Computer Fraud

Several of the checks were cashed by Sabbath or deposited into her personal bank account, and some were deposited into the bank accounts of others. She attempted to conceal the fraud by altering the electronic check registers of North Bay to make it appear as if the checks had been payable to the company’s vendors. The fraudulent scheme resulted in losses to North Bay of at least $875,035.

On May 27, 2004, Sabbath, plead guilty to two counts of computer fraud, and faces a maximum sentence of five years In prison and a $250,000 fine. 2.Denial of Service Attack On January 19, 2001, Dennis was sentenced to SIX months Incarceration; three months In Call and three months of home confinement, followed by one year of supervised release. Additionally, he must allow authorities to monitor his computer activity, and perform 240 hours of community service. 3. Malicious Systems Adman at UBS A disgruntled computer systems administrator for UBS Pawnbroker was charged with using a “logic bomb” to cause more than $3 million in damage to the company’s computer network, and with securities fraud for his failed plan to drive down the company’s stock with activation of the logic bomb.Roger Duration is charged in one count of securities fraud which carries a maximum penalty of 10 years in federal prison and a $1 million fine and one charge of computer fraud which carries a axiom prison sentence of 10 years and a fine of $250,000 or, alternatively, two times the gain made by the defendant or the loss suffered by the victim.

Durango, who worked at Pawnbroker’s offices In Weakened, N. J. , planted the logic bomb In some 1,000 of Pawnbroker’s approximately 1,500 networked computers in branch offices around the country.The logic bomb, which was activated after During resigned, deleted files on over 1,000 of UBS Pawnbroker’s computers. It cost Pawnbroker more than $3 million to assess and repair the damage. Duration also purchased more than $21 ,OOH of “put option” contracts for UBS Pawnbroker’s arena company, UBS, A. G.

‘s stock, hoping that the stock would decline in response to the damage caused by the logic bomb. The bomb attack did not have any impact on the price of the stock. The investigation of Duration was conducted by the U. S.Secret Service’s Electronic Crimes Task Force with help from UBS Pawnbroker. Robert Durango 4. Illegal Data Milling The owner of Smaller, a business that distributes advertisements via the Internet to e-mail addresses on behalf of advertisers or their brokers was indicted for laundering and obstruction of Justice.

It was alleged that Scott Levine and other Simpering employees illegally accessed a computer database owned and operated by Axiom Corporation, a company that stores, processes, and manages personal, financial, and corporate data on behalf of its clients.On numerous occasions, Levine and others illegally entered into an Axiom file transfer protocol (ftp) server and downloaded significant amounts of data. The intrusions were traced back to an internet protocol address that belonged to one of Semifinal’s computers. The downloading of the databases lasted for period of a year and a half and represented 8. 2 gigabytes of data. While the stolen data contained personal information about a great number of individuals and could have resulted in tremendous loss if the information were used in a fraudulent way, there was no evidence to date that any of the data was misused in this way.Axiom, immediately notified law enforcement upon discovery of intrusions into its system and assisted with the investigation which was conducted by a task force formed the Federal Bureau of Investigation (FBI) and the United States Secret Service (SWISS).

Scott Levine 5. The Melissa Worm David L. Smith, a 31 -year old New Jersey programmer was accused of unleashing the Melissa” computer virus, a Visual Basic for Applications[clarification needed] based worm. [1]This virus was propagated by deliberately posting an infected document to an alt. Sex Usenet newsgroup from a stolen AOL account.It is believed that Smith named the virus after a striper he had known in Florida. He constructed the virus to evade anti-virus software and to infect computers using Microsoft Windows and Word programs.

The Melissa virus appeared on thousands of email systems on March 26, 1999, disguised as an important message from a colleague or friend. The virus was designed to send an infected email to the first 50 email addresses on the users’ Microsoft Outlook address book. Each infected computer would infect 50 additional computers, which in turn would infect another 50 computers.The virus proliferated rapidly and exponentially, resulting in substantial interruption and impairment of public communications and services. Many system administrators to disconnect their computer system from the internet. Companies such as Microsoft, Intel, Lockheed Martin and Lucent Technologies were forced to shut down their e-mail gateways due to the vast amount of email the virus as generating. To date, the Melissa virus is the most costly outbreak, causing more than $400 million in damages to North American businesses.

Smith was one of the first persons ever to be prosecuted for writing a virus.He was sentenced to 20 months in federal prison and a fine of $5,000. He was also ordered to serve three years of supervised release after completion of his prison sentence. The investigation was conducted by members of the New Jersey State Police High Technology Crime Unit, the Federal Bureau of Investigation (FBI), the Justice Department’s Computer Crime and Intellectual Property Section, and the Defense Criminal Investigative service. Once the fraud was discovered, an audit was performed and the report is available at Summered audit report Republic Act 8792, was signed into law last June 14, 2000.It is a landmark legislation in the history of the Philippines. Not only has this bill made the country a legitimate player in the global marketplace.

The Philippine effect last June 19, 2000. With the Philippines relaxed stock market listing rules plus a proposed vibrant investment priorities program in place, Filipinos here and abroad, and its foreign ratters, have something to look forward for. Here are the salient features of Republic Act 8792: It gives legal recognition of electronic data messages, electronic documents, and electronic signatures. (section 6 to 13) Allows the formation of contracts in electronic form. Section 16) Makes banking transactions done through ATM switching networks absolute once consummated. (section 16) Parties are given the right to choose the type and level of security methods that suit their needs. (section 24) Provides the mandate for the electronic implementation of transport documents to facilitate carriage of goods.

This includes documents such as, but not limited to, multi-modal, airport, road, rail, inland waterway, courier, post receipts, transport documents issued by freight forwarders, marine/ocean bill of lading, non-negotiable seaway bill, charter party bill of lading. Section 25 and 26) Mandates the government to have the capability to do e-commerce within 2 years or before June 19, 2002. (section 27) Mandates Repel to be implemented. Repel is a strategy that intends to connect all government offices to the Internet and provide universal access to the general public. The Department of Transportation and Communications, National Telecommunications Commission, and Minicomputers Center will come up with policies and rules that shall lead to substantial reduction of costs of telecommunication and Internet facilities to ensure the implementation of Repel. Section 28) Made cable, broadcast, and wireless physical infrastructure within the activity of telecommunications. (section 28) Empowers the Department of Trade and Industry to supervise the development of e-commerce in the country.

It can also come up with policies and regulations, when needed, to facilitate the growth of e- commerce. (section 29) Provided guidelines as to when a service provider can be viable. (section 30) Authorities and parties with the legal right can only gain access to electronic documents, electronic data messages, and electronic signatures.For confidentiality purposes, it shall not share or convey to any other person. (section 31 and 32) Hacking or cracking, refers to unauthorized access including the introduction of computer viruses, is punishable by a fine from 100 thousand to maximum commensuration to the damage. With imprisonment from 6 months to 3 years. (section 33) Piracy through the use of telecommunication networks, such as the Internet, that infringes intellectual property rights is punishable.

The penalties are the same as hacking. (section 33) All existing laws such as the Consumer Act of the Philosophical applies to e-commerce transactions. Section 33) Anyone who uses the Internet, computer, cellular phone, and other IT-enabled devices has the duty to know ARREAR. As the old saying goes, “Ignorance of the law doesn’t excuse anyone. ” There were several hacking/cracking incidents that took place in the past five years. I am worried that these people behind the hacking attempts are engagements, I was asked how come there are still so many hacking attempts even now that we have a law. Is it unenforceable? I fear that as e-commerce takes off in the government and private sector, the moment we run to law enforcers in times of trouble, they will not be able to help us.

The law enforcement agencies such as the National Bureau of Investigation and Philippine National Police are continuously beefing up their skills. It is sad to note however that they have not received any form of funding for their training and cybercafé equipment. Whatever they have right now are donated by foreign governments in the form of training and equipment. Despite limited resources, the conviction of the first Filipino hacker under Republic Act 8792 puts high marks on our enforcement of the E-commerce Law. The business community and Internet users must contribute and work with government to take action on this.It is not the Cybercafé bill that is important today, giving appropriate funding for cybercafé enforcement is, that will allow the creation of cybercafé helpless all over the country. In addition, it requires vigilance from the Internet community as well.

If you know of someone that has made these hacking actions, report them. It is the duty of every Filipino to report these crimes. They can contact he Cyber Crime Anti Fraud Division of the National Bureau of Investigation at Taft Eave. , Manila, phone number (632) 5254093 and look for Director Reynolds Waco or Tatty. Eleven Menses, Jar.Those who became victims as well should report it and not just ignore it, change the site, and move on. If this is the attitude that site owners will show, unlawful actions such as this, regardless of best or worst intention, will never cease.

The web hosting, Internet Service Provider, phone companies should extend their best cooperation as well to facilitate efficient investigation in this regard. More importantly, what the hackers should realize that Just because they were not caught now, does not mean they are already off the hook. What they are only doing is accumulate offenses.One day, the hand of the law will reach them. Once that happens, all of these offenses can be combined into a one big case that can put them to Jail longer than they think. Even if the owners of the sites that they were able to hack decide not to pursue a case against them, it does not mean they no longer have a liability. The hacking/cracking/piracy provision of the E-commerce Law makes such acts as criminal offenses in nature, therefore what can only be waived, should the companies decide not to sue them, is the civil liability (monetary damages) and the criminal liability will still be pursued by the state.

I hope that publications can play a role in sparking vigilance among Internet users of this country and the world against acts of hacking/cracking/piracy. The act of hacking should never be glorified and even make these people who commits these acts as heroes. It may send a wrong signal that our younger Internet generation might misunderstand. These people are engine that they’re getting the media mileage and attention that they long for and see it like a merit/badge of their hacking accomplishment. Being published, talked about, is I’m very sure, a big deal for some of these guys.

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