Criminology - Risk & Security Management - Essay Example

Running Head: Criminology – Risk & Security Management Criminology – Risk & Security Management [Institute’s Criminology – Risk & Security Management Federal Trade Comission’s reports suggest that of all the types of identity theft, credit card fraud is the most common one. AARP analyzed the complaint data from FTC and concluded that complainants who were under 50 years of age were much less likely to be victimized by credit card fraud; however, people aged 50 and over were victimized much more. Hence, it was important to develop technologies and techniques for the protection of older customers. (Neal Walters, 2006) In order to deal with this problem, efforts were made to design an effective technique for the protection of the consumers. In the year 2004, APACS, which is the United Kingdom payments association representative of the card issuers, had introduced a new industry standard. This was done to prevent fraud relating to ‘plastic cards’. This standard made it mandatory that a microchip be embedded inside the debit and credit cards. Moreover, a 4-digit Personal Identification Number (PIN) was to be used by all the consumers in order to carry out any transactions. Henceforth, the standard was named “chip and PIN”. Formerly, the credit cards that were being used in the United Kingdom were designed like those that were used in United States. These cards had a magnetic strip which needed to be swiped through the magnetic reader. The receipt was then signed by the consumer to acknowledge the transaction. (Neal Walters, 2006) Indicators suggest that this new standard played a substantial role in cutting down the credit card fraud cases. France also used a similar technique to overcome this problem. It is said that credit card fraud cases have reduced by 80% in France now. Although, these statistics are very encouraging, there still are some problems relating to the chip and PIN system. (Neal Walters, 2006) When a card is to be used and has chip and PIN technology, the customer first has to insert the card into a card reader which can access the microchip inside it, also known as PIN pad. If the PIN pad authenticates the card, the consumer is asked to insert the 4-digit PIN. If this Pin matched with the one in the card, the transaction is completed successfully. However, the chip and PIN system may not be used over the Internet or telephones. It may also not be used in case of mail order transactions as the customer’s presence at the time of sale is required. (Neal Walters, 2006) Decline in various types of credit card fraud was observed after the introduction of chip and PIN system in United Kingdom. These types included account takeover fraud and counterfeit card fraud. However, there is a significant rise in cases of ‘card not present fraud’, which is the fraud over phone, Internet, or mail order. (Neal Walters, 2006) The critics of this system have voiced various concerns about this system. They say that the thieves are going to ‘shoulder-surf’ for the PINs that the consumers are required to insert in order to complete a transaction. Usually the PIN pads are such that it is very convenient for the thief to peek in when the consumer tries to insert his/her PIN. Moreover, these transactions are usually supervised by the cameras in these stores. A consumer may use the same PIN for a number of cards. If the consumer’s PIN is found out, it could imply that consumer’s financial accounts have been compromised upon. (Neal Walters, 2006) For the occurrence of such kinds of thefts, the card with the microchip would have to be stolen. This could be violent and cause physical harm. As the most counterfeiters depend on the technology for large scale frauds, physical confrontations with the cardholders are less likely. Moreover, these frauds can be reported instantly and the card can be deactivated before the thief gets the chance to use it. (Neal Walters, 2006) The issue of security of the data that is fathered by the PIN pad machines is also very important. At some places, wireless PIN pads are being used. For instance, at restaurants PIN pads are taken to the consumer. The PIN pads then transfer the transactional data through wireless networks. This transmission is threatened by eavesdropping. This problem is a major one in United States’ retail stores as the rate of leakage of PINs and other card relating information are high. Although, the cards used in US do not involve the chip and PIN technology, the issue of security of data transmission via wireless networking is brought to concern. (Neal Walters, 2006) Some critics also say that the chip and PIN system, although a way of preventing identity-theft crimes, cannot reduce the fraud cases on the whole. They say the technology has merely redirected the thieves and they can still be doing frauds in other ways. The statistics also suggest that in UK, after the chip and PIN system was establishes, there has been a substantial rise in ‘card not present fraud’ cases. Hence, it is not wrong to say that reduction in card fraud cases means increase in other kinds of fraud cases that are non-card identity based. As the card fraud cases are comparatively easier to deal with, when customers are faced with other kinds of identity theft, it is not as easy to address the problem. Examples of such cases are borrowings or a loan in someone else’s name or opening up a new account. (Neal Walters, 2006) Although these concerns regarding the technology exist, the reduction in card fraud has resulted in marked fall in identity theft victims in the US. Although the technology does not offer a comprehensive solution to the problem, monitoring its progress in various other countries and the US itself will assist in coming up with enhanced privacy solutions. (Neal Walters, 2006) According to a news report published by BBC in December 2004, Professor Ross Anderson from the Cambridge University had also expressed his concerns about this new system, emphasizing that making of forged cards is a possibility. The banking industry, however, was adamant that the system is robust and the cards cannot be forged. Expert in security engineering, Mr. Anderson said that he suspects that the villains and the thieves might set up their own businesses and use the equipment such that consumers’ PINs could be captured easily. Forged cards can then be made and used at cash machines or otherwise. (BBC NEWS, 2004) On the other hand, Sandra Quinn, voicing the retailers and bankers point of view, said that it is not possible to use fake machines as the machines used for this technology are specially engineered for it and the chips are read with much security, making the transactions very safe. (BBC NEWS, 2004) Although the technologies like chip and PIN are addressing the fraud problem but they are only at the margins. The issue of fraud is a social problem. A social problem could be defined as social conditions, processes and attitudes that are commonly perceived to be negative and undesirable. (Jamrozik et al. 1998) It challenges the values prevailing in a society, for instance stability of social institutions, law and order, and the social cohesion. It is interesting to note that we see as a social condition today, may become a social problem tomorrow. Similarly, the social problems prevalent today were not considered as problems in the earlier days. (MEGA Essays, 2009) In order to deal with this problem on a comprehensive level, it is important to get to the root of the problem. The identity theft problems arise when someone is willing to do a fraud. It is important to understand why people behave so. Hence, the ‘social’ aspect of the problem should be addressed. The Association of Certified Fraud Examiners (ACFE) had launched a report in 2006 regarding the occupational fraud and abuse. This report was compiled after studying 1,134 occupational fraud cases that took place in the two years between 2004 and 2006 and were investigated in US by the Certified Fraud Examiners. Because of the absence of a central tracking system and also because a lot of fraud cases are not reported, the total financial effect of the frauds was being estimated. The survey brought about some alarming statistics. (Understanding why people commit fraud, 2007) The proactive approach to solving the fraud problem is to understand the behavior that makes people commit fraud. Different people have tried to explain why people commit fraud and how the perpetrators try to rationalize their actions. Mr. Edwin Sutherland, who teaches criminology at the Indiana University conducted a research on elite upper-world business executives who commit fraud against the shareholders and the public. His research is now called “White-Collar Crime”. It is used for explaining all financial and fraud-related crimes. (Understanding why people commit fraud, 2007) However, Mr. Sutherland’s contribution in the field is not restricted to “White-Collar Crime”. His work has assisted in understanding why people commit these crimes to begin with. Before Sutherland’s time, the theory suggested that the propensity of committing crime was determined through genetics, passing on from one generation to the next. If an individual had committed a crime, it meant that his/her children would too be more prone to leading a criminal’s life. Mr. Sutherland tested this theory by interviewing hundreds of imprisoned individuals to find out if criminal tendency was genetically determined or not. (Understanding why people commit fraud, 2007) These interviews helped Sutherland in coming up with the Theory of Differential Association. According to this theory, the process of communication within an individual’s intimate personal group makes him/her learn the crimes. There are two specific elements involved in this. The first one is about learning different techniques involved in committing a crime. The second one is about learning the attitudes, drives, rationalization, and motivation behind a crime. He concluded that crimes are not determined by one’s genetic inheritance and cannot be committed unless help from other people is available. This theory applies very well to the occupational offenders. For instance, dishonest employees may influence the honest ones. Similarly, honest employees may also disinfect people who are potentially dishonest and probable to commit crimes. (Understanding why people commit fraud, 2007) There could be various reasons for why people willingly get involved in fraud and other crimes. When faced with extreme poverty, a person may want to steal something. This type of crime arises from the necessity that an individual cannot acquire for him/her self. Convenience is another reason for committing a crime. An example of this could be a scenario when the clerk at the shop is looking elsewhere. Taking advantage of this, an individual shoplifts to get away with it. This also depends on a person’s values and sense of right and wrong. (Why do people commit crime, not dated) A person’s emotions may as well lead him to committing a crime. These crimes are also termed as hate crimes or passion crimes. We often hear, about a husband killing wife or a man killing his lover for reasons like extreme emotions of love, jealousy, and possessiveness. A lot of crimes are merely because of ignorance about the law and order. People tend to o against the laws and at times are not even aware about the existing laws. (Why do people commit crime, not dated) When people are mentally ill or upset, they do not really know what they are doing. Hence, the realization of committing a crime is not present. These crimes are usually not so severe, like shoplifting, but at times there could be severe crimes too committed by individuals who are mentally ill. (Why do people commit crime, not dated) Pre-disposition of a person plays an important role here. The person’s criminal behavior is influenced by his/her personality and the choices he/she makes during his/her lifetime. These choices will prompt him to commit crimes or to refrain from them. Such criminals are repeat offenders. (Why do people commit crime, not dated) The environment in which a person lives has a substantial role in shaping the person’s mind and thought processes. If a child is brought up in an environment where cheating on taxes, drug dealing, or prostitution are seen as acceptable, he/she will be potentially more prone to committing these crimes. In case of group crimes, some people may not be willing to commit a crime, but they will still do it in order to retain and keep intact the sense of belonging that they get from their affiliation with the group. (Why do people commit crime, not dated) Classical view about people committing crime is different from what we have already discussed. According to Classical view, individuals commit crime because that is what they chose to do. They say that in today’s world; a lot of justifications are given for committing a crime. These explanations are used to disguise the criminal’s own choices. Crime control strategies are seriously influenced by these assertions. According to classical approach, direct intervention tactics are used in crime control strategies. (Randy Gonzalez, not dated) Law enforcement therefore has a strict and aggressive attitude towards criminal acts. Classicals deal proactively with crime and deviance. They try to stay consistent with the social as well as legal aspects of the constraint. A punitive approach towards behavior is necessitated in case of deviant behavior which takes form of a crime. An approach like this comes with speed, certainty, and precision. The justice system needs to be very decisive so that control sanctions are made effective. It is important that the attendant criminal justice systems be able to deploy the much needed resources. History also suggests that the classical school of criminology is disregarded as a practicable strategy of crime prevention. (Randy Gonzalez, not dated) All the resources, including scientific, technical, and forensic resources, should back the classical approach. This effort should be made in accordance with the needs of the time. Based on the doctrine of ‘psychological hedonism’, classical view insists that individuals have the freedom to make a choice between alternative behaviors. Henceforth, a criminal plans the crime before he/she commits it. In other words, the person creates a ground for departing from the legal, social and moral sanctions that apply on his/her behavior. He/she compares the pleasure he/she would get from committing that crime and the pain that is involved in committing it. These calculations determine the choice he/she is going to make. Acts of deviance occur when the pleasure derived from them is greater than the risk taken. (Randy Gonzalez, not dated) With all these different theories about why people commit fraud and other criminal acts, it is plain to see that a mere introduction of a technology standard like chip and PIN is not going to be a complete solution. The security manager must try to understand and empathize with a criminal’s mind in order to develop a strong security system that cannot fall prey to the criminal minds. References Centre for Retail Research (2007) Retail Crime and Fraud, < http://www.retailresearch.org/crime_and_fraud/index.php>, Accessed on September 30, 2009 Beck, A.(2007) The Emperor Has No Clothes:What Future for Technology in Reducing Retail Shrinkage? in Security Journal 20, 57 – 61, < http://www.palgrave-journals.com/sj/journal/v20/n1/full/8350048a.html>, Accessed on September 30, 2009 Chip and PIN, not dated, < http://www.chipandpin.co.uk/>, Accessed on September 30, 2009 What is the new Chip and Pin system?, not dated, < http://www.life-assurance-bureau.co.uk/credit-card/faqs/what-is-the-new-chip-and-pin-system.htm>, Accessed on September 30, 2009 BBC NEWS, Chip and pin security warning, December 18, 2004, < http://news.bbc.co.uk/2/hi/business/4108433.stm>, Accessed on September 30, 2009 Neal Walters, AARP Public Policy Institute, Fighting Identity Theft: Lessons from the United Kingdom, 2006, < http://assets.aarp.org/rgcenter/consume/fs129_id_theft_uk.pdf>, Accessed on September 30 2009 MEGA Essays, What is a social problem?, 2009, < http://www.megaessays.com/viewpaper/20492.html>, Accessed on October 1, 2009 Credit Report, Identity Theft Protection, 2009, < http://www.creditreport.com/identitytheft/protection/avoiding-fraud.asp>, Accessed on October 1, 2009 Understanding why people commit fraud, January, 2007, http://bh.cciflorida.com/bin/Acctg_RLynch_pt2.pdf, Accessed on October 1, 2009 Why do people commit crime, not dated, 2009, http://www.holysmoke.org/c000/085.htm, Accessed on October 1, 2009 Randy Gonzalez, A Classical View – Why do people commit crimes?, not dated, http://ezinearticles.com/?A-Classical-View---Why-Do-People-Commit-Crimes?&id=782363, Accessed on October 1, 2009 Read More

 

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