Computer Crime: Crime of the Information Age Valerie Russell CSCI 030 Delahunty

2 What is computer crime? Computer crime is classified as a white- collar crime. Computer crime is classified as a white- collar crime. It is a crime in which computers are used as the instrument of the offense, or in which computers are the object of the offense. It is a crime in which computers are used as the instrument of the offense, or in which computers are the object of the offense. Computer crimes are generally placed in one of two categories: fraud or abuse.

3 Types of Computer Crime Computer as Instrument Computer as Object Theft by computer (using computer as a tool to steal) Damage to software/hardware (physical or electronic damage to computers or computer programs) Harassment/extortion (using computer as a means for intimidation or threats) Data alteration (changing information for undue advantage or revenge)

4 Areas of Computer Crime Currently, computer crime breaks down into six major areas: Trespass, 2% Theft of or denial of services, 10% Alteration of data, 12% Damage to software, 16% Theft of information or programs, 16% Theft of money, 44% (Source: National Center for Computer Crime Data)

5 Examples of “bad guy” tricks Bomb Bomb Data diddling Data diddling Denial of Service (DOS) attack Denial of Service (DOS) attack Piggybacking Piggybacking Salami technique Salami technique Scavenging Scavenging Trapdoor Trapdoor Trojan horse Trojan horse Zapping Zapping

6 Types of Perpetrators Insiders -Work for the company or organization -Have access to the physical and intellectual property of their employers -Are trusted Motivations -Financial gain -Revenge-Curiosity -Challenge of getting away with it

7 Types of Perpetrators cont’d Outsiders -Hackers -Vendors -Former employees -Competitors-Customers -Employees of associated businesses -Terrorists-Consultants -Political activists -Foreign government agents Motivations -Same as insider motivations -Revenge of a former employee -Competitors wanting inside information -New employees who provide information relative to their previous employer -Political agenda -Nationalistic economic pressures

8 Hackers US Dept of Justice describes hackers as: Between yrs old Between yrs old Predominantly men, with number of women increasing Predominantly men, with number of women increasing No prior criminal record No prior criminal record Target businesses and gov’t agencies’ systems Target businesses and gov’t agencies’ systems Bright, motivated, willing to accept challenges Bright, motivated, willing to accept challenges Fear ridicule, exposure and loss of status Fear ridicule, exposure and loss of status Usually work alone Usually work alone Hold a position of trust, usually first to arrive to work, last to leave Hold a position of trust, usually first to arrive to work, last to leave View criminal acts as a game View criminal acts as a game

9 A Hacker’s Motivation To learn about computers as a hobby To learn about computers as a hobby To defy authority To defy authority To respond to a challenge To respond to a challenge To “beat the system” To “beat the system” To cause disruption To cause disruption To show contempt for others To show contempt for others To show how smart they are To show how smart they are

10 Viruses Virus software is probably the most widely discussed class of computer threat. Virus software is probably the most widely discussed class of computer threat. In order to classify as a virus program, the code in the program must be able to replicate or copy itself so as to spread through the infected machine or across to other machines. In order to classify as a virus program, the code in the program must be able to replicate or copy itself so as to spread through the infected machine or across to other machines. Not all viruses are destructive. Not all viruses are destructive.

11 Types of Viruses Beneficial virus program Beneficial virus program Benign virus program Benign virus program Beastly virus programs: Beastly virus programs: Boot infections Boot infections System infectors System infectors Application program infectors Application program infectors Data infectors Data infectors

12 Typical Viruses Form Melissa Ripper Junkie MDMA Anti-CMOS Concept Monkey Cookie Monster One_Half Wazzu Michelangelo Cascade Jerusalem

13 Magnitude of the Computer Crime Problem The threat of computer crime is growing as computers become a bigger part of our everyday lives. The threat of computer crime is growing as computers become a bigger part of our everyday lives. U.S. organizations lose billions of dollars each year, but it is difficult to determine exactly how much for several reasons: U.S. organizations lose billions of dollars each year, but it is difficult to determine exactly how much for several reasons:

14 Magnitude of problem cont’d. Difficulty in detecting when a system has been invaded or affected. Difficulty in detecting when a system has been invaded or affected. Those crimes that are detected are never reported to the authorities an estimated 85% of the time. Those crimes that are detected are never reported to the authorities an estimated 85% of the time.

15 Investigating Computer Crime Determine that a crime has taken place Determine that a crime has taken place Preserve evidence Preserve evidence Estimate financial loss Estimate financial loss Determine expertise needed for assistance Determine expertise needed for assistance Identify suspects and witnesses Identify suspects and witnesses File complaint and claim File complaint and claim

16 Prevention and Security Protect with passwords to gain entry to system or site Protect with passwords to gain entry to system or site Anti-virus software and other security software Anti-virus software and other security software Secured waste, paper shredding Secured waste, paper shredding Back up files Back up files Protect personal information and make sure site is secure Protect personal information and make sure site is secure Protect physical areas from unauthorized entry, equipment from being accessed, video cameras Protect physical areas from unauthorized entry, equipment from being accessed, video cameras Federal legislation Federal legislation

17 Instances of Computer Crime The U.S. Department of Defense computers are attacked more than 200,000 times per year. The U.S. Department of Defense computers are attacked more than 200,000 times per year. A controller at Halifax Technology Services admitted embezzling $15 million by generating corporate checks to herself over a period of three years. A controller at Halifax Technology Services admitted embezzling $15 million by generating corporate checks to herself over a period of three years. Of the $40 million of counterfeited money seized in 1998, $16 million of it was computer generated. Of the $40 million of counterfeited money seized in 1998, $16 million of it was computer generated.

18 Donald Burleson inserted a virus into the computer system at a brokerage where he had been fired. The virus erased 168,000 sales commission records. Donald Burleson inserted a virus into the computer system at a brokerage where he had been fired. The virus erased 168,000 sales commission records. Robert Morris, released a macrovirus that brought more than 6,000 university, research and military computers to a standstill, causing millions of dollars in damage. Robert Morris, released a macrovirus that brought more than 6,000 university, research and military computers to a standstill, causing millions of dollars in damage. An executive at Squibb and Sons, Inc., plead guilty to fraud in a scheme to steal more than $1 million of merchandise from the company. An executive at Squibb and Sons, Inc., plead guilty to fraud in a scheme to steal more than $1 million of merchandise from the company. A brokerage clerk transformed 1700 shares of his own stock, worth $1.50 per share, to the same number of shares in another company worth 10 times that much. A brokerage clerk transformed 1700 shares of his own stock, worth $1.50 per share, to the same number of shares in another company worth 10 times that much. A 14 year old boy broke into the computer of Citibank and used access codes to order more than $11,000 of merchandise, and had it sent to a post office box. A 14 year old boy broke into the computer of Citibank and used access codes to order more than $11,000 of merchandise, and had it sent to a post office box.

19 Conclusion Because of technological advances and society’s growing reliance on computers, computer crime is sure to become a part of almost all types of crime in the near future. Precautionary measures must be taken. Because of technological advances and society’s growing reliance on computers, computer crime is sure to become a part of almost all types of crime in the near future. Precautionary measures must be taken.