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Bus law today 9th ed ch07

BUSINESS LAW TODAY
Essentials 9th Ed.

Roger LeRoy Miller - Institute for University Studies, Arlington, Texas
Gaylord A. Jentz - University of Texas at Austin, Emeritus

Chapter

7

Cyber Crime

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Learning Objectives
 What distinguishes cyber crime from






“traditional” crime?
How has the internet expanded opportunities
for identity theft?
What are three reasons that cyberstalking may
be more commonplace than physical stalking?
What are three major reasons the internet is
conducive to juvenile cyber crime?
How do encryption programs protect digital
data from unauthorized access?

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Computer Crime and the
Internet
 Computer Crime: violation of criminal law
that involves “knowledge of computer
technology for its perpetration, investigation,
or prosecution.”
 Three Categories:
Computer is object of a crime.
Computer is subject of a crime.
Computer is the instrument of a crime.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Cyber Crimes Against
Persons and Property
 Cyber Computer
Fraud.
 Persuade victims to
spend money on
various scams
(Nigerian bank
accounts, health
insurance, travel).

 Online Auction


Fraud.
Online Retail Fraud.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Cyber Crimes : Cyber Theft

 Cyber Theft.
Identity Theft using novel methods.
Low cost of black-market data.
“Phishing.”
Vishing.
Employment Fraud.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5


Cyberstalking
 California passed first antistalking law in
1990. Today 48 states have cyberstalking
laws.
 Threat of Cyberstalking.
Ex-lovers using spyware to monitor keystrokes.
Cyberstalking on Social Networks.



CASE 7.1 State v. Kline (2008). County
where victim resides is appropriate venue for
prosecution of cyberstalking crimes.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6


Cyber Crimes in the Business
World
 Credit Card Crime on the Web.
Companies take risks in storing customers
private information online.



 Hackers.
Botnets, malware, viruses, and worms can send
information from your computer to third party
networks.
Juvenile Cyber Crime is a growing threat.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7


Cyber Crimes in the Business
World
 Hacking and Cyberterrorism.
Cyberterrorists are stealth hackers trying to
exploit computers for maximum impact.
Logic bombs may “explode” computers and
online networks.
2009 – Chinese and Russians hacked into our
electrical power grid, leaving behind ‘botnet’
software that could hijack facilities.

 Pirating Intellectual Property Online.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Spread of Spam
 Spam: unsolicited “junk” emails with ads,
solicitations, and other messages.
 State Regulation of Spam.
 Federal CAN-SPAM Act.
 U.S. Safe Web Act.
Allows FTC to share information with foreign
agencies investigating and prosecuting cyber
crimes. Provides ISP’s with immunity from liability
for supplying subscriber information to FTC.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Cyber Crimes Against the
Community – Gambling in
Cyberspace
Legal Confusion over Online Gambling.
 Can citizens of a state in which gambling is illegal, place
bets at online casinos located in another state — or
country?

 CASE 7.2

United States v. $6,976,934.65, Plus
Interest Deposited into Royal Bank of Scotland
International (2009). Indictments were sufficiently
‘related’ to the civil forfeiture to apply the fugitive
disentitlement statute.

 Congress Takes Action.
 Unlawful Internet Gambling Enforcement Act of 2006.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Fighting Cyber Crime
 Prosecuting Cyber Crimes.
Threshold questions of jurisdiction and venue.
Identification of wrongdoers is difficult because
they do not leave fingerprints or DNA.

 Computer Fraud and Abuse Act.
 Private Efforts to Combat Cyber Crime.
Encryption is a good, inexpensive security
device. Requires a private and public “key.”

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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