Internet Crime Schemes Professor Byrne Technology and the Criminal Justice System.

Internet Crime Internet Crime SchemesSchemes

Professor ByrneProfessor Byrne

Technology and the Criminal Technology and the Criminal Justice SystemJustice System

Auction FraudAuction Fraud

Misinterpretation of a product or non-Misinterpretation of a product or non-delivery of products through webdelivery of products through web

Counterfeit Cashier’s CheckCounterfeit Cashier’s Check

Targets individuals using internet Targets individuals using internet classified adsclassified ads

An interested party located outside An interested party located outside the U.S. contacts sellerthe U.S. contacts seller

Check is for more than specified Check is for more than specified amount and seller is told to send amount and seller is told to send check back for difference after it check back for difference after it clearsclears

Check turns out fraudulent and victim Check turns out fraudulent and victim is responsible for sum of checkis responsible for sum of check

Credit Card FraudCredit Card Fraud

Unauthorized use of credit/debit Unauthorized use of credit/debit cards or card #cards or card #

Card numbers stolen from unsecure Card numbers stolen from unsecure website or as part of identity theft website or as part of identity theft schemescheme

Victim generally lose between 5,000-Victim generally lose between 5,000-20,00020,000

Debt EliminationDebt Elimination

Participant sends $1-2k along with Participant sends $1-2k along with specifics of loan information, and specifics of loan information, and power of atty to make decisions over power of atty to make decisions over house deedhouse deed

Participant then pays another % of Participant then pays another % of total debt total debt

Bonds and promissory notes issued to Bonds and promissory notes issued to participants true lendersparticipants true lenders

Potential risk of ID theft immense Potential risk of ID theft immense because all personal info is releasedbecause all personal info is released

Employment/Business Employment/Business OpportunitiesOpportunities

Foreign based companies contact via Foreign based companies contact via employment websites for work from home employment websites for work from home

They hire you, get all personal info, They hire you, get all personal info, explain you will be paid via U.S. creditor explain you will be paid via U.S. creditor that works with the companythat works with the company

A check comes higher than salary permits A check comes higher than salary permits employee is asked to deposit the check employee is asked to deposit the check into personal account and wire back the into personal account and wire back the rest.rest.

Check is fraudulentCheck is fraudulent

Escrow Services FraudEscrow Services Fraud

Wary internet auction participant is Wary internet auction participant is persuaded to use third party escrow persuaded to use third party escrow accountaccount

Perpetrator has compromised a true Perpetrator has compromised a true escrow website and creates a similar escrow website and creates a similar looking sitelooking site

Victim sends payment, never sees Victim sends payment, never sees productproduct

ID TheftID Theft

Individuals give personal information Individuals give personal information in the belief it is for legitimate in the belief it is for legitimate business purpose, in response to business purpose, in response to email looking to update billing or email looking to update billing or membership info, or job hiringmembership info, or job hiring

Often use for further internet crimeOften use for further internet crime In 2004, 3% of households in U.S. had In 2004, 3% of households in U.S. had

at least victim in in previous 6 months at least victim in in previous 6 months (ncjrs)(ncjrs)

Internet ExtortionInternet Extortion

Hacking into & controlling various Hacking into & controlling various industry databasesindustry databases

Ask for funds in return for releasing Ask for funds in return for releasing control back to the companycontrol back to the company

Often threats of compromising Often threats of compromising consumer informationconsumer information

Investment fraudInvestment fraud

Using false claims to solicit Using false claims to solicit investments, loans, forged or investments, loans, forged or counterfeit securitiescounterfeit securities

LotteriesLotteries

Contacted via email that person has Contacted via email that person has won large lump sum payment from won large lump sum payment from lotterylottery

The winner must pay fee, $1-5k to The winner must pay fee, $1-5k to initiate process, more fees once initiate process, more fees once process has begunprocess has begun

Nigerian Letter/ “419”Nigerian Letter/ “419”

Victim is contacted via email to give Victim is contacted via email to give opportunity to share in % of millions of opportunity to share in % of millions of $ to place money in overseas bank $ to place money in overseas bank accountsaccounts

Victim is knowingly involving self in Victim is knowingly involving self in crime unknowing the ironycrime unknowing the irony

Victim is asked to send money in Victim is asked to send money in installments for variety of reasons installments for variety of reasons

Millions of dollars are lost annuallyMillions of dollars are lost annually

Phishing/SpoofingPhishing/Spoofing

Emails are sent appearing to be from Emails are sent appearing to be from legitimate business in attempts to legitimate business in attempts to divulge personal infodivulge personal info

Directs user to website which is Directs user to website which is fraudulent but appears to be fraudulent but appears to be legitimatelegitimate

176 unique phishing attacks in Jan. 176 unique phishing attacks in Jan. 20042004

Ponzi/PyramidPonzi/Pyramid

Investors are promised high return Investors are promised high return on investments, no investments are on investments, no investments are mademade

Early investors are paid with fund Early investors are paid with fund received from later investorsreceived from later investors

System collapses and lose System collapses and lose investment investment

ReshippingReshipping

Subject is hired as a “reshipper” for Subject is hired as a “reshipper” for employment individual divulges employment individual divulges personal informationpersonal information

Schemer opens credit in victimsSchemer opens credit in victims Victim receives products that were Victim receives products that were

bought with his/her credit bought with his/her credit (unknowingly)(unknowingly)

Victim reships products as instructed Victim reships products as instructed in hiringin hiring

SPAMSPAM

Bulk email act as a vehicle for Bulk email act as a vehicle for accessing computers and servers accessing computers and servers transmitting viruses and Botnetstransmitting viruses and Botnets

Third Party Receiver of Third Party Receiver of FundsFunds Job sites solicit assistance from U.S. Job sites solicit assistance from U.S.

citizenscitizens Foreign web based entrepreneurs Foreign web based entrepreneurs

explain they cannot receive funds for explain they cannot receive funds for their online business because their their online business because their foreign baseforeign base

Victims sets up account to receive Victims sets up account to receive funds and then forwards it overseasfunds and then forwards it overseas

U.S. citizens receives funds from U.S. citizens receives funds from victim and forwards overseas and victim and forwards overseas and becomes victim as wellbecomes victim as well

Crime PreventionCrime Prevention

Six Social-Engineering StrategiesSix Social-Engineering Strategies Target RemovalTarget Removal Target DevaluationTarget Devaluation Target InsulationTarget Insulation Offender IncapacitationOffender Incapacitation Offender ExclusionOffender Exclusion Offense, Offender, and Target Offense, Offender, and Target

IdentificationIdentification

Target RemovalTarget Removal The logic of prevention is clearest and most The logic of prevention is clearest and most

effective when a target is removed. Something effective when a target is removed. Something that is not there cannot be taken. that is not there cannot be taken.

Some Examples:Some Examples: The move toward a cashless society is one The move toward a cashless society is one

example of target removal. example of target removal. Furniture built in to the wall cannot be stolen, and Furniture built in to the wall cannot be stolen, and

that bolted or welded to the floor is unlikely to be. that bolted or welded to the floor is unlikely to be. A number of urban schools have created dress A number of urban schools have created dress

codes banning signs of gang affiliation and codes banning signs of gang affiliation and expensive clothes and jewelry expensive clothes and jewelry

Target DevaluationTarget Devaluation The goal of target devaluation is to reduce or eliminate the The goal of target devaluation is to reduce or eliminate the

value of a potential target to anyone but authorized users. value of a potential target to anyone but authorized users.

Examples of devalued targets include products that self-Examples of devalued targets include products that self-destruct (some car radios when tampered with) or that destruct (some car radios when tampered with) or that leave dear proof of theft (exploding red dye packs that leave dear proof of theft (exploding red dye packs that stain money taken in bank robberies). stain money taken in bank robberies).

There is a device that, via cellular phone, can remotely cut There is a device that, via cellular phone, can remotely cut off the engine of a stolen car. Another system, called Auto off the engine of a stolen car. Another system, called Auto Avenger, is triggered if the door is opened while the engine Avenger, is triggered if the door is opened while the engine is running. If not disengaged by a hidden switch, the engine is running. If not disengaged by a hidden switch, the engine will shut down after a few minutes and the system tells the will shut down after a few minutes and the system tells the thief he has fifteen seconds to get out or face a 50,000-volt thief he has fifteen seconds to get out or face a 50,000-volt shock. shock.

Target InsulationTarget Insulation Target insulation is probably among the oldest Target insulation is probably among the oldest

of techniques for preventing violationsof techniques for preventing violations We can separate perimeter-maintaining We can separate perimeter-maintaining

strategies such as fences, walls, moats, strategies such as fences, walls, moats, guards, and guard dogs from more specific guards, and guard dogs from more specific protections such as safes, chastity belts, and protections such as safes, chastity belts, and placing goods in locked cases, chaining them placing goods in locked cases, chaining them to immovable objects, and hiding them. to immovable objects, and hiding them.

"Skywalks" linking downtown buildings shield "Skywalks" linking downtown buildings shield their occupants from life on the street. their occupants from life on the street.

Offender IncapacitationOffender Incapacitation Offender incapacitation renders the potential Offender incapacitation renders the potential

offender harmless.offender harmless. There are a variety of "immobilizers," There are a variety of "immobilizers,"

"restrainers," and "containers" that seek to "restrainers," and "containers" that seek to prevent violations by weakening the potential prevent violations by weakening the potential offender's will or ability to commit the offense. offender's will or ability to commit the offense.

psychosurgery for the violent, literal or chemical psychosurgery for the violent, literal or chemical castration for sex offenders, and the practice in castration for sex offenders, and the practice in some Middle Eastern countries of cutting off the some Middle Eastern countries of cutting off the hands of pickpockets. Excessively aggressive hands of pickpockets. Excessively aggressive behavior may be treated with tranquilizers. Drugs behavior may be treated with tranquilizers. Drugs such as such as Depo-ProveraDepo-Provera may be used to reduce the may be used to reduce the sex drive. sex drive.

Offender ExclusionOffender Exclusion offender exclusion is the opposite of target offender exclusion is the opposite of target

insulation. The offender, rather than the insulation. The offender, rather than the potential target, is restricted. potential target, is restricted.

In short, the goal of offender exclusion is In short, the goal of offender exclusion is to keep potential offenders away from to keep potential offenders away from persons or environments that may tempt persons or environments that may tempt them to commit violations. them to commit violations.

Capital punishment is the most extreme Capital punishment is the most extreme form of this strategy.form of this strategy.

Examples of Offender Examples of Offender ExclusionExclusion

Other examples are exile, prison, curfews, and Other examples are exile, prison, curfews, and mobility restrictions (such as house arrests or mobility restrictions (such as house arrests or restraining orders). restraining orders).

At the group level, the creation of red light and drug At the group level, the creation of red light and drug districts away from residential areas (as in districts away from residential areas (as in Amsterdam and Zurich) is also based on the idea of Amsterdam and Zurich) is also based on the idea of exclusion. exclusion.

Electronic location devices have recently made Electronic location devices have recently made individual exclusion easier.individual exclusion easier.

the ultimate exclusion may be genetic screening: the ultimate exclusion may be genetic screening: persons believed to have a biological predisposition persons believed to have a biological predisposition to undesirable behavior simply never appear-they to undesirable behavior simply never appear-they aren't born. This screening could be voluntary or aren't born. This screening could be voluntary or mandatory. mandatory.

Offense, Offender, and Target Offense, Offender, and Target IdentificationIdentification

The goal of identification is to document The goal of identification is to document the occurrence of the violation and identify the occurrence of the violation and identify or even trap the violator. or even trap the violator.

Various sensors and alarms fit here.Various sensors and alarms fit here. Another expanding area involves Another expanding area involves

immobilization or seizure strategies. immobilization or seizure strategies. One system involves a super-glue that One system involves a super-glue that

spreads onto the floor after an explosion. spreads onto the floor after an explosion. Persons may be able to get into a building, Persons may be able to get into a building, but the human flypaper makes it but the human flypaper makes it impossible for them to get out. impossible for them to get out.

Other Examples of Other Examples of Identification StrategiesIdentification Strategies

A more general form of identification is the stigmatic mark A more general form of identification is the stigmatic mark of the "of the "scarlet letterscarlet letter," which gives evidence of past ," which gives evidence of past violations. violations.

In some jurisdictions convicted drunk drivers must have In some jurisdictions convicted drunk drivers must have special identifying license plates or signs on their cars. The special identifying license plates or signs on their cars. The requirement that individuals carry their records, or that requirement that individuals carry their records, or that these be checked, is equivalent.these be checked, is equivalent.

In some jurisdictions sex offenders are required to take out In some jurisdictions sex offenders are required to take out newspaper ads accompanied by photographs with warnings newspaper ads accompanied by photographs with warnings that they have been convicted of particular crimes; or their that they have been convicted of particular crimes; or their pictures may be prominently displayed around playgrounds.pictures may be prominently displayed around playgrounds.

There is a proposal to electrically shock those under house There is a proposal to electrically shock those under house arrest if they attempt to leave and, if they succeed in arrest if they attempt to leave and, if they succeed in leaving, to increase the voltage the farther they stray leaving, to increase the voltage the farther they stray