Module 5.

Types of Cybercrime

Learning Objectives and Outcomes:

After the completion of the chapter, students will be able to:
1. determine the importance of computer and internet in committing cybercrimes; and
2. explain the modes of committing illegal acts through use of computers

This chapter covers the discussion on different types of cybercrime. It defines the mode of
operation of cybercrimes committed.

A. Hacking
Hacking is an attempt to exploit a computer system or a private network inside a
computer. Simply put, it is the unauthorized access to or control over computer
network security systems for some illicit purpose.

Hacking refers to activities that seek to compromise digital devices, such as

computers, smartphones, tablets, and even entire networks. And while hacking
might not always be for malicious purposes, nowadays most references to hacking,
and hackers, characterize it/them as unlawful activity by cybercriminals—motivated
by financial gain,

Hacking is typically technical in nature (like creating malvertising that deposits

malware in a drive-by attack requiring no user interaction). But hackers can also use
psychology to trick the user into clicking on a malicious attachment or providing
personal data. These tactics are referred to as “social engineering.”protest,
information gathering (spying), and even just for the “fun” of the challenge.

Types of Hackers
1. White Hat Hackers

White-hat hackers, on the other hand, are deemed to be the good guys, working
with organizations to strengthen the security of a system. A white hat has
permission to engage the targets and to compromise them within the prescribed
rules of engagement.

White-hat hackers are often referred to as ethical hackers. This individual

specializes in ethical hacking tools, techniques, and methodologies to secure an
organization’s information systems.

Unlike black-hat hackers, ethical hackers exploit security networks and look for
backdoors when they are legally permitted to do so. White-hat hackers always
 disclose every vulnerability they find in the company’s security system so that it
can be fixed before they are being exploited by malicious actors.
Some Fortune 50 companies like Facebook, Microsoft, and Google also use white-
hat hackers.
White hat professionals hack to check their own security systems to make it more
hack-proof. In most cases, they are part of the same organization.
2. Black Hat Hacker
The term “black hat” originated from Western movies, where the bad guys wore
black hats and the good guys wore white hats.

A black-hat hacker is an individual who attempts to gain unauthorized entry into a

system or network to exploit them for malicious reasons. The black-hat hacker
does not have any permission or authority to compromise their targets. They try
to inflict damage by compromising security systems, altering functions of
websites and networks, or shutting down systems. They often do so to steal or
gain access to passwords, financial information, and other personal data.

Black hat hackers hack to take control over the system for personal gains. They
can destroy, steal or even prevent authorized users from accessing the system.
They do this by finding loopholes and weaknesses in the system. Some computer
experts call them crackers instead of hackers.
3. Grey Hat Hackers
Grey hat hackers comprise curious people who have just about enough computer
language skills to enable them to hack a system to locate potential loopholes in
the network security system. Grey hats differ from black hats in the sense that
the former notify the admin of the network system about the weaknesses
discovered in the system, whereas the latter is only looking for personal gains. All
kinds of hacking are considered illegal barring the work done by white hat
hackers.
4. Red Hat Hackers (Vigilante hacker)
A red hat hacker could refer to someone who targets Linux systems. However,
red hats have been characterized as vigilantes. Like white hats, red hats seek to
disarm black hats, but the two groups' methodologies are significantly different.
Rather than hand a black hat over to the authorities, red hats will launch
aggressive attacks against them to bring them down, often destroying the black
hat's computer and resources.
5. Green Hat Hackers (Unskilled hacker)
Green hat describes hacker wannabes who, though they lack technical hacking
skills and education, are eager to learn the tricks of the trade.
6. Blue Hat Hackers (vengeful hacker)
A blue hat is defined as a hacker seeking revenge. Blue hat hackers are also
wannabe hackers like green hats, but vengeance is blue hat hackers' only
motivation -- they have no desire to hone their hacking skills.
 7. Rootkits
A rootkit is a program or set of software tools that allow threat actors to gain
remote access to control a computer system that interacts or connects with the
internet. Originally, a rootkit was developed to open a backdoor in a system to fix
specific software issues. Unfortunately, this program is now used by hackers to
destabilize the control of an operating system from its legitimate operator or
user.

There are different ways to install rootkits in a victim’s system, the most famous
of them being social engineering and phishing attacks. Once rootkits are installed
in the system, it secretly allows the hacker to access and control the system,
giving them the opportunity to bring the system down or steal crucial data.

8. Keyloggers
This is a specially designed tool that logs or records every key pressed on a
system. Keyloggers record every keystroke by clinging to the API (application
programming interface) when typed through the computer keyboard. The
recorded file then gets saved, which includes data like usernames, website visit
details, screenshots, opened applications, etc.

Keyloggers can capture credit card numbers, personal messages, mobile

numbers, passwords, and other details––as long as they are typed. Normally,
keyloggers arrive as malware that allows cybercriminals to steal sensitive data.

9. Vulnerability Scanner
A vulnerability scanner classifies and detects various system weaknesses in
networks, computers, communication systems, etc. This is one of the most
common practices used by ethical hackers to find potential loopholes and fix
them on an immediate basis. On the other hand, vulnerability scanners can also
be used by black-hat hackers to check the system for potential weak spots in
order to exploit the system.

B. Cracking
Cracking is a technique used to breach computer software or an entire computer
security system, and with malicious intent. Though functionally the same as hacking,
cracking is strictly used in a criminal sense.

Cracking is when someone performs a security hack for criminal or malicious reasons,
and the person is called a “cracker.” Just like a bank robber cracks a safe by skillfully
manipulating its lock, a cracker breaks into a computer system, program, or account
with the aid of their technical wizardry.

Common Types of Cracking

1. Password cracking
Password cracking is the act of obtaining a password from stored data. Any website
or service that cares even the slightest bit about security will encode passwords with
hashing. It’s a one-way process that takes a password, runs it through a specific
hashing algorithm, then stores the encrypted password. The one-way part is
important: hashing cannot be reversed. When a user attempts to log in, the
password they enter is hashed as well — if the two hashes match, the user is granted
access to their account.

a) Brute force cracking: The cracking algorithm outputs random strings of

characters until it gets a match.

b) Dictionary cracking: It’s similar to brute-force cracking, but rather than using
random characters, dictionary cracking limits itself to actual words.

c) Rainbow table cracking: A rainbow table uses precomputed hash values to

figure out the encryption used to hash a password.

2. Software cracking
Software cracking is when someone alters a piece of software to disable or entirely
remove one or more of its features. Copy protections in paid software are frequent
targets of software cracking, as are the pop-up purchase reminders (or “nag
screens”) you often see in free shareware.

“Cracked” software is usually refers to a paid product that’s had its copy protections
removed or defanged. Developers incorporate copy protections, such as serial
number authentication, to prevent people from copying and pirating software. Once
cracked, the software can be distributed and used for free. Most software cracking
uses at least one of the following tools or techniques:

a) Keygen: Short for “key generator,” a keygen is a program a cracker builds to

generate valid serial numbers for a software product. If you want to use the
software for free, you can download the keygen and generate your own serial
number, allowing you to fool the developer’s copy protection into thinking
you’ve paid for the software.

b) Patch: Patches are small bits of code that modify existing programs.
Developers release patches for software all the time. Crackers can make them
too, and when they do, the patch’s job is to alter the way the program works
by removing the unwanted features.

c) Loader: A loader’s job is to block the software’s protection measures as the

software starts up. Some loaders bypass copy protections, while others are
popular with gamers who enjoy cheating in online multiplayer games.
3. Network cracking
Network cracking is when someone breaks through the security of a LAN, or “local
area network.” Cracking a wired network requires a direct connection, but cracking a
wireless network is much more convenient, because the cracker just needs to be
close to the wireless signal.

A common example of a wireless LAN is the Wi-Fi system in your home. You’ve got
your router, which emits a Wi-Fi signal, and all your devices connected to it. Together,
they form a local network. Someone could theoretically stand outside your home and
attempt to crack your Wi-Fi network. If your network is password-protected, they’ll
need to use some password cracking techniques as part of their network crack.
Unsecured Wi-Fi networks are the easiest targets, because there’s nothing in the way
of the cracker. They don’t need to do any actual cracking — all they need is a sniffer,
or a way to intercept the data flowing openly across the network. Any wireless
network is potentially at risk of network cracking, so be extra-careful when using
public Wi-Fi and protect your data with a VPN.

Why do people crack?

a) Data theft: Inside a company’s or a website’s servers, a cracker can access all
sorts of data. One common data heist involves stealing user information and
login credentials. Then, the cracker will sell this information on the black
market to other criminals who can use it for phishing attacks or to commit
identity theft.

b) Corporate espionage: Companies and state-sponsored cracking groups hack

other companies all the time to pilfer their most valuable and closely guarded
information.

c) Data manipulation: It’s not always about stealing information. Sometimes, a

cracker may wish to edit data stored on a server. For example, they may alter
bank balance sheets, falsify legal or medical records, or transfer funds from
one account to another.

d) Damage: Another option is to remove it entirely, and this happens frequently

as well. By deleting crucial pieces of data, a cracker can cause severe damage
to a computer system, such as one responsible for critical infrastructure.

e) Spreading malware: Once inside a system, a cracker can seed it with malware.
This can range from spyware that logs user activity, to adware that showers
users in pop-ups, to ransomware that encrypts valuable data, or even to
rootkits that keep all the other malware hidden away.
C. Phishing
Phishing is a term used to describe a harmful individual, or group of individuals, that
cheats users by sending emails or creating web pages that are intended to collect an
individual’s online bank, credit card, or other login information. The emails and web
pages look official, which is why users trust them and voluntarily part with their
personal information.

Phishing is a form of deception in which an attacker disguises themselves as a decent

entity, or as a regular person through email or other communication channels. The
attacker uses phishing emails to distribute malicious links or attachments that can
execute a variety of functions, like extracting login credentials and account
information from various victims.

Phishing is popular among cybercriminals, as it is far easier to trick someone into

clicking a malicious link in a seemingly legitimate phishing email than to attempt to
break through a computer’s defenses.

How Phishing Works

Phishing attacks typically count on social networking techniques used in email or
other electronic communication methods—like direct messages sent over social
networks, SMS text messages, and other instant messaging formats.

Phishers may use social engineering and other public sources of information, like
social network data, to gather background information about the victim’s personal
and work history, as well as their interests, hobbies, and activities.

Prior to the phishing attack, hackers can discover names, job titles and email
addresses of potential victims, in addition to information about their colleagues and
the names of key employees in their organizations. This information is then used to
create a realistic email.

Ways to Identify Phishing Emails

1. Company – The emails are sent out to thousands of different email addresses.
If you have no connection with the company the email address is supposedly
coming from, it can only be bogus.
2. Spelling and grammar – Misspelled words and incorrect grammar are almost
always a dead giveaway. Look out for errors that a professional outfit
wouldn’t make.
3. No reference to account information – If the company is informing you of
errors on your account, it would use your account or username as a reference
in the email. If there’s no direct reference to your account information present
in the email, chances are it’s a phishing attempt.
4. Deadlines – Fraudulent emails often require an immediate response, or set a
specific, fast-approaching deadline.
 5. Links – Often the email will include a link to a URL that is not connected to the
company’s URL.
Ways to Handle a Suspicious Email
1. Never click any links in an email. Instead of clicking the link in the email, visit
the page by manually typing in the address of the company. This is time-
consuming, but well worth the effort.
2. Never send any personal information through email. If a company is
requesting personal information about your account—or is telling that your
account is invalid—visit the web page and log into the account as you
normally would.
3. If you are still worried about your account, or have concerns about your
personal information, contact the company directly, either through their email
address or over the phone.
4. Issues Phishing Emails Commonly Address
5. Account issues: things like your account or password expiring; notices of your
account having been hacked; references to out-of-date account information
that you need to update.
6. Credit card or other personal information: being told that your credit card is
expired, or is being stolen; mention of incorrect social security numbers or
other personal information; unsolicited discussion of the possibility of a
duplicate credit card, or other personal information.
7. Confirming orders: a request that you log in to confirm recent orders or
transactions.
Common Companies Affected by Phishing
 Major banks
 Popular websites
 Government
 Internet service providers
 Casinos and lottery
 Online dating or community websites
What to do when you have fallen for a Phishing Attack?
 Log into your account using the company page and change your password
immediately.
 Scan your computer in order to identify malware, in case your computer has
become infected before you got a chance to change your password.
 If the company supports two-factor authentication, enable this feature on
your account.
 If you believe your personal information has been stolen, watch all of your
accounts for suspicious activity, and report any incongruous purchases to your
bank, who often have specific cybercrime units in place in order to mitigate
the damage as much as possible.
D. Malicious sending of e-mails
An email virus consists of malicious code that is distributed in email messages, and it
can be activated when a user clicks on a link in an email message, opens an email
attachment or interacts in some other way with the infected email message.

Viruses and other malware distributed by email can wreak all kinds of havoc,
including the following:
1. the distribution and execution of ransomware attacks;
2. enlisting the victim system into a botnet;
3. crashing victim systems;
4. providing remote access to victims' devices;
5. theft of personal data or destruction of files on the victim storage media;
6. creating unwanted pop-ups; and
7. adding the victim system to a malvertisement
8. Email viruses often spread by causing the attachment or malicious message to
be sent to everyone in the victim's address book.

Email viruses can be packaged and presented in a variety of different ways. Some can
easily be spotted as malicious by virtue of subject lines that don't make sense,
suspicious sender or other header fields and body content that looks off in some
way. Other email messages containing malware can be more difficult for recipients to
identify, as they reflect considerable effort by the malicious actor to make the email
message appear to be sent from a trusted and known sender. This is particularly true
for phishing attacks carried out to further business email compromise attacks.

Email viruses are often connected with phishing attacks in which hackers send out
malicious email messages that look as if they are originated from legitimate sources,
including the victim's bank, social media, internet search sites or even friends and co-
workers. The attacker's goal, in these cases, is to trick users into revealing personal
information, such as the victim's usernames, full names and addresses, passwords,
Social Security numbers or payment card numbers.

Spam and malware-filled email messages are still considered to be one of the most
effective means of social engineering used by hackers to spread and infect users with
viruses and to attack the networks of their victims' companies.

Types of email viruses

Email viruses can take many different forms, and malicious actors work tirelessly to
improve their malicious email messages and methods for email hacking, as well as
the accompanying malware.

1. Email spam, also known as unwanted or unsolicited email, usually spreads

malware through links in the message that lead to phishing websites or other
sites hosting malware.
 2. Virus hoax email messages, which contain a false warning about a nonexistent
threat, are considered a form of socially engineered email virus or worm. Virus
hoax messages may instruct the recipient to take some action, including
forwarding the warning to all of their contacts. One variant of the virus hoax
email builds on the tech support phone scam, in which a malicious actor
attempts to engage the victim to defraud the victim.

3. Macro viruses are viruses written in a macro language used by other software
programs, especially Microsoft Excel and Microsoft Word macros. Macro
malware is transmitted through phishing email messages that contain
malicious attachments, which contain the malicious macros.

4. Spambot programs are programs designed to harvest email addresses to build

mailing lists for sending spam. While spambot programs are not usually
distributed through email, they are instrumental in gathering valid email
addresses to be used for the distribution of email viruses.

Examples of email viruses

Before always-on, broadband internet access was widely available, malicious actors
depended on email to distribute their malware. While email viruses are still a
common threat, they have been surpassed as a mass threat.

Melissa was one of the most notorious early email viruses. A fast-spreading macro
virus, Melissa was distributed as an email attachment that disabled a number of
safeguards in Word 97 or Word 2000 when it was opened by the victim. If the
Microsoft Outlook email program was installed on a targeted system, Melissa re-sent
the virus to the first 50 people in each of the victim's address books. Melissa was
released into the wild in March 1999.

The fast-spreading ILOVEYOU virus surfaced on May 4, 2000, when it shut down
email services in major enterprises, including the Ford Motor Company. The email
virus carried the "I LOVE YOU" in the subject header, and it was estimated to have
reached as many as 45 million users in one day.

The MyDoom email worm, released in January 2004, was the fastest-spreading email-
based worm ever. MyDoom hit tech companies, including Microsoft and Google, with
a distributed denial-of-service attack. Additionally, MyDoom spammed junk mail
through infected computers, with text reading, "andy; I'm just doing my job, nothing
personal, sorry." In 2004 it was estimated that 16% to 25% of all email messages had
been infected by MyDoom.

The Storm Worm Trojan horse malware began spreading in January 2007 in email
messages that exploited concern about European storms. The attackers initially
spammed out hundreds of thousands of email messages, with a subject line reading,
 "230 dead as storm batters Europe." The malware infected the computers of users
who opened the malicious attachment included with the email.

CryptoLocker ransomware, released in September 2013, was spread via email

attachments. The ransomware encrypted victims' files. The attackers would send
decryption keys to their victims in exchange for a sum of money. The primary means
of infection was via phishing email messages containing malicious attachments.

Prevention
To prevent an email virus from infecting your client device or network, consider the
following steps:

 Keep the mail client, web browser and operating system updated and
patched.
 Use antivirus software.
 Don't open potentially dangerous attachments, such as PDF files, that have
been included in email messages from unknown senders.
 Scan all attachments for malware.
 Don't click on links in email messages, and be careful of phishing email
messages that appear to be from legitimate sources.
 Avoid opening any executable files included as email attachments. Attackers
may try to disguise these files by naming them with two extensions, such as
image.gif.exe, but .exe is the sign of an executable that will run automatically.

Prevention of email viruses is always preferable to removing them from infected

systems. Using some sort of antivirus scanner, whether implemented in an enterprise
firewall or in endpoint antivirus software, is always recommended.
E. Launching of Harmful Computer Viruses
A computer virus is a malicious program that self-replicates by copying itself to
another program. In other words, the computer virus spreads by itself into other
executable code or documents. The purpose of creating a computer virus is to infect
vulnerable systems, gain admin control and steal user sensitive data. Hackers design
computer viruses with malicious intent and prey on online users by tricking them.

One of the ideal methods by which viruses spread is through emails – opening the
attachment in the email, visiting an infected website, clicking on an executable file, or
viewing an infected advertisement can cause the virus to spread to your system.
Besides that, infections also spread while connecting with already infected
removable storage devices, such as USB drives.
1. Computer Viruses
Computer viruses are a type of malware that earned their name because of how they
spread by "infecting" other files on a disk or computer. Viruses then spread to other
disk drives and machines when the infected files are received in downloads from
websites, email attachments, shared drives or when carried in files on physical media,
such as USB drives or in the early days—floppy disks.

According to the National Institute of Standards and Technology (NIST), the first
computer virus, a boot sector virus called "Brain," was developed in 1986. Tired of
customers pirating software from their shop, two brothers claim to have designed
the virus to infect the boot sector of software thieves' floppy disks. The virus spread
through infected copies of the pirated software, jumping from the infected floppy
disk to the computer hard drive when the program was booted, or loaded onto the
new machine.

2. Worms
Unlike viruses, worms don't require human help in order to infect, self-replicate or
propagate. As soon as they breach a system, they infect their entry point and spread
through the device and across any network to which the device connects. By
exploiting network vulnerabilities—such as missed operating system (OS) updates or
application patches, weak email security or poor internet safety practices—worms
can execute, self-replicate and propagate at an almost exponential rate as each new
infection repeats the process. Originally, most worms simply "ate" system resources
and reduced performance. Now, most worms contain malicious "payloads" designed
to steal or delete files upon execution.

3. Adware
One of the most common online nuisances is adware. Adware programs
automatically deliver advertisements to host computers. Familiar examples of
adware include pop-up ads on webpages and advertising messages that are part of
the interface of "free" software. While some adware is relatively harmless, other
variants use tracking tools to glean information about your location or browser
history. Most of the time, adware collects information in order to serve better
targeted ads. But sometimes Adware is used for more nefarious purposes including
redirecting search results, displaying op-ups that can’t be closed or link to malware,
disabling antivirus software or even going all the way off the rails into the territory of
spyware.

4. Spyware
Spyware does just what it says. It spies on what users are doing at their computer. It
collects data such as keystrokes, browsing habits, location data and even login
information. While adware might include "repurposing" collected data for sale in the
terms of service statement, spyware is more duplicitous. Spyware is considered
malware because users are unaware of it. The only intent of spyware is malicious.
Spyware collects and sells your data to third parties, typically cyber criminals, with no
regard for how the data will be used. Spyware may also modify specific security
settings on your computer or interfere with network connections.
5. Ransomware
Ransomware infects your computer, encrypts your PII and other sensitive data such
as personal or work documents and then demands a ransom for their release. If you
refuse to pay, the data is deleted. Some ransomware variants lock out all access to
your computer. Sometimes, they might claim to be the work of legitimate law
enforcement agencies and suggest that you've been caught doing something illegal.

6. Bots
Bots are programs designed to automatically carry out specific operations. Although
they serve many legitimate purposes, they are also a popular type of malware. Once
on a computer, bots can cause the machine to execute specific commands without
the user's approval or knowledge. Hackers may also try to infect multiple computers
with the same bot to create a "botnet"—short for robot network. These zombie
botnets give hackers the ability to remotely manage compromised computers,
enabling them to steal sensitive data, to spy on user activities, to distribute spam
automatically or to launch devastating Distributed-Denial-of-Service (DDoS) attacks
on computer networks and websites.

7. Rootkits
Rootkits allow remote access or control of a computer by a third party. These
programs are useful for IT professionals trying to troubleshoot network issues
remotely, but they can easily become nefarious. Once installed on your computer,
rootkits allow attackers to take complete control of your machine to steal data or
install additional malware. Rootkits are designed to go unnoticed and actively hide
their presence and that of other malware that they install.

8. Trojan Horses
Commonly called "Trojans," these programs hide in plain sight by masquerading as
legitimate files or software. Once downloaded and installed, Trojans make changes
to a computer and carry out malicious activities, without the knowledge or consent
of the victim.

9. Bugs
Bugs—flaws in software code—are not a type of malware, they are errors in
software code that popular vectors for attackers with malicious intent. Bugs can, on
and of themselves, have detrimental effects on your computer, such as freezing,
crashing or reducing performance. Security bugs create holes in a computer or
network’s defenses that are especially attractive to would-be attackers. While better
security control on the developer end helps reduce the number of bugs, bugs are
another reason why keeping current on software patches and system updates is
crucial.

What are the signs of a computer virus?

A computer virus attack can produce a variety of symptoms. Here are some of them:
 Frequent pop-up windows. Pop-ups might encourage you to visit unusual sites. Or they
might prod you to download antivirus or other software programs.
 Changes to your homepage. Your usual homepage may change to another website, for
instance. Plus, you may be unable to reset it.
 Mass emails being sent from your email account. A criminal may take control of your
account or send emails in your name from another infected computer.
 Frequent crashes. A virus can inflict major damage on your hard drive. This may cause your
device to freeze or crash. It may also prevent your device from coming back on.
 Unusually slow computer performance. A sudden change of processing speed could signal
that your computer has a virus.
 Unknown programs that start up when you turn on your computer. You may become aware
of the unfamiliar program when you start your computer. Or you might notice it by checking
your computer’s list of active applications.
 Unusual activities like password changes. This could prevent you from logging into your
computer.

F. Distributed Denial of Service Attacks (DDOS)

DDoS is a type of malicious attack that distorts normal traffic to enter a server,
flooding the network traffic (resulting in a denial of service). It acts like a traffic jam
that clogs the road and prevents regular traffic from arriving at their destination.
Devices that easily connect to the network (such as computers, IoT devices, mobile
phones, etc.) are prone to DDoS attacks.
G. Website Defacement Acquiring credit card information from a website that offers E-
services
Web defacement is an attack in which malicious parties penetrate a website and replace
content on the site with their own messages. The messages can convey a political or religious
message, profanity or other inappropriate content that would embarrass website owners, or a
notice that the website has been hacked by a specific hacker group.

Most websites and web applications store data in environment or configuration files, that
affects the content displayed on the website, or specifies where templates and page content is
located. Unexpected changes to these files can mean a security compromise and might signal a
defacement attack.

H. Internet shopping using fraudulently acquired credit

E-commerce was introduced as a way to enhance online sales transactions between
online-based businesses and customers. Unfortunately, e-commerce has not been
without its issues. The platform has experienced fraudulent activities from hackers
and identity thieves.

One of the most common fraudulent activities is e-commerce payment fraud, which
is basically any kind of illegal online transaction that is being performed by a
cybercriminal. The victim is usually an online user that gets deprived of their money,
interest, sensitive info or personal property over the internet.
 E-commerce payment fraud is something that has been prevalent ever since the
launch of e-commerce platforms. Ever since businesses discovered a way that
customers could use to safely buy products from them without necessarily going to
the firm’s physical premises, hackers have tried their best to steal that information
and benefit from it.

Digital payment fraud can take many forms:

 Criminals use stolen credit card credentials to make purchases online. Since
the chip doesn’t protect online transactions, it’s an easy avenue for
fraudsters.
 Customers can make a purchase with their own credit card and then dispute
the transaction with their credit card issuer. If they win the case, they get a
refund and keep the goods.
I. Wire transfer of funds from a fraudulently acquired credit card
The term “Wire Transfer Fraud” comes from the original version of this crime which
used wire transfers: the transfer of funds between banks across telegraph wires and
shortly thereafter phone lines. Wire transfer fraud has grown to cover any bank fraud
that involves electronic communication mechanisms instead of face-to-face
communication at a financial institution. It also involves the fraudulent attainment, by
way of false pretense, of banking information to gain access to another person’s
bank account.

This kind of wire transfer fraud attack against businesses and other organizations
(municipalities and schools have been hit hard by this kind of attack) has become a
significant threat to an organization’s financial well-being. Much of business today is
conducted remotely – either over the phone or (more often) through email. Without
that face-to-face verification of someone’s identity, it is possible for an attacker to
trick either party in a transaction into transferring money to their bank account
instead of the intended recipient’s, or deceiving a party into thinking that a transfer
of funds is necessary when it is not, providing fraudulent bank account information.
J. Online Auction fraud
Internet auction fraud involves schemes attributable to the misrepresentation of a
product advertised for sale through an Internet auction site or the non-delivery of
products purchased through an Internet auction site. In advance of making a
purchase on an Internet auction site, be sure to review the site's fraud prevention
tips and additional security alerts.

Tips for Avoiding Internet Auction Fraud:

1. Understand as much as possible about how the auction works, what your
obligations are as a buyer, and what the seller’s obligations are before you
bid.
 2. Find out what actions the website/company takes if a problem occurs and
consider insuring the transaction and shipment.
3. Learn as much as possible about the seller, especially if the only information
you have is an e-mail address. If it is a business, check the Better Business
Bureau where the seller/business is located.
4. Examine the feedback on the seller.
5. Determine what method of payment the seller is asking from the buyer and
where he/she is asking to send payment.
6. If possible, purchase items online using your credit card, because you can
often dispute the charges if something goes wrong.
7. Be cautious when dealing with sellers outside the United States. If a problem
occurs with the auction transaction, it could be much more difficult to rectify.
8. Ask the seller about when delivery can be expected and whether the
merchandise is covered by a warranty or can be exchanged if there is a
problem.
9. Make sure there are no unexpected costs, including whether shipping and
handling is included in the auction price.
10. There should be no reason to give out your social security number or driver’s
license number to the seller.
K. Cyber Harassment/ Cyber-bullying
Internet harassment, also referred to as “cyberbullying”, is the term used to describe
the use of the Internet to bully, harass, threaten, or maliciously embarrass the
targets. Cyberbullying is bullying with the use of digital technologies. It can take place
on social media, messaging platforms, gaming platforms and mobile phones. It can
involve behaviors such as:
1. Sending unsolicited and/or threatening e-mail.
2. Encouraging others to send the victim unsolicited and/or threatening e-mail or
to overwhelm the victim with e-mail messages.
3. Sending viruses by e-mail (electronic sabotage).
4. Spreading rumors.
5. Making defamatory comments about the victim online.
6. Sending negative messages directly to the victim.
7. Impersonating the victim online by sending an inflammatory, controversial or
enticing message which causes others to respond negatively to the victim.
8. Harassing the victim during a live chat.
9. Leaving abusive messages online, including social media sites.
10. Sending the victim pornography or other graphic material that is knowingly
offensive.
11. Creating online content that depicts the victim in negative ways.
L. Cyber-stalking
Cyberstalking is defined as online stalking. It involves the repeated use of the internet
or other electronic means to harass, intimidate or frighten a person or group.
Common characteristics of cyberstalking may include false accusations or posting
derogatory statements, monitoring someone’s online activity or physical location,
 threats, identity theft, and data destruction or manipulation by sending a virus to a
victim’s devices. It is typically planned and sustained over a period of time.

Cyberstalkers may use email, instant messages, phone calls, and other
communication modes to stalk you. Cyberstalking can take the form of sexual
harassment, inappropriate contact, or unwelcome attention to your life and to your
family’s activities.

Cyberstalking doesn’t have to involve direct communication, and some victims may
not even realize they are being stalked online. Perpetrators can monitor victims
through various methods and use the information gathered for crimes like identity
theft. In some cases, the line between cyberspace and real life can become blurred.
Attackers can collect your personal data, contact your friends and attempt to harass
you offline.

Catfishing
Catfishing is one method of online stalking. “Catfishers” pose as someone else, using
social media sites to create an identity. They may use fake names, photos, and
locations. They might approach the intended victim as a love interest or a mutual
friend. Catfishing may be used for financial gain, to cyberbully a victim, or to cause
reputational damage and embarrassment to a victim.

They often copy the profiles of an existing user. The goal is to provide the identity of
an actual person and to use that identity to fool the victim.

M. Cyber Pornography and Prostitution

The word pornography is derived from two Greek roots, i.e. “Porne and graphos”.
The word “porne” means prostitute, harlot or female captive, and the word
“graphos” means “writing about” or “description of”. In a legal sense, Pornography
means “obscenity”. Pornographic includes any video, pictures or movies that contain
sexually explicit acts that are considered indecent by the public.

Cyber Pornography means the publishing, distributing or designing pornography by

using cyberspace. The technology has its pros and cons and cyber pornography is the
result of the advancement of technology. With the easy availability of the Internet,
people can now view thousands of porn on their mobile or laptops, they even have
access to upload pornographic content online.

In India, viewing digital pornography is not a crime, but creating and distributing such
material is. It is legal in most other countries.
However, child pornography is illegal in all forms and has been banned universally.

N. Cyber-fraud and Identity Theft

 Cyber fraud can be considered as any fraudulent crime which is conducted via a
computer or computer data. The crimes are extensive. Fraudsters can use the cyber
world to gain access to victims' personal identity, their online accounts and their
bank accounts. They can then use the money and information from this to fund
terrorism. The extensive and popular use of internet banking and mobile banking
means there are more opportunities than ever for criminals to commit cyber fraud. It
is a very serious crime - one that needs to be cracked down on.

Identity theft is the crime of obtaining the personal or financial information of

another person to use their identity to commit fraud, such as making unauthorized
transactions or purchases. Identity theft is committed in many different ways and its
victims are typically left with damage to their credit, finances, and reputation.

 Financial identity theft. This is the most common type of identity theft. Financial
identity theft seeks economic benefits by using a stolen identity.
 Tax-related identity theft. In this type of exploit, the criminal files a false tax return
with the Internal Revenue Service (IRS). Done by using a stolen Social Security
number.
 Medical identity theft. Where, the thief steals information like health insurance
member numbers, to receive medical services. The victim's health insurance
provider may get the fraudulent bills. This will be reflected in the victim's account
as services they received.
 Criminal identity theft. In this example, a person under arrest gives stolen identity
information to the police. Criminals sometimes back this up with a containing
stolen credentials. If this type of exploit is successful, the victim is charged instead
of the thief.
 Child identity theft. In this exploit, a child's Social Security number is misused to
apply for government benefits, opening bank accounts and other services.
Children's information is often sought after by criminals because the damage may
go unnoticed for a long time.
 Senior identity theft. This type of exploit targets people over the age of 60.
Because senior citizens are often identified as theft targets, it is especially
important for this seniors to stay on top of the evolving methods thieves use to
steal information.
 Identity cloning for concealment. In this type of exploit, a thief impersonates
someone else in order to hide from law enforcement or creditors. Because this
type isn't explicitly financially motivated, it's harder to track, and there often isn't a
paper trail for law enforcement to follow.
 Synthetic identity theft. In this type of exploit, a thief partially or completely
fabricates an identity by combining different pieces of PII from different sources.
For example, the thief may combine one stolen Social Security number with an
unrelated birthdate. Usually, this type of theft is difficult to track because the
activities of the thief are recorded files that do not belong to a real person.
 Identity theft techniques
1. Mail theft. This is stealing credit card bills and junk mail directly from a victim's
mailbox or from public mailboxes on the street.
2. Dumpster diving. Retrieving personal paperwork and discarded mail from
trash dumpsters is an easy way for an identity thief to get information.
Recipients of preapproved credit card applications often discard them
without shredding them first, which greatly increases the risk of credit card
theft.
3. Shoulder surfing. This happens when the thief gleans information as the
victim fills out personal information on a form, enter a passcode on a keypad
or provide a credit card number over the telephone.
4. Phishing. This involves using email to trick people into offering up their
personal information. Phishing emails may contain attachments bearing
malware designed to steal personal data or links to fraudulent websites where
people are prompted to enter their information.

O. Cyber terrorism
The term “cyber terrorism” was coined to characterize computer-based attacks
against an adversary’s assets. It takes place were cyberspace and terrorism converge
(Denning, 1999). Though these attacks occur in cyberspace, they still exhibit the four
elements common to all acts of terrorism:
(1) premeditated and not simply acts born of rage
Cyber terrorist attacks are premeditated and must be planned since they
involve the development or acquisition of software to carry out an attack.
(2) political and designed to impact political structure
Computer terrorism is an act that is intended to corrupt or completely destroy
a computer system (Galley, 1996).
Cyber terrorists are hackers with a political motivation, their attacks can
impact political structure through this corruption and destruction.
(3) targeted at civilians and civilian installations Cyber terrorist attacks often
target civilian interests. Denning (2000a) qualifies cyber terrorism as an attack
that results in violence against persons or property, or at least causes enough
harm to generate fear.
(4) conducted by ad hoc groups as opposed to national armies’ Cyber terrorism is
sometimes distinguished from cyber warfare or information warfare, which
are computer-based attacks orchestrated by agents of a nation-state.
Cyber warfare is another term that is often used to describe various aspects of
defending and attacking information and computer networks in cyberspace, as
well as denying an adversary’s ability to do the same (Hildrith, 2001). Cyber
warfare and information warfare employ information technology as an
instrument of war to attack an adversary’s critical computer systems (Hirsch,
Kett, & Trefil, 2002). Winn Schwartau (1994) has proposed three categories for
classifying information warfare: (1) Personal Information Warfare, (2) Corporate
Information Warfare, and (3) Global Information Warfare.

1. Personal Information Warfare involves computer-based attacks on data

about individuals. It may involve such things as disclosing or corrupting
confidential personal information, such as those in medical or credit files.
2. Corporate Information Warfare may involve industrial espionage or
disseminating misinformation about competitors over the internet.
3. Global Information Warfare is aimed at a country’s critical computer
systems. The goal is to disrupt the country by disabling systems, such as
energy, communication or transportation.
Another level of politically motivated computer attacks is often referred to as
hacktivism – a combination of political activism and hacking. The intent in
hacktivism is to disrupt normal operations but not cause serious damage
(Denning, 2000b). These may include web sit-ins, automated email floods, and
weak viruses. Hence, hacktivism is distinguished from cyber terrorism by the level
of damage and disruption intended by the politically motivated hackers.