1.

Introduction to Computer and Internet Crime

Computer and internet crimes involve illegal computer or network activities targeting
systems, data, or users. The internet's global nature and the increasing dependency on
technology have made cybersecurity critical to individuals, organizations, and governments.

Key Objectives

1. Understand the ethical and practical challenges in safeguarding data and systems.
2. Explore reasons behind the surge in computer-related security incidents.
3. Identify common types of attacks and exploits.
4. Analyze the motivations and tactics of cybercriminals.

2. The Growing Concern of IT Security Incidents

Information security is paramount for safeguarding:

1. Business Data: Intellectual property, trade secrets, and financial records.

2. Personal Data: Private customer and employee information, such as medical
histories and payment details.
3. System Integrity: Preventing disruptions to essential services.

Reasons for Increased IT Security Incidents

1. Increasing Complexity:
○ Modern IT environments are interconnected and constantly evolving.
○ Cloud computing, remote work setups, and mobile devices expand
vulnerabilities.
○ Example: A cloud-based HR platform with weak access controls can be
exploited by attackers.
2. Expanding Systems:
○ Networks now connect millions of devices, creating more entry points for
attackers.
○ IT teams struggle to assess risks at the same pace as technological
advancements.
3. Over-Reliance on Commercial Software:
○ Organizations depend on widely used software, often with known
vulnerabilities.
○ Zero-Day Attacks:
■ Exploits targeting vulnerabilities before a patch is available.
■ Example: The WannaCry ransomware attack exploited an unpatched
Windows vulnerability.
4. Human Factors:
○ Users frequently reuse passwords, fall for phishing schemes, or fail to update
software.
 ○ Helpdesk errors, such as failing to verify caller identities, also contribute to
breaches.

3. Common Types of Computer Exploits

Exploits are methods attackers use to gain unauthorized access or cause harm.
Understanding these helps in building defenses.

1. Viruses

● Definition: Malicious code attached to files that execute harmful actions when the
host file is opened.
● Spread:
○ Email attachments (e.g., “invoice.pdf” carrying a virus).
○ Downloads from malicious websites.
○ Infected USB drives.
● Impact:
○ Corrupts files.
○ Slows systems.
○ Example: The “ILOVEYOU” virus spread through email, deleting critical files.

2. Worms

● Definition: Self-replicating malware that spreads across networks without user

intervention.
● Impact:
○ Consumes bandwidth, leading to network slowdowns or crashes.
○ Example: The “Code Red” worm infected 359,000 servers in 14 hours.

3. Trojan Horses

● Definition: Malicious software disguised as legitimate applications.

● Delivery:
○ Downloading free software from untrusted sources.
○ Email attachments pretending to be useful tools.
● Special Case: Logic Bombs:
○ Hidden code triggered by specific events (e.g., a date or an action).
○ Example: An employee embeds a logic bomb to delete files after termination.

4. Distributed Denial-of-Service (DDoS) Attacks

● Definition: Overwhelming a target system with fake requests, preventing legitimate

access.
● Mechanism:
○ Attackers use "zombies" (compromised computers) in a botnet to flood the
target.
● Impact:
 ○ Disrupts e-commerce websites, causing financial losses.
○ Example: The 2016 DDoS attack on Dyn crippled major websites like Twitter
and Netflix.

5. Rootkits

● Definition: Programs granting attackers unauthorized administrative access while

hiding their presence.
● Symptoms:
○ System unresponsiveness.
○ Altered configurations without user intervention.
● Challenges:
○ Rootkits are hard to detect because they compromise the operating system
itself.

6. Spam

● Definition: Unsolicited emails sent to promote products or schemes.

● Legislation: CAN-SPAM Act allows spam if:
○ Sender identification is accurate.
○ Recipients can opt out of future emails.
● Example:
○ Edward Davidson ran a spam operation promoting fake products, earning a
federal prison sentence for violating the CAN-SPAM Act.

7. Phishing

● Definition: Deceptive emails or messages designed to steal sensitive information.

● Variants:
○ Spear-Phishing: Targeted at specific organizations.
○ Smishing: Phishing via SMS (e.g., "Your account has been compromised").
○ Vishing: Voice phishing using fraudulent phone calls.

4. Types of Perpetrators

Cybercriminals differ in their motives, resources, and tactics.

1. Hackers and Crackers

● Hackers:
○ Explore systems out of curiosity or to test limits.
○ Range from skilled professionals to amateurs using pre-made tools (script
kiddies).
● Crackers:
○ Engage in illegal activities like system breaches and data theft.

2. Malicious Insiders
 ● Definition: Employees or contractors who exploit authorized access for personal or
financial gain.
● Methods:
○ Selling sensitive information.
○ Sabotaging systems.
● Example:
○ An employee collaborates with an outsider to steal customer data for
monetary rewards.

3. Industrial Spies

● Goal: Gain competitive advantage through illegal means.

● Distinction:
○ Competitive Intelligence: Legal gathering of public data.
○ Industrial Espionage: Illegally obtaining confidential information.
● Law: Economic Espionage Act (1996) criminalizes the theft of trade secrets.

4. Cybercriminals

● Engage in:
○ Identity theft.
○ Financial fraud (e.g., credit card scams).
○ Data breaches.
● Impact:
○ Loss of customer trust and revenue.

5. Hacktivists

● Definition: Use hacking to promote political or social causes.

● Example:
○ Anonymous targeting government websites during political protests.

6. Cyberterrorists

● Definition: Use attacks to intimidate governments or societies for political motives.

● Impact:
○ Disruption of critical infrastructure (e.g., energy grids, hospitals).
○ Loss of life in extreme cases.

5. Federal Laws for Prosecuting Cybercrime

To address cyber threats, governments have implemented several legal frameworks:

1. Computer Fraud and Abuse Act (CFAA): Criminalizes unauthorized access and
fraud.
2. Electronic Communications Privacy Act (ECPA): Protects electronic
communications from interception.
 3. Economic Espionage Act (EEA): Penalizes theft of trade secrets.

6. Combating Computer and Internet Crime

Effective defense against cyber threats requires a multi-faceted approach:

1. Layered Security

● Risk assessments to identify vulnerabilities.

● Use of firewalls, intrusion detection systems, and anti-malware tools.

2. Patch Management

● Regularly updating software to address known vulnerabilities.

3. User Education

● Training employees to recognize phishing attempts and practice secure password

management.

4. Incident Response

● Developing protocols for detecting, containing, and mitigating breaches.

5. Computer Forensics

● Preserving and analyzing digital evidence for legal investigations and prosecutions.