Effect of Internet on Fraud and Identity Theft - Essay Example

Effect of Internet on Fraud and Identity Theft 1.0 Objectives of the proposed study (including provisional title): The paper examines the influence of the Internet on deception and persona robbery and will address the issues surrounding the difficulty of security and inadequacy of legislation against these crimes. The challenges inherent in characterizing both misdeeds are delineated, their kinds are described, the steps that need to be taken to avert online deception and persona robbery are explored, encompassing regulation enforcement, security guidelines, etc. 2.0 The Context(s): The purpose of the study will be to examine the effect of internet on fraud and identity theft. The development of the Internet and ecommerce has been explosive. The number of adult Americans with Internet access were expected to increase from about 88 million in mid-2000 to more than 104 million at the end of 2004. (Claburn, 2004)The Census Bureau of the Department of Commerce approximated that in the fourth quarter of 2000, online retail sales amounted to $8.686 billion, a boost of 67.1 per hundred from the 4th quarter of 1999. (Haeberle, 2004) Total ecommerce sales for 2000 were an approximated $25.8 billion, accounting for 0.8 percent of all sales. Bankers, for instance, who conduct online banking transactions are particularly vulnerable to fraud and identity theft (Sullins, 2006). Unfortunately, but not unexpectedly, the rise in ecommerce has become fertile ground for fraud, resulting in a loss of billions of dollars yearly worldwide (Bolton & Hand, 2002). Apparently, the fraudsters are quick to realize the potential of a new technology or system to propagate deception and identity theft, and early on exploit it to their benefit. Long-distance telemarketing became the channel of such criminal activity when it was first introduced in the 1970's. So too the pay-per-call service when it became accessible in the late 1980's. Internet technology is the newest attraction for opportunistic fraudsters who take advantage of it for personal gain. The problems facing law enforcers is the rapidly evolving techniques used by the fraudsters (Acoca, 2008). The rapid increase in the number of complaints associated with online deception and fraud bears this out: in 1997, the Commission obtained less than 1,000 Internet deception complaints; the following year, the number had expanded eight-fold. Although most Internet deceptions arise from customary scams, the variety of techniques ingeniously devised to exploit the new technology is quickly proliferating. There are the more insidious methods that feed on the public's fascination with - and doubt of - new technology. Their inevitable repercussion is to destabilise buyer confidence in the online marketplace, to the detriment of legitimate online sellers. To arrest this high-tech fraud, the Commission has provided its employees with the necessary knowledge and logistics to perform the function of cyber-sleuths. (Benson, 2002) Recognizing that most of its lawyers and examiners need to be Internet savvy, the Commission has hosted beginner and sophisticated Internet teaching seminars and held meetings on new expertise, investigative methods, and Internet case law. (Romney, 1995)The Commission furthermore makes this teaching accessible to staff of other regulation enforcement agencies. In the past year, the Commission has offered Internet teaching seminars in seven U.S. towns and in Toronto, Canada, and Paris, France. In supplement to FTC employees, these meetings taught roughly 800 one-by-one participants from other regulation enforcement agencies. (Wittliff, 2004)These participants comprised 20 distinct nations encompassing the U.S., twenty- six states, twenty-two government bureaus, and fourteen Canadian regulation enforcement agencies. Among those who have taken part are representatives from the agencies of state Attorneys General, the Department of Justice and U.S. (Chapman, 1995) To supplement normal Internet teaching, the Commission furthermore presents its employees with the devices they need to investigate high-tech fraud. The FTC's Internet Lab is a significant example. With high paced computers that are distinct from the agency's mesh and equipped with present hardware and programs, the Lab permits employees to investigate deception and fraud in a protected natural environment and to maintain clues for litigation. (Davis, 2004) Concerning legislative measures, the US takes a step forward in spearheading the promulgation internet legislation (Kelley, 2008). Phising, identity theft and spyware, as well as copyright issues, became the order of the day at Capitol Hill as legislators attempt to draft effective and responsive laws to give authorities the “teeth” to contain this high-tech crime. However, the criminal may more likely be resorting to the low-tech dumpster and phone as his instruments for crime. (Information Management Journal, 2005). Other methods of penetrating the weaknesses in the online security systems necessitate the cooperation and vigilance not only of institutions but also the individual consumers engaging in such transactions (Baird & Rowen, 2009). 3.0 Research design (including methods) or critical approach: The research study proposed is a qualitative study, necessitating the specification of research questions that are of a constructivist perspective (Creswell, 2003). In order to advance the central objective of the study, the following research questions shall be undertaken by the researcher. 3.1 Research Questions: 1. How may the current state of online deception and identity theft be described in terms of: 1.1 depth (the technical complexity of the crime); 1.2 breadth (the geographical locations and classes of people affected); 1.3 severity (the harm sustained by the victims); and 1.4 purpose (the ends and interests served by the perpetrators) 2. What are the methods used by the perpetrators of the deception or theft? Describe in terms of modus operandi, resources used, and degree of organization involved. 3. What methods have been employed in preventing and/or arresting these criminal activities? 4. What are the strengths and weaknesses of present crime-fighting authorities, business establishments and other institutions in addressing this crime? 5. What recommendations could be made to improve the prevention, investigation, and prosecution of these crimes? Based on the preceding research questions, the following are the research objectives this study seeks to accomplish. 3.2 Research Objectives: 1. To gather at least 10 actual case situations involving online deception and/or identity theft, and to describe them as to the depth, breadth, severity and purpose of the fraud; 2. To describe the methods of online fraud or theft perpetuated in these cases, as to modus operandi, resources, and degree of organization involved; 3. To discover the methods of prevention and investigation of these crimes and apprehension of criminals involved in their commission; 4. To gain an understanding of the strengths and weaknesses of police and other crimefighters, business establishments, and other institutions (schools, hospitals) in addressing these crimes; and 5. To formulate recommendations to improve the prevention, investigation and prosecution of the said crimes. 3.3 Research Process: The research process shall be described according to the research onion (below) Source: www.hkr.se/upload/E/Kurssidor/fec685chapter4.ppt 3.3.1 Research Philosophy. The research philosophy shall be interpretivistic-historical, in so far as it aims to gather data from actual case studies and documents in the public domain, and create a comprehensive picture of the nature and state of online fraud and identity theft from the facts contained therein. 3.3.2 Research Approach The research approach is described as holistic and inductive. The logic of the study will proceed from a collation of the extant facts and particulars, and seek to create generalizations from them. 3.3.3 Research strategy The research strategy shall include the use of secondary data collected from case studies in the public domain on the subject of online deception and identity theft, and primary data from a survey of police authorities, business proprietors and managers, and commercial online service providers, as may be available and willing to relate the steps and procedures they have taken to prevent or contain these crimes. 3.3.4 Time horizon The time horizon is cross-sectional. Internet and online transactions are of relatively recent development, while such transactions existed as early as the 1970s, it was only in the 1990s to the present that online commerce has attained significant volume to warrant systematic security measures and crime intervention methods. 3.3.5 Data collection methods The data collection method involves a document search of information and published material in the public domain, as the divulging of classified information of current, ongoing cases of security breaches would tend to compromise the successful resolution of such cases. Data shall also be collected by interview of law enforcement officers, businessmen or managers, and online service providers that transact over the Internet. For expediency, the inquiries would be conducted in written form through e-mail, without discounting the possibility of face-to-face interviews where possible. 3.4 Reliability and Validity: In a qualitative study reliability rests on an examination of trustworthiness of the data. There is no validity without reliability, thus if validity is proven then reliability is necessarily implied (Golafshani, 2003). Validity is in turn determined by rigor in terms of subjectivity, reflexivity, and the social interaction in interviewing. To enhance the reliability of this study, triangulation shall be used. Method triangulation shall be employed through the use of two methods, that is document search and interview. Data triangulation shall be resorted to through the combination of primary and secondary data. 3.4 Research tactics: The research tactics are specified in the following summary: Study Criteria - Tactics Study Reliability - Case study database with artefacts Construct Validity - Multiple sources of evidence (triangulation) Critical review of case study report Internal Validity - Attention to eliminating perceptual inaccuracies, halo effects, memory recall biases, reflexivity External Validity - Resort to multiple case studies 3.5 Data Analysis The data shall be analyzed qualitatively, which, according to Creswell (2003, p. 191) involves the following steps: Organize and prepare the data for analysis Read all data, get a sense of the whole Begin detailed analysis with coding process Generate a description of the setting/people as well as categories or themes for analysis Represent themes (writing, visual, etc.) Interpret and make meaning out of data 3.6 Ethical issues: The choice of research issues will be based on the best scientific judgment and on an assessment of the potential benefit to the participants and society in relation to the risk to be borne by the participants. This study will be related to an important intellectual issue. The researcher is aware of any potential harmful effects; in such circumstancesֽ and the chosen method was used after consultation with colleagues and other experts. Full justification for the method chosen was given. The research will be conducted in a competent fashionֽ as an objective scientific project and without bias. The research will be carried out in full compliance withֽ and awareness ofֽ local customsֽ standardsֽ laws and regulations. The researcher is familiar withֽ and respectֽ the host culture. 3.7 Special resources required: The criteria of selection for the literature will be relevance to the research topic and the year of publication. Both public and private libraries as well as online libraries will be visited to access the data. I am a member of some online libraries. These librarires that will be accessed are ebsco, questia, emerald, and phoenix and so on. 4.0 Timetable of main stages of the study: Time is an important factor when considering project work. One needs time to allow adequate problem diagnosis before decisions are made about appropriate strategies and means of implementation, however, this must remain flexible to allow for unforeseen factors Timescales have to be appropriate, realistic and achievable. CYCLE 1 (in number of weeks) 1 – 3 Construct research proposal; draw up questionnaires, secure permission 4 – 5 Submit proposal to university approval board 6 Literature review & collecting data from various sources 7 – 9 Compiling and formatting the data in sequence 15 – 17 Implement findings from cycle 1 CYCLE 2 17 – 20 Prepare draft report 21 – 26 Discussion based on literature review 27 – 30 Completion of dissertation: write 15000 word dissertation References: Acoca, B. (2008) Online identity theft. OECD Observer, July, Issue 268, p12-13 Australian Bankers’ Association, Inc Fact Sheet (2008) Money Mules Explained. Australian Bankers’ Association (ABA) and the Australian Federal Police. August 2008. Baird, N. & Rowen, S. (2009) Online Commerce in 2009: The Game Has Changed – Have Retailers? Benchmark Report 2009. Retail Systems Research. Accessed 9 December 2009 from http://www.atg.com/resource-library/analyst-reports/RSR-Benchmark-Survey-Report-2009.pdf Beaumier, C. M. (2006) Multifactor Authentication: A Blow to Identity Theft? Regulatory Outlook. Bank Accounting & Finance. Feb2006, Vol. 19 Issue 2, p33-37 Benson, C. (2002) Computer Crimes. American Criminal Law Review. Volume: 34. Issue: 2. 409-443. Bolton, R. J. & Hand, David J. (2002) Statistical Fraud Detection: A Review. Statistical Science, vol. 17, no. 3, August 2002, pp. 235-249 Casarez, N. B. (2002) How to Protect Your Organization from Online Defamation. Contributors: Public Relations Quarterly. Volume: 47. 40. Chapman, C. (1995) Computer fraud on the rise. Internal Auditor, April, Vol. 52 Issue 2, p 8. Claburn, T. (2004) Cybercrime Ring Broken Up. InformationWeek, November Issue 1012, p 12. Creswell, J. W. (1998) Qualitative inquiry and research design. Choosing among five traditions. Thousand Oaks, CA: Sage. Creswell, J.W. (2003) Research design. Qualitative, quantitative and mixed methods approaches. Thousand Oaks, CA: Sage. Davis, H. E. Braun, R. L. (2004) Computer Fraud: Analyzing Perpetrators and Methods. CPA Journal, July, Vol. 74 Issue 7, p 56-60. Denzin, N. K. & Lincoln, Y (2000) Introduction: The discipline and practice of qualitative research. In N.K. Denzin & Y. Lincoln (Eds.), Handbook of qualitative research, 2nd ed., pp.1-17. Thousand Oaks, CA: Sage. Golafshani, N. (2003) Understanding Reliability and Validity in Qualitative Research. The Qualitative Report, vol. 8 no. 4, December, pp. 597-607. Haeberle, M. (2004) Web Crime Gets Organized. Chain Store Age, April, Vol. 80 Issue 4, p 54. Anon. ID Thieves More Likely to Use Dumpster, Phone. Information Management Journal, Jul/Aug2005, Vol. 39 Issue 4, p20-20 Kelley, B. (2008) Internet Legislation in the First Session of the 110th Congress. Journal of Internet Law, Feb, Vol. 11 Issue 8, p17-19 Romney, M. (1995) Computer fraud--what can be done about it? CPA Journal, May, Vol. 65 Issue 5, p 30. Sullins, L. L. (2006). "Phishing" for a Solution: Domestic and International Approaches to Decreasing Online Identity Theft. Emory International Law Review, Spring2006, Vol. 20 Issue 1, p397-433 Vijayan, J. (2008) Forever 21 Discloses Card Data Theft. Cybercrime News Digest. Computerworld.com. September 22, 2008. Wittliff, R. (2004) Warding Off Evil Spirits. Security Management, February, Vol. 48 Issue 2, p 66. Read More