Computer CrimeComputer CrimeComputers are made to make home, school, and office life easier, society relies on computers. As a result of this computer use grows minute. Along with the growing use of computers comes widespread computer crime. In my paper I will talk about different types of crimes and some ways that you can avoid getting hit by a computer crime.
The most common crimes committed on the Internet are the same basic variations of the four main time-tested, real-world crimes: Forgery (of E-mail), assault (on your Web site, E-mail box, or computer system), fraud (cyberscams), and robbery (theft of valuable information). The two most familiar being hackers and crackers. A hacker is a person who enjoys exploring the details of a programmable system and how to stretch their capabilities; one who programs enthusiastically, even obsessively. A cracker is one who breaks security on a system. Although hackers and crackers both break into computer systems, their motives are different. Hackers seem to break into computer systems for the intellectual challenge. Crackers are considered hateful with the intention of harming or causing damage to a computer system. The motivations behind crackers actions are either profits, revenge, or a mixture of the two.
Attacks on businesses are rapidly becoming more widespread. 54% of U. S. companies reported losses related to computer crimes. Most of these crimes committed were deliberate. This raises the issue of competitors attempts to gain information on their closest competitor. Technology-related crime loss is estimated at an annual $8 billion. The loss includes stealing computer hardware/software and fraud. Computer fraud loss is estimated at $555 million annually with each individual case of fraud costing approximately $100,000. Financial institutions, such as banks, are the biggest targets of computer fraud with an estimated annual loss of $1 billion. In most cases, computer crimes go unreported. Each year, software companies lose millions of dollars to this
The Financial Security and Accountability Act of 1980, which is commonly known as the Glass-Steagall Act because of its provisions to prevent or reduce the ability of investment banks to provide safe haven to foreign banks (and, thereby, foreign banks’ ability to maintain their foreign exchange and financial stability policies), was amended to provide protection for the financial sector. The law set specific rules for financial institutions that were subject to supervision by the Securities and Exchange Commission and required that such institutions conduct a risk assessment for foreign-directed transactions. While the rules were subject to judicial review and congressional oversight, many of these rules were abandoned during the years of the financial crisis. Federal regulators had to create specific rules around risk assessment. The SEC created the Consumer Financial Protection Bureau (CFPB).
Failing to disclose the status of some of its business dealings to banks would be especially dangerous for a company that would suffer through a financial meltdown. In 2007, a CFPB investigation found that banks engaged in fraud, manipulation of the market value of a particular financial product and improper conduct by Wall Street financial service providers and management to provide products and services that were not intended for them. Federal regulators also established a new, tougher reporting and reporting policy, including an enforcement mechanism called the Know Your Customer (KYC), which required banks to provide reporting to investigators. This requirement was revised in October 2010.
In 2007, a New York Times report said that banks were failing to provide information to government investigators of financial trades that they took deposits with banks, and in 2009, a report by Federal Deposit Insurance Corp. (FDIC) said, “Banks still may not follow federal law, but they will have to disclose their investment banking transactions and their net worth.” The disclosure of information required banks to show that they were required to disclose their financial holdings on the books of their financial institutions. The report stated that these disclosures would only be required in response to reports of fraud by commercial financial services and not necessarily by law. The failure to disclose this information increased the risk the agency had to prosecute certain banks for “serious fraud.” In 2010, Federal Judge Susan K. Baker ruled it unfair that banks engaged in such conduct.
As a result, the banking industry has had to invest billions of dollars to hide its past transactions. In 2011, it spent more than $60 billion on lobbying. This figure includes money from the purchase prices of its mortgage loans and other bank products that were not subject to reporting.
Since 2007, the risk-management regulations and the Dodd-Frank Wall Street Reform and Consumer Protection Act (CBP Act) have made it much easier for the financial sector to cheat. Dodd-Frank requires it for financial institutions to provide certain information concerning their financial practices for their customers. Failure to provide information and to inform regulators of this information increases the risks the regulator faces. Moreover, as the industry has lost the ability to prevent and detect financial fraud or engage in insider trading, any information obtained by banks or other organizations in connection with their financial activities would be at best difficult to access by regulators and