1. Aksana Chornenkaya, Sherin Hassan, & Meagan Moore

2.   Explain how cyber hacking and economic espionage has evolved over the past century  Examples of hacker groups  Examples of victims of hacking and economic espionage  Acts and Regulations  Prevention Goals of Presentation

3.   Importance to accounting students and business professionals.  Huge threat to companies, domestic and global.  Growth of technology and reliance on information-based systems. Importance

4. What is a Hacker? “A person who finds weaknesses in a computer system and exploits it.” “Someone involved in the exploration of technology.”

5. Hacker Groups Warelords Midwest Pirates Guild 414’s Legion of Doom Many more…….

6.   Until it was passed, breaking into computer systems was not an illegal or criminal act.  Passed by Congress in 1986  Hacking IS a CRIME!!!! Computer Fraud & Abuse Act

7.   Operation Sundevil - 1990  Secret Services began raiding and arresting hackers  Involved in credit card theft, telephone and wire fraud Operation Sundevil

8.   DOS attacks  Viruses  Malware - Worms Evolution of Hacking

9.   Black Hat Hackers – Malicious  White Hat Hackers – Ethical hackers  Grey Hat Hackers Types of Hackers

10.   Misappropriation of assets  Inventory theft  Insider trading  Credit card fraud  False invoices  Revenue misstatement  Expense account abuse Effects of Hacking on a Co.

11.   Accountants must be aware of the threats  Internal auditors must develop processes and controls to prevent hacks  Must work with external auditors to identify security controls  Advances in technology increased opportunities for fraud Importance for Accountants

13.   Fierce competitive pressures  Improvements in eavesdropping technology  Weakest link: Employees Motivation for Economic Espionage

14.  Most Publicized Cases  Toshiba vs. Lexar  Davis vs. Gillette  Reuters vs. Bloomberg

15.   Passed in 1996  Failed to curtail the problem  Companies were reluctant to seek prosecution Economic Espionage Act

16.   SOX Section 404  Proactive and reactive approach  Strong internal auditing department  Strong IT controls  Physical access controls  Employee training Ways to Reduce Hacking and EE

17.  Companies that implement strong IT controls, physical access controls, nondisclosure agreements and background checks make it harder for hackers or employees to breach systems and acquire proprietary information. In Conclusion

18.  QUESTIONS?