Chapter 17 Flashcards
White collar crime is a “non violent crime for financial gain committed by means of deception by persons while occupational status is ________________ and utilizing their social occupational skills and opportunities”
entrepreneurial, professional, or semi professional
Edwin Sutherland ,”a crime committed by a person of respectability and high social status in the course of his occupation”
White collar crime
Some of the most notable white collar crimes are insider trading money laundering confidence games and _________.
computer crime
Corporate crime is a form of white collar crime whereby trusted executives working within a company mishandle funds or otherwise ___________ of customers or other consumers
betray the trust
Motivations include ___________ or realizing personal wealth through mishandling funds.
gaining or increasing power
The process of making illegally obtained funds appear legitimate. By which criminals evade paying taxes on illegal income by concealing the source and amount of profit, tax evasion in progress
Money laundering
Each _____ goes to different banks and purchases cashiers check in denomination of less than 10,000 checks are turned over to second person who facilitate their deposit into domestic or overseas banks
smurf
Company orders merchandise from a foreign subsidiary at an inflated price. The subsidiary deposits the difference between the inflated and actual price in a special off shore account
Double invoicing
“The destruction, theft or unauthorized use modification or copying of information ,programs services ,equipment or communication networks
Cybercrime
Process of one person assuming the identity of an authorized computer user by acquiring items, knowledge or characteristics
Masquerading
automated form of Trojan horse method where small amounts of assets are taken from specified accounts or sources and where the whole appears to be unaffected
Salami techniques
Are crimes that betray the trust of the victim
confidence games
In this scam a lot of losers pay few winners. Key is powerful acting between cons, makes victim feel left out unless they abide by conditions of the agreement
pigeon drop
The treasurey department implemented the ___ requiring banks to export cash transactions of 10,000 or more
CTR
An entire ________ to transform small denominations of currency to businesses, money market, deposits or real estate may take as little as 48 hours
“Wash cycle”
Money laundering techniques include bank methods,smurfing ,currency exchanges ,double invoicing and _______________.
acquisition of financial institutions
Established in 1990 is a multiagency support unit that analyzes intelligence information that develops suspects in money laundering schemes
FinCEN
Traffickers take their cash to a bank and conduct several transactions that usually involve trading currency of small denominations for larger ones. Common for cash to be exchanged for treasury bills, bank drafts ,letters of credit ,travelers checks or other monetary instruments
Bank methods
There is no requirement to report bank method transactions because the BSA reporting requirements don’t pertain to __________.
interbank transfers
Violations of criminal law that require knowledge of computers for their perpetration
Computer crimes
Trojan horse ,logic bombs, and trap doors indicate different programming techniques designed to carry out the ___________.
unauthorized functions
Computer crimes are largely investigative in nature using an estimated 90 percent traditional police work and _____ technical skill
10 percent
In 1986 Reagan outlawing illegal use of computers. Prohibits eavesdropping on electronic mail conversations on cell video conference calls computer to computer transactions
Electronic communications privacy act
A compulsive computer programmer who explores tests and pushes the computer to its limits regardless of its consequences
Computer hacker
It involves changing data before or during their input to computers
Data diddling
Process of presenting sequentially changing information to an automated system to identify those items receiving a positive response
Scanning
Set of computer instructions that reproduces itself in computer programs when they are executed within unauthorized programs
Computer virus
Set of instructions inserted Ina computer program that looks for specific errors Ina computers normal functioning
Logic bombs
Programmers insert debugging aids that break security codes in the computer and then insert additional code of their own
Trap doors
Confuses the computer system making it unable to differentiate one job from another
Asynchronous attacks
This “Get Rich Quick” scheme can continue indefinitely but it actually “bubbles” and soon collapses because of sheer numbers involved
Pyramid scheme
In October 1986 with the passage of the ___________ organized crime members and many others have been charged and convicted of both tax evasion and money laundering
Money Laundering Control Act
The us secret service, us postal service, and _____ are among the principal federal enforcement agencies that share jurisdiction for investigation of these crimes
FBI
Confidence games include: The Pigeon Drop, the Bank examiner Scheme, pyramid scheme, travel scam, home repair scam, contest cons and _________.
Magazine subscription scam
Part of the problem the US has regarding money laundering activities is that US drug users are primarily ________ rather than producers of drugs
consumers
Money laundering process can take many forms including 1. Merging illicit money with a legitimate cash source which usually uses a business that generates large amounts of cash and _____________
using sophisticated international money laundering techniques
Money laundering techniques include bank methods, smurfing, currency exchanges, double invoicing, and _____________
Acquisition of financial institutions
The most common method for laundering money is called __________.
bank methods
Masquerading is the __________ activity of computer system intruders and one of the most difficult to prove after the case goes to trial
most common
False data entry(data diddling) is usually the simplest, ______ and most commonly used method
Safest
The Trojan horse method is the ___________ of computer instructions so that the computer will tell a second computer how to perform illegal functions
secret placement or alteration
The Trojan horse technique can be prevented in two ways: send line or block mode types of commands and _________can be placed in the computer to prevent all control character commands from being sent in terminal to terminal messages
logic filter
Computer crime perpetrators rationalize that they were only harming a computer and not causing any loss to people or organizations
Robin Hood syndrome
