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Cybercrime: Fraud and Financial Crimes

Cybercrime involves criminal activity carried out using computers and networks. It can include crimes where computers are used to commit offenses, or where computers are the target. Common cybercrimes include hacking, copyright infringement, child pornography, and cyberbullying. Issues around privacy also arise when confidential information is intercepted or disclosed unlawfully. Internationally, both state and non-state actors engage in cybercrimes such as espionage, theft, and cross-border offenses, sometimes referred to as cyberwarfare. Most analyses show that cybercrime is increasing in frequency and cost, though some argue these numbers need to be normalized to the growing size of cyberspace.

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0% found this document useful (0 votes)
105 views4 pages

Cybercrime: Fraud and Financial Crimes

Cybercrime involves criminal activity carried out using computers and networks. It can include crimes where computers are used to commit offenses, or where computers are the target. Common cybercrimes include hacking, copyright infringement, child pornography, and cyberbullying. Issues around privacy also arise when confidential information is intercepted or disclosed unlawfully. Internationally, both state and non-state actors engage in cybercrimes such as espionage, theft, and cross-border offenses, sometimes referred to as cyberwarfare. Most analyses show that cybercrime is increasing in frequency and cost, though some argue these numbers need to be normalized to the growing size of cyberspace.

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hardik
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Cybercrime

Cybercrime, or computer crime, is crime that involves a computer and a network.[1] The computer may have
been used in the commission of a crime, or it may be the target. [2]Debarati Halder and K. Jaishankar define
cybercrimes as: "Offences that are committed against individuals or groups of individuals with a criminal motive
to intentionally harm the reputation of the victim or cause physical or mental harm, or loss, to the victim directly
or indirectly, using modern telecommunication networks such as Internet (Chat rooms, emails, notice boards
and groups) and mobile phones (SMS/MMS)".[3] Such crimes may threaten a nation's security and financial
health.[4] Issues surrounding these types of crimes have become high-profile, particularly those
surrounding hacking, copyright infringement, child pornography, and child grooming. There are also problems
of privacy when confidential information is intercepted or disclosed, lawfully or otherwise. Debarati Halder and
K. Jaishankar further define cybercrime from the perspective of gender and defined 'cybercrime against
women' as "Crimes targeted against women with a motive to intentionally harm the victim psychologically and
physically, using modern telecommunication networks such as internet and mobile phones". [3] Internationally,
both governmental and non-state actors engage in cybercrimes, including espionage, financial theft, and other
cross-border crimes. Activity crossing international borders and involving the interests of at least one nation
state is sometimes referred to as cyberwarfare. The international legal system is attempting to hold actors
accountable for their actions through the International Criminal Court.[5]
Most measures show that the problem of cybercrime continues to worsen. However, Eric Jardine argues that
the frequency, cost and severity of cybercrime cannot be well understood as counts expressed in absolute
terms. Instead, these numbers need to be normalized around the growing size of cyberspace, in the same way
that crime statistics in the physical world are expressed as a proportion of a population (i.e., 1.5 murders per
100,000 people). Jardine argues that, since cyberspace has been rapidly increasing in size each year, absolute
numbers (i.e., a count saying there are 100,000 cyberattacks in 2015) present a worse picture of the security of
cyberspace than numbers normalized around the actual size of the Internet ecosystem (i.e., a rate of
cybercrime). His proposed intuition is that if cyberspace continues to grow, you should actually expect
cybercrime counts to continue to increase because there are more users and activity online, but that as a
proportion of the size of the ecosystem crime might actually be becoming less of a problem.

Classification

Fraud and financial crimes


Computer fraud is any dishonest misrepresentation of fact intended to let another to do or refrain from doing
something which causes loss. In this context, the fraud will result in obtaining a benefit by:

Altering in an unauthorized way. This requires little technical expertise and is common form of theft by
employees altering the data before entry or entering false data, or by entering unauthorized instructions or
using unauthorized processes;

Altering, destroying, suppressing, or stealing output, usually to conceal unauthorized transactions. This
is difficult to detect;

Altering or deleting stored data;

Other forms of fraud may be facilitated using computer systems, including bank fraud, carding, identity
theft, extortion, and theft of classified information.
A variety of internet scams, many based on phishing and social engineering, target consumers and businesses

Cyber terrorism[edit]
Main article: Cyberterrorism

Government officials and information technology security specialists have documented a significant increase in
Internet problems and server scans since early 2001. But there is a growing concern among federal
officials[who?] that such intrusions are part of an organized effort by cyberterrorists, foreign intelligence services, or
other groups to map potential security holes in critical systems. A cyberterrorist is someone who intimidates or
coerces a government or organization to advance his or her political or social objectives by launching a
computer-based attack against computers, networks, or the information stored on them.
Cyberterrorism in general, can be defined as an act of terrorism committed through the use of cyberspace or
computer resources (Parker 1983). As such, a simple propaganda in the Internet, that there will be bomb
attacks during the holidays can be considered cyberterrorism. There are also hacking activities directed
towards individuals, families, organized by groups within networks, tending to cause fear among people,
demonstrate power, collecting information relevant for ruining peoples' lives, robberies, blackmailing etc. [citation
needed]

Cyberextortion[edit]
Main article: Extortion
Cyberextortion occurs when a website, e-mail server, or computer system is subjected to or threatened with
repeated denial of service or other attacks by malicious hackers. These hackers demand money in return for
promising to stop the attacks and to offer "protection". According to the Federal Bureau of Investigation,
cyberextortionists are increasingly attacking corporate websites and networks, crippling their ability to operate
and demanding payments to restore their service. More than 20 cases are reported each month to the FBI and
many go unreported in order to keep the victim's name out of the public domain. Perpetrators typically use
a distributed denial-of-service attack.(1)

Computer security
Computer security, also known as cyber security or IT security, is the protection of computer systems from
the theft or damage to the hardware, software or the information on them, as well as
from disruption or misdirection of the services they provide.[1]
It includes controlling physical access to the hardware, as well as protecting against harm that may come
via network access, dataand code injection,[2] and due to malpractice by operators,
whether intentional, accidental, or due to them being tricked into deviating from secure procedures.[3]
The field is of growing importance due to the increasing reliance on computer systems and the Internet in most
societies,[4] wireless networks such as Bluetooth and Wi-Fi and the growth of "smart" devices,
including smartphones, televisions and tiny devices as part of the Internet of Things.(2)

Why Do We Need Cyber Security?

Why do we need cyber security? There a number of reasons. The cyber community changes in an
unbelievable pace. Unfortunately, along with these changes are equally unbelievable threats. The nature
of the Internet as a tool for communication and education has been used and misused for personal gain,
which resulted in cyber attacks and unprecedented rise in cyber crime rates. These rates are expected to
increase more rapidly in the coming years if cyber security is not put in place. So, why exactly do we need
cyber security? Let us count the reasons.
1.) Hackers are everywhere. He can be your business rival, your neighbor, or simply a person out to take
over your computer. He makes use of software loopholes and hijacks your computer through backdoors,
usually installed programs, or through cracking software. When he finally marches into your computer, he
can gain access to possibly all your personal and confidential information such as bank accounts, credit
cards, or top trade secret. He can also use your computer to attack other networks, with you apparently
oblivious to all his malicious operations.
2.) Internet scams and frauds are rampant. These include phishing, a very organized cyber crime, which
deceives people into giving their banking details. Cyber criminals, pretending to be representatives from
legitimate financial institutions, send e-mail messages and ask unsuspecting people to verify their
passwords, account numbers, and other vital information. According to a report, in 2006 alone, phishing
attempts increased by 81%. These attempts could effectively be counterattacked if they werent too
sophisticated to actually deaden spam filters.
3.) Cyber theft is a common cyber crime. In fact, it is the most reported. Over time, it has increasingly
become so easy for cyber criminals to steal information from computers, not only from individuals but for
companies, banks, and other organizations as well. Though they hardly report the case, big companies
lose large amounts of money.
4.) Virus can slow down your computer. Worse, it can cause system crash. Virus reaches your system
through a number of entryways. One is through unsecured and unknown websites from which you
download files, programs, applications, or tools for free. As much as it can infect home computers, virus
can leave damaging effects to companies, both big and small. For instance, Melissa virus hit Microsoft and
other big companies in 1999, which led them to temporarily terminate their e-mail systems.
5.) Spyware, as the name hints, can spy on you. A computer program automatically installed on your
computer, spyware tracks personal information you entered and sends it to its creator. In most cases,
spyware is used to steal big sum of money. Unlike computer viruses, spyware leaves the computer owners
totally unaware of its presence. A study revealed that 92% of users with infected systems dont know that
spyware has broken into their computers.
6.) Adware can keep unwanted ads to show up. Like spyware, adware penetrates the system through
shareware. On its own, it downloads ads and allows them to run and pop up. This proves to be quite
annoying for computer owners. But whats even more troubling is that adware can sometimes contain
spyware. This increases the risk for cyber threats.(3)

Reference:
1. https://en.wikipedia.org/wiki/Cybercrime
2. https://en.wikipedia.org/wiki/Computer_security

3. http://cyber-security.bafree.net/why-do-we-need-cyber-security.php

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