Computer Crime and Security Measures
Chapter 7



Computer Crime
? Computers make activities easier
? including illegal activities
? New ways to commit old crimes
? Crimes against
? businesses - insiders and outsiders
? hackers, competitors, criminal gangs


Crime
? Computers make the crimes
? easier to commit
? more devastating
? harder to detect
? doable from long distances


Fraud and Embezzlement
? Embezzlement - fraudulent appropriation of property by a 
person to whom it has been entrusted
? Requires
? special knowledge
? special programming skill
? poor security


Fraud and Embezzlement
? Aided by
? anonymity
? complexities of modern transactions increase the 
opportunities


Defending Against Dishonest Employees
? Rotate responsibilities of employees with access to sensitive 
systems
? Unique ID and password
? Limit access to system
? Audit trails
? Screening and background checks of employees
? Good security policies



Defending Against Fraud
? Immediate checks on legitimate cards
? Programs to detect unusual spending
? Holograms and photos on cards
? Magnetic or digital finger printing
? Physical hardware deterrents



Why is the Problem so Big?
? Most customers do not want to verify ID
? Most merchants don’t check
? Security vs convenience


Sabotage and Information Theft
? Unhappy employees
? Attacks by competitors
? Who else?



Computer Criminals
? Hacker
? Phracker
? Cracker
? Phreak 



Nonmalicious Hacking
? No harm is done
? Service - exposes security weaknesses
? Help create need for tougher security
? Information want to be free
? Some companies are ripping us off




Harmless?
? Time and effort are involved in tracking down the intruder 
and shut off means of access
? Verifications of no damage
? Uncertainty that system is preserved
? Trespassing is illegal



Mechanisms of Protection
? Password protection 



How Serious is the Problem?
? CERT - Computer Emergency Response Team 
? Federal government created
? Responds to security problems on Internet



Internet
? Medium for researchers 
? open access
? ease of use
? ease of sharing
? Security depended on trust
? Attitudes about security have not caught up with the risk



Improving Security
? Awareness of extent of problem
? Education of users
? Acceptance of responsibility



Internet Protection
? Firewall 



SATAN
? Security Administrator Tool for analyzing Networks 



Law Enforcement
? Special units to deal with crime
? Penalties are appropriate with crime



Crime Laws
? Computer technology challenged existing laws and led to 
new ones
? Larceny
? Use of computer time
? New laws
? Access and use of computer without authorization is illegal