Cyber Crime
Introduction Types of Cyber Crime

 Criminal activities that take place in cyberspace (the Internet).  Cybercrime is a growing concern for both law enforcement officials and consumers as a result of the rapid expansion of the Internet into all forms of business and commerce.  Cybercrime can be directed toward persons, property, companies, or government authorities.  All aspects of the Internet are vulnerable to such activities, including the World Wide Web, email, chat rooms, and newsgroups.

• Types of Cybercrime: – Unauthorized access by insiders (such as employees)‫‏‬ – System penetration by outsiders (such as hackers)‫‏‬ – Theft of proprietary information (whether a simple user ID and password or a trade secret worth millions of dollars)‫‏‬ – Financial fraud using computers – Sabotage of data or networks – Disruption of network traffic (e.g., denial of service attacks)‫‏‬

Types of Cybercrime
Viruses Worms Trojans Hoaxes Mail bombs Threats Harassment  Stalking  Fraud  Theft  Forgery  Piracy  Break-ins  Terrorism.

A survey in 2001 by the Computer Security Institute (CSI) in conjunction with the FBI

The most common types of cybercrime experienced by companies were virus infection, insider abuse of network resources, and unauthorized access by insiders. The Less common were system penetration, denial of service (DoS), theft of proprietary information, sabotage, fraud, and eavesdropping.

Hackers & Crackers
Introduction to “Hackers” Introduction to “Crackers” What Hackers do? What Crackers do? Why do Crackers exist? History of Cracking… The Situation Today….!! Example of Hackers & Crackers

 Hackers are a programmers.  They should have the knowledge of advanced technology of operating systems and programming languages. They may know of holes within systems and the reasons for such holes. They constantly seek further knowledge, freely share what they have discovered, and never, ever intentionally damage data.

What Hackers do?
 A ordinary programmer use only language library and compilers.  A programmer programs to learn or create, whether for profit or non-profit.  Hackers apply one more magical element: “Imagination”.  They probe the system for finding holes in software and snags in logic.  They write programs to check the integrity of other programs.  It is creation and improvement through the process of analysis.

A Cracker is a person who breaks into or otherwise violates the system integrity of remote machines, with malicious intent. Crackers can gain unauthorized access They can destroy vital data They can deny legitimate users service, or basically cause problems for their targets. Crackers can easily be identified because their actions are malicious.

What Crackers do?
 Crackers rarely write their own programs.  Instead, they beg, borrow, or steal tools from others.  They use these tools not to improve Internet security, but to subvert it.  They have technique, perhaps, but seldom possess programming skills or imagination.  They learn all the holes and may be exceptionally talented at practicing their dark arts.  A true cracker creates nothing and destroys much.  His chief pleasure comes from disrupting or otherwise adversely effecting the computer services of others.

Why do Crackers exist?
Crackers exist because they must. Because human nature is just so, frequently driven by a desire to destroy instead of create. Some crackers crack for profit. These may land on the battlefield, squarely between two competing companies. Perhaps Company A wants to disable the site of Company B. There are crackers for hire. They will break into almost any type of system you like, for a price.

Why do Crackers exist? (2)
 Some of these crackers get involved with criminal schemes, such as retrieving lists of TRW profiles.  These are then used to apply for credit cards under the names of those on the list.  Other common pursuits are cell-phone cloning, piracy schemes, and garden-variety fraud.  Other crackers are kids who demonstrate an extraordinary ability to assimilate highly technical computer knowledge.  They may just be getting their kicks at the expense of their targets.

History of Cracking…
It started with telephone technology. Originally, a handful of kids across the nation were cracking the telephone system. This practice was referred to as phreaking. Phreaking is now recognized as any act by which to circumvent the security of the telephone company. Although, in reality, phreaking is more about learning how the telephone system works and then manipulating it.

History of Cracking…(2)
Telephone phreaks employed different methods to accomplish this task. Early implementations involved the use of ratshack dialers, or red boxes. Ratshack was a term to refer to the popular electronics store Radio Shack. These were hand-held electronic devices that transmitted digital sounds or tones. Phreakers altered these off-the-shelf tone dialers by replacing the internal crystals with Radio Shack

History of Cracking…(3)
 Having made these modifications, they programmed in the sounds of quarters being inserted into a pay telephone.  From there, the remaining steps were simple.  Phreaks went to a pay telephone and dialed a number.  The telephone would request payment for the call.  In response, the phreak would use the red box to emulate money being inserted into the machine.  This resulted in obtaining free telephone service at most pay telephones.

The Situation Today….!!
 The situation today is radically different from the one 10 years ago.  Over that period of time, these two groups of people have faced off and crystallized into opposing teams.  The network is now at war and these are the soldiers.  Crackers fight furiously for recognition and often realize it through spectacular feats of technical prowess.  A month cannot go by without a newspaper article about some site that has been cracked.  Equally, hackers work hard to develop new methods of security to ward off the cracker hordes.  Who will ultimately prevail? It is too early to tell.  The struggle will likely continue for another decade or more.

Example of Hackers…

Dennis Ritchie, Ken Thompson, and Brian Kernighan

Famous Hackers

Bill Gates and Paul Allen

Paul Baran

Bjarne Stroustrup

Linus Torvalds

Example of Crackers…

Kevin Mitnik

Documented Cases
• One of the highest profiled banking computer crime occurred during a course of three years beginning in 1970. The chief teller at the Park Avenue branch of New York's Union Dime Savings Bank embezzled over $1.5 million from hundreds of accounts. • A hacking group called the MOD (Masters of Deception), allegedly stole passwords and technical data from Pacific Bell, Nynex, and other telephone companies as well as several big credit agencies and two major universities. The damage caused was extensive, one company, Southwestern Bell suffered losses of $370,000 alone. • In 1983, a nineteen year old UCLA student used his PC to break into a Defense Department international communications system.[

Documents cases…….
• Between 1995 and 1998 the Newscorp satellite pay to view encrypted SKY-TV service was hacked several times during an on-going technological arms race between a pan-European hacking group and Newscorp. The original motivation of the hackers was to watch Star Trek re-runs in Germany; which was something which Newscorp did not have the copyright to allow. • On 26 March 1999, the Melissa worm infected a document on a victim's computer, then automatically sent that document and copy of the virus via e-mail to other people.