1. Forensic and Investigative Accounting Chapter 15 Cybercrime Management: Legal Issues © 2007 CCH. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 1 800 248 3248 www.CCHGroup.com

2. Chapter 15Forensic and Investigative Accounting2 Introduction to Cybercrime Most common complaints: Virus attacks...............................................65% Virus attacks...............................................65% Laptop/mobile theft....................................47% Laptop/mobile theft....................................47% Insider abuse of net access.........................42% Insider abuse of net access.........................42% Unauthorized access to information...........32% Unauthorized access to information...........32% Denial of service.........................................25% Denial of service.........................................25% System penetration......................................15% System penetration......................................15% Abuse of wireless network….......................14% Abuse of wireless network….......................14% Theft of proprietary information...................9% Theft of proprietary information...................9% Financial Fraud …….....................................9% Financial Fraud …….....................................9%

3. Chapter 15Forensic and Investigative Accounting3 Net Frauds Net frauds ensnare unsuspecting Internet users into giving up their resources to an online criminal.

4. Chapter 15Forensic and Investigative Accounting4 Unauthorized Access to Network Assets Unauthorized access to steal proprietary information can be considered a distinct crime from fraud.

5. Chapter 15Forensic and Investigative Accounting5 Types of Unauthorized Access Access using wardialers in modem attacks. Access using wardialers in modem attacks. Access via buggy software. Access via buggy software. Access via trusted server. Access via trusted server. Backdoor entry. Backdoor entry. Access via social engineering. Access via social engineering.

6. Chapter 15Forensic and Investigative Accounting6 Intangible Assets Information on the Internet and in computer databases represents intangible assets composed of bits and bytes. Information on the Internet and in computer databases represents intangible assets composed of bits and bytes. The destruction of electronic representations or the erasure of data without physically damaging a tangible computer asset may not be considered a crime. The destruction of electronic representations or the erasure of data without physically damaging a tangible computer asset may not be considered a crime. (continued on next slide)

7. Chapter 15Forensic and Investigative Accounting7 Intangible Assets If data is accessed but not used for any purpose, then no crime may have been committed. If data is accessed but not used for any purpose, then no crime may have been committed. Statutes may not provide for the recognition of criminal trespass, a property crime, based on a virtual presence (and no physical presence). Statutes may not provide for the recognition of criminal trespass, a property crime, based on a virtual presence (and no physical presence).

8. Chapter 15Forensic and Investigative Accounting8 1986 OECD Time Capsule Recommendations 1. The input, alteration, erasure and/or suppression of computer data and/or computer programmes made willfully with the intent to commit an illegal transfer of funds or of another thing of value; 2. The input, alteration, erasure and/or suppression of computer data and/or computer programmes made willfully with the intent to commit a forgery; (continued on next slide)

9. Chapter 15Forensic and Investigative Accounting9 1986 OECD Time Capsule Recommendations 3. The input, alteration, erasure and/or suppression of computer data and/or computer programmes, or other interference with computer systems, made willfully with the intent to hinder the functioning of a computer and/or telecommunication system; 4. The infringement of the exclusive right of the owner of a protected computer programme with the intent to exploit commercially the programme and put it on the market; (continued on next slide)

10. Chapter 15Forensic and Investigative Accounting10 1986 OECD Time Capsule Recommendations 5. The access to or the interception of a computer and/or telecommunication system made knowingly and without the authorization of the person responsible for the system, either (i) by infringement of security measures or (ii) for other dishonest or harmful intentions.

11. Chapter 15Forensic and Investigative Accounting11 Cybercrime or Not? Spoofing. Spoofing. Use of bots. Use of bots. Chaffing. Chaffing. Steganography. Steganography.

12. Chapter 15Forensic and Investigative Accounting12 International Law Although 249 countries have IP domain registrations, the countries with cybercrime statutes are fewer. Although 249 countries have IP domain registrations, the countries with cybercrime statutes are fewer. Some countries have broad provisions for computer crimes, some have limited provisions, and still some have no provisions at all. Some countries have broad provisions for computer crimes, some have limited provisions, and still some have no provisions at all. (continued on next slide)

13. Chapter 15Forensic and Investigative Accounting13 International Law In 2001, the Council of Europe Convention on Cybercrime issued a model law for its member states including transactional cooperation recommendations. The Council’s model law has 48 sections for incorporation into national laws on cybercrime.

14. Chapter 15Forensic and Investigative Accounting14 Federal Statutes Related to Cybercrimes 18 U.S.C. 1029 Fraud and Related Activity in Connection with Access Devices 18 U.S.C. 1030 Fraud and Related Activity in Connection with Computers 18 U.S.C. 2701 Unlawful Access to Stored Communications

15. Chapter 15Forensic and Investigative Accounting15 USA Patriot Act of 2001 The USA Patriot Act has strengthened U.S. cyber laws and expanded cybercrime definitions. The USA Patriot Act has strengthened U.S. cyber laws and expanded cybercrime definitions. Under the Act, an activity covered by the law is considered a crime if it causes a loss exceeding $5,000, impairment of medical records, harm to a person, or threat to public safety. Under the Act, an activity covered by the law is considered a crime if it causes a loss exceeding $5,000, impairment of medical records, harm to a person, or threat to public safety. (continued on next slide)

16. Chapter 15Forensic and Investigative Accounting16 USA Patriot Act of 2001 Amendments made by the Act make it easier for an Internet service provider (ISP) to make disclosures about unlawful customer actions without the threat of civil liability to the ISP. Amendments made by the Act make it easier for an Internet service provider (ISP) to make disclosures about unlawful customer actions without the threat of civil liability to the ISP. Another revision made by the Act provides that victims of hackers can request law enforcement help in monitoring trespassers on their computer systems. Another revision made by the Act provides that victims of hackers can request law enforcement help in monitoring trespassers on their computer systems.

17. Chapter 15Forensic and Investigative Accounting17 State Legislation Many of the states have separately enacted money laundering, identity theft, online gambling, cyberstalking and other Internet statutes in their codes. Many of the states have separately enacted money laundering, identity theft, online gambling, cyberstalking and other Internet statutes in their codes. Many statutes do not refer to “cybercrimes” as they were originally enacted when there was no Internet. Thus, legislative oversight in the acts tends to focus on “computer crimes,” “unlawful access,” or “property crimes.” Many statutes do not refer to “cybercrimes” as they were originally enacted when there was no Internet. Thus, legislative oversight in the acts tends to focus on “computer crimes,” “unlawful access,” or “property crimes.”

18. Chapter 15Forensic and Investigative Accounting18 Fighting Cybercrime The following list describes the skill set needed to fight cybercrime: –Ability to build an Internet audit trail. –Skills needed to collect “usable” courtroom electronic evidence. –Ability to trace an unauthorized system user. (continued on next slide)

19. Chapter 15Forensic and Investigative Accounting19 Fighting Cybercrime –Knowledge base to use in recommending or reviewing security policies. –Knowledge of the most recent computer fraud techniques. –Basic understanding of the information that can be collected from various computer logs. –Ability to place a valuation on incurred losses from attacks. (continued on next slide)

20. Chapter 15Forensic and Investigative Accounting20 Fighting Cybercrime –Technical familiarity with the Internet, web servers, firewalls, attack methodologies, security procedures, and penetration testing. –Understanding of organizational and legal protocols in incident handling to prevent employee rights violations. –An established relationship with law enforcement agencies.

21. Chapter 15Forensic and Investigative Accounting21 Filing Reports of Cybercrimes An investigator should know where, besides law enforcement, such crimes can be reported. There are a number of websites that collect information about events that may be cybercrimes.