Unit I

CYBER CRIME

➢ Cyber Crimes Introduction

➢ Computer crime and cyber crimes;
➢ Distinction between cyber crime and conventional crimes;
➢ Kinds of cyber crimes- cyber stalking,
o cyber terrorism,
o forgery and fraud,
o crimes related to IPRs,
o computer vandalism;
➢ cyber forensic
➢ Summary
➢ Exercise

1.1 CYBER CRIME INTRODUCTION

Computer crime is a growing threat to society caused by the criminals and irresponsible
actions of individuals who are taking advantage of the widespread use of computer
networks in our society. It presents a major challenge to the ethical use of information
technologies.
1.1.1 COMPUTER CRIME
Computer crime poses serious threats to the integrity, safety, and survival of most e-
business systems, and thus makes the development of effective security methods a top
priority.
According to Association of Information Technology Professionals (AITP), computer
crime includes the following:
• The unauthorized use, access, modification, and destruction of hardware, software,
data, or network resources.
• The unauthorized release of information
• The unauthorized copying of software
• Denying an end user access to his or her own hardware, software, data, or network
resources
• Using or conspiring to use computer or network resources to illegally obtain
information or tangible property.

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1.1.2 CYBER CRIME
Cyber-crime encompasses any criminal act dealing with computers and networks (called
hacking). Cyber-crime includes traditional crimes conducted through the Internet. For
example; hate crimes, telemarketing and Internet fraud, identity theft, and credit card
account thefts are considered to be cyber-crimes when the illegal activities are committed
through the use of a computer and the Internet. Cyber-crimes also includes offences that
are committed against individuals or groups of individuals with a criminal motive to
intentionally harm the reputation of the victim or cause physical or mental harm, or loss, to
the victim directly or indirectly, using modern telecommunication networks such as
Internet (Chat rooms, emails, notice boards and groups) and mobile phones (SMS/MMS).
Cyber-crimes may threaten a nation's security and financial health. Issues surrounding
these types of crimes have become high-profile, particularly those surrounding hacking,
copyright infringement, child pornography, and child grooming. There are also problems
of privacy when confidential information is intercepted or disclosed, lawfully or otherwise.
Internationally, both governmental and non-state actors engage in cybercrimes, including
espionage, financial theft, and other cross-border crimes. Activity crossing international
borders and involving the interests of at least one nation state is sometimes referred to as
cyberwarfare. The international legal system is attempting to hold actors accountable for
their actions through the International Criminal Court.

1.2 COMPUTER CRIME AND CYBER CRIME

Computer crimes can involve criminal activities that are traditional in nature, such as theft,
fraud, forgery and mischief, all of which are subject everywhere to criminal sanctions. The
term computer misuse and abuse are also used frequently but they have significantly
different implications. Annoying behavior must be distinguished from criminal behavior in
Law. As per IT Act, 2000, no description has been categorically made for computer crime
and cyber-crime. So till today, it is very difficult to differentiate between these two words.
In relation to the issue of intent, the principle of claim of right also informs the
determinations of criminal behavior. For example, an employee who has received a
password from an employer, without direction as to whether a particular database can be
accessed, is unlikely to be considered guilty of a crime if he or she accesses those databases.
So a distinction must be made between what is unethical and what is illegal, the legal
response to the problems must be proportional to the activity that is alleged. Common types
of computer crimes are:
• Forgery;
• Fraud by system manipulation intentionally;
• Any modification to data or programs or databases; and
• Accessing computers without authorization;

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 But cyber-crimes are somehow different from computer crimes. Computer crime
happens in physical space with or without the network. Cyber-crime takes place in a virtual
space through digital environment. Recent example of cyber-crime was Bazzee.com case,
which is a MMS scandal. Cyber-crimes may happen globally as there is no geographical
limit for cyberspace.

1.3 DISTINCTION BETWEEN CYBER CRIME AND CONVENTIONAL CRIMES

Although we talk about cybercrime as a separate entity to traditional crime, it is carried out
by the same types of criminals for the same type of reasons. These hackers are professional
thieves, criminal gangs, disgruntled employees, professional competition, activists,
disillusioned youth and state adversaries. They have the same motivations as traditional
criminals such as boredom and vandalism, ideological or political support, malice or
revenge, monetary gain through extortion or sale of illegally obtained data, terrorism or
notoriety and sensationalism. However, there are certain differences between cyber-crimes
and conventional crimes, which are discussed below:
• Evidence of the offences - Traditional criminals usually leave traces of a crime,
through either fingerprints or other physical evidences. On the other hand,
cybercriminals rely on the Internet via which they commit their crimes, and it leaves
very little evidence about the cybercrime. Forensic investigators usually experience
great difficulty in gathering evidence that could lead to the conviction of
cybercriminals since these criminals can freely change their identities. The Internet
also allows the anonymity of its users, and this implies that cybercriminals can use
any pseudonyms for their identification. On the other hand, it is difficult for
traditional criminals to fake their gender, race, or age.
• Length of investigations - Since cybercrime involves perpetrators using falsified
names and working from remote locations, it usually takes longer to identify the
real cybercriminals and apprehend them. In most cases, cybercriminals (such as
hackers) escape from arrest because the investigators cannot locate them.
Traditional crimes take shorter time period to investigate because the criminals
usually leave evidence that can be used to spot them. For instance, traditional
criminals can leave evidence such as DNA, fingerprints, photographs and videos
captured on surveillance cameras, or personal belongings such as identity cards,
and this makes it easy for investigators to identify and capture the culprits. In
addition, such evidence makes it easy for the judiciary to convict the offenders.
• Constitutional law provisions – Article 20(3) of the Indian constitution deals with
privilege against self-incrimination. According to this article, "No person accused
of any offence shall be compelled to be a witness against himself". Consequently,
cybercriminals can use this legal provision to deny the investigators any
incriminating evidence that could lead to the prosecution of the cybercriminals.

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 This implies that even in situations where cybercriminals are apprehended, the trial
process may take long unless the investigators gathered irrefutable evidence about
the crimes.
• Use of force - Most of the traditional crimes (such as rape, murder, arson, and
burglary among others) involve the use of excessive force that results in physical
injury and trauma on the victims. On the other hand, cybercrimes do not require the
use of any force since the criminals merely use the identities of their victims to steal
from them. For example, cybercriminals use spoofing and phishing to obtain
personal information such as credit card numbers from their victims, or use
encrypted emails to coordinate violence remotely.
• Scale of attacks – Cyber-attacks can be conducted on a scale not possible in the
physical world. A traditional bank robber may only be able to hit one or two banks
a week, a cyber-attack can target 100’s if not 1000’s of sites at once.
• Reach of attacks – Cyber-attacks can be performed from anywhere in the world;
they can be performed anonymously and within jurisdictions where the
consequences of those actions may not, or cannot, be addressed by the criminal
justice system. Attackers are also able to extract far more data digitally than would
ever be possible in the physical world. For example 1 gigabyte of data is
approximately 4,500 paperback books. Think of how many gigabytes of data is held
on a system, hackers can extract this within a matter of minutes.
• Speed of attacks – Cyber-attacks are conducted at machine speed; a criminal can
write a piece of code that can target multiple sites in minutes.
• Perception and media effect – The public and media perception of cyber-crime is
different from a conventional crime. When large financial institutions have been
hacked the media has often wholly apportioned blame to the organizations’ rather
than the criminals, this would not be the case in a physical bank robbery.

1.4 KINDS OF CYBER CRIMES – CYBER STALKING

There are many types of cyber-crimes and the most common ones are explained below:
1.4.1 Cyber Defamation
Every individual has a private right to protect his reputation. Every individual has a right
to its own personal space and he would not want others to interfere in that ‘space’.
However, a public right to freedom of speech and expression guaranteed under Article
19(1)(a) of the Constitution of India makes enforcement of our private right a challenge. A
delicate balance has to be maintained. The law of defamation has been designed to protect
the reputation of an injured person and provide such balance between private and public
rights by giving him the right to sue for damages.

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 Defamation comprises of both slander (defamation by speaking) and libel (defamation
by means of writing).Slander involves the oral "publication" of a defamatory remark that
is heard by another, which injures the subject's reputation or character. Slander can occur
through the use of a hand gesture or verbal communication that is not recorded. Libel, on
the other hand, is the written "publication" of a defamatory remark that has the tendency to
injure another's reputation or character. Libel also includes a publication on radio, audio or
video. Even though this would be considered oral, or verbal, communication to someone
it is actually considered to be libel because it is published in a transfixed form.
In the good old days, slander was more popular and possible. After the popularity of
the printing press, one witnessed the increase in libel. With the advent of information
technology and the Internet, libel has become much more common and of course, easier.
In this context, arises cyber defamation. In simple words, it implies defamation by anything
which can be read, seen or heard with the help of computers/technology. Since the Internet
has been described as having some or all of the characteristics of a newspaper, a television
station, a magazine, a telephone system, an electronic library and a publishing house, there
are certain noticeable differences between online and offline attempt of defamation which
makes the online defamation more vigorous and effective.
Quantitatively, a comment defaming a person can be sent to a large number of persons
through e-mail by a click of the mouse. Much easier would be to publish it on a discussion
board known to be visited by thousands of persons every day. On the number game, it is
still more convenient to make available the defamatory sentence to millions of people by
merely publishing it on the website. The number of people a comment defaming a person
might reach is gigantic and hence would affect the reputation of the defamed person much
more than would an ordinary publication.
Qualitatively, the impact of an online comment defaming a person would again depend
upon the fact as to where it has been published. Putting a defaming message in specific a
newsgroups (for example, a lawyer’s group in case one wants to defame a lawyer) would
necessarily have a more effective negative impact on the reputation of the person being
defamed rather putting the same on a ladies’ kitty party group.
1.4.2 Corporate Cyber Smear
Harmful, defamatory, insulting or offending online message has been termed as Corporate
cyber smear. It is a false and disparaging rumour about a company, its management or its
stock. This is commonly done through the internet via websites, blogs, forums, emails and
instant messaging, chat rooms and now in the social networking sphere. This kind of
criminal activity has been a concern especially in stock market and financial sectors where
knowledge and information are the key factors for businessmen. Persons indulging in
corporate cyber smear include disgruntled employees or insiders, ex-employees, envious
ex-colleagues, impostors, competitors, creditors, and even those seeking a forum when they
are denied employment or former shareholders.

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 False and defamatory statements made against Amazon Natural Treasures, Inc. led to
a stock price decline from an April 1997, 52-week high of $3.56 per share to approximately
12 cents per share. The low stock price led to a delisting from the QTCB to the pink sheets.
It transpired that the statements were made by the owner of Demonte & Associates, a New
York public relations firm, who claimed that a collection agency was suing Amazon for
about $7,000.
1.4.3 Forgery
Forgery is defined as the criminal act that includes the purposeful defrauding, misleading,
deception, and misrepresentation of a product, service, or item with the intent to deceive.
The scope forgery is a vast one; forgery can include the production of falsified documents,
counterfeited items - products intended to resemble other products, and the
misrepresentation of fraudulent identification.
The criminal act of forgery can take place in a variety of settings; however - with
regard to identity theft - the act of unlawfully recreating the likeness of the signature
belonging to another individual or entity with the intent of providing deceitful authorization
for economic gain is one of the foremost methodologies undertaken. Desktop publishing
systems, colour laser and ink-jet printers, colour copiers, and image scanners enable crooks
to make fakes, with relative ease, of cheques, currency, passports, visas, birth certificates,
ID cards, etc.
Forgery could be of various types:
• Electronic forgery - The misuse of computer networks, the internet, and various
avenues within the online community in order to defraud potential victims of
identity theft is classified as electronic – or online forgery. Electronic Forgery is
quite common within the digital age, which can include the illegal and unlawful
reproduction of endorsements in the form of electronic signatures in order to illicitly
assume the identity of the victim of identity theft.
• Financial forgery - Criminal fraudulent activity applicable to the events involving
the exchange and circulation of currency may be classified as financial forgery.
Identity theft resulting from this type of forgery can occur in a variety of fashions,
including fraudulent purchases through the use of finances – and financial
information – belonging to the victims of this crime.
• Commercial forgery - Forgery involving business activities, commercial
endeavours, or professional operation of the provision of products or services is
classified as commercial forgery; items unlawfully purchased with illegal and illicit
finances may result from identity theft.
• Governmental and administrative forgery - Administrative forgery includes the vast
expanses of laws, acts, ordinances, and legislation; identity theft in an

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 administrative realm may include the unlawful duplication of documentation or the
illegal officiating of government-mandated forms and requirements.
In order to prevent these forgeries, electronic identity theft need to be stopped. Due to
technological innovation, electronic identity theft is considered by many to be one of the
most recently-developed crimes, credited – in part - to the ongoing advent of computer-
based technology. This type of technology relies heavily on the Internet and online activity,
and as a result, regulations and oversight of this type of activity has been expressed in the
spectrum of preventative measures involving the cessation of electronic identity theft.
Companies providing methods of Identity theft prevention have employed protective
measures ranging from securing online perimeters to communicative transmission
inquiring about the validity of unsubstantiated activity.These types of companies have
found their respective niche within the prevention of identity fraud upon providing
protection in lieu of infringing on personal privacy.
1.4.4 Cyber Pornography
Pornography literally means, “Writings, pictures or films designed to be sexually exciting”.
Developing, distributing and propagating the same over the Internet is termed as cyber
pornography. This would include pornographic Web sites, pornographic magazines
produced using computers to publish and print the material and the Internet to download
and transmit pornographic pictures, photos, writings, etc. In recent times, there have been
innumerable instances of promotion of pornography through the use of computers.
Information technology has made it much easier to create and distribute pornographic
materials through the Internet; such materials can be transmitted all over the world in a
matter of seconds. The geographical restrictions, which hitherto prevented, to a certain
extent, foreign publications to enter into local territories, have disappeared.
Two primary reasons why cyber pornography has, in recent years, gathered much
attention of both the offender and user, are:
• Easy accessibility;
• Anonymity.
Individuals can easily view thousands of pornographic images day and night within
the privacy of the four walls of their homes. The Internet has decreased the hurdle of shame
that comes with purchasing pornographic materials in a shop or the embarrassment of being
caught with physical hard copies of pornomaterials. The consumer of such publications is
more comfortable in opening a website and viewing/watching. With availability of
broadband connections and high downloading speeds, the demand, though privately, seems
to have risen.
On the other hand, anonymity has encouraged the offender to come out with more
explicit and real material with higher degrees of inducement. Anybody can upload
information onto a website from anywhere with the entire world as its market/consumer. It

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is extremely difficult to pinpoint persons responsible for such activities. It is also important
to note that in countries where certain degree of pornographic material is permitted to be
published and distributed, offenders quite often publish their information online from such
countries though knowing well that the online market extends well beyond the geographical
boundaries.
What has, however, been most disturbing is the increase in child pornography. Child
pornography is different from other pornography, and consequently receives more stringent
legal treatment. It is distinguished as an issue of child abuse — in its production and/or in
the way it is used by podophiles to desensitize their victims. The growth of the Internet has
provided child pornographers with a distribution vehicle which is perceived to be relatively
anonymous.
1.4.5 Cyber Stalking
Cyberstalking is a crime in which the attacker harasses a victim using electronic
communication, such as e-mail or instant messaging (IM), or messages posted to a Web
site or a discussion group. A cyber stalker relies upon the anonymity afforded by the
Internet to allow them to stalk their victim without being detected. Cyberstalking messages
differ from ordinary spam in that a cyber stalker targets a specific victim with often
threatening messages, while the spammer targets a multitude of recipients with simply
annoying messages.
In a variation known as corporate cyberstalking, an organization stalks an individual.
Corporate cyberstalking (which is not the same thing as corporate monitoring of e-mail) is
usually initiated by a high-ranking company official with a grudge, but may be conducted
by any number of employees within the organization. Less frequently, corporate
cyberstalking involves an individual stalking a corporation.
WHOA (Working to Halt Online Abuse), an online organization dedicated to the
cyberstalking problem, reported that in 2001, cyberstalking began with e-mail messages
most often, followed by message boards and forums messages, and less frequently with
chat. In some cases, cyberstalking develops from a real-world stalking incident and
continues over the Internet. However, cyberstalking is also sometimes followed by stalking
in the physical world, with all its attendant dangers.
The reasons why cyber stalking today is a preferred mode of harassment are:
(a) Ease of communication
(b) Access to personal information: With a bit hacking expertise, one might easily be
able to access personal information of a person which would help in further
harassment.
(c) Anonymity: The cyber stalker can easily use an identity mask thereby safeguarding
his real identity.

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 (d) Geographical location: In online cyber stalking, the cyber stalker can be
geographically located anywhere.
(e) Ease of indirect harassment: The cyber stalker does not directly harass his victim.
Rather, he would post such comments on a common discussion board that would
prompt the other users to send messages to the victim under a misconceived notion.
There are a number of simple ways to guard against cyberstalking. One of the most
useful precautions is to stay anonymous yourself, rather than having an identifiable online
presence. Use your primary e-mail account only for communicating with people you trust
and set up an anonymous e-mail account, such as Gmail or Yahoo, to use for all your other
communications. Set your e-mail program's filtering options to prevent delivery of
unwanted messages. When choosing an online name, make it different from your name and
gender-neutral. Don't put any identifying details in online profiles.
Should you become the victim of a cyber stalker, the most effective course of action
is to report the offender to their Internet service provider (ISP). Should that option be
impossible, or ineffective, the best thing to do is to change your own ISP and all your online
names.
1.4.6 Online Gambling
Gambling is illegal in many countries. Computer is a medium for the purposes of online
gambling. The act of gambling is categorized as an offence in some countries and has a
legal sanctity in others. The main concern with online gambling is that most virtual casinos
are based offshore making them difficult to regulate. This means that people offer gambling
services on the Internet from countries where gambling is permitted where players, from
such countries where gambling is illegal, play and bet. It is in this situation that the Internet
helps the gamblers to evade the law. Anyone with access to a personal computer and an
Internet connection can purchase lottery tickets or visit gambling sites anywhere in the
world. The world of online gambling, due to its anonymity, unfortunately has many other
hazards like danger of illegal use of credit card or illegal access to bank account.
1.4.7 Online Sale of Illegal Articles
There are certain articles like drugs, guns, pirated software or music that might not be
permitted to be sold under the law of a particular country. However, those who would want
to sell such articles find Internet a safe zone to open up online shops. There are specific
concerns with regard to increase in online sale of drugs. A simple Internet search will turn
up dozens of Web sites that let anyone order drug-of-choice for home-delivery.
The sale of illegal articles on the Internet is also one of those computer crimes where
the computer is merely a tool to commit the crime. The traditional crime is already not
permissible under various statutes. However, it is being committed by using computer and
through the Internet where one gets a better and bigger market along with the benefit of
anonymity.

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1.4.8 Cyber Fraud
Cyber fraud (or Internet fraud) refers to any type of deliberate deception for unfair or
unlawful gain that occurs online. It involves the use of Internet services or software with
Internet access to defraud victims or to otherwise take advantage of them; for example, by
stealing personal information, which can even lead to identity theft. A very common form
of Internet fraud is the distribution of rogue security software. Internet services can be used
to present fraudulent solicitations to prospective victims, to conduct fraudulent
transactions, or to transmit the proceeds of fraud to financial institutions or to others
connected with the scheme. Research suggests that online scams can happen through social
engineering and social influence. It can occur in chat rooms, social media, email, message
boards, or on websites.
The most common form of cyber fraud is online credit card theft. Credit card fraud
involves misusing someone else’s credit cards for one’s own benefit. This risk of credit
card fraud has increased manifold especially after the advent of e-commerce. People
purchase products online through their credit cards. The Web sites offering products for
purchase require the credit card details of the online buyer so that the price can be credited
to the card. In the process, the details of the credit cards are stored on the server of the
online retailer. If one is able to access the servers containing the credit cards details of the
online consumer, it is easy to collect those details and then use for one’s own benefit in
online transactions.
Online auction and retail schemes are other kind of cyber fraud. These schemes
typically purport to offer high-value items – ranging from Cartier watches to computers to
collectibles such as Beanie Babies – that are likely to attract many consumers. These
schemes induce their victims to send money for the promised items, but then deliver
nothing or only an item far less valuable than what was promised (e.g., counterfeit or
altered goods).
Business opportunity or work at home schemes are another type of fraud. Fraudulent
schemes often use the Internet to advertise purported business opportunities that will allow
individuals to earn a substantial amount of money in “work-at-home” ventures. These
schemes typically require the individuals to pay money upfront, but do not deliver the
materials or information that would be needed to make the work-at-home opportunity a
potentially viable business.
1.4.9 Online Investment Fraud
There are frauds committed in the case of online investment schemes. One such scheme is
issuance of false stocks. In this scheme, the person, either authorized or unauthorized, gains
access to the computer systems of a company and is able to issue stocks to themselves or
any other person. For instance, two employees of Cisco Systems, Inc. a US company,
illegally issued almost $8 million in Cisco stock to themselves. The total value of the Cisco
stock that they took (at the time that they transferred the stock) was approximately

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$7,868,637. Both were sentenced to 34 months each in federal prison, restitution of
$7,868,637 and a three year’s period of supervised release.
Market manipulation scheme is another online investment fraud. Enforcement actions
by the US Securities and Exchange Commission and criminal prosecutions indicate that
the basic method for criminals to manipulate securities markets for their personal profit is
the so-called “pump-and-dump” scheme. In this scheme, they typically disseminate false
and fraudulent information in an effort to cause dramatic price increases in thinly traded
stocks or stocks of shell companies (the ‘pump’), then immediately sell off their holdings
of those stocks (the ‘dump’) to realize substantial profits before the stock price falls back
to its usual low level. Any other buyers of the stock who are unaware of the falsity of the
information become victims of the scheme once the price falls.
Pyramid or Ponzi Scheme and chain letters is another online investment fraud. It is
well suited to the Internet because they entice investors with the promise of quick profits
using a home computer. Investors make money by recruiting new investors. The
programme soon runs out of new investors and most of the players lose their money they
invested. Chain letter schemes ask participants to send money to the name at the top of a
list with the promise that they will eventually receive thousands of dollars when their name
comes to the top.
Fraudulent financial solicitation is another online investment fraud. Due to its ease and
anonymity, there have been instances of people soliciting money online for charitable
purposes. One might seek financial contribution via credit card online to certain public
purpose funds or schemes for the benefit of certain classes or down-trodden people of
society. Many a time, fiscal statutes provide for income tax exemption for such
contributions and online promises are made to provide a tax exemption certificate in case
such contributions are made. The website may even provide for a printout of a fake
certificate.
1.4.10 Spam and Phishing
Spamming and phishing are two very common forms of cybercrimes. There is not
muchpeople can do to control them. Spam is basically unwanted emails and messages.
They use Spambots. Phishing is a method where cyber criminals offer a bait so that people
take it and give out the information that cyber criminals want. The bait can be in form of a
business proposal, announcement of a lottery to which people never subscribed, and
anything that promises them money for nothing or a small favor. There are online loans
companies too, making claims that people can get insecure loans irrespective of their
location. Doing business with such claims, people sure suffer both financially and mentally
in the end.
Such spamming and phishing attempts are mostly emails sent by random people whom
othersnever hear of. People should stay away from any such offers especially when they
feel that the offer is too good. The US Cybercrime Center says – do not get into any kind

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of agreements that promise something too good to be true. In most cases, they are fake
offers aiming to get people’s information and to get their money directly or indirectly.
1.4.11 Spear Phishing
As with the e-mail messages used in regular phishing expeditions, spear phishing messages
appear to come from a trusted source. Phishing messages usually appear to come from a
large and well-known company or Web site with a broad membership base, such as eBay
or PayPal. In the case of spear phishing, however, the apparent source of the e-mail is likely
to be an individual within the recipient's own company and generally someone in a position
of authority.
Visiting West Point teacher and National Security Agency expert Aaron Ferguson
calls it the "colonel effect." To illustrate his point, Ferguson sent out a message to 500
cadets asking them to click a link to verify grades. Ferguson's message appeared to come
from a Colonel Robert Melville of West Point. Over 80% of recipients clicked the link in
the message. In response, they received a notification that they'd been duped and warning
that their behavior could have resulted in downloads of spyware, Trojan horse s and/or
other malware.
Most people have learned to be suspicious of unexpected requests for confidential
information and will not divulge personal data in response to e-mail messages or click on
links in messages unless they are positive about the source. The success of spear phishing
depends upon three things:
• The apparent source must appear to be a known and trusted individual
• There is information within the message that supports its validity, and
• The request the individual makes seems to have a logical basis.
Here's one version of a spear phishing attack: The perpetrator finds a web page for
their target organization that supplies contact information for the company. Using available
details to make the message seem authentic, the perpetrator drafts an e-mail to an employee
on the contact page that appears to come from an individual who might reasonably request
confidential information, such as a network administrator. The email asks the employee to
log into a bogus page that requests the employee's user name and password or click on a
link that will download spyware or other malicious programming. If a single employee
falls for the spear phisher's ploy, the attacker can masquerade as that individual and use
social engineering techniques to gain further access to sensitive data.
1.4.12 Cyber Terrorism
According to the U.S. Federal Bureau of Investigation, cyberterrorism is any
"premeditated, politically motivated attack against information, computer systems,
computer programs, and data which results in violence against non-combatant targets by
sub-national groups or clandestine agents". It is the premeditated use of disruptive

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activities, or the threat thereof, in cyber space, with the intention to further social,
ideological, religious, political or similar objectives, or to intimidate any person in
furtherance of such objectives. Cyberterrorism is sometimes referred to as electronic
terrorism or information war.
Unlike a nuisance virus or computer attack that results in a denial of service, a
cyberterrorist attack is designed to cause physical violence or extreme financial harm.
According to the U.S. Commission of Critical Infrastructure Protection, possible
cyberterrorist targets include the banking industry, military installations, power plants, air
traffic control centers, and water systems.
Cyber terrorism can occur over the public internet, over private computer servers, or
even through secured government networks. There are many ways in which a criminal
could use electronic means to incite fear and violence. It is far less expensive to purchase
a computer than to access guns or bombs, making this approach appealing for many
potential criminals worldwide. It can be anonymous and conducted at a great distance away
from the target. For just a few examples, consider these situations:
• Foreign governments may use hackers to spy on other countries intelligence
communications in order to learn about where their troops are located or otherwise
gain a tactical advantage at war.
• Domestic terrorists may break into the private servers of a corporation in order to
learn trade secrets, steal banking information, or perhaps the private data of their
employees.
• Global terror networks may disrupt a major website, in order to create a public
nuisance or inconvenience, or even more seriously, try to stop traffic to a website
publishing content with which they disagree.
• International terrorists could try to access and disable the signal which flies drones
or otherwise controls military technology.
• A cyber terrorist could try to attack the next generation of air traffic control systems,
or collide two large civilian aircraft or try to derail the trains on the rail lines.
1.4.13 Social Engineering Identity Theft
Social engineering identity theft is a method where the cyber criminals make a direct
contact with people using emails or phones with the intention to deceive. They try to gain
their confidence and once they succeed at it, they get the information they need. This
information can be personal, about money, about the company where someone works or
anything that can be of interest to the cyber criminals.
It is easy to find out basic information about people from the Internet. Using this
information as the base, the cyber criminals try to befriend them and once they succeed,
they will disappear, leaving people prone to different financial injuries directly and
indirectly. They can sell the information obtained from people or use it to secure things like

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loans in their name. They use social engineering for Identity theft. So, the people should
be very careful when dealing with strangers – both on phone and on the Internet.
1.4.14 Cyber Extortion
Cyber extortion is a crime involving an attack or threat of attack coupled with a demand
for money to avert or stop the attack.In such attacks, while cybercriminals threaten to
cripple websites or disclose sensitive data, the data itself (stolen or accessed without
authorization) is not tampered with and is usually safely returned on demands of the cyber
extortionists being met. Simply put, hackers are forcing companies to pay them to desist
from impeding commercial operations – a fee to be left alone.
Cyber extortion can take many forms. Originally, denial of service (DoS) attacks
against corporate websites were the most common method of cyber extortion; the attacker
might initiate a ping storm and telephone the president of the company, demanding that
money be wired to a bank account in a foreign country in exchange for stopping the attack.
In a shocking revelation, two Indian companies conceded to having paid hackers
money to the tune of $10 million, to protect sensitive information stolen from their
compromised computer networks, from imminent exposure. As the stolen information was
incriminatory in nature, the attacks which seems to have originated in the Middle East,
went unreported by the companies’ even months after payments had been made and no
case has been filed by either company. Nevertheless, the discovery has prompted an
unprecedented interest in understanding cyber extortion, its operation and treatment in
India.
In recent years, however, cybercriminals have developed ransomware which encrypts
the victim's data. The extortionist's victim typically receives an email that offers the private
decryption key in exchange for a monetary payment in Bitcoins, a digital currency. In
another instance of cyber extortion, a businessman from Hyderabad recently found himself
unable to access his company’s database as it had been encrypted by a hacker demanding
payment for decryption.
Cyber extortion can be lucrative, netting attackers millions of dollars annually.
Unfortunately, as with other types of extortion, payment does not guarantee that further
cyber-attacks will not be launched. Most cyber extortion efforts are initiated through
malware in e-mail attachments or on compromised websites. To mitigate the risks
associated with cyber extortion, experts recommend that end users should be educated
about phishing exploits and back up their computing devices on a regular basis.
1.4.15 Intellectual Property Theft
Intellectual property theft involves robbing people or companies of their ideas, inventions,
and creative expressions—known as “intellectual property”. It includes theft of material
that is copyrighted or patented, the theft of trade secrets, and trademark violations.

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 A copyright is the legal right of an author, publisher, composer, or other person who
creates a work to exclusively print, publish, distribute, or perform the work in public.
Examples of copyrighted material commonly stolen online are computer software,
recorded music, movies, and electronic games.
A patent is an exclusive right granted by a country to the owner of an invention to
make, use, manufacture and market the invention, provided the invention satisfies certain
conditions stipulated in the law. Exclusive right implies that no one else can make, use,
manufacture or market the invention without the consent of the patent holder. This right is
available for a limited period of time.
Theft of trade secrets means the theft of ideas, plans, methods, technologies, or any
sensitive information from all types of industries including manufacturers, financial service
institutions, and the computer industry. Trade secrets are plans for a higher speed computer,
designs for a highly fuel-efficient car, a company's manufacturing procedures, or the recipe
for a popular salad dressing, cookie mix, or barbeque sauce. These secrets are owned by
the company and give it a competitive edge. Theft of trade secrets damages the competitive
edge and therefore the economic base of a business.
A trademark is the registered name or identifying symbol of a product that can be used
only by the product's owner. Trademarks may be one or a combination of words, letters
and numerals. They may also consist of drawings, symbols, three-dimensional signs such
as shape and packaging of goods, or colours used as a distinguishing feature. Collective
marks are owned by an association whose members use them to identify themselves with
a level of quality. Certification marks are given for compliance with defined standards, for
example ISO9000.A trademark provides to the owner of the mark by ensuring the exclusive
right to use it to identify goods or services or to authorize others to use it in return for some
consideration (payment). A trademark violation involves counterfeiting or copying brand
name products such as well-known types of shoes, clothing, and electronics equipment and
selling them as the genuine or original product.
The two forms of intellectual property most frequently involved in cyber-crime are
copyrighted material and trade secrets. Piracy is a term used to describe intellectual
property theft—piracy of software, piracy of music, etc. Historically, when there were no
computers, intellectual property crimes involved a lot of time and labour. In the twenty-
first century software, music, and trade secret pirates operate through the Internet. Anything
that can be digitized—reduced to a series of zeroes and ones - can be transmitted rapidly
from one computer to another. There is no reduction of quality in second, third, or fourth
generation copies. Pirated digital copies of copyrighted work transmitted over the Internet
are known as "warez." Warez groups are responsible for illegally copying and distributing
hundreds of millions of dollars of copyrighted material.
Pirated trade secrets are sold to other companies or illegal groups. Trade secrets no
longer have to be physically stolen from a company. Instead, corporate plans and secrets

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are downloaded by pirates onto a computer disc. The stolen information can be transmitted
worldwide in minutes. Trade secret pirates find pathways into a company's computer
systems and download the items to be copied. Companies keep almost everything in their
computer files. Pirated copies are sold over the Internet to customers who provide their
credit card numbers and then download the copy.
1.4.16 Computer Vandalism
Computer vandalism is a type of mischievous behavior that damages computers and data
in various ways and disrupts businesses. Typical computer vandalism involves the creation
of malicious programs designed to perform harmful tasks such as extracting login
credentials or erasing hard drive data. Cyber vandals are individuals who damage
information infrastructures purely for their own enjoyment and pleasure. Their primary
motivation is not financial; it is the desire to prove that the feat could be accomplished.
Once inside they leave their mark so there is no denying their presence. At first brush this
may seem more of a prank than an attack aimed at destruction. The effect on business,
however, is undeniable. These types of attacks fall into the category of denial of service
attack. The affected site must be shut down and repaired before it can be returned to normal
operation.
1.4.17 Computer Viruses and Worms
A virus is a program that searches out other programs and ‘infects’ them by embedding a
copy of itself in them. When these programs are executed, the embedded virus is executed
too, thus propagating the ‘infection’. This normally happens invisibly to the user.However,
unlike a worm, a virus cannot infect other computers without assistance. The virus may do
nothing but propagate itself and then allow the program to run normally. Virus spreads to
other computers through network file system, through the network, Internet or by the means
of removable devices like USB drives and CDs. Usually, however, after propagating
silently for a while, it starts doing things like writing messages on the terminal or playing
strange tricks with the display. Certain viruses, written by particularly perversely minded
crackers, do irreversible damage, like deleting all the user’s files. Computer virusis a form
of malicious code written with an aim to harm a computer system and destroy information.
Writing computer viruses is a criminal activity as virus infections can crash computer
systems, thereby destroying great amounts of critical data.
On the other hand, a worm is a program that propagates itself over a network,
reproducing itself as it goes. Therefore, worm, unlike a virus, does not require a medium
to propagate itself and infect other computers.
1.4.18 Trojan Horses
Trojan horse is a malicious, security-breaking program that is disguised as something
benign, such as a directory lister, archiver, game, or a program to find and destroy viruses.
It portrays itself as something other than what it is at the point of execution. The malicious

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functionality of a Trojan horse may be anything undesirable for a computer user, including
data destruction or compromising a system by providing a means for another computer to
gain access, thus bypassing normal access controls.
A special case of Trojan horses is the mockingbird — software that intercepts
communications (especially login transactions) between users and hosts and provides
system-like responses to the users while saving their responses (especially account IDs and
passwords).
1.4.19 Logic Bombs
In a computer program, a logic bomb, also called slag code, is programming code, inserted
surreptitiously or intentionally, that is designed to execute (or "explode") under
circumstances such as the lapse of a certain amount of time or the failure of a program user
to respond to a program command. It is in effect a delayed-action computer virus or Trojan
horse. A logic bomb, when "exploded," may be designed to display or print a spurious
message, delete or corrupt data, or have other undesirable effects.
Some logic bombs can be detected and eliminated before they execute through a
periodic scan of all computer files, including compressed files, with an up-to-date anti-
virus program. For best results, the auto-protect and e-mail screening functions of the anti-
virus program should be activated by the computer user whenever the machine is online.
In a network, each computer should be individually protected, in addition to whatever
protection is provided by the network administrator. Unfortunately, even this precaution
does not guarantee 100-percent system immunity.
In an instance of logic bomb, a computer systems administrator for UBS PaineWebber
was charged with using a ‘logic bomb’ to cause more than $3 million in damage to the
company’s computer network. It was alleged that from November 2001 to February 2002,
the accused constructed the logic bomb computer program. On March 4, as planned, his
program activated and began deleting files on over 1,000 of PaineWebber’s computers
[U.S. v Smith]6.
1.4.20 Back Door
It is also called trap door. It is another way to enter into a computer is by creating a back
door. It is a hole in the system’s security deliberately left in place by designers or
maintainers. The motivation for such holes is not always sinister; some operating systems,
for example, come out of the box with privileged accounts intended for use by field service
technicians or the vendor’s maintenance programmers. Historically, back doors have often
lurked in systems longer than anyone expected or planned, and a few have become widely
known.
1.4.21 Malvertising
Malvertising is a method whereby users download malicious code by simply clicking at
some advertisement on any website that is infected. In most cases, the websites are

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innocent. It is the cyber criminals who insert malicious advertisements on the websites
without the knowledge of the latter. It is the work of advert companies to check out if an
advertisement is malicious but given the number of advertisements they have to deal with,
the malverts easily pass off as genuine ads.
In other cases, the cyber criminals show clean ads for a period of time and then replace
it with malverts so that the websites and advertisements do not suspect. They display the
malverts for a while and remove it from the site after meeting their targets. All this is so
fast that the website does not even know they were used as a tool for cybercrime.
Malvertising is one of the fastest, increasing types of cybercrime.
1.4.22 Hacking
The activity of breaking into a computer system to gain an unauthorized access is known
as hacking. It is the act of defeating the security capabilities of a computer system in order
to obtain an illegal access to the information stored on the computer system. The
unauthorized revelation of passwords with intent to gain an unauthorized access to the
private communication of an organization of a user is one of the widely known computer
crimes. Another highly dangerous computer crime is the hacking of IP addresses in order
to transact with a false identity, thus remaining anonymous while carrying out the criminal
activities.
1.4.23 Theft of Internet Hours
Theft of Internet hours refers to using up or utilizing of somebody else’s Internet services.
In many cases, when a person takes up the services of any Internet service provider, he
utilizes the services in terms of number of hours consumed and makes the payment on a
per hour basis. However, in case a third person is able to identify the username and
password of the Internet service user, he can easily consume those Internet hours.
1.4.24 Salami Attacks
This attack is used for the commission of financial crimes. The key here is to make the
alteration so insignificant that in a single case it would go completely unnoticed, e.g. a bank
employee inserts a program into the bank’s servers, which deducts a small amount of
money (say 10 paisa a month) from the account of every customer. No single account
holder will probably notice this unauthorized debit, but the bank employee will make a
sizable amount of money every month. The classic story about a salami attack is the old
“collect-the-round off” trick. In this scam, a programmer modifies arithmetic routines, such
as interest computations. Typically, the calculations are carried out to several decimal
places beyond the customary two or three kept for financial records. For example, when
currency is in rupees, the round off goes up to the nearest paisa about half the time and
down the rest of the time. If a programmer arranges to collect these fractions of paisa in a
separate account, a sizable fund can grow with no warning to the financial institution.

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1.4.25 Data Diddling
This computer crime relates to operation security and is minimized through strengthening
of internal security controls. This kind of an attack involves altering the raw data just before
it is processed by a computer and then changing it back after the processing is completed.
This is a simple and common computer related crime which involves changing data prior
to or during input to a computer. Data can be changed by anyone involved in the process
of creating, recording, encoding, examining, checking, converting, or transporting
computer data.
1.4.26 Steganography
Steganography is the process of hiding one message or file inside another message or file.
It is “the art of writing in cipher, or in characters, which are not intelligible except to
persons who have the key”. It has been used in ancient times as well. In computer terms,
steganography has evolved into the practice of hiding a message within a larger one in such
a way that others cannot discern the presence or contents of the hidden message. In
contemporary terms, steganography has evolved into a digital strategy of hiding a file. For
instance, steganographers can hide an image inside another image, an audio file, or a video
file, or they can hide an audio or video file inside another media file or even inside a large
graphic file. Steganography differs from cryptography in that while cryptography works to
mask the content of a message, steganography works to mask the very existence of the
message.
Following steps are generally followed to achieve the desired result:
(a) Locating a data/video/audio file which requires being hidden and transmitted.
(b) Locating a carrier file which will carry the data/video/audio file.
(c) Using appropriate steganography software which will permit embedding of the
data/video/audio file into the carrier file and at the receiver’s end, permit extraction
thereof. A few softwares even permit password protection.
(d) E-mailing the carrier file to the receiver.
(e) Decryption of the message by the receiver.
There have been reports of Osama bin Laden and others hiding maps and photographs
of terrorist targets and posting instructions for terrorist activities on sports chat rooms,
pornographic bulletin boards and other Web sites.
1.4.27 Cyber Warfare
Cyber warfare involves the actions by a nation-state or international organization to attack
and attempt to damage another nation's computers or information networks through, for
example, computer viruses or denial-of-service attacks. Cyberwarfare is Internet-based
conflict involving politically motivated attacks on information and information systems.
Cyberwarfare attacks can disable official websites and networks, disrupt or disable

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essential services, steal or alter classified data, and cripple financial systems -- among many
other possibilities.
Any country can wage cyberwar on any other country, irrespective of resources,
because most military forces are network-centric and connected to the Internet, which is
not secure. For the same reason, non-governmental groups and individuals could also
launch cyberwarfare attacks.
Examples of cyber warfare include:
• In 1998, the United States hacked into Serbia's air defence system to compromise
air traffic control and facilitate the bombing of Serbian targets.
• In 2007, in Estonia, a botnet of over a million computers brought down government,
business and media websites across the country. The attack was suspected to have
originated in Russia, motivated by political tension between the two countries.
• Also in 2007, an unknown foreign party hacked into high tech and military agencies
in the United States and downloaded terabytes of information.
• In 2009, a cyber spy network called "GhostNet" accessed confidential information
belonging to both governmental and private organizations in over 100 countries
around the world. GhostNet was reported to originate in China, although that
country denied responsibility.
The most effective protection against cyberwarfare attacks is securing information and
networks. Security updates should be applied to all systems -- including those that are not
considered critical -- because any vulnerable system can be co-opted and used to carry out
attacks. Measures to mitigate the potential damage of an attack include comprehensive
disaster recovery planning that includes provisions for extended outages.

1.5 CYBER FORENSICS

Cyber forensics (or computer forensics) is the application of investigation and analysis
techniques to gather and preserve evidence from a particular computing device in a way
that is suitable for presentation in a court of law. The goal of computer forensics is to
perform a structured investigation while maintaining a documented chain of evidence to
find out exactly what happened on a computing device and who was responsible for it.
Forensic investigators typically follow a standard set of procedures. After physically
isolating the device in question to make sure it cannot be accidentally contaminated,
investigators make a digital copy of the device's storage media. Once the original media
has been copied, it is locked in a safe or other secure facility to maintain its pristine
condition. All investigation is done on the digital copy.
Investigators use a variety of techniques and proprietary software forensic applications
to examine the copy, searching hidden folders and unallocated disk space for copies of
deleted, encrypted, or damaged files. Any evidence found on the digital copy is carefully

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documented in a "finding report" and verified with the original in preparation for legal
proceedings that involve discovery, depositions, or actual litigation.
The need or the importance of the computer forensics is to ensure the integrity of the
computer system. The system with some small measures can avoid the cost of operating
and maintaining the security. The subject provides in depth knowledge for the
understanding of the legal as well as the technical aspects of computer crime. It is very
much useful from a technical stand point, view.
The importance of computer forensics is evident in tracking the cases of the child
pornography and email spamming. The computer forensics has been efficiently used to
track down the terrorists from the various parts of the world. The terrorists using the
internet as the medium of communication can be tracked down and their plans can be
known.
There are many tools that can be used in combination with the computer forensics to
find out the geographical information and the hide outs of the criminals. The IP address
plays an important role to find out the geographical position of the terrorists. The security
personnel deploy the effective measures using the computer forensics. The Intrusion
Detecting Systems are used for that purpose.
A number of techniques are used during computer forensics investigations such as:
• Cross-drive analysis – It is a forensic technique that correlates information found
on multiple hard drives. The process, still being researched, can be used to identify
social networks and to perform anomaly detection.
• Live analysis – It involves examination of computers from within the operating
system using custom forensics or existing system administration tools to extract
evidence. The practice is useful when dealing with Encrypting File Systems, for
example, where the encryption keys may be collected and, in some instances, the
logical hard drive volume may be imaged (known as a live acquisition) before the
computer is shut down.
• Deleted files – It is a common technique used in computer forensics to recover the
deleted files. Modern forensic software have their own tools for recovering or
carving out deleted data. Most operating systems and file systems do not always
erase physical file data, allowing investigators to reconstruct it from the physical
disk sectors. File carving involves searching for known file headers within the disk
image and reconstructing deleted materials.
• Stochastic forensics – It is a method which uses stochastic properties of the
computer system to investigate activities lacking digital artifacts. Its chief use is to
investigate data theft.
• Steganography – It is one of the techniques used to hide data via steganography.
It involves the process of hiding data inside of a picture or digital image. An

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 example would be to hide pornographic images of children or other information
that a given criminal does not want to have discovered. Computer forensics
professionals can fight this by looking at the hash of the file and comparing it to the
original image (if available). While the image appears exactly the same, the hash
changes as the data changes.

1.6 SUMMARY
Computer crime is a growing threat to society caused by the criminals and irresponsible
actions of individuals who are taking advantage of the widespread use of computer
networks in our society. It presents a major challenge to the ethical use of information
technologies. Computer crime poses serious threats to the integrity, safety, and survival of
most e-business systems, and thus makes the development of effective security methods a
top priority. According to Association of Information Technology Professionals (AITP),
computer crime includes The unauthorized use, access, modification, and destruction of
hardware, software, data, or network resources. The unauthorized release of information.
The unauthorized copying of software. Denying an end user access to his or her own
hardware, software, data, or network resources. Using or conspiring to use computer or
network resources to illegally obtain information or tangible property. Cyber-crime
encompasses any criminal act dealing with computers and networks (called hacking).
Cyber-crime includes traditional crimes conducted through the Internet. For example; hate
crimes, telemarketing and Internet fraud, identity theft, and credit card account thefts are
considered to be cyber-crimes when the illegal activities are committed through the use of
a computer and the Internet. Cyber-crimes also includes offences that are committed
against individuals or groups of individuals with a criminal motive to intentionally harm
the reputation of the victim or cause physical or mental harm, or loss, to the victim directly
or indirectly, using modern telecommunication networks such as Internet (Chat rooms,
emails, notice boards and groups) and mobile phones (SMS/MMS).Cyber-crimes may
threaten a nation's security and financial health. Issues surrounding these types of crimes
have become high-profile, particularly those surrounding hacking, copyright infringement,
child pornography, and child grooming. There are also problems of privacy when
confidential information is intercepted or disclosed, lawfully or otherwise. Internationally,
both governmental and non-state actors engage in cybercrimes, including espionage,
financial theft, and other cross-border crimes. Activity crossing international borders and
involving the interests of at least one nation state is sometimes referred to as cyberwarfare.
The international legal system is attempting to hold actors accountable for their actions
through the International Criminal Court. Computer crimes can involve criminal activities
that are traditional in nature, such as theft, fraud, forgery and mischief, all of which are
subject everywhere to criminal sanctions. The term computer misuse and abuse are also
used frequently but they have significantly different implications. Annoying behavior must
be distinguished from criminal behavior in Law.

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1.7 EXERCISE
Exercise 1 : Mix and Match
– It involves examination of computers Deleted files
from within the operating system using
custom forensics or existing system
administration tools to extract evidence.
The practice is useful when dealing with
Encrypting File Systems, for example,
where the encryption keys may be
collected and, in some instances, the
logical hard drive volume may be imaged
(known as a live acquisition) before the
computer is shut down.
– It is a common technique used in Live analysis
computer forensics to recover the deleted
files. Modern forensic software have their
own tools for recovering or carving out
deleted data. Most operating systems and
file systems do not always erase physical
file data, allowing investigators to
reconstruct it from the physical disk
sectors. File carving involves searching
for known file headers within the disk
image and reconstructing deleted
materials.
– It is a method which uses stochastic Steganography
properties of the computer system to
investigate activities lacking digital
artifacts. Its chief use is to investigate data
theft.
– It is one of the techniques used to hide Stochastic forensics
data via steganography. It involves the
process of hiding data inside of a picture
or digital image.

Ans 1 (2), 2(1), 3(4), 4(3)

Exercise 2: Fill in the Blanks
(a) Locating a data/video/audio file which requires being…………………..

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 (b) ……………..carrier file which will carry the data/video/audio file.
(c) Using appropriate ………………….which will permit embedding of the
data/video/audio file into the carrier file and at the receiver’s end, permit extraction
thereof. A few softwares even permit password protection.
(d) …………………..the carrier file to the receiver.
Ans. 1. hidden and transmitted 2. Locating a 3. Steganography software 4. E-
mailing
Exercise 3: True / False
(a) Cyber-crime encompasses any criminal act not dealing with computers and
networks (called hacking).
(b) Cyber-crime does not includes traditional crimes conducted through the Internet.
(c) Cyber forensics (or computer forensics) is not the application of investigation and
analysis techniques to gather and preserve evidence from a particular computing
device in a way that is suitable for presentation in a court of law.
(d) It is not a method which uses stochastic properties of the computer system to
investigate activities lacking digital artifacts. Its chief use is to investigate data theft.
Ans . 1. False 2. False 3. False 4. False
Exercise 4: Question Answers
1. What do you understand by Cyber crimes?
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2. Differentiate between Computer Crime and Cyber Crime.
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3. Distinction between cyber crime and conventional crimes;
………………………………………………………………………………………
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4. Explain various Kinds of cyber crimes
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5. Explain cyber stalking, cyber terrorism, forgery and fraud, cyber forensic
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