...Internet Fraud: An Overview of Classifications, Government Actions, and Consumer Protection December 14, 2006 Internet Fraud: An Overview of Classifications, Governmental Actions, and Consumer Protection Internet fraud is an increasing threat to our technological society, which thrives on the advances and benefits of the Internet and e-commerce. With the increased growth and dependence of the Internet, creative individuals have found ways of conveying fraudulent schemes as legitimate goods and services. Not only does Internet fraud cause harm to individuals and institutions, but it also damages the consumer confidence of valid Internet businesses and e-commerce. There are many forms of Internet fraud which Internet patrons need to be aware of and cognizant of. This paper will explore major classifications of Internet fraud, provide information on how to deal with Internet fraud, relay actions taken by the government to thwart Internet fraud and prosecution thereof, and also take a detailed look into one type of Internet fraud especially, identity theft. According to the Department of Justice (http://www.usdoj.gov/criminal/fraud/text/Internet.htm), Internet fraud is any type of criminal scheme that uses one or more components of the Internet to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions or to transmit the proceeds of fraud to financial institutions. Major types include; online action and retail scams, business opportunities...
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...in online trading Crimes are not to be measured by the issues of events , but by the bad intensions of man . This essay will discuss about cyber crime in online trading & how we can prevent it . Ever wondered what crime you committed consciously and intentionally in online trade, illegal online activity committed using the internet. Crime is an unlawful practice which may lead to imprisonment by government authorities. Online trade usually involve people from all around the world . A fraudster may try to steal your money by typical scams like investment offers , bogus certificates from banks , property deals etc. criminals make such programs that deducts small amount of money like 3 pounds per month from the account of all the customers of the bank and deposit the same in his account . in this case no account holder will approach the bank for such a small amount , but the criminal gains huge amount. sometimes they even come up with online games like poker & lottery tickets , by which people often get fascinated & greedy and begin to take part in it . frauds like this often tell people to buy bitcoins which is the virtual money of internet . some games can even be played by using credit cards. According to the survey done by the government, there has been massive growth in cyber crime in past few years , because its one of the easiest way for criminals to steal money from people . they don’t even need any kind of weapons & no physical work , there are no signs of physical...
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...TABLE OF CONTENT Introduction 2 Threats 2 • State-sponsored espionage and sabotage of computer networks 2 • Monster DDoS attacks 2 • The loss of visibility and control created by IT consumerization and the cloud 2 • The password debacle 3 • The insider threat 3 UAE CASE 3 Precaution 4 Conclusion 4 Bibliography 5 Introduction As the requirement of the paper I will explain the types of fraud may face by the organisation computer networks. Along with I will discuss two cases of such fraud in UAE and finally I will discuss possible precautions to mitigate the risk of such frauds. In recent year the computer network threats become technically more advanced, sophisticated, more organised and at the same time difficult to detect. It is important to mention that these attacks not only damage network security for financial frauds but this also aim to disable and reliability of the infrastructure as well, which may cause worse type of threat to the national security. (Tom Cross and Eric Savitz, Forbes Staff, 2012) Threats Most respected financial magazine FORBES has mentioned five main security threats to the computer networks which includes. • State-sponsored espionage and sabotage of computer networks o In 2012 a very famous virus called Flame was discovered which was not traced by the software in years. Similarly virus named Shamon destroyed the data of oil and energy companies and made the machines unbootable. • Monster DDoS attacks o DDos stands for the...
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...Anatomy of computer accounting frauds A. Seetharaman, M. Senthilvelmurugan and Rajan Periyanayagam Faculty of Management, Multimedia University, Malaysia Keywords Fraud, Corruption, Financial reporting, Whistleblowing, Internal control, Corporate governance Abstract This paper introduces fraud as asset misappropriations (85 per cent of cases), corruption and fraudulent statements. Symptoms include accounting anomalies, lack of internal control environment, lifestyle and behaviour. The most effective tools for fraud detection are internal audit review, specific investigation by management, and whistle-blowing. The paper details the fraud investigation process and the role of auditors as fraud examiners. The correlation of fraud perpetrators’ personality with the size of losses is examined. Personality is analysed into age, gender, position, educational background and collusion. A strong system of internal control is most effective in fraud prevention. Fraud prevention procedures, targeted goals and improvements to system weaknesses feature in the paper. Fraud impacts on accounting transactions in accounts receivable, receipts and disbursements, accounts payable, inventories and fixed assets, and financial reporting. The monetary impact resulting from fraud is analysed by the type of victim and the amount of loss. Internal control and good employment practices prevent fraud and mitigate loss. Computer accounting frauds 1055 Introduction Accounting fraud involves an intentional action...
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...all of a sudden one March morning all these millionaire managers wake up to discover they are not only now worth just a few hundred bucks, but that their jobs were disappearing. This situation was a reality for many WorldCom workers, because on that March morning America’s largest fraud at the time had been reported. WorldCom was a publicly traded corporation established in 1983 to provide Long Distance Discount Services (LDDS) (Internet Services, 2011). Through the acquisition of other businesses Worldcom became the world’s second largest telecommunication company. LDDS began by leasing a wide-area telecommunications service (WATS) line and resold time to other businesses (Internet Services, 2011). WATS is a form of fixed-rate long distance telecommunication service in which certain area codes, such 800, 888, or 877, are reserved for businesses and when customers call these numbers they are not charged for long-distance but rather the business is charged as a subscriber of the WATS service (Rouse, 2006). Beginning in 1988, LDDS began growing through the acquisition of other companies such as Telephone Management Corp., National Telecommunications, IDB WorldCom, and WilTel Network Services (Internet Services, 2011). In 1989, LDDS went public through the acquisition of Advantage Companies Inc....
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...| Internet Scam Artists | | | [Type the author name] | 4/25/2012 | Abstract Scam Artists have been around for centuries. As technology increased so has a new breed of con artist; the online scammer. Using the Internet, the online scammer has become more successful in defrauding a large target audience. This success is the focus of much concern in the past few years. Much is being done on multiple levels of government and within the public and private sectors; online fraud is still continuing to thrive. As long as the scammer is motivated by greed and able to deceive others, fraud will always be in existence. This paper examines the emergence of the scammer in cyberspace. Furthermore, I will discuss a few tactics and methods the online scammer uses in their attempt to successfully deceive others. It will provide a profile of those individuals who are victimized by scammers. Finally, it will list the steps being taken to help deal with the issue of online fraud. Scammers: Who They Are And Motives Virtual scam-artists are similar to the traditional scam artists encountered in the real world. Their fundamental motive is greed. However, there is one distinct difference; they utilize a completely different means in their mission to ultimately accomplish their goal of successfully deceiving others. The traditional scammer starts their venture off in a similar manner to that of a business entrepreneur. In regards to financing their operation, a relatively...
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...PHISHING & ONLINE BANKING FRAUD By, Aditya Ravishankar 5-BBA-LLB ‘B’ 1216452 School Of Law, Christ University TABLE OF CONTENT 1. Abstract ...2 2. Introduction ...3 3. Statement of Problem ...3 4. Scope and Objective ...3 5. Fraud …4 6. Online Banking …5 7. Banking Fraud using Technology …6 8. Cyber Crime & Online Banking Fraud …6 9. Phishing …7 10. Classification of Phishing ...8 11. Indian Scenario …11 12. conclusion …12 Abstract Nowadays, almost every bank provides its clients with access to their accounts over the Internet Banks provide a different range of financial services through their Internet banking channels. Different financial Internet banking applications mostly contain money transferring services, investment services (stock, bond, and mutual funds) and currency exchange services. However, as new technologies upset traditional power balances and so does the Internet. The Internet empowers everyone including cybercriminals. Advancement of technology and rapid progression of the hackers’ ability to access various users’ systems maliciously altered their motivations from curiosity to financial motives. Thus Financial Fraud is on rampant increase. This paper focuses on Online Banking Fraud in a general perspective and also looks into...
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...U.S. SAFE WEB ACT Miguel Hurtado ITMG381: Cyber Law and Privacy in a Digital Age Professor Thomas Foss November 30, 2013 Introduction: Many bills and laws are passed each year regarding cyber security and cyber law. The very laws that help somewhat govern the vast reaches of the internet. One such law, the U.S. Safe Web Act, is in essence, much like the global war on terrorism. The U.S. Safe Web Act is the United States’ response to spam, scams, spyware and internet fraud, directed at the internet, and ultimately keeping United States citizens safe and sound from the evils of the “interwebs”. How can a law help in keeping a safe web environment for U.S. citizens – How can a beast like the internet be tamed? To jump in on the United States Safe Web Act, special interest items will be covered, for example a little background on its inception and early beginnings. The Federal Trade Commission will also be covered, along with the Act’s basic elements, jurisdiction, inadequacies and finally some major advantages stemming from the Act. Background: With cyber-crime being the growing buzz word in today’s society, we dive into a few key aspects of this particular crime and come to find out, despite the nature of it – there aren’t any weapons involved… nobody is ever robbed at gunpoint, but it is still a very scary experience that might not rob of one’s life (i.e. homicide) but just as bad, it can rob of one’s identity or drain their savings, messing with someone’s livelihood...
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...of 30 academic researchers and 25 support staff – total 55 Cyber crime research Research questions • • • • • • • • • • How are cyber crimes committed (e.g. credit cards, internet)? How many crimes are committed and what are the crime trends? Who commits them and why do people commit them? How much money is at stake, lost and recovered? How can such crime be reduced – by prevention or punishment? Online and desk-based reviews of books, reports and articles Legislative and case-law analysis, including sentencing research Consultations with business, government and the community Surveys of households, businesses, offenders and victims Analysis of media reporting of crime Research methods Dissemination of findings • Reports, books, articles, conference papers, roundtables, online, media Cyber crime concepts Organised Crime e.g. OMCGs Identity Crime Cyber Crime e.g. off-line crimes e.g. ID theft Internet Crime e.g. Offensive Content Phishing Financial Crime e.g. Home renovation scams A chronology of cyber crime Cloud computing risks 2009 Wireless vulnerabilities 2007 M-commerce attacks 2006 Phishing 2002 Cyberstalking 1998 Cyberterrorism attacks 1997 Spam 1995 Identity crime 1995 Online piracy 1995 Botnets 1993 Child exploitation1990 ATM fraud 1985 Funds transfer fraud 1985 Extortion 1980 Denial of service 1980 Creeper virus 1971 Computer hacking 1970 Telemarketing scams 1965 Phreaking 1961 Organised...
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...| Computer Fraud | | By | [Type the author name] | 9/14/2013 | DeVry University’s Keller Graduate School of Management | A University of Oklahoma student was charged with computer fraud on May 16, 2013 by the Cleveland County District Court. The University of Oklahoma student, Roja Osman Hamad, is accused of improperly changing his grades. Roja Hamad now faces five counts of computer fraud. Mr. Hamad was a former student employee of the university’s information technology department. This is where Mr. Hamad was able to access the university’s computer system to change six faculty member’s passwords without the faculty member’s permission. University official’s state, Roja Hamad broke into the university’s computer system and changed his grades. Roja Hamad fits the majority of the profile of the average fraud perpetrator. According to the ACFE, the average fraud perpetrator has no prior fraud charges or convictions and is more likely to be male rather than female. The ACFE states that the offender is commonly between the ages of 31-45. Even though Mr. Hamad is only 24 years old, he possessed the knowledge to commit the fraud. Since Roja Hamad was a student employee of the university, he was probably a trusted employee. As a trusted employee of the University, this gave Hamad an opportunity to perpetuate the fraud. Lack of proper internal controls, failure to enforce controls, and incompetent management personnel enabled Hamad to commit the fraud. The three...
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...Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 576 WK 4 ASSIGNMENT 1 ACC 576 WK 4 Assignment 1 - Audit Planning and Activities Search the Internet for a recent occurrence of accounting fraud that an independent accounting firm failed to detect. Write a three to four (3-4) page paper in which you: 1. Evaluate the extent of the fraud in question, and suggest three to five (3-5) reasons why the independent auditors failed to detect the fraudulent activity. 2. Determine the level of responsibility of the auditors to detect within the scope of the audit activities. 3. Suggest the main audit procedures that the firm should have performed to detect the fraud. Indicate your rationale behind your suggested audit procedures. More Details hidden... 1. Activity mode aims to provide quality study notes and tutorials to the students of ACC 576 WK 4 Assignment 1 in order to ace their studies. ACC 576 WK 4 ASSIGNMENT 1 To purchase this visit here: http://www.activitymode.com/product/acc-576-wk-4-assignment-1/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 576 WK 4 ASSIGNMENT 1 ACC 576 WK 4 Assignment 1 - Audit Planning and Activities Search the Internet for a recent occurrence of accounting fraud that an independent accounting firm failed to detect. Write a three to four (3-4) page paper in which you: 1. Evaluate the extent of the fraud in question, and suggest three to five (3-5) reasons why the independent auditors failed to detect the fraudulent activity. 2. Determine...
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...and businessmen. The terms "white-collar crime" and its offshoot, are "organized crime”. Most of the criminals are occurring in companies and the causes are the way money handling (Murray.K, 2010). Forensic accountant will investigating financial crimes and insurance fraud of white collar crook on behalf of companies and public law enforcement agencies. In addition, most of the high profile corporation, will misconduct in money laundering. The fraud will identify by forensic accountants and wherever they go money will takes them. Less attention is focused towards perpetrators compare to actual crime committed by the white collar crook. Antitrust violation, bank fraud, bribery/kickbacks, computer/internet fraud, consumer fraud, counterfeiting, credit card fraud, economics espionage and trade secret theft, embezzlement /larceny, extortion/blackmail, financial fraud, forgery, healthcare fraud, identify theft, public corruption, racketeering, and telemarketing fraud are the white collar crook violations (Brody.G, Kiehl.A, 2010). The characteristic white collar crook criminal does not pledge many of the economics fraud as we listed earlier. It is this phenomenon that criminologists, sociologists, law enforcement, fraud examiners and forensic accountants must take into consideration as they investigate white collar crimes (Brody.G, Kiehl.A, 2010). With the current economic slump, we have...
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...Bank Frauds “Lapses in system make easy the job of offenders to dupe banks” Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly. Fraud has not been described or discussed clearly in The Indian Penal Code but sections dealing with cheating. concealment, forgery counterfeiting and breach of trust has been discusses which leads to the act of fraud. In Contractual term as described in the Indian Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime. The number of bank frauds in India is substantial. It in increasing with the passage of time. All the major operational areas in banking represent a good opportunity for fraudsters with growing incidence being reported under deposit, loan and inter-branch accounting transactions, including remittances...
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...AT&T Corporation, which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the behavior of WorldCom's senior managers as documented above. While it can be argued that the demise of AT&T Corp. was not wholly attributable to WorldCom's behavior, AT&T Corp.'s decimation certainly was facilitated by the events surrounding WorldCom, since WorldCom was the benchmark long distance telephone and Internet communications service provider. Indeed, the ripple effect of WorldCom's demise goes far beyond one company and several senior managers. It had a profound effect on an entire industry. This postscript will update the WorldCom story by focusing on what happened to the company after it declared bankruptcy and before it was acquired by Verizon. The postscript also will relate subsequent important events in the telecommunications industry, the effect of WorldCom's problems on its competitors and labor market, and the impact WorldCom had on the lives of the key players associated with the fraud and its exposure. From Benchmark to Bankrupt Between July 2002 when WorldCom declared bankruptcy and April 2004 when it emerged from bankruptcy as MCI, company officials worked feverishly to restate the financials and reorganize the company. The new CEO Michael Capellas (formerly CEO of Compaq Computer) and the newly appointed CFO Robert Blakely faced the daunting task of settling the company's outstanding debt of around $35 billion and performing...
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...Embezzlement and Credit Card Fraud In almost every case, white collar crimes are committed by businesses and government professionals, and are generally of non-violent nature, in which are financially motivated. The Federal Bureau of Investigation now associates a wide range of fraudulent crimes as being white collar. Credit card fraud and embezzlement are two amongst those on their list. This paper will discuss what and how these two crimes are committed, the impacts each have on businesses, and what tools are available to reduce the opportunities of each crime. First, lest start by defining embezzlement. In a nutshell, embezzlement is the theft or misappropriation of funds or property in one’s trust or belonging to one’s employer (HG.org). In order for someone to be guilty of embezzlement, the accused would have had to convert or deal with funds or property entrusted by the victim in a way that was not agreed upon. A basic scenario of this would be a manager of a convenient store pocketing money from the store’s cash register and not documenting the transaction. However, if for instance a store associate were to do the same, that associate could only be charged of larceny, because a store associate is not entrusted with the cash in the register (HG.org). Here is another example. In October of 2014, a woman was sentenced to 12 years in state prison for embezzling nearly two million dollars from her employer. Suzan Glawatz was a bookkeeper for Dr. Grassi...
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