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© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

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Presentation on theme: "© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license."— Presentation transcript:

1 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1 Cyber Crime Chapter 7 BUSINESS LAW TODAY Essentials 9 th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A. Jentz - University of Texas at Austin, Emeritus

2 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 Learning Objectives  What distinguishes cyber crime from “traditional” crime?  How has the internet expanded opportunities for identity theft?  What are three reasons that cyberstalking may be more commonplace than physical stalking?  What are three major reasons the internet is conducive to juvenile cyber crime?  How do encryption programs protect digital data from unauthorized access?

3 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 Computer Crime and the Internet  Computer Crime: violation of criminal law that involves “knowledge of computer technology for its perpetration, investigation, or prosecution.”  Three Categories: Computer is object of a crime. Computer is object of a crime. Computer is subject of a crime. Computer is subject of a crime. Computer is the instrument of a crime. Computer is the instrument of a crime.

4 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 Cyber Crimes Against Persons and Property  Cyber Computer Fraud. Persuade victims to spend money on various scams (Nigerian bank accounts, health insurance, travel). Persuade victims to spend money on various scams (Nigerian bank accounts, health insurance, travel).  Online Auction Fraud.  Online Retail Fraud.

5 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 Cyber Crimes : Cyber Theft  Cyber Theft. Identity Theft using novel methods. Identity Theft using novel methods. Low cost of black-market data. Low cost of black-market data. “Phishing.” “Phishing.” Vishing. Vishing. Employment Fraud. Employment Fraud.

6 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 Cyberstalking  California passed first antistalking law in Today 48 states have cyberstalking laws.  Threat of Cyberstalking. Ex-lovers using spyware to monitor keystrokes. Ex-lovers using spyware to monitor keystrokes. Cyberstalking on Social Networks. Cyberstalking on Social Networks.  CASE 7.1 State v. Kline (2008). County where victim resides is appropriate venue for prosecution of cyberstalking crimes.

7 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 Cyber Crimes in the Business World  Credit Card Crime on the Web. Companies take risks in storing customers private information online. Companies take risks in storing customers private information online.  Hackers. Botnets, malware, viruses, and worms can send information from your computer to third party networks. Botnets, malware, viruses, and worms can send information from your computer to third party networks. Juvenile Cyber Crime is a growing threat. Juvenile Cyber Crime is a growing threat.

8 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 Cyber Crimes in the Business World  Hacking and Cyberterrorism. Cyberterrorists are stealth hackers trying to exploit computers for maximum impact. Cyberterrorists are stealth hackers trying to exploit computers for maximum impact. Logic bombs may “explode” computers and online networks. Logic bombs may “explode” computers and online networks – Chinese and Russians hacked into our electrical power grid, leaving behind ‘botnet’ software that could hijack facilities – Chinese and Russians hacked into our electrical power grid, leaving behind ‘botnet’ software that could hijack facilities.  Pirating Intellectual Property Online.

9 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 Spread of Spam  Spam: unsolicited “junk” s with ads, solicitations, and other messages.  State Regulation of Spam.  Federal CAN-SPAM Act.  U.S. Safe Web Act. Allows FTC to share information with foreign agencies investigating and prosecuting cyber crimes. Provides ISP’s with immunity from liability for supplying subscriber information to FTC. Allows FTC to share information with foreign agencies investigating and prosecuting cyber crimes. Provides ISP’s with immunity from liability for supplying subscriber information to FTC.

10 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10  Legal Confusion over Online Gambling. Can citizens of a state in which gambling is illegal, place bets at online casinos located in another state — or country? Can citizens of a state in which gambling is illegal, place bets at online casinos located in another state — or country?  CASE 7.2 United States v. $6,976,934.65, Plus Interest Deposited into Royal Bank of Scotland International (2009). Indictments were sufficiently ‘related’ to the civil forfeiture to apply the fugitive disentitlement statute.  Congress Takes Action. Unlawful Internet Gambling Enforcement Act of Unlawful Internet Gambling Enforcement Act of Cyber Crimes Against the Community – Gambling in Cyberspace

11 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 Fighting Cyber Crime  Prosecuting Cyber Crimes. Threshold questions of jurisdiction and venue. Threshold questions of jurisdiction and venue. Identification of wrongdoers is difficult because they do not leave fingerprints or DNA. Identification of wrongdoers is difficult because they do not leave fingerprints or DNA.  Computer Fraud and Abuse Act.  Private Efforts to Combat Cyber Crime. Encryption is a good, inexpensive security device. Requires a private and public “key.” Encryption is a good, inexpensive security device. Requires a private and public “key.”


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