Accounting information systems 12th SIMKIN and norman chapter 11

Chapter 11: Computer Crime, Fraud, Ethics, and Privacy Introduction Computer Crime, Abuse, and Fraud Three Examples of Computer Crimes Preventing Computer Crime and Fraud... Computer Cri

Chapter 11: Computer Crime, Fraud,

Ethics, and Privacy

Introduction

Computer Crime, Abuse, and Fraud

Three Examples of Computer Crimes

Preventing Computer Crime and Fraud

Computer Crime, Abuse, and Fraud

High level of public interest

Data on incidents is limited

Sources of information

 Computer Security Institute (CSI) annual survey

 KPMG surveys

Computer Crime, Abuse, and Fraud

Computer Crime

 Manipulation of a computer or computer data

 Dishonestly obtain money, acquire property, or

something of value, or cause a loss

Computer Abuse

Computer Crime Examples

Computer Crime, Abuse, and Fraud

Fraudulent Financial Reporting

 Intentional falsification of accounting records

 Intend to mislead analysts, creditors, investors

Misappropriation of Assets

 Misuse of company assets

Asset Misappropriation

Examples

CFAA Fraudulent Acts

Unauthorized theft, use, access, modification,

copying, or destruction of software or data

Theft of money by altering computer records or the theft of computer time

Intent to illegally obtain information or tangible

CFAA Fraudulent Acts

Use, or the conspiracy to use, computer

resources to commit a felony

Theft, vandalism, destruction of computer

hardware

Trafficking in passwords or other login

information for accessing a computer

Federal Legislation Affecting

the Use of Computers

Federal Legislation Affecting

the Use of Computers

State Legislation

Every state has a computer crime law

State law provisions

 Define computer terms

 Define some acts as misdemeanors

 Declare other acts as felonies

Study Break #1

Which of the following pieces of computer legislation is

probably the most important?

A Cyber Security Enhancement Act of 2002

B Computer Security Act of 1987

C The Computer Fraud and Abuse Act of 1986

D Federal Privacy Act of 1974

Study Break #1 - Answer

Which of the following pieces of computer legislation is

probably the most important?

A Cyber Security Enhancement Act of 2002

B Computer Security Act of 1987

C The Computer Fraud and Abuse Act of 1986

D Federal Privacy Act of 1974

Study Break #2

Which legislation might help discourage computer hacking?

A Federal Privacy Act of 1974

B Computer Fraud and Abuse Act of 1986

C USA Patriot act of 2001

D CAN-SPAM Act of 2003

Study Break #2 - Answer

Which legislation might help discourage computer hacking?

A Federal Privacy Act of 1974

B Computer Fraud and Abuse Act of 1986

C USA Patriot act of 2001

D CAN-SPAM Act of 2003

Computer-Crime Statistics

Limited availability of data

 Private companies handle abuse internally

 Most computer abuse is probably not discovered

Growth of computer crime

 Exponential growth in use of computer resources

Importance of Computer Crime and Abuse to AISs

Impact on AISs

 Favored target due to control of financial resources

 Prized target for disgruntled employees

 Responsible for designing, selecting, and implementing

controls that protect AISs

 Reliance on auditors to verify financial statement

Additional Items

Compromising Valuable Information:

The TRW Credit Data Case

Summary

 Credit rating company

 Altered company credit ratings for a fee

 Clients relied on inaccurate information

Analysis

Wire Fraud and Computer Hacking:

Edwin Pena and Robert Moore

Summary

 Voice over Internet Protocol (VoIP)

 Hacked into other provider’s network

 Billed those companies

Analysis

Protecting Systems

Preventing Viruses

 Firewalls

 Antivirus software

 Antivirus control procedures

Organizational Control Procedures

 Discourage free exchange of computer disks or external

programs

Common Types of Computer

Crime and Abuse

Preventing Computer Crime

and Fraud

Enlist Top-Management Support

Increase Employee Awareness and Education

Assess Security Policies and Protect Passwords

 Strong passwords

 Social engineering

10 Simple Steps to Safer PCs

10 Simple Steps to Safer PCs

Preventing Computer Crime

 Education, Gender, and Age

Don’t Forget Physical Security

Occupations of Computer

Abuse Offenders

Fraud Losses and Education

Level of Perpetrator

Study Break #3

Which of these is not helpful in attempting to thwart

computer crime and abuse?

A Enlist the support of top management

B Keep employees in the dark so that they cannot perpetrate them

C Use strong passwords

Study Break #3 - Answer

Which of these is not helpful in attempting to thwart

computer crime and abuse?

A Enlist the support of top management

B Keep employees in the dark so that they cannot perpetrate them

C Use strong passwords

Study Break #4

Most computer criminals:

A Have nontechnical backgrounds

B Have noncriminal backgrounds

C Have little college education

D Are young and bright

E Have probably not been caught, so we don’t know much

Study Break #4 - Answer

Most computer criminals:

A Have nontechnical backgrounds

B Have noncriminal backgrounds

C Have little college education

D Are young and bright

E Have probably not been caught, so we don’t know much

Ethical Issues, Privacy, and

Identity Theft

Ethics

 A set of moral principles or values

 Governs organizations and individuals

Ethical behavior

 Making choices and judgments that are morally

Ethical Issues, Privacy, and

Identity Theft

Ethical Issues and Professional Associations

 Codes of Ethics/Professional Conduct

 Certification programs and Ethics committees

Meeting the Ethical Challenges

 Inform employees of importance of ethics

 Ethics training

Ethical Issues in Computer

Usage

Ethical Issues, Privacy, and

Identity Theft

Company Policies with Respect to Privacy

 Who owns the computer and data stored on it?

 What purposes the computer may be used?

 What uses are authorized or prohibited?

Identity Theft

 Dumpster diving

Identity Theft Methods

Study Break #5 - Answer

Smishing is a form of:

A Dial-back system

B Local area network

C Computer worm

D Identity theft

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Chapter 11