Internet Crime Schemes: The New Technology of Crime

1. Internet Crime Schemes: The New Technology of Crime Professor Byrne Technology and the Criminal Justice System

2. Techno-Crime • Advances in both hard and soft technology have not been restricted to the criminal justice system’s response to crime; • these advances have resulted in new opportunities for crime, • new forms of criminality, • new techniques for committing crime, and • the creation of new categories of both offenders and victims.

3. Techno-Criminals • Exploring the impact of technology on criminal opportunity    (e.g. new Drugs/new crimes; the internet and criminal opportunity) • New forms of criminality (e.g. internet scams and sex crimes) • New techniques for committing crimes through advances in hard and Soft technology (e.g. computer software programs, pirating, firearms)

4. New categories of offenders and victims New Offenders New Victims New categories of Sex crime victims New categories of Stalking Victims New categories drug-related victimization • New types of sex crime offenders:pornography,solicitation, trafficking • New types of stalking and Harrassment: sexting, email monitoring • New types of drug offenders: prescription drugs, date rape drugs

6. Internet Crime Schemes: An Overview of Crime Types and Techniques

7. Auction Fraud • Misinterpretation of a product or non-delivery of products through web

8. Counterfeit Cashier’s Check • Targets individuals using internet classified ads • An interested party located outside the U.S. contacts seller • Check is for more than specified amount and seller is told to send check back for difference after it clears • Check turns out fraudulent and victim is responsible for sum of check

9. Credit Card Fraud • Unauthorized use of credit/debit cards or card # • Card numbers stolen from unsecure website or as part of identity theft scheme • Victim generally lose between 5,000-20,000

10. Debt Elimination • Participant sends $1-2k along with specifics of loan information, and power of atty to make decisions over house deed • Participant then pays another % of total debt • Bonds and promissory notes issued to participants true lenders • Potential risk of ID theft immense because all personal info is released

11. Employment/Business Opportunities • Foreign based companies contact via employment websites for work from home • They hire you, get all personal info, explain you will be paid via U.S. creditor that works with the company • A check comes higher than salary permits employee is asked to deposit the check into personal account and wire back the rest. • Check is fraudulent

12. Escrow Services Fraud • Wary internet auction participant is persuaded to use third party escrow account • Perpetrator has compromised a true escrow website and creates a similar looking site • Victim sends payment, never sees product

13. ID Theft • Individuals give personal information in the belief it is for legitimate business purpose, in response to email looking to update billing or membership info, or job hiring • Often use for further internet crime • In 2004, 3% of households in U.S. had at least victim in in previous 6 months (ncjrs)

14. Internet Extortion • Hacking into & controlling various industry databases • Ask for funds in return for releasing control back to the company • Often threats of compromising consumer information

15. Investment fraud • Using false claims to solicit investments, loans, forged or counterfeit securities

16. Lotteries • Contacted via email that person has won large lump sum payment from lottery • The winner must pay fee, $1-5k to initiate process, more fees once process has begun

17. Nigerian Letter/ “419” • Victim is contacted via email to give opportunity to share in % of millions of $ to place money in overseas bank accounts • Victim is knowingly involving self in crime unknowing the irony • Victim is asked to send money in installments for variety of reasons • Millions of dollars are lost annually

18. Phishing/Spoofing • Emails are sent appearing to be from legitimate business in attempts to divulge personal info • Directs user to website which is fraudulent but appears to be legitimate • 176 unique phishing attacks in Jan. 2004

19. Ponzi/Pyramid • Investors are promised high return on investments, no investments are made • Early investors are paid with fund received from later investors • System collapses and lose investment

20. Reshipping • Subject is hired as a “reshipper” for employment individual divulges personal information • Schemer opens credit in victims • Victim receives products that were bought with his/her credit (unknowingly) • Victim reships products as instructed in hiring

21. SPAM • Bulk email act as a vehicle for accessing computers and servers transmitting viruses and Botnets

22. Third Party Receiver of Funds • Job sites solicit assistance from U.S. citizens • Foreign web based entrepreneurs explain they cannot receive funds for their online business because their foreign base • Victims sets up account to receive funds and then forwards it overseas • U.S. citizens receives funds from victim and forwards overseas and becomes victim as well

23. Crime Prevention • Six Social-Engineering Strategies • Target Removal • Target Devaluation • Target Insulation • Offender Incapacitation • Offender Exclusion • Offense, Offender, and Target Identification

24. Target Removal • The logic of prevention is clearest and most effective when a target is removed. Something that is not there cannot be taken. • Some Examples: • The move toward a cashless society is one example of target removal. • Furniture built in to the wall cannot be stolen, and that bolted or welded to the floor is unlikely to be. • A number of urban schools have created dress codes banning signs of gang affiliation and expensive clothes and jewelry

25. Target Devaluation • The goal of target devaluation is to reduce or eliminate the value of a potential target to anyone but authorized users. • Examples of devalued targets include products that self-destruct (some car radios when tampered with) or that leave dear proof of theft (exploding red dye packs that stain money taken in bank robberies). • There is a device that, via cellular phone, can remotely cut off the engine of a stolen car. Another system, called Auto Avenger, is triggered if the door is opened while 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 thief he has fifteen seconds to get out or face a 50,000-volt shock.

26. Target Insulation • Target insulation is probably among the oldest of techniques for preventing violations • We can separate perimeter-maintaining strategies such as fences, walls, moats, guards, and guard dogs from more specific protections such as safes, chastity belts, and placing goods in locked cases, chaining them to immovable objects, and hiding them. • "Skywalks" linking downtown buildings shield their occupants from life on the street.

27. Offender Incapacitation • Offender incapacitation renders the potential offender harmless. • There are a variety of "immobilizers," "restrainers," and "containers" that seek to prevent violations by weakening the potential offender's will or ability to commit the offense. • psychosurgery for the violent, literal or chemical castration for sex offenders, and the practice in some Middle Eastern countries of cutting off the hands of pickpockets. Excessively aggressive behavior may be treated with tranquilizers. Drugs such as Depo-Provera may be used to reduce the sex drive.

28. Offender Exclusion • offender exclusion is the opposite of target insulation. The offender, rather than the potential target, is restricted. • In short, the goal of offender exclusion is to keep potential offenders away from persons or environments that may tempt them to commit violations. • Capital punishment is the most extreme form of this strategy.

29. Examples of Offender Exclusion • Other examples are exile, prison, curfews, and mobility restrictions (such as house arrests or restraining orders). • At the group level, the creation of red light and drug districts away from residential areas (as in Amsterdam and Zurich) is also based on the idea of exclusion. • Electronic location devices have recently made individual exclusion easier. • the ultimate exclusion may be genetic screening: persons believed to have a biological predisposition to undesirable behavior simply never appear-they aren't born. This screening could be voluntary or mandatory.

30. Offense, Offender, and Target Identification • The goal of identification is to document the occurrence of the violation and identify or even trap the violator. • Various sensors and alarms fit here. • Another expanding area involves immobilization or seizure strategies. • One system involves a super-glue that spreads onto the floor after an explosion. Persons may be able to get into a building, but the human flypaper makes it impossible for them to get out.

31. Other Examples of Identification Strategies • A more general form of identification is the stigmatic mark of the "scarlet letter," which gives evidence of past violations. • In some jurisdictions convicted drunk drivers must have special identifying license plates or signs on their cars. The requirement that individuals carry their records, or that these be checked, is equivalent. • In some jurisdictions sex offenders are required to take out newspaper ads accompanied by photographs with warnings that they have been convicted of particular crimes; or their pictures may be prominently displayed around playgrounds. • There is a proposal to electrically shock those under house arrest if they attempt to leave and, if they succeed in leaving, to increase the voltage the farther they stray