Chapter 3 – Seminar 3

Chapter 3 – Seminar 3 High-Tech Criminal Offenses and E-Mail-Based Crimes 1/24/11 - Seminar 3 - Chapter 3

Outline • 3.1 Overview of High-Tech Crimes • 3.2 Email Harassment, Threats, and Cyberstalking • 3.3 Violations of Restraining Orders • 3.4 Identity Theft • 3.5 False Identification Documents • 3.6 4-1-9 Scams (AKA Nigeria Scam or Advanced Fee Fraud) 1/24/11 - Seminar 3 - Chapter 3

3.1 Overview of High-Tech Crimes 1/24/11 - Seminar 3 - Chapter 3

3.1 Overview of High-Tech Crimes • Nature of high-tech crime today • Classification of criminality • Hierarchy of proof • Jurisdictional issues 1/24/11 - Seminar 3 - Chapter 3

Nature of High-Tech Crime Today • On the rise and will continue to be. • Average bank robbery = $5,000 • Average I.D. Theft = $10,200 • First responders lack training, knowledge, skills, and abilities to investigate it. • True number of high-tech crimes committed each year is unknown. 1/24/11 - Seminar 3 - Chapter 3

Lack of Serious Sanctions • Some high-tech crimes are misdemeanors or forfeitures and do not allow for extradition. • Some more serious ones are felonies, but they are still largely property crimes. • Understanding the classification of criminality and hierarchy of proof is essential. 1/24/11 - Seminar 3 - Chapter 3

Classification of Criminality • Felony —most serious level of criminal acts, which carry a minimum of a one year prison sentence for anyone convicted, along with substantial fines. • Misdemeanor — a criminal act of moderate severity that may result in a jail sentence of up to one year, and/or a substantial fine. 1/24/11 - Seminar 3 - Chapter 3

Classification of Criminality, Con’t • Forfeiture— a minor criminal offense that can only result in a fine. • Ordinance Violation— a law enacted by a city, local, or municipal government, because they do not have the same legal authority as state or federal governments, the maximum penalty for an ordinance violation is a civil forfeiture (fine). It is a civil forfeiture because ordinance violations are not criminal acts. 1/24/11 - Seminar 3 - Chapter 3

Hierarchy of Proof • Proof Beyond a Reasonable Doubt — the level of certainty required for a guilty verdict in a criminal case. A juror voting for a guilty verdict must believe that no reasonable person could doubt the guilt of the accused. • Clear and Convincing Evidence — somewhere between proof beyond a reasonable doubt and mere preponderance. Evidence that produces a firm belief or conviction that the allegations sought to be proved by the evidence are true. Typically used in municipal ordinance violation cases. 1/24/11 - Seminar 3 - Chapter 3

Hierarchy of Proof, Con’t • Mere Preponderance of Evidence — the level of certainty required for a guilty verdict in a civil court dispute. The standard is met when there is more evidence indicating guilt than indicating innocence. A balancing scales analogy is appropriate in determining preponderance. 1/24/11 - Seminar 3 - Chapter 3

Hierarchy of Proof, Con’t • Reasonable Suspicion — commonly referred to as a “Terry Stop” (Terry v. Ohio, 1968), this is the level of certainty that allows for law enforcement officers to detain and/or frisk a subject, for their own safety, based on their reasonable belief that the subject is armed, or has committed, is committing, or is about to commit a crime. 1/24/11 - Seminar 3 - Chapter 3

Lack of Physical Boundaries • High-tech crimes blur jurisdictional lines. • Vicinage—parallel jurisdiction over the same offense and is not considered double jeopardy. • Criminals can commit high-tech crimes from the comfort of their homes and across jurisdictional boundaries. 1/24/11 - Seminar 3 - Chapter 3

3.2 Email Harassment, Threats, and Cyberstalking 1/24/11 - Seminar 3 - Chapter 3

Definitions • Harassment — continued communication or interaction with someone with the goal of intimidating, upsetting, or otherwise emotionally impacting the recipient. It is communication or interaction with no other legitimate purpose. 1/24/11 - Seminar 3 - Chapter 3

Definitions, Con’t • Threats— communicated warnings of some imminent negative event, injury, or other harm. Often the person communicating the warning implies that he / she will cause the injury or harm. 1/24/11 - Seminar 3 - Chapter 3

Definitions, Con’t • Cyberstalking— the repeated use of the Internet, email, or related digital electronic communication devices to annoy, alarm, or threaten a specific individual or group of individual. • Cyberstalking— threatening behavior or unwanted advances directed at another using the Internet and other forms of online and computer communications. 1/24/11 - Seminar 3 - Chapter 3

Email Harassment • A common occurrence in the online world that is often underreported. “I don’t think the police in my community know what a computer is.” This perception must change. • Any “electronic mail” that frightens, intimidates, threatens, abuses, or harasses another person or threatens to inflict injury, or contains any obscene, lewd, and profane language, or suggests any lewd or lascivious act (WSS 947.0125). 1/24/11 - Seminar 3 - Chapter 3

Email Harassment, Con’t • Federal statute —Title 18, Section 875, U.S. Code criminalizes threatening messages transmitted electronically in interstate or foreign commerce. • The federal government historically has limited its involvement in prosecuting cases related to electronically transmitted threatening messages to cases involving special circumstances, such as threats made against the president of the United States. 1/24/11 - Seminar 3 - Chapter 3

Email Harassment, Con’t • Most state statutes lack “teeth,” and punishment is typically a misdemeanor and/or forfeiture. • Municipalities can adopt state statutes and enforce them at the local level. 1/24/11 - Seminar 3 - Chapter 3

Cyberstalking • Stalkers take advantage of Internet communications and online access to personal information to stalk victims. • Due to Internet anonymity, cyberstalking becomes easier to do than real life stalking. 1/24/11 - Seminar 3 - Chapter 3

80% males 74% White, 13% Asian, 8% Hispanic, 5% African American Email used 79% of the time, instant messenger 13%, chat rooms 8% 87% male 57% White, 37% African American, 6.5% other racial minorities Cyberstalker v. Stalker Disparities can can be partially explained by the access to available computer technology. Those in a lower socio-economic status are less likely to have access to the needed cyberstalking technology. 1/24/11 - Seminar 3 - Chapter 3

“Cyberbullying” • Similar to cyberstalking. • Always involves a child, preteen, or teenager who is involved in using the Internet, interactive and digital technologies, or mobile phones to torment, threaten, harass, humiliate, embarrass, or otherwise target another minor. • When adults are involved in this behavior, it’s cyberstalking. 1/24/11 - Seminar 3 - Chapter 3

Investigating Email Harassment and Threats (Generally) • Tracing the origin via the IP address is very possible. • Expand the email message to view the “full header.” • All IP addresses the email traveled through can be traced back to the originating server (ISP). • Appropriate legal documents can be served upon the ISP to disclose account holder information (i.e. basic subscriber information). 1/24/11 - Seminar 3 - Chapter 3

Tips For Victims • Stalker must be made aware that behavior is unwelcome. • Report the cyberstalker to their ISP. • Save copies of all electronic communications. • Report the matter to law enforcement as soon as possible. 1/24/11 - Seminar 3 - Chapter 3

3.3 Violations of Restraining Orders 1/24/11 - Seminar 3 - Chapter 3

Violations of Restraining Orders • Although not an epidemic, abusers have used to harass their victims. • Using the Internet to contact domestic violence victims is a violation of applicable restraining (no contact) orders in most jurisdictions. 1/24/11 - Seminar 3 - Chapter 3

Violations of Restraining Orders, Con’t • No contact orders should include language prohibiting contact via, “any electronic means.” • Nationwide, approx. 60% of all orders are violated. • It is not known to what extent email or other forms of electronic communications are used when violating these orders. 1/24/11 - Seminar 3 - Chapter 3

3.4 Identity Theft 1/24/11 - Seminar 3 - Chapter 3

Identity Theft • Identity Theft occurs when someone appropriates another’s personal information without his or her knowledge to commit fraud or theft. • The identity is then used to obtain credit cards, phone accounts, or even bank accounts in the victim’s name, thereby damaging his or her credit. • Best of all, the victim gets the bills. 1/24/11 - Seminar 3 - Chapter 3

Identity Theft, Con’t • It occurs online in several ways. • Thieves utilize online databases to collect personal information. • Thieves send fictitious email messages in the hopes that the victim will respond with the requested information (e.g., credit card number, SSN). 1/24/11 - Seminar 3 - Chapter 3

Identity Theft — Defined • (The unlawful use of) your name, address, social security number (SSN), bank or credit card account number, or other identifying information without your knowledge with the intent to commit fraud or other crimes.” • “A fraud that is committed or attempted using a person’s identifying information without authority.” 1/24/11 - Seminar 3 - Chapter 3

Identity Theft — Scope of Problem • Federal Trade Commission (FTC) statistics • 2002 — 161,896 identity theft complaints received • 2004 — 246,570 complaints received • 40% increase • $547 million in losses 1/24/11 - Seminar 3 - Chapter 3

Identity Theft — Scope of Problem • These statistics are only from participating agencies that voluntarily report. • The current Uniform Crime Reports (UCR) do not track identity theft offenses. • True instances are believed to be much greater. 1/24/11 - Seminar 3 - Chapter 3

Identity Theft Statutes • Exist in all 50 states. • Often not referred to as “Identity Theft” statutes. • Some statutory names include “Taking identity of another person or entity…” (Arizona State Statute 13-2008) and, in Wyoming, “Unauthorized use of personal identifying information…” (Wyoming State Statute 6-3-901). 1/24/11 - Seminar 3 - Chapter 3

Federal Identity Theft Statute • Identity Theft and Assumption Deterrence Act (18 U.S.C. 1028). • When someone knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law. • Punished by 15 years prison and/or $250,000 fine. 1/24/11 - Seminar 3 - Chapter 3

Statutory Elements • Personal identifying information or documents taken without consent to obtain money, credit, goods, services, employment, or anything of value. 1/24/11 - Seminar 3 - Chapter 3

Personal Identification Document • A document containing personal identifying information (i.e., driver’s license). • An individuals card (i.e., ATM card) or plate, if it can be used alone or in conjunction with another device to obtain money, goods, services, or anything of value. • Any other device that is unique to, assigned to, or belongs to an individual and that is intended to be used to access services, funds, or benefits. 1/24/11 - Seminar 3 - Chapter 3

An Individual’s name Phone numbers SSN ID number assigned by employer ID number of a depository account DNA Profile ESNs Address Driver’s License Number Employer Maiden name of individual’s mother Taxpayer identification number PINs Personal Identifying Information 1/24/11 - Seminar 3 - Chapter 3

Mandatory Reporters • Fair and Accurate Credit Transactions Act (FACT Act) of 2003 (15 U.S.C. 1681) requires victims to provide a police report to credit agencies to prove victimization. • In response, some states have made reporting identity theft mandatory for police. 1/24/11 - Seminar 3 - Chapter 3

Mandatory Reporters, Con’t • Example: State of Wisconsin Statute 943.201(4) mandates that law enforcement prepare a report of identity theft for victims in their jurisdiction or, if it is believed they do not have jurisdiction, police must inform the individual which law enforcement agency does. 1/24/11 - Seminar 3 - Chapter 3

Three Primary Types of I.D. Theft • True name fraud • Account takeover • Criminal identity theft 1/24/11 - Seminar 3 - Chapter 3

True Name Fraud • Occurs when the thief uses the victim’s information to open up new accounts in his or her name. 1/24/11 - Seminar 3 - Chapter 3

Account Takeover • Occurs when the thief gains access to the victim’s financial accounts and makes unauthorized charges. 1/24/11 - Seminar 3 - Chapter 3

Criminal Identity Theft • Happens when the thief gets arrested by law enforcement and provides police with the victim’s identity, thereby creating a false criminal record. 1/24/11 - Seminar 3 - Chapter 3

Stealing information from employers Hacking into computer systems Dumpster diving Stealing mail Stealing wallets or purses Burglarizing a home Social engineering Email and Web site scams. Open source Web sites Shoulder surfing Skimming Common Ways Thieves Steal Identity 1/24/11 - Seminar 3 - Chapter 3

Combating Identity Theft • NCIC identity theft file • Victim reports an identity theft complaint to police. • Police provide the victim with an NCIC password. • If suspect gets stopped and does not know password, he or she is discovered and arrested. 1/24/11 - Seminar 3 - Chapter 3

A Gateway Crime • It is often facilitated to commit other crimes: • Credit card fraud • Forgery and check fraud • Theft by fraud • Mortgage fraud and takeover • Theft of phone service • Satellite and cable theft • Committed for financial gain • Committed to conceal or hide 1/24/11 - Seminar 3 - Chapter 3

Immigrant Identity Theft • Stolen identities used by illegal immigrants to work. • Average victims see their social security numbers shared about 30 times. • Often discovered by victim when the IRS notifies them of undocumented income. 1/24/11 - Seminar 3 - Chapter 3

Immigrant Identity Theft, Con’t • Side effects include: • False criminal records • Ruined victim credit ratings • Illegal social security benefits • Income tax sanctions 1/24/11 - Seminar 3 - Chapter 3

Mortgage Fraud • Popular among identity thieves and organized crime. • The scheme involves a “customer,” real estate broker, straw sellers, and straw buyers who funnel the money into accounts that have been established with false or stolen identities. 1/24/11 - Seminar 3 - Chapter 3

Chapter 3 – Seminar 3