COMPUTER CRIMES

1
COMPUTER CRIMES

• CREDIT CARD FRAUD
• A BILLION DOLLAR PROBLEM

2
CREDIT CARD FRAUD

• IDENTITY THEFT FRAUD
• COUNTERFEIT CREDIT CARDS
• STOLEN CREDIT CARDS
• ATM Fraud

3
Identity Theft

• Identity theft happens when someone steals your
  identity and impersonates you in order to open
  credit accounts, take over existing financial
  accounts, rent apartments, even engage in
  criminal acts.
• Consider
• Takeover Fraud
• Shotgun Fraud (Minimal Information)
• More Sophisticated Application Fraud
  Techniques (More Substantial Amounts of
  Information Required)

4
Identity Theft

• What information is valuable?
• Credit Card Account Numbers
• Social Security Numbers
• Mothers Maiden Name
• Date of Birth
• Place of Birth

5
Identity Theft Information Sources

• How do ID Thieves get information?
• Completing a "change of address form" at the post
  office
• Stealing the information from "the inside" - as
  in a grocery store clerk taking key information
  off of a check that you have written
• Trash Bins Dumpster Diving
• Mail Theft

6
Identity Theft Information Sources

• From Credit Reporting Agencies
• Usually Bad Third Party Companies, or
• Access using stolen subscriber numbers
  passwords
• From Organizations and Individuals Often Using
  SOCIAL ENGINEERING
• RARELY By using Sophisticated Techniques to
  Intercept Data in Communication Lines or Hack
  into Files or Databases with Sensitive Useful
  Information
• From Government Agencies (e.g. PAPER TRIP, NET
  DETECTIVE Greased Information)

7
Internet Information Sources

• Net Detective Claims
• Locate e-mails, phone numbers, or addresses.
• Get a Copy of Your FBI file.
• FIND DEBTORS and locate HIDDEN ASSETS.
• Check DRIVING and CRIMINAL RECORDS.
• Locate old classmates, missing family member, or
  a LONG LOST LOVE.
• Do Background Checks on EMPLOYEES before you hire
  them.
• Investigate your family history, birth, death and
  SOCIAL SECURITY RECORDS!
• Discover how UNLISTED phone numbers are located.
• Check out your new or old LOVE INTEREST.
• Verify your own CREDIT REPORTS so you can correct
  WRONG information.

8
Net Detective Claims

• Track anyone's Internet ACTIVITY see the sites
  they visit.
• Explore SECRET WEB SITES that conventional search
  engines have never found.
• Discover little-known ways to make UNTRACEABLE
  PHONE CALLS.
• Check ADOPTION records locate MISSING CHILDREN
  or relatives.
• Dig up information on your FRIENDS, NEIGHBORS, or
  BOSS!
• Discover EMPLOYMENT opportunities from AROUND THE
  WORLD!
• Locate transcripts and COURT ORDERS from all 50
  states.
• CLOAK your EMAIL so your true address can't be
  discovered.
• Find out how much ALIMONY your neighbor is
  paying.
• Discover how to check your phones for WIRETAPS.

9
ID Theft Personal Protections

• Carry only the cards (credit and ID) that you
  need to have with you file others in a safe
  place at home.
• Sign your credit cards immediately.
• Do not carry your social security card with you.
  Keep it in a secure, safe place.
• Do not attach a pin number or social security
  number to any cards you carry with you.

10
ID Theft Personal Protections

• Do not attach or write a pin number or social
  security number on anything you are going to
  discard (e.g. a receipt).
• Shred any document that contains your credit card
  number before you discard it.
• Check receipts to ensure you received your own
  and not someone else's.
• Alert your card issuer if you do not receive your
  statements. Someone could have taken them from
  your mailbox and could be using your credit card
  number.

11
ID Theft Personal Protections

• Do not give personal information or account
  numbers to anyone until you have confirmed the
  identity of the person requesting the information
  and verified that you need to provide them with
  the information.
• Frequently check your credit report or subscribe
  to a Credit Report Monitoring Service (e.g.
  Equifax Credit Watch, Credit Check Monitoring
  Service) to monitor your credit file daily and be
  alerted of changes that can be an early warning
  of identity theft, such as new account openings
  or changes to your address.
  (econsumer.equifax.com/, creditreportline.com)

12
Counterfeit and Credit Card Theft

• Countermeasures

13
CREDIT CARD FRAUD COUNTERMEASURES

• Fraud Databases
• Card Activation Processes Using Phone Recognition
  Methods and Personal Information Verification
  Methods
• Credit Report WARNING Systems (Address, SSN
  checks)
• AI/Neural Network Systems which Detect Abnormal
  Activity
• ATM Withdrawal Maximums
• MAGNETIC NOISE !!
• Biometrics
• Smart Cards
• PHYSICAL CREDIT CARD CONTROL FEATURES

14
MasterCard/VISA Physical Controls

• Tamper Evident Signature Panel
• Three Dimensional Holograms
• Customized Characters (e.g. Slanted V on Visa
  Cards)
• Other secret features not made public.
• CVC (Card Validation Code Visa) CVV (Card
  Validation Value MasterCard)

15
CVV/CVC Control

• The CVV and CVC codes are the product of an
  algorithm being applied to the credit card
  number. There is an internal code programmed
  into the magnetic stripe (invisible) and another
  different external code (visible).

16
Computer Crime Things to Remember !!

• Who causes companies the largest losses and what
  can be done to reduce that problem.
• What are the more serious fraud problems on the
  internet and how can individuals protect
  themselves from internet fraud.
• How do fraudsters commit ID theft Credit
  Card Fraud in general, their sources of
  information and how can this problem be
  controlled.
• Visa/MasterCard Control Mechanisms
• Hackers Categories, Methods, and Controls