A. Presentation of the issue
Online banking is a service that many modern banks provide now a day and with the passage of time more and more people are using this service (Anonymous, 2010) due to the commodity and convenience of doing payment transactions (Lanham, 2008) directly from their homes instead of going to an actual bank (Ponemon, 2005). However as the number of credit cards used to make transactions on the internet increases also does the number of people that fall into frauds and phishing scams made to obtain their private information (Unknown, 2010). With this information, phishers proceed to wire transfer money from the “stolen” bank account to theirs (Sullivan, 2004).
Studies made by the UK Cards Association show that “fraud losses on UK credit and debit cards totaled £440m in 2009, a drop of 28% compared with the previous year.
But the number of "phishing" attacks rose by 16% in the same period.” (Anonymous, 2010). This shows that phishers and fraudsters are changing targets, from online banking systems to individuals (Bachelor, 2010). This is because stealing personal information from a user is way easier than hacking into a bank account. The problem with these electronic frauds is that once the money is stolen virtually it is gone (Sullivan, 2004) making the recovery of this a very complex action.
B. The IT background of the issue
Phishing scams are a type of confidence trick (commonly known as a con) that involves the gathering of personal credit card information of online users through deceiving techniques. The most common type of phishing scams are made through e-mails and personal messages that mimic a bank or known business (Wilson, 2005).
The phishing process involves 5 major steps. The f...
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...are should be bought and installed separately.
Works Cited
BBC NEWS. Anonymous Editor. 10 March 2010. BBC. 1 April 2011.
MSNBC. Bob Sullivan. 14 December 2004. MSNBC. 1 April 2011.
Guardian. Lisa Bachelor. 10 March 2010. Guardian News and Media Limited. 1 April 2011.
PCWorld. Linda Rosencrance. 12 May 2006. PCWorld Communications, Inc. 1 April 2011.
Howstuffworks. Tracy V. Wilson. 2005. Howstuffworks, Inc. 1 May 2011.
Wikipedia. 29 April 2011. Wikimedia Foundation, Inc. 1 May 2011.
...only hear about the different ways that criminals are committing electronic fraud such as hacking in to somebody’s computer and stealing their credit or debit card information. There are also cases where peoples identities have been stolen and whole other lives have been built on them by another person. It all started with check fraud and although it’s not talked about as much anymore, it is still a very large concern for most business owners and people like you and me. The tips that have been provided for us can help protect us from fraud, but it is up to us to take the extra steps to prevent check fraud. We cannot sign up for check fraud protection the same way we could for credit or debit card protection or to help protect ourselves from identity theft. There are processes in place to help us once we’ve experienced check fraud but it is up to us to avoid it.
Identity theft is a term used for describing criminal that uses individual’s identity without consent. A common crime of identity theft would be identity fraud. Many of the crimes are regularly connected with money-related issues (Reyns, 2013). With technology being commonly used nowadays we are getting more dependent on it for business, financial, medical, and other forms. As a result this became a target for identity thieves as well. The Internet provides us information and accessibility, but information being stored on the Internet eas...
Fraud is usually comprehended as deceptive nature calculated for advantage. And usually this kind of people might be called a fraud. According to the U.S. legal system, fraud is a particular offense with specific features. Fraud must be proved by showing that the defendant’s actions involved five separate elements: 1. A false statement of a material fact; 2. Knowledge on the part of the defendant that the statement is untrue; 3. Intent on the part of the defendant to deceive the alleged victim; 4. Justifiable reliance by the alleged victim on the statement; 5. Injury to the alleged victim as a
Identity theft is no new problem in our world. It has occurred for decades and only grows more popular with criminals. Due to our world’s expanding technology, identity theft is becoming easier to commit and harder to detect. Luckily as the criminals technology becomes more advanced, so does out justice system’s technology to help fight the crime. The number of criminals that engage in the fraud and thievery will only grow due to the lucrative nature of the crime, but also will the forces that are established to stop them. This white-collar crime will gain more attention and therefore more laws will be passed to protect the public from becoming victims. With the use of laws, task forces, and the education and awareness of the public, identity theft will be given more attention and focus to hopefully deter future threats from occurring.
Where in 56 million payment cards were stolen and the issues related to the occurrence.
The Internet plays the biggest role in identity theft. On the Internet, a thief can hide from detection while stealing peoples’ identities from their homes, being able to steal peoples’ information one by one “then disappearing into another identity,” (Vacca 60). Internet fraud consists of two phases. The first being spoofing where a fake site is set up made to look like the real thing. Once that is completed the second phase, phishing, begins. This usually starts with an email that uses the
A Ponzi scheme is a type of fraud called investment fraud. It, “involves the payment of purported returns to existing investors from funds contributed by new investors” (6). Investors are usually promised a high return rate. The fraudsters attract new investors and pay back their old investors with the new investor’s money. Ponzi schemes are named after Charles Ponzi who created scheme by getting residents to invest in a postage stamp scheme. Bernie Madoff is a well known and not well liked Ponzi scheme fraudster. He is currently in federal prison. These types of fraud schemes hurt hundreds or millions of individuals and families.
Journal of Internet Banking & Commerce, 18(2), 1-11. Retrieved from http://www.arraydev.com/commerce/jibc/. Sullivan, C. (2009). The 'Standard'. Is identity theft really a theft? International Review of Law, Computers & Technology, 23(1/2), 77-87.
Have you ever received a credit card bill at the end of the month with a ridiculous amount of money needed to be paid that you never spent? This is because of identity theft. The FTC estimates that each year, over 9 million people are affected by identity theft. According to Sally Driscoll, this is because almost anyone with a computer and a slight bit of computer knowledge can pull off identity theft. Experts also claim that identity theft is the fastest-growing crime in the world. Identity theft is a global problem that cannot be stopped without effective measures. The problem is, effective measures are very hard to come by when dealing with identity theft because almost any security protocol can be by-passed.
Most consumers don’t know that they aren’t liable for any unauthorized transactions made with their own credit cards. During the year 2014, credit and debit card fraud resulted in losses up to $16.31 billion. Card issuers bore a share of sixty-two percent of losses due to fraud; where merchants have the other thirty-eight percent of the liability. Losses that occur with the card issuer are usually at the point of sale, and this is due to counterfeit cards. Losses that occur with the merchant usually only occur in a card not present transaction such as online or over the phone. In 2014, the United States had 48.2% of card fraud losses worldwide. Retailers encounter $580.5 million in debit card fraud losses. They in return spend $6.47 billion on credit and debit card prevention, but there is more that could be done. In 2011, statistics show that eighty-five percent of all fraud with debit cards involved a signature verification. Of the $1.35 billion in debit card fraud losses, $1.15 billion included debit card transactions using a signature (Kiernan). These debit and credit card frauds amount to a lot of money for the banks and the retailers, but maybe paying an extra amount towards prevention would be worth it for
Every day, citizens are constantly losing money and being victimized due to these fraudulent activities. Cyber crime, including fraud, identity theft, stalking, and hacking, is a growing problem that can be prevented by taking the proper precautions. The biggest cases of cyber crimes are cases of fraud. Online fraud comes in many forms. It ranges from viruses that attack computers with the goal of retrieving personal information, to email schemes that lure victims into wiring money to fraudulent sources” (What is “online fraud”).
The Internet is a connection of computers across the world through a network. Its origin dates back to the 1960s when the U.S Military used it for research, but it became more available to the public from the late 1980s. The World Wide Web was created in 1989 and browsers began appearing in the early 1990s. Over the last 24 years, the Internet has enabled people to shop, play, do research, communicate and conduct business online. It has also become cheaper and faster in performing different tasks. As much as the Internet has done immeasurable good to society, it has also dominated people’s lives and brought with it an array of cybercrimes. According to Nicholas Carr in his book The Shallows: How the Internet is Changing the Way we Think, Read and Remember (Carr, 2010). He debates on whether the Internet has done more harm than good. People use the Internet daily to exchange accurate information and constantly personal data such as credit cards, passwords and Social Security numbers are travelling through the network from one computer to another. With security measures put in place on the Internet, personal information remains confidential. But unfortunately, criminals have adapted to innovations in technology, and today, more people are increasingly becoming victims of cybercrime. The Internet has had profound effects on the public, both positive and negative. In this paper we will examine how access to personal information has led to an increase in online and offline crimes. The essay will particularly focus on ecommerce and hacking.
...ing the first half of 2007 has revealed that the study found the banking industry as soft target for phishing scams in India.
Millions of people around the world use computers and the internet every day. We all use it in school, work even at home, computers have made us life easier, it has brought so many benefits to the society but it has also brought some problems and cybercrimes is one of them. “The times have really changed,” said Greg Garcia, the department’s assistant secretary for cyber security and communications. “We’re seeing now phishing, farming, botnets … war dialing and domain server spoofing. And we’re seeing coordinated cyber-attacks against nation states.” (Fowler 5) Cybercrime is one of the most prevalent and most popular rising crimes being committed today. This is criminal activity done using computers and the Internet. There are millions victims around the world everyday who face these problems. Most people become victims of these at one time or another, but there are ways to avoid or deal with cybercrime by protecting yourself appropriately. I also was one of those victims who faced a similar problem. This unfortunate truth forces me to understand that computers and the Internet have made our lives easier in many ways. However, it is unfortunate that people also use these technologies to take advantage of others through identity theft, hacking attempts, and malicious use of software.
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)