THE KESSLER REPORT Continued
A Publication of Michael G. Kessler & Associates, Ltd.
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FraudBusters®
Edition
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Volume 2
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Number 1
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Cybercrime:
The Dark Side of Cyberspace
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Diary of an "Innocent"
(continued from page 1)
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8/11/93 - Today I was
convicted for money laundering and sentenced to 71 months in federal
prison. Apparently knowing the money came from illegal activity and
not doing anything is enough to get convicted. Also learned that the
sentencing for money laundering is much more severe than for most
white-collar crimes and even some "street" crimes. My lawyer says we
will appeal. Meanwhile, the restaurant has gone bust.
9/4/97 - It's been four
years since I came to prison with another two years to go. The appeal
never worked out. My family is going on as best as they can without
me. I missed my daughter's first day of school today. I miss the
kids and my wife more than I can express. How could this happen to
me?
K
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investigative experience, these firms "sweep" the entire Web for any
sights that may contain the same information as your own. Then
through detailed research they are able to determine if the
information is indeed an illegally obtained copy of your copyrighted
or trademarked product or data. It is important for your company to
stay as creative as the thieves if you want to stop copyright
infringement.
Corporate Espionage
Breaking into other computers or
networks is not solely the function of lone wolf hackers.
Corporations, eager to get any advantage on the competition, engage in
all kinds of spying. Corporations often employ hackers to obtain
product development and marketing strategy information from
competitors internal networks. Corporate espionage is difficult to
prove because there is little evidence that a theft took place or how
much information was obtained. In addition, corporations are not
anxious to publicize attacks on their systems, because of the effect
it might have on customer confidence. Financial institutions are
especially sensitive to releasing information about losses due to
espionage.
(continued on page 6)
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At least in the old days, criminals had
to break a sweat before seeing the rewards of their
efforts. Bootleggers had to smuggle cases of liquor. Bank robbers had
to enter a branch and make a successful getaway. Corporate spies had
to break into a competitor's premises.
Computers have made the criminal's life
a whole lot easier. A computer can do a lot of the work that a
criminal used to do by hand with little more effort than a few
keystrokes and a click of the mouse. Now with the burgeoning growth
of the Internet, criminals are using computers to commit crimes and
steal information around the world right from their own desks.
There's a name for this new type of crime - Cybercrime.
Cybercrime encompasses a host of
different crimes. Money laundering is just one of the crimes
committed on the Web nowadays (see related article). Here are some of
the other crimes flourishing in cyberspace:
Computer Hacking
In a recent survey of Fortune 500
companies, 58% admit that their systems have been broken into within
the last 12 months, with 18% saying the losses from these attacks
exceeded $1 million. Hackers are one of the most prevalent menaces on
the Internet.
The Internet is really a network of
computers accessing other networks of computers, so hackers are free
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roam and access whatever network they like, even if it is restricted
or prohibited. Passwords and encryption devices mean little to these
people other than obstacles to be overcome. They live for the
challenge of breaking a code or password. Most hackers don't start
out with criminal intent, but they cause untold billions in damages
every year. Hackers can do anything from mischievously jamming a
company's Web site to stealing credit card or password information to
threatening national security.
Copyright Infringement
The Internet is a powerful tool for
marketing your business, but it is also an open door that makes it
easy for others to steal your copyrighted or trademarked information.
Some lift information from one Web site and present it as their own
somewhere else on the Web. Others use cyberspace to break into the
networks of companies, steal copies of their proprietary information,
and broadcast it on the Web for free or sell it for a fee. In either
case, the theft of information results in losses to the company that
holds the copyright or trademark for that product or information. The
U.S. software industry alone loses an estimated $7.5 billion per year
to computer piracy, much of it on the Web.
Investigators are using the latest
technology to catch those that steal proprietary information off the
Internet. Combining sophisticated software programs with invaluable
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Copyright © Michael G. Kessler & Associates, Ltd. 1998. All rights
reserved.
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