18 computers and the law


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18 computers and the law

  1. 1. 1 Computer crime • The growth of use of computerised payment systems – particularly the use of credit cards and debit cards – has led to a rise in computer crime. • Now that companies and people no longer use cash as much as they did in the past, stealing money using a computer has become more frequent. • For this purpose ,there companies are using following cards • Credit • Debit Store • cash cards • Magnet strip of account information.
  2. 2. 2 Credit Cards • Credit cards allow users to pay for goods as and when they need them, and then to pay a single bill (or part of what is owed) at the end of a month. • instant credit against goods bought or cash from ATM. • Need to sign a receipt, signature checked, receipt goes off to credit card company. • Usually machine with telephone connection to credit card company authorises the payment, checks whether the customer has credit. • If goods are bought over the telephone or Internet there is no receipt until it arrives with the goods. • The owner chooses how much to pay off the balance each month, subject to a minimum payment. Interest is paid on unpaid balances.
  3. 3. 3 Debit cards • Debit cards have replaced cheques as a means of payment, and the money is taken out of the user’s bank account. • They are also used to get cash from cash machines (also known as Automatic Teller Machines [ATM], ‘holes in the wall’, or bank machines). • A debit card holder who is using an Automatic Teller Machine to withdraw money from their bank account identifies themselves by the use of a PIN (personal identification number). • Although this should be more secure than using a credit card, users often use a PIN that they keep with their debit card or allow strangers to watch them input the numbers on the ATM keypad.
  4. 4. 4 Debit and credit card use • Since the introduction of debit and credit cards in the 1980s, there has been a continual battle between the debit and credit card providers – the banks and credit card companies – and fraudsters. • As each new security device has been added, the fraudsters have tried to find ways to get round them. • The first debit and credit cards relied upon encrypted (encoded) data that was stored on magnetic tape on the back of the card.
  5. 5. 5 Debit and credit card use • The growth on Internet sales meant that a further security device was needed, and this led to the introduction of a 3 digit check number on the back of the card.
  6. 6. 6 Debit and credit card use • This did little to stop card fraud, and the latest security device is the addition of a computer chip that contains encoded information onto credit and debit cards.
  7. 7. 7 Debit and credit card use • The ‘chip and pin’ system will prevent some computer fraud, but it is likely that fraudsters are already developing ways to overcome it. • The next likely development in debit and credit card protection is to include biometric data (e.g. fingerprint or iris print data) within the chip. • As fingerprints and iris print data is unique to an
  8. 8. 8 FraudFraud means trying to trick someone in order to gain an advantage. • Posing as someone from an official organisation such as a bank or electricity company in order to get you to hand over your account details. • Creating 'spoof' websites that look like the real thing. • For example, making a website that looks exactly like your bank's, then getting you to enter your user name and password so that they can be recorded by the fraudster. • Promising a 'get rich quick' scheme if you pay for a pack, which will supposedly contain all of the details that you need. • Sending e-mails to get you to give over your personal or account details or getting you to download a data keylogger • Stealing your identity in order to pose as you to steal your money or some other criminal activity. Fraud
  9. 9. 9 Credit card Fraud • Criminals: obtain credit information from computers holding credit card customer details. • Transfer the magnetic strip from a lost or stolen card. Steal cards from owner, or in the post. • Get information from credit card receipts and use details to order over the telephone. • Unscrupulous businesses swiping the card more than once.
  10. 10. 10 Phantom Withdrawals • When the bank customer receives their statement there are withdrawals that they were unaware of. • The cardholder or their family may have done some of these withdrawals, some are the result of fraud where a criminal has stolen the details.
  11. 11. 11 Electronic fraud • Use of computers to commit fraud for financial gain. • Set up false suppliers that trade, when the payments are made the goods are non-existent, and the payments are stolen. • Careful recruitment of staff, careful checking of companies to ensure they are legitimate. • This is quite common on the Internet where the individual
  12. 12. 12 Software piracy • One of the most lucrative examples of computer crime is software piracy. • This is the illegal copying of computer programs, and it is very widespread. • It is estimated that over 66% of the computer software used in Europe is illegal. • Although it does not seem very wrong to ‘steal’ a computer program by copying it, the cost to the computer programmers who have spent time and money developing the software is high. • Software piracy is now being treated as a very serious crime, and the penalties can be severe • The organisation in the UK responsible for protecting software is FAST (Federation Against Software Theft). • They help the police and local trading standards officers to enforce the law.
  13. 13. 13 Copyright, Designs and Patents Act (1989) • This makes it a criminal offence to copy or steal software. • This includes: – Copying or distributing software or manuals without the permission of the copyright owner (usually the software developer). – Using purchased software covered by copyright on more than one computer unless this is permitted by the software licence. – Encouraging or allowing people to copy or distribute illegal copies of software. • A person guilty of an offence under this act may be sent to prison for up to ten years and be fined!
  14. 14. 14 Computer Misuse Act (1990) • This act deals with: – Deliberately infecting a computer system with a virus. – Using an employer’s computer to carry out unauthorised work. – Using a computer to commit software piracy. – Using a computer to hack into another computer. – Using a computer to commit a fraud.