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10 Criminology in the Future
Criminology in the Future
Kristopher Freitag, Javielle Watson, Michael Westphal, Starcia
Zeigler
CJA/314
April 7, 2014
Judy Mazzucca
Technology is advancing in every aspect of the criminal justice
system, from the investigation to the prosecution of the crimes.
Crime fighting methodologies have the potential to greatly
assist law enforcement in the war on crime. Some experts even
think that some software and tools will be able to help prevent
crime. (Yeung, n.d.). Methodologies, such as mandating DNA
collection programs, biometrics, and implementing cybercrime
spyware programs are on the list of the next big things of the
future, when it comes to fighting crime. DNA testing helps law
enforcement investigate and prosecute crimes, as well as clear
the names of those who have been wrongfully convicted. There
are currently about twenty states with laws requiring DNA
collection at the time of the person’s arrest. The federal
government also has this requirement. As, with any
controversial subject, DNA testing has its critics. Some are
saying that DNA testing is in violation of the Fourth
Amendment, especially for those who have not been convicted
of a crime. Others are concerned that DNA testing may open the
doors for abuse of the genetic information being stored in the
databases. (Berson, n.d.). Biometrics are automated methods of
recognizing a person based on physiological or behavioral
characteristics. Some of the features measured using biometrics
are handwriting, voice, iris, hand geometry, vein, retinal, and
fingerprints. Biometric based solutions provide personal data
privacy, and confidential financial transactions, and are starting
to become the foundation of an extensive array of highly secure
identification and personal verification solutions. The need for
highly secure identification and personal verification
technologies is great, due to the increased number of transaction
fraud and security breaches. This need is especially great in the
areas of local, state, and federal governments. Infrastructures
such as electronic banking, health and social services, law
enforcement, and retail sales are already taking advantage of,
and seeing the benefits of biometric technology. ("The
Biometrics Consortium", n.d.).
As we become more and more dependent on technology, the
increase of cybercrimes are skyrocketing, which has forced law
enforcement to figure out ways of combatting cybercrimes. We
have become extremely vulnerable to many cybercrimes,
including social media fraud, which consists of cyber criminals
using social media to steal the identities of unsuspecting
people; and luring people to download malicious materials, or
reveal their passwords; corporate security breaches, which
consists of cyber criminals exploiting company employees via
scams; and phishing, which involves cyber criminals targeting
company employees by sending emails that appear to be from
someone within the company. ("Homeland Security", n.d.). As a
way of combatting cybercrimes, the FBI has been using their
own spyware called Computer and Internet Protocol Address
Verifier (CIPAV). CIPAV has been in use by the FBI since
2004, and while it is still unclear as to exactly how CIPAV
works, there is a little information about it. CIPAV gathers
information including the current person’s logged in username
and the last site visited; the computer’s operating system type,
version, and serial number; the computer’s registered owner’s
name and registered company’s name; the preferred internet
browser used as well as the version used; the MAC address; the
list of running programs; open ports; and the computer’s IP
address. After CIPAV gathers this information, the spyware
then goes into silent pen register mode, where it monitors the
suspected computer for up to sixty days. (Begun, 2014).
As law enforcement evolves, so does technology. Gone are
the days of the inexperienced officer, with no weapon, walking
the streets. Law enforcement now consists of highly trained
officers, armed with the latest technology in weapons and
equipment. We tend to overlook how important some
technologies are to law enforcement. Cars, for instance, up until
1910 police did their jobs on foot, then they received police
cars, in order to make their jobs a little easier. The radio and
telephone also enhanced law enforcement’s job in a major way.
Without the telephone, there would not be a 911 dispatching
system, so there would be no way for us to call for help.
("Public Engines", n.d.). Forensic technology has also
advanced. Scientists at the Oak Ridge National Laboratory have
developed a Light weight Analyzer for Buried Remains and
Decomposition Odor Recognition system, called LABRADOR
for short. This system is used to locate dead bodies. Normally
cadaver dogs would be used for this purpose, however the dogs
cannot detect relative concentrations of chemicals, and the
LABRADOR can. The LABRADOR can pin point the exact
location of a dead body. At the Pacific Northwest National
Laboratory in Richland, Washington, a chemist named Carlos
Fraga has been working on a forensic technique that analyzes
chemicals. The difference in Mr. Fraga’s technique is, this
technique will be used for locating the criminal, instead of the
victim. Mr. Fraga’s focus is on chemical attacks, he has
detected a way of tracing the origin of a chemical attack by
analyzing the impurities in the chemical. This technique can
also be used to detect the patterns of drugs flowing into the
country. A company by the name of Autonomous ID has
developed a product called Bio Sole, which is a device that
measures the way that a person’s foot hits the ground. This
technique will verify a person’s identity. It is said that this
device could replace the use of retina and fingerprint scanning.
("Pbs", 2014).
As technology continues to evolve and become more
advanced, there are bound to be many accusations of civil
liberties and ethical violations. This was the debate with the
issue of law enforcement being able to collect DNA samples
from people. The DNA Identification Act of 1994 was created
by the Department of Justice. The DNA Identification Act
specifies the categories of data that may be kept and maintained
in the database. ("The Federal Bureau Of Investigation", n.d.).
Some argued that collecting DNA would create the potential for
the genetic information being kept in the databases to be
abused. Some believe it is a violation of the individual’s
privacy. Others argued that the laboratories would not be
capable of managing the influx of samples from a new source.
(Berson, n.d.).
NEXT PORTION BELOW
The technology and ways to prevent crime are advancing each
time a criminal commits a crime. Crime prevention will become
more effective if the communities help out in ensuring that laws
and regulations are enforced. There are many different ways to
prevent crime, and the ones least expected can be the most
effective depending on the circumstances of the crime. In the
terms of the social policy preventing crime, social
disorganization must first be addressed. This policy relies
solely on what the community is doing as a whole. Technology
used for fighting crime is becoming advanced as criminals learn
new skills daily, and ways to commit their crimes. The upgrades
and advancements of technology are improving, but are not
going at the same fast pace of criminal advancement.
Cybercrime, forensics, biometrics, DNA, facial recognition, and
spyware to name a few; are becoming changing to meet the
qualifications of solving, and preventing some crimes. Since
cybercrimes are rapidly progressing, law enforcement are now
monitoring what people are doing on the web, especially on
social websites and other popular sites. Spyware can be used to
commit crimes with instruments such as computers, cell phones,
and electronic devices. With the use of technology, the officers
may use the IP address to track the location of the computer.
Law enforcement is doing more extensive training and forensics
is progressing to meet the needs of safety for the public. With
forensic testing advancing, law enforcement is able to solve
more of the unsolved crimes from prior events. Forensic
scientists are able to determine more about what caused a
victim’s death, what condition their body was in, and even
personal things like what they had to eat that day. Ethical
violations and civil liberties have been around for a long time;
law enforcement must be cautious and alert that they are
following regulations and guidelines. They must also be
cautious of ensuring they are doing what is ethically right and
having integrity. Law enforcement officials must also respect
the rights and privacy of those around them. Information that
must be kept confidential pertaining to cases must be just that.
The future of preventing crime is more on the individuals
of the communities than law enforcement. Law enforcement is
more for enforcing the laws and safety of the public. Video
surveillance is becoming the one of the top ways to prevent
crime when the presence of officers is absent. More individuals
are participating in neighborhood crime watch in their areas,
and the crime is declining now for some areas. Law enforcement
is using drones for areas with crime that they cannot be in. The
surveillance drones can capture videos and images of crimes as
they happen in real time. This helps crime analysts and officers
respond more effectively to dangerous situations or crimes.
Officers wear special glasses called Google glasses. These
glasses record and analyze everything they see. The glasses can
provide information about businesses, homes, and vehicles.
Since the glasses use real time they also use facial recognition
software, that reads faces of those around the officer and even
detect if a person has outstanding warrants. Law enforcement
and crime analyst are can in some cases gather information for
or even self incriminating evidence from social sites such as
facebook. Communities and neighborhoods are failing to realize
the common values of the community and failing to maintain
social control. When residents don’t look out for their own
homes and their neighbors; this leaves them more prone to be a
targeted neighborhood for crime. The core of crime is social
problems that communities are having such as: unemployed and
unemployable adults, single parent households, single adults,
and children below poverty line, ethnic minorities, refugees, or
any person who has been previously institutionalized. These
reasons can contribute causing these problems: instability,
change, loss of goods, services and transportation, and decline
of labor market (Knepper, 2007). If more business owner and
homeowner became more involved the crimes in their areas
would decline, and they would have social control.
Technology is advancing in every aspect of the criminal justice
system, from the investigation to the prosecution of the crimes.
Crime fighting methodologies have the potential to greatly
assist law enforcement in the war on crime. Some experts even
think that some software and tools will be able to help prevent
crime. (Yeung, n.d.). Methodologies, such as mandating DNA
collection programs, biometrics, and implementing cybercrime
spyware programs are on the list of the next big things of the
future, when it comes to fighting crime. DNA testing helps law
enforcement investigate and prosecute crimes, as well as clear
the names of those who have been wrongfully convicted.There
are currently about twenty states with laws requiring DNA
collection at the time of the person’s arrest. The federal
government also has this requirement. As, with any
controversial subject, DNA testing has its critics. Some are
saying that DNA testing is in violation of the Fourth
Amendment, especially for those who have not been convicted
of a crime. Others are concerned that DNA testing may open the
doors for abuse of the genetic information being stored in the
databases. (Berson, n.d.).Biometrics is automated methods of
recognizing a person based on physiological or behavioral
characteristics. Some of the features measured using biometrics
are handwriting, voice, iris, hand geometry, vein, retinal, and
fingerprints. Biometric based solutions provide personal data
privacy, and confidential financial transactions, and are starting
to become the foundation of an extensive array of highly secure
identification and personal verification solutions. The need for
highly secure identification and personal verification
technologies is great, due to the increased number of transaction
fraud and security breaches. This need is especially great in the
areas of local, state, and federal governments. Infrastructures
such as electronic banking, health and social services, law
enforcement, and retail sales are already taking advantage of,
and seeing the benefits of biometric technology. ("The
Biometrics Consortium", n.d.).
As we become more and more dependent on technology, the
increase of cybercrimes are skyrocketing, this has forced law
enforcement to figure out ways of combatting cybercrimes. We
have become extremely vulnerable to many cybercrimes,
including social media fraud, which consists of cyber criminals
using social media to steal the identities of unsuspecting
people; and luring people to download malicious materials, or
reveal their passwords; corporate security breaches, which
consists of cyber criminals exploiting company employees via
scams; and phishing, which involves cyber criminals targeting
company employees by sending emails that appear to be from
someone within the company. ("Homeland Security", n.d.).As a
way of combatting cybercrimes, the FBI has been using their
own spyware called Computer and Internet Protocol Address
Verifier (CIPAV). CIPAV has been in use by the FBI since
2004, and while it is still unclear as to exactly how CIPAV
works, there is a little information about it. CIPAV gathers
information including the current person’s logged in username
and the last site visited; the computer’s operating system type,
version, and serial number; the computer’s registered owner’s
name and registered company’s name; the preferred internet
browser used as well as the version used; the MAC address; the
list of running programs; open ports; and the computer’s IP
address. After CIPAV gathers this information, the spyware
then goes into silent pen register mode, where it monitors the
suspected computer for up to sixty days. (Begun, 2014).
As law enforcement evolves, so does technology. Gone are
the days of the inexperienced officer, with no weapon, walking
the streets. Law enforcement now consists of highly trained
officers, armed with the latest technology in weapons and
equipment. We tend to overlook how important some
technologies are to law enforcement. Cars, for instance, up until
1910 police did their jobs on foot, then they received police
cars, in order to make their jobs a little easier. The radio and
telephone also enhanced law enforcement’s job in a major way.
Without the telephone, there would not be a 911 dispatching
system, so there would be no way for us to call for help.
("Public Engines", n.d.).Forensic technology has also advanced.
Scientists at the Oak Ridge National Laboratory have developed
a Light weight Analyzer for Buried Remains and Decomposition
Odor Recognition system, called LABRADOR for short. This
system is used to locate dead bodies. Normally cadaver dogs
would be used for this purpose, however the dogs cannot detect
relative concentrations of chemicals, and the LABRADOR can.
The LABRADOR can pin point the exact location of a dead
body. At the Pacific Northwest National Laboratory in
Richland, Washington, a chemist named Carlos Fraga has been
working on a forensic technique that analyzes chemicals. The
difference in Mr. Fraga’s technique is, this technique will be
used for locating the criminal, instead of the victim. Mr.
Fraga’s focus is on chemical attacks, he has detected a way of
tracing the origin of a chemical attack by analyzing the
impurities in the chemical. This technique can also be used to
detect the patterns of drugs flowing into the country. A
company by the name of Autonomous ID has developed a
product called Bio Sole, which is a device that measures the
way that a person’s foot hits the ground. This technique will
verify a person’s identity. It is said that this device could
replace the use of retina and fingerprint scanning.
("Pbs", 2014).
As technology continues to evolve and become more
advanced, there are bound to be many accusations of civil
liberties and ethical violations. This was the debate with the
issue of law enforcement being able to collect DNA samples
from people. The DNA Identification Act of 1994 was created
by the Department of Justice. The DNA Identification Act
specifies the categories of data that may be kept and maintained
in the database. ("The Federal Bureau Of Investigation", n.d.).
Some argued that collecting DNA would create the potential for
the genetic information being kept in the databases to be
abused. Some believe it is a violation of the individual’s
privacy. Others argued that the laboratories would not be
capable of managing the influx of samples from a new
source.(Berson, n.d.).
1. The three year zero rate is 7% per annum and the four year
zero rate is 7.5% pa (both continuously compounded). What is
the one year (continuously compounded) forward rate starting in
three years time?
(2 marks)
2. The zero rate curve is flat at 6% pa with semi-annual
compounding. What is the value of a FRA where the holder
receives interest at the rate of 8% per annum with semi-annual
compounding for a six month period on a principle of $1000
starting in 2 years?
(2 marks)
3. The margin requirement on the S&P/ASX 200 futures
contract is 10% and the stock index is currently 4400. Each
contract has a multiplier of $25. How much margin must be put
up for each contract sold? If the futures price falls by 1% to
4356, what will happen to the margin account of an investor
who holds one contract? What will the investor’s percentage
return based on the amount put up as margin be?
4. The S&P/ASX 200 index is currently at 4000. You manage a
$4 million indexed equity portfolio. The S&P/ASX 200 futures
contract has a multiplier of $25.
a) If you are temporarily bearish on the stock market, how many
contracts should you sell to fully eliminate your exposure over
the next six months?
(1 mark)
b) If government pay 2% per six months and the semi-annual
dividend yield is 1%, what is the parity value of the futures
price? Show that if the contract is fairly priced, the total risk-
free proceeds on the hedged strategy in part (a) provide a return
equal to the government bond rate.
(1 mark)
5. In early 2012, the spot exchange rate between the Swiss
Franc and the U.S dollar was 1.0404($ per franc). Interest rates
in the U.S. and Switzerland were 0.25% and the 0% per annum,
respectably, with continuous compounding. The three-month
forward exchange rate was 1.0300($ per franc). What arbitrage
strategy was possible? How does your answer change if the
exchange rate is 1.0500($ per franc).
(2 marks)

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  • 1. 10 Criminology in the Future Criminology in the Future Kristopher Freitag, Javielle Watson, Michael Westphal, Starcia Zeigler CJA/314 April 7, 2014 Judy Mazzucca Technology is advancing in every aspect of the criminal justice system, from the investigation to the prosecution of the crimes. Crime fighting methodologies have the potential to greatly assist law enforcement in the war on crime. Some experts even think that some software and tools will be able to help prevent crime. (Yeung, n.d.). Methodologies, such as mandating DNA collection programs, biometrics, and implementing cybercrime spyware programs are on the list of the next big things of the future, when it comes to fighting crime. DNA testing helps law enforcement investigate and prosecute crimes, as well as clear the names of those who have been wrongfully convicted. There are currently about twenty states with laws requiring DNA collection at the time of the person’s arrest. The federal government also has this requirement. As, with any
  • 2. controversial subject, DNA testing has its critics. Some are saying that DNA testing is in violation of the Fourth Amendment, especially for those who have not been convicted of a crime. Others are concerned that DNA testing may open the doors for abuse of the genetic information being stored in the databases. (Berson, n.d.). Biometrics are automated methods of recognizing a person based on physiological or behavioral characteristics. Some of the features measured using biometrics are handwriting, voice, iris, hand geometry, vein, retinal, and fingerprints. Biometric based solutions provide personal data privacy, and confidential financial transactions, and are starting to become the foundation of an extensive array of highly secure identification and personal verification solutions. The need for highly secure identification and personal verification technologies is great, due to the increased number of transaction fraud and security breaches. This need is especially great in the areas of local, state, and federal governments. Infrastructures such as electronic banking, health and social services, law enforcement, and retail sales are already taking advantage of, and seeing the benefits of biometric technology. ("The Biometrics Consortium", n.d.). As we become more and more dependent on technology, the increase of cybercrimes are skyrocketing, which has forced law enforcement to figure out ways of combatting cybercrimes. We have become extremely vulnerable to many cybercrimes, including social media fraud, which consists of cyber criminals using social media to steal the identities of unsuspecting people; and luring people to download malicious materials, or reveal their passwords; corporate security breaches, which consists of cyber criminals exploiting company employees via scams; and phishing, which involves cyber criminals targeting company employees by sending emails that appear to be from someone within the company. ("Homeland Security", n.d.). As a way of combatting cybercrimes, the FBI has been using their own spyware called Computer and Internet Protocol Address Verifier (CIPAV). CIPAV has been in use by the FBI since
  • 3. 2004, and while it is still unclear as to exactly how CIPAV works, there is a little information about it. CIPAV gathers information including the current person’s logged in username and the last site visited; the computer’s operating system type, version, and serial number; the computer’s registered owner’s name and registered company’s name; the preferred internet browser used as well as the version used; the MAC address; the list of running programs; open ports; and the computer’s IP address. After CIPAV gathers this information, the spyware then goes into silent pen register mode, where it monitors the suspected computer for up to sixty days. (Begun, 2014). As law enforcement evolves, so does technology. Gone are the days of the inexperienced officer, with no weapon, walking the streets. Law enforcement now consists of highly trained officers, armed with the latest technology in weapons and equipment. We tend to overlook how important some technologies are to law enforcement. Cars, for instance, up until 1910 police did their jobs on foot, then they received police cars, in order to make their jobs a little easier. The radio and telephone also enhanced law enforcement’s job in a major way. Without the telephone, there would not be a 911 dispatching system, so there would be no way for us to call for help. ("Public Engines", n.d.). Forensic technology has also advanced. Scientists at the Oak Ridge National Laboratory have developed a Light weight Analyzer for Buried Remains and Decomposition Odor Recognition system, called LABRADOR for short. This system is used to locate dead bodies. Normally cadaver dogs would be used for this purpose, however the dogs cannot detect relative concentrations of chemicals, and the LABRADOR can. The LABRADOR can pin point the exact location of a dead body. At the Pacific Northwest National Laboratory in Richland, Washington, a chemist named Carlos Fraga has been working on a forensic technique that analyzes chemicals. The difference in Mr. Fraga’s technique is, this technique will be used for locating the criminal, instead of the victim. Mr. Fraga’s focus is on chemical attacks, he has
  • 4. detected a way of tracing the origin of a chemical attack by analyzing the impurities in the chemical. This technique can also be used to detect the patterns of drugs flowing into the country. A company by the name of Autonomous ID has developed a product called Bio Sole, which is a device that measures the way that a person’s foot hits the ground. This technique will verify a person’s identity. It is said that this device could replace the use of retina and fingerprint scanning. ("Pbs", 2014). As technology continues to evolve and become more advanced, there are bound to be many accusations of civil liberties and ethical violations. This was the debate with the issue of law enforcement being able to collect DNA samples from people. The DNA Identification Act of 1994 was created by the Department of Justice. The DNA Identification Act specifies the categories of data that may be kept and maintained in the database. ("The Federal Bureau Of Investigation", n.d.). Some argued that collecting DNA would create the potential for the genetic information being kept in the databases to be abused. Some believe it is a violation of the individual’s privacy. Others argued that the laboratories would not be capable of managing the influx of samples from a new source. (Berson, n.d.). NEXT PORTION BELOW The technology and ways to prevent crime are advancing each time a criminal commits a crime. Crime prevention will become more effective if the communities help out in ensuring that laws and regulations are enforced. There are many different ways to prevent crime, and the ones least expected can be the most effective depending on the circumstances of the crime. In the terms of the social policy preventing crime, social disorganization must first be addressed. This policy relies solely on what the community is doing as a whole. Technology used for fighting crime is becoming advanced as criminals learn
  • 5. new skills daily, and ways to commit their crimes. The upgrades and advancements of technology are improving, but are not going at the same fast pace of criminal advancement. Cybercrime, forensics, biometrics, DNA, facial recognition, and spyware to name a few; are becoming changing to meet the qualifications of solving, and preventing some crimes. Since cybercrimes are rapidly progressing, law enforcement are now monitoring what people are doing on the web, especially on social websites and other popular sites. Spyware can be used to commit crimes with instruments such as computers, cell phones, and electronic devices. With the use of technology, the officers may use the IP address to track the location of the computer. Law enforcement is doing more extensive training and forensics is progressing to meet the needs of safety for the public. With forensic testing advancing, law enforcement is able to solve more of the unsolved crimes from prior events. Forensic scientists are able to determine more about what caused a victim’s death, what condition their body was in, and even personal things like what they had to eat that day. Ethical violations and civil liberties have been around for a long time; law enforcement must be cautious and alert that they are following regulations and guidelines. They must also be cautious of ensuring they are doing what is ethically right and having integrity. Law enforcement officials must also respect the rights and privacy of those around them. Information that must be kept confidential pertaining to cases must be just that. The future of preventing crime is more on the individuals of the communities than law enforcement. Law enforcement is more for enforcing the laws and safety of the public. Video surveillance is becoming the one of the top ways to prevent crime when the presence of officers is absent. More individuals are participating in neighborhood crime watch in their areas, and the crime is declining now for some areas. Law enforcement is using drones for areas with crime that they cannot be in. The surveillance drones can capture videos and images of crimes as they happen in real time. This helps crime analysts and officers
  • 6. respond more effectively to dangerous situations or crimes. Officers wear special glasses called Google glasses. These glasses record and analyze everything they see. The glasses can provide information about businesses, homes, and vehicles. Since the glasses use real time they also use facial recognition software, that reads faces of those around the officer and even detect if a person has outstanding warrants. Law enforcement and crime analyst are can in some cases gather information for or even self incriminating evidence from social sites such as facebook. Communities and neighborhoods are failing to realize the common values of the community and failing to maintain social control. When residents don’t look out for their own homes and their neighbors; this leaves them more prone to be a targeted neighborhood for crime. The core of crime is social problems that communities are having such as: unemployed and unemployable adults, single parent households, single adults, and children below poverty line, ethnic minorities, refugees, or any person who has been previously institutionalized. These reasons can contribute causing these problems: instability, change, loss of goods, services and transportation, and decline of labor market (Knepper, 2007). If more business owner and homeowner became more involved the crimes in their areas would decline, and they would have social control. Technology is advancing in every aspect of the criminal justice system, from the investigation to the prosecution of the crimes. Crime fighting methodologies have the potential to greatly assist law enforcement in the war on crime. Some experts even think that some software and tools will be able to help prevent crime. (Yeung, n.d.). Methodologies, such as mandating DNA collection programs, biometrics, and implementing cybercrime spyware programs are on the list of the next big things of the future, when it comes to fighting crime. DNA testing helps law enforcement investigate and prosecute crimes, as well as clear the names of those who have been wrongfully convicted.There are currently about twenty states with laws requiring DNA collection at the time of the person’s arrest. The federal
  • 7. government also has this requirement. As, with any controversial subject, DNA testing has its critics. Some are saying that DNA testing is in violation of the Fourth Amendment, especially for those who have not been convicted of a crime. Others are concerned that DNA testing may open the doors for abuse of the genetic information being stored in the databases. (Berson, n.d.).Biometrics is automated methods of recognizing a person based on physiological or behavioral characteristics. Some of the features measured using biometrics are handwriting, voice, iris, hand geometry, vein, retinal, and fingerprints. Biometric based solutions provide personal data privacy, and confidential financial transactions, and are starting to become the foundation of an extensive array of highly secure identification and personal verification solutions. The need for highly secure identification and personal verification technologies is great, due to the increased number of transaction fraud and security breaches. This need is especially great in the areas of local, state, and federal governments. Infrastructures such as electronic banking, health and social services, law enforcement, and retail sales are already taking advantage of, and seeing the benefits of biometric technology. ("The Biometrics Consortium", n.d.). As we become more and more dependent on technology, the increase of cybercrimes are skyrocketing, this has forced law enforcement to figure out ways of combatting cybercrimes. We have become extremely vulnerable to many cybercrimes, including social media fraud, which consists of cyber criminals using social media to steal the identities of unsuspecting people; and luring people to download malicious materials, or reveal their passwords; corporate security breaches, which consists of cyber criminals exploiting company employees via scams; and phishing, which involves cyber criminals targeting company employees by sending emails that appear to be from someone within the company. ("Homeland Security", n.d.).As a way of combatting cybercrimes, the FBI has been using their own spyware called Computer and Internet Protocol Address
  • 8. Verifier (CIPAV). CIPAV has been in use by the FBI since 2004, and while it is still unclear as to exactly how CIPAV works, there is a little information about it. CIPAV gathers information including the current person’s logged in username and the last site visited; the computer’s operating system type, version, and serial number; the computer’s registered owner’s name and registered company’s name; the preferred internet browser used as well as the version used; the MAC address; the list of running programs; open ports; and the computer’s IP address. After CIPAV gathers this information, the spyware then goes into silent pen register mode, where it monitors the suspected computer for up to sixty days. (Begun, 2014). As law enforcement evolves, so does technology. Gone are the days of the inexperienced officer, with no weapon, walking the streets. Law enforcement now consists of highly trained officers, armed with the latest technology in weapons and equipment. We tend to overlook how important some technologies are to law enforcement. Cars, for instance, up until 1910 police did their jobs on foot, then they received police cars, in order to make their jobs a little easier. The radio and telephone also enhanced law enforcement’s job in a major way. Without the telephone, there would not be a 911 dispatching system, so there would be no way for us to call for help. ("Public Engines", n.d.).Forensic technology has also advanced. Scientists at the Oak Ridge National Laboratory have developed a Light weight Analyzer for Buried Remains and Decomposition Odor Recognition system, called LABRADOR for short. This system is used to locate dead bodies. Normally cadaver dogs would be used for this purpose, however the dogs cannot detect relative concentrations of chemicals, and the LABRADOR can. The LABRADOR can pin point the exact location of a dead body. At the Pacific Northwest National Laboratory in Richland, Washington, a chemist named Carlos Fraga has been working on a forensic technique that analyzes chemicals. The difference in Mr. Fraga’s technique is, this technique will be used for locating the criminal, instead of the victim. Mr.
  • 9. Fraga’s focus is on chemical attacks, he has detected a way of tracing the origin of a chemical attack by analyzing the impurities in the chemical. This technique can also be used to detect the patterns of drugs flowing into the country. A company by the name of Autonomous ID has developed a product called Bio Sole, which is a device that measures the way that a person’s foot hits the ground. This technique will verify a person’s identity. It is said that this device could replace the use of retina and fingerprint scanning. ("Pbs", 2014). As technology continues to evolve and become more advanced, there are bound to be many accusations of civil liberties and ethical violations. This was the debate with the issue of law enforcement being able to collect DNA samples from people. The DNA Identification Act of 1994 was created by the Department of Justice. The DNA Identification Act specifies the categories of data that may be kept and maintained in the database. ("The Federal Bureau Of Investigation", n.d.). Some argued that collecting DNA would create the potential for the genetic information being kept in the databases to be abused. Some believe it is a violation of the individual’s privacy. Others argued that the laboratories would not be capable of managing the influx of samples from a new source.(Berson, n.d.). 1. The three year zero rate is 7% per annum and the four year zero rate is 7.5% pa (both continuously compounded). What is the one year (continuously compounded) forward rate starting in three years time? (2 marks)
  • 10. 2. The zero rate curve is flat at 6% pa with semi-annual compounding. What is the value of a FRA where the holder receives interest at the rate of 8% per annum with semi-annual compounding for a six month period on a principle of $1000 starting in 2 years? (2 marks) 3. The margin requirement on the S&P/ASX 200 futures contract is 10% and the stock index is currently 4400. Each contract has a multiplier of $25. How much margin must be put up for each contract sold? If the futures price falls by 1% to 4356, what will happen to the margin account of an investor who holds one contract? What will the investor’s percentage return based on the amount put up as margin be? 4. The S&P/ASX 200 index is currently at 4000. You manage a $4 million indexed equity portfolio. The S&P/ASX 200 futures contract has a multiplier of $25. a) If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months? (1 mark) b) If government pay 2% per six months and the semi-annual dividend yield is 1%, what is the parity value of the futures price? Show that if the contract is fairly priced, the total risk- free proceeds on the hedged strategy in part (a) provide a return equal to the government bond rate. (1 mark)
  • 11. 5. In early 2012, the spot exchange rate between the Swiss Franc and the U.S dollar was 1.0404($ per franc). Interest rates in the U.S. and Switzerland were 0.25% and the 0% per annum, respectably, with continuous compounding. The three-month forward exchange rate was 1.0300($ per franc). What arbitrage strategy was possible? How does your answer change if the exchange rate is 1.0500($ per franc). (2 marks)