Transcript
Chapter 7-1
Chapter 7-2
Chapter 7Computer Crime, Ethics, and Privacy
Introduction
Computer Crime, Abuse, and Fraud
Examples of Computer Crimes
Mitigating Computer Crime and Fraud
Ethical Issues, Privacy, and Identity Theft
Chapter 7-3
Computer Crime
Computer Crimeinvolvement of the computer in a criminal act directly, or indirectly.
definition important because it affects how the statistics
are accumulated.
a small proportion gets detected even smaller proportion gets reported.
Chapter 7-4
Computer Crime & Abuse - the Difference
Computer crime involves the manipulation of a computer or computer data, to dishonestly obtain money, acquire property, or get some other
advantage of value, or to cause a loss.
Computer abuse is when someone’s computer is used or accessed a mischievous manner with a motive of revenge or
challenge is punishable in extreme cases
Chapter 7-5
Federal Legislation
The Computer Fraud and Abuse Act (CFFA) of 1986 which was amended in 1994 and 1996Defines computer fraud as an illegal act for which computer technology is essential for its perpetration, investigation, or prosecution.
Defines seven fraudulent acts, the first
three are described as misappropriation
of assets and the last four as “other” crimes
Chapter 7-6
CFAA Fraudulent Acts
Unauthorized theft, use, access, modification, copying, or destruction of software or data.
Theft of money by altering computer records or the theft of computer time.
Intent to illegally obtain information or tangible Property through the use of computers.
Chapter 7-7
CFAA Fraudulent Acts
Use or the conspiracy to use computer resources to commit a felony.
Theft, vandalism, destruction of computer hardware.
Trafficking in passwords or other login information for accessing a computer.
Extortion that uses a computer system as a target.
Chapter 7-8
Other Federal Legislation Affecting the Use of
Computers
Fair Credit Reporting Act of 1970
Freedom of Information Act of 1970
Federal Privacy Act of 1974
Small Business Computer Security and Education Act of 1984
Computer Fraud and Abuse Act of 1986
Chapter 7-9
Federal Legislation Affecting the Use of
Computers
Computer Fraud and Abuse Act(1996 amendment)
Computer Security Act of 1987
USA Patriot Act of 2001
Cyber Security Enhancement Act of 2002
CAN-SPAM Act of 2003
Chapter 7-10
Which of the following pieces of computer legislation is probably the most important?
a. Cyber Security Enhancement Act of 2002
b. Computer Security Act of 1987
c. The Computer Fraud and Abuse Act of 1986
d. Federal Privacy Act of 1974
Federal Legislation Affecting the Use of
Computers
Question
Chapter 7-11
The Lack ofComputer-Crime Statistics
Computer-crime statisticsGood data unavailable Three reasons
(1) private companies handle abuse internally
(2) surveys of computer abuse areoften ambiguous
(3) most computer abuse is probablynot discovered.
Chapter 7-12
The Growth of Computer Crime
Computer crime is growing because of Exponential growth in computer resources
Internet pages give step-by-step instructionson how to perpetrate computer crime
Chapter 7-13
Importance for Accountants
Importance of computer crime and abuseto accountants
because AISs help control an organization’s financial resources are favored targets of disgruntled employees
seeking financial gain or seeking revenge
Chapter 7-14
Importance for Accountants
because they are responsible for designing, implementing, and monitoring the control procedures for AISs.
because firms suffer millions of dollars incomputer-related losses due to viruses, unauthorized access, and denial of service attacks
Chapter 7-15
Three Representative Computer Crimes Cases
Compromising Valuable Information: The TRW Credit Data Case
Wire Fraud and Computer Hacking: The Edwin Pena and Robert Moore Case
Denial of service: The 2003 Internet Crash
Through a very speedy computer worm, the Slammer worm
Chapter 7-16
The TRW Credit Data Case
This computer crime is well knowninvolved computerized credit datahad two key issues: the propriety of the input information the protection afforded to both consumer
and user in the accuracy and use ofcredit information
Chapter 7-17
The TRW case is notable because
a. the amount of dollars involved was not significant.
b. no one got caught.
c. the fraud was detected by a surprise audit.
d. the real victims were TRW customers.
Question
The TRW Credit Data Case
Chapter 7-18
Methods Used by Criminals
Hackers people who break into the computer files of othersfor fun or personal gain.
Shoulder surfing stealing calling credit numbers at public phones
Password controls limiting computer access to bona fide users
Chapter 7-19
Methods Used by Criminals
Social engineering posing as bona fide employees
Lock-out systems disconnecting telephone users after a set number of unsuccessful login attempts
Dial-back systems disconnecting all login users,
reconnecting legitimate users after checking their passwords
Chapter 7-20
Examples of Computer Crimes.
A graduate student infected a computer network with avirus that eventually disrupted over 10,000 separate systems.
A company accused a computer-equipment vendor of fraudulently representing the capabilities of a computer system, that the full system was never delivered and that the software was inadequate.
In a fit of resentment, a keyboard operator shattered a CRT screen with her high-heeled shoe.
Some employees of a credit bureau sent notices to some individuals listed as bad risks in its files.
Chapter 7-21
Examples of Computer Crimes.
For a fee, the employees would withhold the damaging information, thereby enhancing the credit worthiness ofthe applicants.
A computer dating service was sued because referrals for dates were few and inappropriate. The owner eventually admitted that no computer was used to match dates, even though the use of a computer was advertised.
A programmer changed a dividends-payment program to reduce the dividends of selected stock-holders, and to issue a check to himself for the sum of the reductions—$56,000.
Chapter 7-22
Robert T. Morris and the Internet Virus
Robert T. Morriscreated one of the world’s most famous
computer viruses
became first person to be indicted under the Computer Fraud and Abuse Act of 1986
The case illustrated vulnerability of networks to virus infections.
Chapter 7-23
Computer Viruses
Computer virus is a program that disrupts normal data processing and that can usually replicate itself onto other files, computer systems or networks.
Boot-sector viruses hide in the boot sectors of a disk are accessed there by the operating system every time the system is booted.
Worm viruses replicate themselves until the user runs
out of memory or disk space.
Chapter 7-24
Computer Virus Programs
Trojan Horse programs reside in legitimate copies ofcomputer programs.
Logic Bomb programs remain dormant until the computersystem encounters a specific condition.
A virus may be stored in an applet, which is a small program stored on a WWW server.
Chapter 7-25
A computer program that remains dormant until some specified circumstance or date triggers the program toaction is called a
a. trojan horseb. logic bombc. data diddlingd. cookie
Question
Computer Virus Programs
Chapter 7-26
Thwarting Computer Viruses
Firewalls which limit external access to the computer.
Antivirus software.
Antivirus control procedures.
Chapter 7-27
Thwarting Computer Viruses:
Anti-Virus Software
Anti-virus software includes computer programs that can: scan computer disks for virus-like coding; identify active viruses already lodged
in computer systems; cleanse computer systems
already infected; perform a combination of
these activities.
Chapter 7-28
Drawbacks of Anti-Virus Software Programs
Anti-virus programs provide less-than- complete protection because
new, more powerful viruses are alwaysbeing written that can avoid knowndetection schemes.
anti-virus programs can contain virusroutines.
Chapter 7-29
Anti-Virus Procedural Controls
Buy shrink-wrapped software from reputable sources
Avoid illegal software copying
Do not download suspicious Internet files
Delete email messages from unknownsources before opening them
Maintain complete backup files
Chapter 7-30
Organizational Safeguards Against Computer Viruses
Educate employees about viruses.Encourage employees to follow virusprevention and detection techniques.Establish policies that discourage the free exchange of computer disks or externally acquired computer programs.
Chapter 7-31
Organizational Safeguards Against Computer Viruses
Use computer passwords to thwart unauthorized users from accessing the company’s operating systems and files.Use anti-virus filters on LANs and WANs.Have an approved and tested disaster recovery plan.
Chapter 7-32
Methods for Thwarting Computer
Abuse
Enlist top management support
Increase employee awareness and education
Conduct Security Inventory and protect passwords
Implement controls
Identify computer criminals Look at technical backgrounds,
morals, and gender and age
Chapter 7-33
Thwarting Computer Abuse
Recognize the symptoms of employee fraudAccounting irregularities such as forged, altered or destroyed input documentsInternal control weaknessesBehavioral or lifestyle changes in an employeeUnreasonable anomalies thatgo unchallenged
Employ forensic accountants
Chapter 7-34
Computers and Ethical Behavior
Ethics a set of moral principles or values governing an organization as well as individuals
Ethical behavior making choices and judgments that are morally
proper and then acting accordingly.
Chapter 7-35
Ethical Issues
Honesty
Protecting Computer Systems
Protecting Confidential Information
Social Responsibility
Rights of Privacy
Acceptable Use of ComputerHardware and Software.
Chapter 7-36
Encouraging Ethical Behavior
Inform employees that ethics are important.
Formally expose employees to relevant cases that teach how to act in specific situations.
Teach by example, that is, by managers acting responsibly.
Chapter 7-37
Encouraging Ethical Behavior
Use job promotions and other benefits toreward those employees who act responsibly.
Encourage employees to join professional organizations with codes of conduct such as Codes of Conduct and Good Practice for Certified Computer Professional.
Chapter 7-38
Computers and Privacy Issues
Company policies with respect to privacy issues Privacy policy should include
o who owns the computer
o for what purposes can the computer be used
o what uses are authorized or prohibited
o disposal of computers
Chapter 7-39
Methods Used to Obtain Your Personal Data
Shoulder surfing
Dumpster diving
Applications for “preapproved” credit cards
Key logging software
Spam and other e-mails
Chapter 7-40
Copyright
Copyright 2008 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without theexpress written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchasermay make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
Chapter 7-41
Chapter 7
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