1. ANS(Prepared by: Mazhar Javed )1 Computer crime The growth of use of computerised payment systems – particularly the use of credit cards and debit cards – has led to a rise in computer crime. Now that companies and people no longer use cash as much as they did in the past, stealing money using a computer has become more frequent. For this purpose,there companies are using following cards Credit Debit Store cash cards Magnet strip of account information.

2. ANS(Prepared by: Mazhar Javed )2 Credit Cards Credit cards allow users to pay for goods as and when they need them, and then to pay a single bill (or part of what is owed) at the end of a month. instant credit against goods bought or cash from ATM. Need to sign a receipt, signature checked, receipt goes off to credit card company. Usually machine with telephone connection to credit card company authorises the payment, checks whether the customer has credit. If goods are bought over the telephone or Internet there is no receipt until it arrives with the goods. The owner chooses how much to pay off the balance each month, subject to a minimum payment. Interest is paid on unpaid balances.

3. ANS(Prepared by: Mazhar Javed )3 Debit cards Debit cards have replaced cheques as a means of payment, and the money is taken out of the user’s bank account. They are also used to get cash from cash machines (also known as Automatic Teller Machines [ATM], ‘holes in the wall’, or bank machines). A debit card holder who is using an Automatic Teller Machine to withdraw money from their bank account identifies themselves by the use of a PIN (personal identification number). Although this should be more secure than using a credit card, users often use a PIN that they keep with their debit card or allow strangers to watch them input the numbers on the ATM keypad.

4. ANS(Prepared by: Mazhar Javed )4 Debit and credit card use Since the introduction of debit and credit cards in the 1980s, there has been a continual battle between the debit and credit card providers – the banks and credit card companies – and fraudsters. As each new security device has been added, the fraudsters have tried to find ways to get round them. The first debit and credit cards relied upon encrypted (encoded) data that was stored on magnetic tape on the back of the card.

5. ANS(Prepared by: Mazhar Javed )5 Debit and credit card use The growth on Internet sales meant that a further security device was needed, and this led to the introduction of a 3 digit check number on the back of the card.

6. ANS(Prepared by: Mazhar Javed )6 Debit and credit card use This did little to stop card fraud, and the latest security device is the addition of a computer chip that contains encoded information onto credit and debit cards.

7. ANS(Prepared by: Mazhar Javed )7 Debit and credit card use The ‘chip and pin’ system will prevent some computer fraud, but it is likely that fraudsters are already developing ways to overcome it. The next likely development in debit and credit card protection is to include biometric data (e.g. fingerprint or iris print data) within the chip. As fingerprints and iris print data is unique to an individual, this might prevent most card fraud.

8. ANS(Prepared by: Mazhar Javed )8 Fraud Fraud means trying to trick someone in order to gain an advantage. Posing as someone from an official organisation such as a bank or electricity company in order to get you to hand over your account details. Creating 'spoof' websites that look like the real thing. For example, making a website that looks exactly like your bank's, then getting you to enter your user name and password so that they can be recorded by the fraudster. Promising a 'get rich quick' scheme if you pay for a pack, which will supposedly contain all of the details that you need. Sending e-mails to get you to give over your personal or account details or getting you to download a data keylogger Stealing your identity in order to pose as you to steal your money or some other criminal activity. Fraud

9. ANS(Prepared by: Mazhar Javed )9 Credit card Fraud Criminals: obtain credit information from computers holding credit card customer details. Transfer the magnetic strip from a lost or stolen card. Steal cards from owner, or in the post. Get information from credit card receipts and use details to order over the telephone. Unscrupulous businesses swiping the card more than once.

10. ANS(Prepared by: Mazhar Javed )10 Phantom Withdrawals When the bank customer receives their statement there are withdrawals that they were unaware of. The cardholder or their family may have done some of these withdrawals, some are the result of fraud where a criminal has stolen the details.

11. ANS(Prepared by: Mazhar Javed )11 Electronic fraud Use of computers to commit fraud for financial gain. Set up false suppliers that trade, when the payments are made the goods are non-existent, and the payments are stolen. Careful recruitment of staff, careful checking of companies to ensure they are legitimate. This is quite common on the Internet where the individual

12. ANS(Prepared by: Mazhar Javed )12 Software piracy One of the most lucrative examples of computer crime is software piracy. This is the illegal copying of computer programs, and it is very widespread. It is estimated that over 66% of the computer software used in Europe is illegal. Although it does not seem very wrong to ‘steal’ a computer program by copying it, the cost to the computer programmers who have spent time and money developing the software is high. Software piracy is now being treated as a very serious crime, and the penalties can be severe The organisation in the UK responsible for protecting software is FAST (Federation Against Software Theft). They help the police and local trading standards officers to enforce the law.

13. ANS(Prepared by: Mazhar Javed )13 Copyright, Designs and Patents Act (1989) This makes it a criminal offence to copy or steal software. This includes: –Copying or distributing software or manuals without the permission of the copyright owner (usually the software developer). –Using purchased software covered by copyright on more than one computer unless this is permitted by the software licence. –Encouraging or allowing people to copy or distribute illegal copies of software. A person guilty of an offence under this act may be sent to prison for up to ten years and be fined!

14. ANS(Prepared by: Mazhar Javed )14 Computer Misuse Act (1990) This act deals with: –Deliberately infecting a computer system with a virus. –Using an employer’s computer to carry out unauthorised work. –Using a computer to commit software piracy. –Using a computer to hack into another computer. –Using a computer to commit a fraud.