Tuesday, 12/6 Agenda

1. Tuesday, 12/6 Agenda Finish Cyber-Crime Terrorism Crimes of the Powerful

2. Administrative • Extra credit option is posted on course page • Updated schedule • Final two classes = slides/lecture only • No reading assignments • Material will still be on exam • Study guide to be provided for final exam • Will post on web next week • Exam not cumulative

3. Cyber-Crime • Crime that occurs over the internet using a computer • Cyber markets • Fraud • Development of criminal communities

4. Cyber-Markets • Piracy • Software, Music, Movies, Television Broadcasts, Books… • Requires minimal skill, but does entail some risks (viruses, lawsuits, etc.) • Estimates vary, but roughly 1/3 of Americans report pirating • Higher estimates among youth, especially COLLEGE KIDS! • Music and video piracy appears to be declining…why? • Beyond pirating—use of legitimate (eBay, Craig's list) and illegitimate sites to engage in crime (sell stolen goods, trade in illicit drugs/sex).

5. Cyber pornography market • Defining “pornography” has always been problematic • Other major issues • Access by Minors • Unwanted solicitation • Child pornography • Federal legislation has had limited success… • Communications Decency act of 1996 • Child Online Protection Act (COPA) of 1998 • Children’s Internet Protection Act (CIPA) of 2000

6. Cyber Fraud • Traditional Fraud Scams • A friend from Nigeria wished to transfer a million dollars into your account • Phishing and Pharming scams • Your Ebay account has been compromised! • Hacking • Major concern with many of these techniques is identity theft • Use your information to take out loans, get credit cards, etc.

7. Identity Theft • The unlawful use of another person’s identifying information • Use of name, DOB, social security number, credit card number…to commit fraud or other crimes • Internet and information age has made this much easier

8. Combating Identity Theft • State Legislation • “Freeze laws” – stops access to credit reports • Laws to redact fraudulent transactions from credit reports • Disclosure laws—if your info has been compromised • New emphasis on information privacy • Risk minimization • Guard SS# and other private info, look at credit reports, shred sensitive paper, don’t open suspicious email…

9. Cybercrime Communities • Anonymity of cyberspace • Deviant Subcultures have arena to share information and engage in crime • Child Pornography • Drug Distribution

10. Terrorism • Definitions Vary Widely • The use of violence to influence the political, social, or religious attitudes and/or behaviors of others • Premeditated, politically motivated violence, designed to spread fear and perpetrated against civilians

11. “START” DATA • National Consortium for the Study of Terrorism and Response to Terrorism • University of Maryland • Convergence of several databases + new additions from media • What qualifies: • Intend to coerce/intimidate/convey message beyond immediate victims • Aimed at attaining political/social/religious goal • Context outside of legitimate warfare • Almost 100,000 terrorist incidents between 1970 and 2010 • 43,000 bombings, 14,000 assassinations, and 4,700 kidnappings Interactive Chart

12. Thinking about Terrorism • Political/Secular vs. Religious • Organization and Support • Domestic Terrorism • Response to Terrorism

13. Political vs. Secular • Motivations of terrorists • Those with political agenda may be more selective regarding civilian casualties • Logic = the non-believers are all enemies • HOWEVER, it is sometimes difficult to separate the religious from the secular • Osama Bin Laden and the 9/11 attacks had both a religious and political/secular component

14. Terrorist “Cells” • Cell Structure • Chain of command at the top (hierarchy), but operation in smaller, tightly kit “cells” • Cells independent of each other, somewhat autonomous • Cells have limited or no contact with leaders of terror group • Long history of use • Irish Republican Army

15. Types of Terrorism • Domestic terrorism • U.S. • Left Wing (Weathermen, Eco-Terrorism) • Right Wing (Militias, Timothy McVeigh) • State terrorism • Against domestic or foreign “enemies” • German atrocities against Jews circa WWII • Assassination of foreign leaders

16. Terrorism and the Media • Scholars have pointed out that there is a natural match • Terrorists depend on media • Use event to coerce larger audience: high visibility targets, graphic acts, pre-event contact with media outlets, post-event videos • Media as a natural venue for terrorism • Dramatic, violent, visual, timely (vs. wars which are protracted, highly complex…) • HIGH RATINGS

17. Response to Terrorism • Difficult balance • Aggressive response  detection deterrence • Concern  civil rights, overreaching • Examples • USA Patriot Act • Warrantless search and seizures, wiretapping, etc. • Global War on Terror • Interrogation techniques, use of drones to assasinate, etc.

18. Crimes of the Powerful • Organized Crime • White Collar Crime • Occupational Crime • Corporate Crime

19. Organized Crime • Criminal activity committed by groups with some manner of formalized structure • Primary goal is typically money and power • Some ambiguity here • Street gangs versus drug cartels • Terrorist groups

20. Just how organized is it? • The Alien Conspiracy Model (foreign criminals) • Highly organized and centralized • Sicilian “Mafia” (La Cosa Nostra) as poster child • Mafia code (loyalty, respect, discipline), secret oaths, traditions, etc • Local, ethnic group model • Strong family ties and obligations related to kinship and ethnicity • Distrust of outsiders and government • Capacity for organization and cooperation among groups • Ability to cultivate good will of local residents • Influence limited to cities/geographical areas

21. Crimes of the organized • Illegal Industries • Gambling, narcotics distribution, loan sharking, extortion, insurance scams, fencing… • Violence associated with enforcement • Legitimate industry • Used to launder money + create monopolies + extort • Restaurants/food, garbage disposal, garment manufacturing, labor unions, construction… • Political • Bribery, fixing elections, coercing agents of criminal justice, etc.

22. The Mafia • Mafia is often used as general term • Usually refers to Italian Americans (Sicilian), or La Cosa Nostra (“our thing” in Italian) • Fodder for entertainment media (Sopranos, The Godfather, Goodfellas) • Famous New York crime families (Gambino, Genovese)] • Joseph Valachi testimony (1963) before the Senate • The organization and crime families do exist, but the level of organization often exaggerated • Does “stand apart” because of its pervasiveness, control over illegitimate markets, and penetration into legitimate industry

23. Law Enforcement Methods • Headhunting • Target heads of organized crime families, use informants + surveillance to indict • Successful? • Fairly successful at knocking off “heads” but still organized crime • Organized Crime Control Act (1970) • Racketeer Influenced and Corrupt Organizations (RICO) Statutes • Prosecutor ability to provide witness protection

24. The Russian Mafia • The new media darling • Law and Order, more recent movies • Similar to Italian Mafia • Both began by extorting money from fellow immigrants and quickly moved into other areas, and both have reputation for violence • Differences • Less cultural/ethnic loyalty, partnerships more opportunistic • Fewer “bosses” who collect a cut of illicit ventures, greater flexibility

25. White Collar Crime • Edwin Sutherland • “A crime committed by a person of respectability and high social status in the course of his occupation” • Urged criminologists to focus on crimes of the upper class, as opposed to street crime (still an issue today) • What is “counted” counts • Sutherland’s study of 70 largest corporations: official records revealed over 980 law violations (fraud, bribery, antitrust) • Much “War Profiteering” • A BIT better with NIBRS data, but nowhere near as good as “street crime” data

26. More recent typology of WCC • Occupational Crime • Crimes committed by individuals in the course of their occupation for personal gain • Theft/embezzlement, medical fraud by physicians, therapist having sex with client… • Corporate or Organizational Crime • Crimes committed by corporations (and their executives) for the benefit of the corporation • Organizations include small business and blue collar endeavors (auto repair shops)

27. Occupational Crimes • Employee embezzlement and pilferage • Collective embezzlement • Savings and Loans crime wave in the 1980s (land flips) • Professional Fraud • Lawyers, Physicians • How many hours to bill clients • Unnecessary procedures and surgeries, Medicaid/Medicare fraud

28. Organizational Crime • Many organizational crimes are “blue collar” • Auto repair, appliance repair • 20/20 and 60 minutes stings • Fraudulent businesses (roofing, blacktop) • Small businesses

29. Corporate Crime • Fraud, Cheating, Corruption • The Enron Scandal • Not alone—the most egregious of the 1990s/2000s era • Halliburton, WorldCom, Rite Aid, Adelphia… • Enron = cooking books to artificially inflate the value of their stocks (overstate earnings, hide losses), manipulation of California’s energy market to drive up costs • Accounting firm (Arthur Anderson) complicit the fraud • 31 people indicted (Jeff Skilling, Ken Lay) • The “Great Recession”? • Housing bubble (mortgage industry) + mortgage backed securities + bailout…

30. Corporate Crime II • Other financial • Price Fixing / Collusion (gas prices) • False advertising (bait and switch) • Corporate Violence • Unsafe work conditions (miners, asbestos) • Unsafe products (contaminated food) • FORD PINTO CASE • PHARMACEUTICAL INDUSTRY (Dalkon Shield) • Pollution

31. Cost of WCC • Cost MUCH higher than street crime • $17 billion vs. roughly $400 billion • 16,000 homicides vs. 100,000 unnecessary deaths

32. What causes WCC? • Lenience? • Double standard embedded in culture—not “real” criminals • Weak/absent regulations –rely on “ethics” and self-regulation • Difficulty in proving crime (complex, good lawyers, lack resources to prosecute) • SEC  over 10 years, 600 cases referred for prosecution, and less than 1/3 resulted in convictions with less than 1/6 resulting in jail or prison time • Weak punishment  civil settlements with no admission of wrongdoing • Fines often less than 1% of corporate PROFITS for a year

33. Irony • Conservatives cry out for punishment for street crimes, but believe that much corporate “crime” can be cured by self-regulation • Liberals decry harsh punishment, especially for non-violent offenders, but believe that WCC could be reduced greatly through prison time • Corporations more “rational” than individuls?

34. Psycho Corporations • Psychopaths: • Insensitive, Manipulative, Superficial charm, Above-average intelligence, Absence of psychotic symptoms, Absence of anxiety, Lack of remorse, Failure to learn from experience, Egocentric, Lack of emotional depth • Corporations are not supposed to be compassionate or think of long-term consequences