Transcript Idenitity Theft Via the COmputer

COMPUTER CRIMES
CREDIT CARD FRAUD
“A BILLION DOLLAR PROBLEM”
CREDIT CARD FRAUD
– IDENTITY THEFT FRAUD
– COUNTERFEIT CREDIT CARDS
– STOLEN CREDIT CARDS
– ATM Fraud
Identity Theft
Identity theft happens when someone steals
your identity and impersonates you in
order to open credit accounts, “take over”
existing financial accounts, rent
apartments, even engage in criminal acts.
Consider:
– “Takeover” Fraud
– “Shotgun” Fraud (Minimal Information)
– More Sophisticated Application Fraud
Techniques (More Substantial Amounts of
Information Required)
Identity Theft
What information is valuable?
– Credit Card Account Numbers
– Social Security Numbers
– Mother’s Maiden Name
– Date of Birth
– Place of Birth
Identity Theft
Information Sources
How do ID Thieves get information?
– Completing a "change of address form" at the post
office
– Stealing the information from "the inside" - as in a
grocery store clerk taking key information off of a
check that you have written
– Trash Bins – “Dumpster Diving”
– Mail Theft
Identity Theft
Information Sources
– From Credit Reporting Agencies
• Usually “Bad” Third Party Companies, or
• Access using stolen subscriber numbers & passwords
– From Organizations and Individuals Often Using
“SOCIAL ENGINEERING”
– RARELY By using Sophisticated Techniques to
Intercept Data in Communication Lines or Hack into
Files or Databases with Sensitive “Useful”
Information
– From Government Agencies (e.g.: PAPER TRIP, NET
DETECTIVE [“Greased Information”])
Internet Information Sources
Net Detective Claims
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Locate e-mails, phone numbers, or addresses.
Get a Copy of Your FBI file.
FIND DEBTORS and locate HIDDEN ASSETS.
Check DRIVING and CRIMINAL RECORDS.
Locate old classmates, missing family member, or a LONG LOST LOVE.
Do Background Checks on EMPLOYEES before you hire them.
Investigate your family history, birth, death and SOCIAL SECURITY
RECORDS!
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Discover how UNLISTED phone numbers are located.
Check out your new or old LOVE INTEREST.
Verify your own CREDIT REPORTS so you can correct WRONG
information.
Net Detective Claims
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Track anyone's Internet ACTIVITY; see the sites they visit.
Explore SECRET WEB SITES that conventional search engines
have never found.
Discover little-known ways to make UNTRACEABLE PHONE
CALLS.
Check ADOPTION records; locate MISSING CHILDREN or
relatives.
Dig up information on your FRIENDS, NEIGHBORS, or BOSS!
Discover EMPLOYMENT opportunities from AROUND THE
WORLD!
Locate transcripts and COURT ORDERS from all 50 states.
CLOAK your EMAIL so your true address can't be discovered.
Find out how much ALIMONY your neighbor is paying.
Discover how to check your phones for WIRETAPS.
ID Theft Personal Protections
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Carry only the cards (credit and ID) that
you need to have with you; file others in a
safe place at home.
Sign your credit cards immediately.
Do not carry your social security card with
you. Keep it in a secure, safe place.
Do not attach a pin number or social
security number to any cards you carry with
you.
ID Theft Personal Protections
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Do not attach or write a pin number or social
security number on anything you are going to
discard (e.g. a receipt).
Shred any document that contains your credit card
number before you discard it.
Check receipts to ensure you received your own and
not someone else's.
Alert your card issuer if you do not receive your
statements. Someone could have taken them from
your mailbox and could be using your credit card
number.
ID Theft Personal Protections
• Do not give personal information or account numbers to
anyone until you have confirmed the identity of the
person requesting the information and verified that you
need to provide them with the information.
• Frequently check your credit report or subscribe to a
Credit Report Monitoring Service (e.g. Equifax Credit
Watch, Credit Check Monitoring Service) to monitor your
credit file daily and be alerted of changes that can be an
early warning of identity theft, such as new account
openings or changes to your address.
(econsumer.equifax.com/, creditreportline.com)
Counterfeit and Credit Card Theft
Countermeasures
CREDIT CARD FRAUD COUNTERMEASURES
– Fraud Databases
– Card Activation Processes Using Phone Recognition Methods
and Personal Information Verification Methods
– Credit Report WARNING Systems (Address, SSN checks)
– AI/Neural Network Systems which Detect Abnormal Activity
– ATM Withdrawal Maximums
– MAGNETIC NOISE !!
– Biometrics
– Smart Cards
– PHYSICAL CREDIT CARD CONTROL FEATURES
MasterCard/VISA Physical Controls
• Tamper Evident Signature Panel
• Three Dimensional Holograms
• Customized Characters (e.g.: Slanted V on
Visa Cards)
• Other “secret” features not made public.
• CVC (Card Validation Code – Visa) &
CVV (Card Validation Value –
MasterCard)
CVV/CVC Control
The CVV and CVC codes
are the product of an
algorithm being applied
to the credit card number.
There is an internal code
programmed into the
magnetic stripe (invisible)
and another different
external code (visible).
Computer Crime
Things to Remember !!
• Who causes companies the largest losses and what can
be done to reduce that problem.
• What are the more serious fraud problems on the
internet and how can individuals protect themselves
from internet fraud.
• How do “fraudsters” commit ID theft & Credit Card
Fraud in general, their sources of information and
how can this problem be controlled.
• Visa/MasterCard Control Mechanisms
• Hackers: Categories, Methods, and Controls