2. COMPUTER CRIME An Overview

3. Agenda u Background and History u Potential Criminals u Ethics Survey u Criminal Activity u Preventative Measures u Background and History u Potential Criminals u Ethics Survey u Criminal Activity u Preventative Measures

4. Evolution of the Information Age I. Background & History u Growth Projections u Internet u The Inevitable u Growth Projections u Internet u The Inevitable

5. Escalation and Frequency 5-year increase I. Background & History

6. Escalation and Frequency FBI Computer Crimes Division Reports: 15 security breaches every day 75% annual increase in recent years FBI Computer Crimes Division Reports: 15 security breaches every day 75% annual increase in recent years I. Background & History

7. Escalation and Frequency Department of Defense Study 7860 7470 390 1072 # of successful system attacks (8932 attempts) attacks (8932 attempts) # of detections (out of 7860 successful attempts) I. Background & History

8. Intrusion Costs Ernst and Young Survey: More than 1/2 incurred a loss Each loss exceeded $100,000 Seventeen losses exceeded $1,000,000 Ernst and Young Survey: More than 1/2 incurred a loss Each loss exceeded $100,000 Seventeen losses exceeded $1,000,000 I. Background & History

9. Case Study Hacker Penetrates Citibank System I. Background & History

10. Case Study Hacker Penetrates Citibank System I. Background & History u The criminals u The crime u The result u The criminals u The crime u The result

11. Employees/Ex-employees % of crimes committed 80% II. Potential Criminals UsersUsers AnalystsAnalysts ProgrammersProgrammers 20%

12. Case Study III. Ethics Survey # Agreeing % Agreeing 1. A person is justified 115% in making copies of employers software. 2. I would copy software7541% (illegally) for my use. 3. A user is justified in 63% accessing / using the services ( of another company’s computer ) to his advantage. # Agreeing % Agreeing 1. A person is justified 115% in making copies of employers software. 2. I would copy software7541% (illegally) for my use. 3. A user is justified in 63% accessing / using the services ( of another company’s computer ) to his advantage. # Agreeing % Agreeing 1. A person is justified 115% in making copies of employers software. 2. I would copy software7541% (illegally) for my use. 3. A user is justified in 63% accessing / using the services ( of another company’s computer ) to his advantage. # Agreeing % Agreeing 1. A person is justified 115% in making copies of employers software. 2. I would copy software7541% (illegally) for my use. 3. A user is justified in 63% accessing / using the services ( of another company’s computer ) to his advantage.

13. Case Study III. Ethics Survey # Agreeing % Agreeing 4. I would crack a com-157% puter if I knew how. 5. There is nothing wrong2110% in writing a virus program to output the message “Have a nice day.” 6. Management can be so157% unfair at times that a person can be justified in erasing files. # Agreeing % Agreeing 4. I would crack a com-157% puter if I knew how. 5. There is nothing wrong2110% in writing a virus program to output the message “Have a nice day.” 6. Management can be so157% unfair at times that a person can be justified in erasing files.

14. Case Study III. Ethics Survey # Agreeing % Agreeing 7. I would adjust a157% system to avoid an account service charge for an overdrawn checking account. 8. There is nothing wrong 136% with cracking another company’s computer to identify other customers to sell to. # Agreeing % Agreeing 7. I would adjust a157% system to avoid an account service charge for an overdrawn checking account. 8. There is nothing wrong 136% with cracking another company’s computer to identify other customers to sell to.

15. Hacking IV. Criminal Activity The technical-minded crime

16. Viruses Nondestructive or Malevolent Nondestructive or Malevolent IV. Criminal Activity

17. Trojan Horse u History u Vehicle for viruses and logic bombs u History u Vehicle for viruses and logic bombs IV. Criminal Activity

18. Fraud and Abuse Case Studies IV. Criminal Activity u Race Track Trifecta u Huntsville Prison u Robin Hood of Northwest u Race Track Trifecta u Huntsville Prison u Robin Hood of Northwest

19. Theft Unauthorized software duplication IV. Criminal Activity

20. Corporate Espionage Increasing Threat Increasing Threat IV. Criminal Activity

21. Sabotage 25% of all crime committed 25% IV. Criminal Activity 75%

22. Education and Training u A Logical First Step V. Preventative Measures

23. Education and Training 10 Suggestions from Ernst and Young: u Confidentiality Statements u Regular Back-Ups u Policies and Procedures u Control Intranet Access. u Boot-level Passwords 10 Suggestions from Ernst and Young: u Confidentiality Statements u Regular Back-Ups u Policies and Procedures u Control Intranet Access. u Boot-level Passwords V. Preventative Measures

24. Education and Training 10 Suggestions from E & Y (continued): u Control Internet Access u Restrict Use of Internet u Classify Data u Secure All Computers u Require file-level Passwords 10 Suggestions from E & Y (continued): u Control Internet Access u Restrict Use of Internet u Classify Data u Secure All Computers u Require file-level Passwords V. Preventative Measures

25. Software u A Variety to Choose From u Positive Results Indianapolis Power & Light case study u A Variety to Choose From u Positive Results Indianapolis Power & Light case study V. Preventative Measures

26. Legal Ramifications u A Better Prepared Law Enforcement u New Laws With Harsher Penalties u A Better Prepared Law Enforcement u New Laws With Harsher Penalties V. Preventative Measures