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Cyber Crimes

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The internet has changed how organizations conduct business. Within moments information exchange occurs and a profit is made. It has changed how crimes are investigated and solved by law enforcement agencies. Unfortunately, it has also changed how criminals conduct their crimes- through cyberspace.
President Obama, Sony executives, Target organization and many of its’ customers have all been victims of some form of cyber crimes. This writer will provide a brief overview of the six types of cybercrimes and the economic loss as it affects America’s businesses.
TYPES OF CYBER CRIME
The growth and availability of technology has resulted in cyber attacks becoming a major concern for governments worldwide (Dzielinski, 2014). Small companies along with the larger corporations are now being targeted. A recent survey reported that more than one-third of small companies have been victims of some form of cyber attacks (Dzielinski, 2014). Approximately 75 percent of these companies were unable to recover their stolen data. The Central Intelligence Agency (CIA) has classified cyber crimes into six categories; fraud, computer trespassing, hardware hijacking, bullying-harassment-stalking, spam, and cyber warfare. Financial fraud is considered to be the most common of the six cyber attacks. The Target Corporation, the third largest U.S. retailer, and its customers were affected in 2013 (Target Corporation, 2013). Despite in place security measures, Target failed to detect the breach. The retailer was notified by credit card processors of an unusual high number of fraudulent purchases with one commonality, the cards were all used in their store. This breach hit more than 40 million customers whom used their debit or credit cards (Target Corporation, 2013). Computer trespassing allows hackers to gain access to all data stored on an individual’s computer. This includes browsing history, passwords, and files. In 2008, the ex-sheriff for Halifax County, Virginia obtained access to the department files (Unknown, 2015). The ex-sheriff admitted to altering, deleting, and disabling certain files.
Hardware hijacking is similar to computer trespassing but differs slightly. Hardware hijacking occurs when a hacker, through use of the internet, gains access to control printers or network computers. In 2012, a version of the SpyEye malware (Trojan horse virus) infected computer webcams and microphones (Constatine, 2015). This malware allowed hackers to watch and manipulate the individual’s computers as they were conducting online banking. The hackers secured the necessary information to gain access to individual’s accounts without detection. There have been numerous cases reported of cyber bullying, harassing, and stalking. Most of these crimes primarily involve teenagers which target peers with cruel or hurtful messages. These behaviors were once limited by the physical presence or location. Technology has enabled the offender’s ability to target their prey while reaching large audiences. “According to the National Crimes Prevention Counsel, 43 percent of teens are subject to some form of cyber bullying,” (Kriss, 2012). After 15 year old Amanda Cummings committed suicide (from cyber bullying), New York Senator Jeffery Klein introduced a bill elevating cyber bullying to third degree stalking. Additionally, the bill added the use of electronic devices as a means to commit aggravated assault which is now punishable by up to twelve months in jail (Kriss, 2012). Most individuals with a private email account have received the unsolicited bulk emails known as spam. Spam attempts to retrieve information from the recipients, personnel or sensitive data such as social security numbers. Some types of spam allow the spammer to gain access to the recipient email address, sending out more spam under the recipients email. In 2003, Hamidi, a former Intel engineer, along with other Intel employees (current and former) established the organization known as FACE- Intel (Intel v. Hamidi: Spam as a Trespass to Chattels-Deconstruction of a Private Right of Action in California , 22 J.Marshall Computer & Info. L. 205 (2003), 2003). The organizations purpose was to exploit Intel’s employment practices. Over a 21 month period FACE-Intel organization sent six emails to 8,000-35,000 Intel employees. Intel attempted to bring forth trespassing charges against the spammer. Through a summary judgment, Intel won, preventing the FACE-Intel organization from sending any further spam.
Information warfare, “involves large sale attacks on computer, websites and networks,” (Dzielinski, 2014). These types of attacks ultimately result in shutting down the organization’s website, denying access. In 2007, the Estonia government website was attacked and shut down (Weissbrody, 2013). This particular website ordinarily received 1,000 visits per day. While under attack, the website was receiving more than 2,000 visits per second.
Healthcare, government, industrial businesses and professional services continue to be the major industries affected by cyber crimes. Businesses continue to improve and increase their cyber security measures. However, cyber criminals are inventing new ways to circumvent these systems. For these reasons, information security has quickly become a primary focus for businesses as well as their consumers.
THE EFFECTS OF CYBER CRIMES
From 2010 to 2013 there was a 2,000 percent increase in cyber attacks worldwide (Birchfield, 2013). In 2012, cyber crimes were identified as the fourth largest economic offense. Further, it was estimated by the year 2020 more than 50 billion devices will have access to the internet. As internet access expands globally, so will the ability to facilitate commerce and all organizational processes. The negative effect of cyber crimes will continue to affect the economy in a negative capacity.
Economists for the Center for Strategic and International Studies (CSIS) reported the United States has suffered a global financial loss ranging from $3 billion to $1 trillion due to cyber crimes (Ivon, Stefan; Dinu, Marius, 2014). In addition to the financial losses, these crimes have contributed to the loss of 508,000 American jobs annually. China is considered to be the largest cyber crimes offender against the United States. American businesses have lost billions of dollars through China’s aggressive cyber-attacks (AFP, 2014). The Federal Bureau of Investigation (FBI) reported that almost every major company has been attacked through their cyber networks. These hackers are attempting to copy or steal American business trade secrets. One specific organization, China’s People’s Liberation Army, has been accused of doing so to benefit their state owned companies. Cyber crimes, such as this, have contributed to the loss of 200,000 jobs within the United States as well as 150,000 jobs in Europe (AFP, 2014).
Approximately 25 percent of American businesses have purchased cyber risk insurance (Birchfield, 2013). It is the responsibility of the senior managers to understand the consequences of cyber crimes; protecting their stakeholders as well as the organizations financial well being. American cyber risk insurance organizations have reported the collection of $1 billion in annual premiums (Birchfield, 2013). However, the average IT claim payout for these providers is $5.2 million (Birchfield, 2013).
SUMMARY
The increase in cyber-crimes has been largely attributed to the availability of technology. Under the Theory of Social Control, the lack of supervised social control will result in unethical or delinquent behavior (Wada, F.; Longe, O.; Danquah, P., 2012). The theory reinforces the need for individuals to embrace or apply societies accepted values, beliefs and norms. Through the use of the internet, criminals are able to maintain anonymity. The loss of self-identity and accountability does not deter the criminal behavior but rather create the opportunity for the crime (Wada, F.; Longe, O.; Danquah, P., 2012). As cyberspace continues to evolve so must our laws and preventative measures. Cyber crimes characteristics differ from crimes for which our law enforcement and judiciary system was originally established. The internet allows for the location, scale and size of crime to occur without physical limitations. Recent laws require organizations to reveal the depth of their attack (personal or private information, data, files etc). Dependent upon the situation or information obtained, the organization may be required to notify individuals affected by the crime. The need for safeguard requirements and standardizations remains. To successfully combat these crimes, our laws must continue to evolve with cyber space; shift towards prevention as well as deep layer protective technology.

REFERENCES

AFP. (2014, October 5). China Cybercrime Costing US Billions: FBI Chief. Retrieved from Newsmax: www.securityweek.com/
Birchfield, R. (2013). Cyber Threats and Data Privacy. New Zealand Management, 60-68.
Bowen, A. (2012, January 9). After Amanda Cummings suicide, new bill poised to curb cyberbullying. Retrieved from Huiffington Post New York: http://www.metro.us/local/after-amanda-cummings-suicide-new-bill-poised-to-curb-cyberbullying/tmWlai---b94B1v2hWVOlw/
Constatine, L. (2015, March 12). Banking malware spies on victims by hijacking webcams, microphones, researchers say. Retrieved from Computer World: http://www.computerworld.com/article/2504804/network-security/banking-malware-spies-on-victims-by-hijacking-webcams--microphones--researchers-say.html
Dzielinski, P. (2014). Cyber Crimes. Insurance Advocate, 16-18.
Intel v. Hamidi: Spam as a Trespass to Chattels-Deconstruction of a Private Right of Action in California , 22 J.Marshall Computer & Info. L. 205 (2003), No. C033076., (CA Court of Appeal June 30, 2003).
Ivon, Stefan; Dinu, Marius. (2014). Impact of the Loss adn Theft of Electronic Data on Companies. Fiability & Durability, 39-45.
Target Corporation. (2013, January 25). Target Annual Report. Retrieved from Target: https://corporate.target.com/annual-reports/pdf-viewer-2013?cover=6725&parts=6724-6726-6727-6730-6728
Unknown. (2015, March 12). Channel 3 News WHSV. Retrieved from Channel 3 News WHSV: http://www.whsv.com/home/headlines/35152834.html
Wada, F.; Longe, O.; Danquah, P. (2012). Actions Speak Louder Than Words- Understanding Cybercriminal Behavior Using Criminology Theories. Journal of Internet Banking and Commerce, 1-12.
Weissbrody, D. (2013). Cyber-Conflict, Cyber-Crime, and Cyber-Espionage. Minnesota Journal of international Law, 1-6.

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