Ch 17 White Collar Crime

Question 1

Confidence games

Answer 1

Crimes that betray the trust of the victim

Question 2

The pigeon drop

Answer 2

Most practiced confidence fame of all time, comes in many varieties
Powerful acting between two cons - bickering - where the victim feels they will be left out unless they abide by the conditions of agreement
(Con man 1 and 2, one days they go get their share of the money- victim gets a share of money to be included then they leave with victims money ) page 475

Question 3

The bank examiner scheme

Answer 3

Con artists pose as FBI, banker examiners , police officers.
Victim contacted saying need help in an investigation. - victim asked to verify balance - one man stays at house the other goes to bank with victim - has them withdrawal account- has victim give money to con man to let them deposit money into account - leave with money

Question 4

Pyramid “get rich quick “ scheme

Answer 4

Recruitment commissions

Eventually collapses or bubbles

Question 5

Travel scams

Answer 5

Tel them they win trip and get credit card info
They tell them they have a review period - slow in sending vacation package materials and then when it arrived according to company already expired . “Service fee” fake

Question 6

Home repair scams

Scammers

Answer 6

Accept money for repair jobs and never finish or honor warranties on projects
* asphalt scam * - lay black paint instead
Elderly people targets

Question 7

Money laundering and how it works

Answer 7

• making illegally obtained funds appear legit- means by criminals evade paying taxes on illegal income by concealing the source and amount of profit , tax evasion in progress.
• bank methods - trading currency for small denominations for larger ones (treasury bills bank drafts )
• smurfing - giving individuals separate amounts of money from drug sales to deposit less than 10k - then someone puts into oversees banks

Question 8

Double invoicing

Form of money laundering

Answer 8

Company orders merchandise from foreign subsidiary at an inflated price . Subsidiary deposits the difference between the inflated and actual price in special offshore account

Question 9

Acquisition of financial institutions (form of money laundering )

Answer 9

Traffickers acquire domestic or international financial institution . By controlling an entire Institution traffickers can go far beyond the immediate aim of conceal lung illicit earnings. They effectively take over part of the local banking system and divert it to their own needs

Question 10

cybercrime

Answer 10

the destruction, theft or unauthorized use, modification, or copying of info programs services equipment or communication networks.

Question 11

four main categories of computer crime have been identified as:

Answer 11

the intro of fraudulent records or data into a computer system
Unauthorized use of computer-related facilities
The alteration or destruction of information or files
The stealing of money, financial instruments, property, services or valuable data.

Question 12

Bank Secrecy Act (BSA)

Answer 12

federal reporting requirements for banks

Question 13

smurfing

Answer 13

trafficker provides cash to smurfs
smurf buys cashiers checks under 10k
surfs turn check over to intermediary, intermediary deposits check into traffickers domestic or foreign bank account. surfing allows trafficker to deposit 500k in bank and circumvent bank reporting requirements.

Question 14

scanning

Answer 14

process of presenting sequentially changing information to automated system to id those items to receive a positive response.

Question 15

masquerading

Answer 15

most common activity of computer system intruders. difficult to prove after case goes to trial. - one person assuming identity of authorized computer use by acquiring items/characteristics/knowledge - anyone possessing correct security code can masquerade as another person ( stealing money from company)

Question 16

data diddling

Answer 16

false data entry. - most commonly used computer crime, safest and simplest. changing data before or during their input to computers - (example - payroll )

Question 17

Trojan horse

Answer 17

secret placement or alteration of computer instructions so that the computer will tell a second computer how to perform illegal functions. Trojan horse is primary method used for inserting instructions for other abusive acts like logic bombs, salami attacks and viruses.

Question 18

computer virus

Answer 18

set of computer instructions that produce itself in computer programs when they are executed within unauthorized programs. sometimes through use of trojan horse. (can lie dormant in system for weeks or months, before infecting entire computer networks)

Question 19

salami technique

Answer 19

automated form of trojan horse, method where small amounts of assets taken from specified accounts or sources where the whole appears to be unaffected. over time substantial amount of money is taken.

Question 20

most common type of computer evidence

Answer 20

magnetic tape and disks
printed computer listings
computer
additional computer hardware

Question 21

profile of computer criminal

Answer 21

Age - usually young and educated
Skilled and knowledgeable
positions of trust
assistance
Differential association 
robin hood syndrome _ rationalize that they are only harming a computer and not causing any loss to people or organizations - harming ppl vs organizations.