E-Commerce

Report: Cyber Crime

Submitted to:

Group Members:
E-Commerce Cyber Crimes

WHAT IS CYBER CRIME?

Cyber crime is the most complicated problem in the cyber world. Cyber
crime is an illegal activity committed on the internet. It is a criminal Activity that
uses a computer either as a target or a means for perpetuating further crimes. It
includes all crimes performed or resorted to by abuse of electronic media or
otherwise, with the purpose of influencing the functioning of computer or computer
system.

In short, cyber crime is any crime where:

 Computer is a target
 Computer is a tool of crime
 Computer is incidental to crime

WHY CYBER CRIME IS DANGEROUS?

Because:
 Everybody is using computer
 From white collar criminals to terrorist organizations and from teenagers to
adults
 Conventional crimes like Forgery, Extortion, Kidnapping etc. are being
committed with the help of computers
 New generation is growing up with computer
 MOST IMPORTANT- Monetary transactions are moving on to the INTERNET

FIRST CYBER CRIME:

The first recorded cyber crime took place in the year 1820! In 1820, Joseph-
Marie Jacquard, a textile manufacturer in France, produced the loom. This device
allowed the repetition of a series of steps in the weaving of special fabrics. This
resulted in a fear amongst Jacquard's employees that their traditional employment
and livelihood were being threatened. They committed acts of sabotage to
discourage Jacquard from further use of the new technology. This is the first
recorded cyber crime!

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REASONS FOR CYBER CRIME:

 Capacity of a computer to store data in comparatively low space.

 Weakness in operating system
 Easy to access
 Negligence or lack of awareness in users
 Loss of Evidence

PROFILE OF CYBER CRIMINALS:

 Discontented Employees
 Teenagers
 Professional & Organized Hackers

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 Business Rivals
 Ex-Boy Friend
 Divorced Husbands.

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VICTIMS OF CYBER CRIME:

 
 Greedy People

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 Unskilled & Inexperienced

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 Unlucky People

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CLASSIFICATION OF CYBER CRIME:

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AGAINST INDIVIDUALS
Cyber Crimes

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AGAINST ORGANIZATIONS

AGAINST SOCIETY
Cyber Crimes

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AGAINST SOCIETY

SOME CYBER CRIME OFFENCES:

 Harassment via emails

 Dissemination of obscene material/ Indecent exposure
 Defamation
 Unauthorized control over computer system
 Email Spoofing
 Computer Vandalism
 Transmitting Virus/Worms
 Distribution of Pirated Software
 Cyber terrorism against Government Organization
 Drug Trafficking
 Fraud & Cheating
Cyber Crimes

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MODE & MANNER OF CYBER CRIMES:

A) HACKING:

 Action: Illegal intrusion into a computer system and/or network.

 Case: A business rival obtains the information using hacking or social
engineering. He then uses the information for the benefit of his own
business.

B) CYBER STALKING:

 Action: Posting messages on the bulletin boards, entering the chat-rooms

frequented by the victim. The stalker may post victim’s personal information
on any website.
 Case: In order to harass a woman, her telephone number is given to others
as if she wants to befriend males.

C) VIRUS & WORM ATTACK:

 Action: Virus infects other programs and makes copies of itself and spread
into other programs in the same machine. Worms, unlike viruses do not
need the host to attach themselves to. They merely make functional copies of
themselves and do this repeatedly till they eat up all the available space on a
computer's memory.
 Case: Use of malicious software like Trojan horse, Time Bomb, Logic Bomb,
Rabbit & Bacterium.

D) CREDIT CARD FRAUD:

 Action: The victim’s credit card information is stolen and misused for
making online purchases. Install key-loggers in public computers. If
electronic transactions are not secured, the credit card number can be
stolen by the hackers who can misuse this card by impersonating the credit
card owner.

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 Case: credit card fraud in a BPO in Chennai.

E) SALAMI ATTACKS:

 Action: Small, almost immaterial, amounts of assets are systematically

acquired from a large number of sources. In such crime, criminal makes
insignificant changes in such a manner that such changes would go
unnoticed.
 Case: Criminals make such a programme that deducts small amount like
Rs. 2.50 per month from the account of all the customers of the bank and
deposit the same in his account. In this case, no account holder will
approach the bank for such small amount but criminal gains huge amount.

F) EMAIL BOMBING:

 Action: Email bombing refers to sending a large number of emails to the

victim resulting in the victim’s email account or mail servers crashing
 Case: A foreigner for revenge started sending thousands of mails to the
Simla Housing Board till the SHB’s servers crashed.

G) CYBER PORNOGRAPHY:

 Action: Cyber pornography includes pornographic websites, pornographic

magazines produced using computers (to publish and print the material) and
the Internet (to download and transmit pornographic pictures, photos,
writings etc.)
 Case: Anybody including children can log on to the internet and access
websites with pornographic contents with a click of a mouse.

H) SOFTWARE PIRACY:

 Action: Pirated software is sold through a network of computer hardware

and software vendors. The suspect registers a domain name using a
fictitious name and then hosts his website

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I) WEB JACKING:

 Action: In these kinds of offences the hacker gains access and control over
the web site of another person or organization. He may even mutilate or
change the information on the site
 Case: the site of MIT (Ministry of Information Technology) was hacked by the
Pakistani hackers and some obscene matter was placed therein

J) ONLINE SALE OF ILLEGAL ARTICLES:

 Action: Sale of narcotics drugs, weapons, wildlife etc. is being facilitated by

the Internet
 Case: In March 2007, the Pune rural police cracked down on an illegal rave
party & arrested hundreds of illegal drug users. The social n/wing site,
Orkut.com, is believed to be one of the modes of communication for
gathering people for the illegal “drug” party.

K) NET EXTORTION:

 Coping the company’s confidential information and date in order to extort

said company for huge amount
 Ex-employees may do this against the company

L) EMAIL SPOOFING:

 Action: is a term used to describe (usually fraudulent) e-mail activity in

which the sender address and other parts of the e-mail header are altered to
appear as though the e-mail originated from a different source.
 Case: Because many spammers now use special software to create random
sender addresses, even if the user finds the origin of the e-mail it is unlikely
that the e-mail address will be active. The technique is now used
ubiquitously by mass-mailing worm as a means of concealing the origin of
the propagation. On infection, worms such as ILOVEYOU, Klez and Sober
will often try to perform searches for e-mail addresses within the address
book of a mail client, and use those addresses in the From field of e-mails

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that they send, so that these e-mails appear to have been sent by the third
party.
 For example:
 User1 is sent an infected e-mail and then the e-mail is opened,
triggering propagation
 The worm finds the addresses of User2 and User3 within the address
book of User1
 From the computer of User1, the worm sends an infected e-mail to
User2, but the e-mail appears to have been sent from User3
 This can be particularly problematic in a corporate setting, where e-mail is
sent to organizations with content filtering gateways in place. These
gateways are often configured with default rules that send reply notices for
messages that get blocked, so the example is often followed by: User2 doesn't
receive the message, but instead gets a message telling him that a virus sent
to them has been blocked. User3 receives a message telling him that a virus
sent by them has been blocked. This creates confusion for both User2 and
User3, while User1 remains unaware of the actual infection.

m) CYBER DEFAMATION:

 Action: The criminal sends email containing defamatory matters to all

concerned of the victim or post the defamatory matters on a website.
 Case: Discontented Employee may do this against boss, ex-boyfriend against
girl, divorced husband against wife.

n) EMAIL PHISHING:

 Action: Sending an e-mail to a user falsely claiming to be an established

legitimate enterprise in an attempt to scam the user into surrendering
private information.
 Case: Nigeria Mail

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ANATOMY OF NIGERIAN LETTER

 My father left me $40 million in his will, but I have to bribe government
officials to get it out

 The Nigerian National Petroleum Company has discovered oil, and we as

officials of that company want to insider acquire the land, but we need an
Indian front man to purchase it first for us.

 We just sold a bunch of crude oil in Nigeria, but we have to bribe the banker
to get it out.

 The Nigerian government overpaid on some contract, and they need a front
man to get it out of the country before the government discovers its error.

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IMAGE OF NIGERIAN MAIL

ANOTHER EXAMPLE OF PHISHING MAIL

From: *****Bank [mailto:support@****Bank.com]

Sent: 08 June 2004 03:25

To: India

Subject: Official information from ***** Bank

Dear valued ***** Bank Customer! For security purposes your account has
been randomly chosen for verification. To verify your account information we are
asking you to provide us with all the data we are requesting.

Otherwise we will not be able to verify your identity and access to your
account will be denied. Please click on the link below to get to the bank secure page
and verify your account details.
Thank you.

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https://infinity.*****bank.co.in/Verify.jsp

****** Bank Limited

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Actual Login Page

Duplicate Login Page

O) CYBER TERRORISM:

 Action: Cyberspace used by individuals and groups to threaten, terrorize

citizens, military etc.
 Case: On 15th Oct 2007, the Asst. Vice President of NSE received a
threatening e-mail, saying that, “THIS IS TO INFORM U THAT WITHIN 48
HRS. NATIONAL STOCK EXCANGE WILL BE BLASTED”.
 This information was also sent to BSE
 Law: sec 66(F) of Information Technology act
 Punishment: imprisonment which may extend to imprisonment for life

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OFFENSES THAT CONSTITUTE ECONOMIC AND FINANCIAL CRIMES IN

THE PUBLIC SERVICE

The following are some common offenses that constitute economic and financial
crimes in the public service.

 Corruption
 Bribery
 Embezzlement
 Asset misappropriation
 Money laundering
 Procurement fraud
 Forgery/documents falsification
 Cheque fraud
 Identity theft
 Revenue and vat fraud
 Foreign exchange malpractices
 Illegal oil bunkering/illegal mining
 Illegal arms deal etc.

LOOPHOLES IN THE LAW ENFORCEMENT:

 Hurry in passing the legislation.

 Cyber Crime is neither comprehensive nor exhaustive.
 Ambiguity in the Definition.
 Uniform Law.
 Lack of Awareness.
 Jurisdiction issues.

SAFETY MEASURES:

 Monitor your monthly credit card statements.

 Make sure a website is secure and reputable before providing private details.
 Keep passwords private.

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 Remember that people online may not be who they seem.

 Delete unknown e-mail attachments, as they may contain viruses.
 Viruses scan all files downloaded from the web to your computer.
 Never include personal information on social networking Sites.

CONCLUSION:

 It is not possible to eliminate cyber crime.

 It is only possible to check them.
 History is witness that no legislation has succeeded in totally eliminating the
crime.
 The only possible is to make people aware of their rights and duties.
 Make Laws more stringent to check the crime.

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