Transcript Internet Vulnerabilities & Criminal Activity

Internet Vulnerabilities &
Criminal Activity
Online Pharmaceuticals
& Online Gambling
9.2
11/7/2011
Drugs Online
Federal law prohibits buying controlled substances
such as narcotic pain relievers, sedatives,
stimulants, and anabolic steroids without a valid
prescription from a doctor. Most state laws requires
a physical examination. Prescriptions written by
"cyber doctors" relying on online questionnaires are
not legitimate under the law
DOJ - DEA
Problems with Prescription
Drugs Sold Online
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Selling drugs not approved by the FDA
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Selling drugs without a prescription
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Making fraudulent claims about drugs
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Selling contaminated or altered drugs
How Illegal Online
Pharmacies Operate
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Purchaser fills out online questionnaire
Online pharmacy pays doctor to review
questionnaire
Purchaser’s order is filled without a
prescription
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Some allow faxing of prescription
Often advertise services via spam email
Problems with Illegal
Pharmacy Drugs
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Past expiration date
Banned in the United states
Counterfeit
Mislabeled
Adulterated
Sub-potent or over-potent
Contaminated
Made from suspect raw materials
Worst Countries for Drug
Impurities
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Argentina
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Pakistan
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Costa Rica
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The Philippines
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Fiji
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Spain
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India
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Thailand
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Mexico
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Turkey
Why Consumers Buy Drugs
Online
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Price
Privacy
Abuse
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“More Americans used narcotic pain
medicines recreationally than all other
drugs except alcohol.”
Crimes of the Internet p.103
Law Enforcement Challenges
Online Drug Sellers
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Outside of the US
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Most sales in small amounts
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Maybe doctors or work with doctors
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Sites may redirect to other sites
Online Pharmacy Statistics
Ryan Haight Online Pharmacy
Consumer Protection Act of 2008
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Amends the Controlled Substances Act to
prohibit the delivery, distribution, or
dispensing of a controlled substance that is a
prescription drug over the Internet without a
valid prescription.
Defines "valid prescription" as a prescription
that is issued for a legitimate medical purpose
in the usual course of professional practice by
a practitioner who has conducted at least one
in-person medical evaluation of a patient.
Law Enforcement & Online
Drug Sales
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Overwhelming to law enforcement
Using same skills as used in child
exploitation
Difficult to intercept shipments
Need foreign government cooperation
Easy to change domain name &
location
Gambling
“Risk-creating device as
compared with Insurance which
is a risk-reducing or eliminating
device.
Risking something of value.”
Online Gambling
“An activity that takes place through a nonredirected, live Web site that allows monetary
transactions in one or more of the following
categories of gaming: casinos, lotteries,
sports betting, or horse or dog racing.”
US Government Accounting Office
The Appeal of Gambling
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Recreation
Challenge
Heightened emotions
Sense of excitement
Plays into human desire to obtain
money with little work
Income to states & other organizations
Online Gambling vs. Gambling
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Solitary activity
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Not occurring in real time
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No external checks
No time lags between wage & results
Borderless
Loss of revenue
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States
Gambling casinos
Native-American casinos
Individual’s Gambling
Behavior
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Based on three dimensions
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Personal motivation
Willingness to take risks
Overall intensity of behavior
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Time and money spent on gambling
Typology of Internet Gamblers
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The Accidental Tourist
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Beachcombers
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Wastes hours per day on the Internet
Sporadic, binge gambling
Recreational Surfers
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Casual Internet users
Rarely plays online for money
Casual online user
Prefers traditional gambling atmosphere
Card Sharks
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Primary focus is card playing
Typology of Internet Gamblers
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Steamers
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Wi-Fi Trekkers
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Access gambling sites through mobile means
Handicappers
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Flashy games with little skill
Higher likelihood of addiction
Primary focus is sports events
Fad Gamers
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Imagination gamblers
Will place wagers on almost anything
Internet Gambling Concerns
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Money laundering
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Loss of tax revenue
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Addiction
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Underage gamblers
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Identity theft
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Fraud
States Outlawing Internet
Gambling
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Illinois
Indiana
Louisiana
Nevada
Oregon
South Dakota
Foreign Jurisdictions
Outlawing Internet Gambling
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Estonia
Hong Kong
Iceland
Norway
Uruguay
Approximately 50 countries have
legalized Internet Gambling
The Wire Act of 1961
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18 U.S.C. § 1084(a)
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Whoever being engaged in the business of betting or
wagering knowingly uses a wire communication facility for
the transmission in interstate or foreign commerce of bets or
wagers or information assisting in the placing of bets or
wagers on any sporting event or contest, or for the
transmission of a wire communication which entitles the
recipient to receive money or credit as a result of bets or
wagers, or for information assisting in the placing of bets or
wagers, shall be fined under this title or imprisoned not more
than two years, or both.
The Travel Act of 1961
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18 U.S.C. § 1952
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Aimed at prohibiting interstate travel or use of an
interstate facility in aid of a racketeering or an
unlawful business enterprise
“Unlawful business” - liquor, gambling, drugs,
extortion, bribery, or arson
“Interstate travel” - mail, telephone or telegraph,
newspapers, credit cards and tickertape
SAFE Port Act of 2006
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Unlawful Internet Gambling Enforcement Act
31 U.S.C. § §5361-5367
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Amendment to indirectly outlaw Internet gambling
Does not apply to individual bettors
Bettor must risk something of value
Prohibits illegal Internet gambling sites from
accepting payments
Onus on banks, financial institutions, &
Internet Service Providers (ISP)
Is Internet Gambling a
Victimless Crime?
“Willing & private exchange of
strongly demanded yet officially
proscribed goods and services”
Crimes of the Internet pg. 418
Internet Gambling Victimless?
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Willing exchange
Informed consent
Lack of harm to others
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Immediate - friends, family
Removed - society at large
No willing complainant
Online gamblers lose more $$