPUTERS are now
used by criminals.
But then, that is the risk run every time a new
technological development occurs.
In commercial terms, crime is a risk of doing
business and it requires risk management. Not
risk elimination, but management.
Categories of Computer Crime
• 1. The Computer is the instrument to
commit the crime: e.g.credit card fraud
• 2. The Computer is the target of the
offense: e.g. theft of data files, personal
info. ( From Target to SONY before
release of The Interview)
• 3. The Computer is incidental to the
offense: e.g. telemarketing fraud
New Technology of Crime:
Crime A
Brief Overview
• Check and Credit Card Fraud
• Clandestine Drug Labs
• Misuse and Abuse of 9/11
• Prescription Fraud
• Rave Parties
• Telemarketing
Telemarketing Fraud
Fraud
• Common Fraud Schemes - FBI
The Internet and criminal
opportunity
• Inside the Darknet: Silk Road and other
darknet sites
• https://www.youtube.com/watch?v=HfuZJ
VpNWR4
Check and Credit Card Fraud
The Global cost of credit card fraud was 14 billion
in 2013 alone.Visa International estimated that
the yearly cost of fraud worldwide was about
0.05 cent per every dollar spent.
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In 2012, the U.S. accounted for 23.5% of global payment card
volume, but 47.3% of payment card fraud, according to a report by
Nilson. We are targetted: Why? One reason is that the U.S. has not
adopted the “chip card” standard like other countries. Also, record
data breaches( Target fraud cost 500 million)
• In the United States , the losses from online credit card fraud alone
have grown from $3.2 billion in 2007 to over 7.1 billion
• Electronic pickpocketing
in 2013.
https://www.youtube.com/watch?v=7qPPyoN-
How do offenders illegally acquire
checks and cards?
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Altering checks and cards. Offenders can do so with the simplest equipment.
However, altered checks and cards are sometimes easy to detect.
Counterfeiting checks and cards. Reasonably priced machines for embossing,
encoding, and applying holograms to cards are available on the Internet.
Committing application fraud. Offenders get a checking or credit card account by
using another person's identity or a fictitious one.
Stealing checks and cards through muggings, pickpocketing, theft from cars, and
burglaries.
Intercepting checks and cards in the mail.
Getting another person's PIN through trickery, for example, by "shimming" (watching
as the person punches in a PIN).
Manufacturing and marketing counterfeit cards via internationally organized crime
rings.
Renting or selling stolen or counterfeit cards to a group of "steady customers" via
locally organized crime rings.
Hacking into a retailer's customer database to get credit card numbers.
Setting up bogus websites that request credit card and other personal information.
Mobile Technology means New
Fraud Techniques
• Credit cards.com identifies three techniques:
• QR code fraud powered by gift cards that are
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designed to include malware that steals info.
Like bank accounts
FBI scam for desktop computers: says you have
a virus and for a fee that you need to pay with a
gift card, they will repair it.
Mobile Malware: fake apps that download
viruses and malware onto smartphones
New Drugs, New Crimes
• Clandestine Drug Labs
• Harms Caused by Clandestine
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Methamphetamine Labs
Clandestine methamphetamine labs cause three
main types of harm: (1) physical injury from
explosions, fires, chemical burns, and toxic
fumes; (2) environmental hazards; and (3) child
endangerment.
Party Drugs
Synthetic marijuana and variations
Steroids, HGH, etc.
New drugs, New Crimes
• Rave-Related Drugs
• Although ravers might use any number of legal and
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illegal drugs, certain drugs are most commonly
associated with the rave scene. Among them are:
Ecstasy (or MDMA),† † MDMA is only one of perhaps
over 200 analogues to the chemical MDA (3,4 methylenedioxyamphetamine) (Spruit 1999).
Ketamine,†† †† Because Ketamine is used as a
veterinary anesthetic, trafficking in it is often connected
to burglaries of veterinary clinics and pharmacies
LSD (or "acid"),
Rohypnol, and GHB .
Drugs and the Internet
• We spend billions on prescription drugs in the
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U.S. each year. Unfortunately, there is a serious
problem related to the sale of fake drugs on the
internet.
A recent study concluded that the number of
people who abuse prescription drugs each year
roughly equals the number who abuse cocaine—
about 2 to 4 percent of the population.
A variety of illegal drugs are bought and sold on
the internet. Website: Silkroad and other
darknet websites
Prescription Fraud
• People commit prescription fraud in
numerous ways, including
• forging prescriptions,
• going to several doctors to get multiple
prescriptions (termed “doctor shopping”),
• and altering prescriptions to increase the
quantity .
Fake Drugs and New Crimes
• Throughout history, scam artists have sold fake
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remedies for various diseases.
Today, the internet is being used to sell fake
drugs to cure a variety of diseases, including
AIDS, and various forms of Cancer.
Internet scams also target hair loss, anti-aging,
weight loss, and human growth drugs.
Cyber espionage: Game over Zeus Software
and FBI’s Most Wanted Cyber Criminals
• http://www.dailymail.co.uk/news/article-
2646946/Department-Justice-warnspublic-protect-PCs-Russian-led-hackingring.html
• http://www.bloomberg.com/news/feature
s/2015-06-18/the-hunt-for-the-financialindustry-s-most-wanted-hacker
• https://www.fbi.gov/wanted/cyber/@@w
anted-group-listing
Common Fraud Schemes - FBI
• Common Fraud Scams- Telemarketing
Fraud- Fraud Alert - Nigerian Letter or 419
Fraud-Impersonation/Identity FraudAdvance Fee Scheme-Health Insurance Redemption/Strawman/Bond Fraud
• Investment Related Scams- Letter of
Credit Fraud- Prime Bank Note-Ponzi
Scheme-Pyramid Scheme
New Technology and Youth
Violence
• Cyberstalking
• Cyber child pornography, sexting
• Internet-related sex crimes, including
solicitation and human trafficking
• Website Perverted Justice: hired by
producers of To Catch a Predator to
identify online solicitation( entrapment?)
• http://www.perverted-justice.com/
• https://www.youtube.com/watch?v=ET43
wwyqteM
Reporting Computer-Related Crime
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Computer intrusion (i.e. hacking)
FBI local office
U.S. Secret Service
Internet Crime Complaint Center
Password trafficking
FBI local office
U.S. Secret Service
Internet Crime Complaint Center
Counterfeiting of currency
U.S. Secret Service
Reporting Computer Crime
• Child Pornography or Exploitation
• FBI local office
• if imported, U.S. Immigration and Customs
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Enforcement
Internet Crime Complaint Center
Child Exploitation and Internet Fraud matters
that have a mail nexus
U.S. Postal Inspection Service
Internet Crime Complaint Center
Reporting Computer Crime
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Internet fraud and SPAM
FBI local office
U.S. Secret Service (Financial Crimes Division)
Federal Trade Commission (online complaint)
if securities fraud or investment-related SPAM e-mails, Securities and
Exchange Commission (online complaint)
The Internet Crime Complaint Center
Internet harassment
FBI local office
Internet bomb threats
FBI local office
ATF local office
Trafficking in explosive or incendiary devices or firearms over the Internet
FBI local office
ATF local office