CHAPTER.6.

Prohibited Actions on Cyber

CHAPTER.6.Prohibited Actions on Cyber 6.1 Pornography 6.2 IPR Violations: software piracy, copyright infringement, trademarks violations, theft of computer source code, patent violations 6.3 Cyber Squatting 6.4 Cyber Terrorism: Targeted attacks on military installations, power plants, air traffic control, banks, trail traffic control, telecommunication networks are the most likely targets. Others like police, medical, fire and rescue systems etc. 6.5 Banking/Credit card Related crimes 6.6 E-commerce/ Investment frauds 6.6.1 Sales and Investment frauds 6.7 Sale of illegal articles 6.8 Defamation (Cyber smearing) 6.9 Cyber Stacking. 6.1) Pornography: The literal mining of the term 'Pornography' is describing or showing sexual acts in order to cause sexual excitement through books, films, etc. This would include pornographic websites; pornographic material produced using computers and use of internet to download and transmit pornographic videos, pictures, photos, writings etc. Adult entertainment is largest industry on internet. There are more than 420 million individual pornographic WebPages today. Research shows that 50% of the web-sites containing potentially illegal contents relating to child abuse were Pay-Per-View. This indicates that abusive images of children over Internet have been highly commercialized. Pornography delivered over mobile phones is now a burgeoning business, driven by the increase in sophisticated services that deliver video clips and streaming video, in addition to text and images. Effects of Pornography Research has shown that pornography and its messages are involved in shaping attitudes and encouraging behavior that can harm individual users and their families. Pornography is often viewed in secret, which creates deception within marriages that can lead to divorce in some cases. In addition, pornography promotes the allure of adultery, prostitution and unreal expectations that can result in dangerous promiscuous behavior. Some of the common, but false messages sent by sexualized culture. Sex with anyone, under any circumstances, any way it is desired, is beneficial and does not have negative consequences. Women have one value - to meet the sexual demands of men. Marriage and children are obstacles to sexual fulfillment. Everyone is involved in promiscuous sexual activity, infidelity and premarital sex. Pornography Addiction Dr. Victor Cline, an expert on Sexual Addiction, found that there is a four-step progression among many who consume pornography. 1.Addiction: Pornography provides a powerful sexual stimulant or aphrodisiac effect, followed by sexual release, most often through masturbation. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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2.Escalation: Over time addicts require more explicit and deviant material to meet their sexual "needs." 3.Desensitization: What was first perceived as gross, shocking and disturbing, in time becomes common and acceptable. 4.Acting out sexually: There is an increasing tendency to act out behaviors viewed in pornography. Child Pornography is a very unfortunate reality of the Internet. The Internet is being highly used by its abusers to reach and abuse children sexually, worldwide. The Internet is very fast becoming a household commodity in India. Its explosion has made the children a viable victim to the cyber crime. As more homes have access to Internet, more children would be using the Internet and more are the chances of falling victim to the aggression of pedophiles. Pedophiles are persons who intentionally prey upon children. Specially with a teen they will let the teen know that fully understand the feelings towards adult. Pedophiles lure the children by distributing pornographic material, then they try to meet them for sex or to take their nude photographs including their engagement in sexual positions. How pedophiles operate? 1. Pedophiles use a false identity to trap the children/teenagers 2. Seek child/teen victim in the kids areas on the services, such as the Teens BB, Games BB, or chat areas where the kids gather. 3. Befriend the child/teen. 4. Extract personal information from the child/teen by winning his/ her confidence. 5. Get the e-mail address of the child/teen and start making contacts on the victims e-mail address as well. Sometimes, these emails contain sexually explicit language. 6. They start sending pornographic images/text to the victim including child pornographic images in order to help child/teen shed his/ her inhibitions so that a feeling is created in the mind of the victim that what is being fed to him is normal and that everybody does it. 7. Going a step further, they then extract personal information from child/teen. 8. At the end of it, the pedophiles set up a meeting with the child/teen out of the house and then drag him/ her into the net to further sexually assault him/ her or to use him/ her as a sex object
( In physical world, parents know the face of dangers and they know how to avoid and face the problems by following simple rules and accordingly they advice their children to keep away from dangerous things and ways. But in case of cyber world, most of the parents do not themselves know about the basics of the Internet and dangers posed by various services offered over the Internet. Hence the children are left unprotected in the cyber world. Pedophiles take advantage of this situation and lure the children, who are not advised by their parents or by their teachers about what is wrong and what is right for them while browsing the Internet. )

Section 67 of the IT Act - 2000 is the most serious Indian law penalizing cyber pornography. Other Indian laws that deal with pornography include the Indecent Representation of Women (Prohibition) Act and the Indian Penal Code. Actions covered by section: Publishing, causing to be published transmitting cyber pornography. The punishment provided under this section is as under: First offence: Simple or rigorous imprisonment up to 5 years and fine up to Rs 1 lakh Subsequent offence: Simple or rigorous imprisonment up to 10 years and fine up to Rs 2 lakh Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Federal law regarding pornography on the Internet remained tied up in the courts in 2001. Pornography remains widely available on the Internet; child pornography is treated severely under the law. Both federal and state law enforcement agencies routinely target child pornography online, and both U. S. Customs and the FBI maintain programs that encourage citizen reporting of criminal images of minors found on websites.
Note: Applicable law (Before 27 October, 2009): Section 67 of the Information Technology Act. Applicable law (After 27 October, 2009): Section 67 of the Information Technology Act and depending upon the content, sections 67A and 67B may also apply.

6.2) IPR Violations: software piracy, copyright infringement, trademarks violations, theft of computer source code, patent violations IPR violation: The major legal and ethical problems that arise in terms of the Internet and electronic media deal with intellectual property issues. There are well developed laws that govern physical property. Physical property, also known as tangible property, is property that we can touch and feel. Intellectual property, on the other hand, deals with the ownership of ideas or the expression of ideas. Since ideas cannot be touched or felt, but they do belong to the person who developed (or authored) them, they are known as intangible property. There are several forms of legal protection available for intellectual property. These are: trade secret protection copyright protection trademark protection patents. IPR violation is a wide spread social disease and needs to be eradicated from its roots. This can only be achieved with a very high level of competence and experience. The problem of piracy unauthorized storage, copying, or dissemination of copyrighted material such as computer software, music, movies and books burgeoned along with the growth of the Internet. Existing federal copyright law makes it a crime to duplicate, store, or disseminate copyrighted materials for profit. India has a huge potential for such fraudulent activities, and we have set up a team of dedicated professionals to restrain such ongoing activities. In India, the Intellectual Property Rights (IPR) of computer software is covered under the Copyright Law. Accordingly, the copyright of computer software is protected under the provisions of Indian Copyright Act 1957. Major changes to Indian Copyright Law were introduced in 1994 and came into effect from 10 May 1995. Since most software is easy to duplicate, and the copy is usually as good as original, the Copyright Act was needed. Some of the key aspects of the law are According to section 14 of this Act, it is illegal to make or distribute copies of copyrighted software without proper or specific authorization. Section 63 B stipulates a minimum jail term of 7 days, which can be extended up to 3 years. a) What is software piracy? Theft of software through the illegal copying of genuine programs or the counterfeiting and distribution of products intended to pass for the original is termed as termed as software piracy. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Software piracy is the mislicensing, unauthorized reproduction and illegal distribution of software, whether for business or personal use. Protect yourself from the risks of software piracy with helpful tips how to identify counterfeit or other misuse of software. Pirated software hurts everyonefrom software developers to retail store owners, and ultimately to all software users. Furthermore, the illegal duplication and distribution of software has a significant impact on the economy. Examples of software piracy 1. End user copying - Friends loaning disks to each other, or organizations underreporting the number of software installations they have made. 2. Hard disk loading Hard disk vendors loads pirated software 3. Counterfeiting - large-scale duplication and distribution of illegally copied software. 4. Illegal downloads from the Internet - By intrusion, cracking serial numbers etc. A consumer of pirated software has a lot to lose He gets untested software that may have been copied thousands of times over, potentially containing hard-drive-infecting viruses No technical support in case of software failure No warranty protection No legal right to use the product Scenario1: The software pirate sells the pirated software in physical media (usually CD ROMs) through a close network of dealers.
Applicable law (Before 27 October, 2009): Section 43 & 66 of the Information Technology Act and section 63 of Copyright Act. Applicable law (After 27 October, 2009): Section 43 & 66 of the Information Technology Act and section 63 of Copyright Act.

Scenario 2: The software pirate sells the pirated software through electronic downloads through websites, bulletin boards, newsgroups, spam etc.
Applicable law (Before 27 October, 2009): Section 43 & 66 of the Information Technology Act and section 63 of Copyright Act. Applicable law (After 27 October, 2009): Section 43 & 66 of the Information Technology Act and section 63 of Copyright Act.

b) What is a Copyright infringement? Copyright infringements and piracy are not victimless crimes as many people think; the true victims are the creators, designers, the authors, composers, songwriters, film makers and investors. Copyright Infringement is the unauthorized or prohibited use of works / copyrighted material in a manner that violates one of the copyright owner's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works that build upon it. There are many different ways copyright owners may find their copyright has been infringed. In the new interpretation online piracy is seen as copyright infringement and those who violate the law will be prosecuted accordingly. The interpretation also set sentence criteria on CD, VCD and software piracies. Now a person who copies literature, music, movie, TV programs and software in more than 5,000 CDs or VCDs without the permission from the copyright owners will be sentenced in prison for three to seven years. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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(What is the difference between piracy and counterfeiting? The term "counterfeit" describes fake goods. The term "piracy" describes the act of reproducing movies, music, books or other copyrighted works without permission from the copyright owner.)

c) What is a Trademark? A trademark protects words, names, symbols, sounds, phrase, logo, or colors that distinguish goods and services from those manufactured or sold by others and indicate the source of the goods. Trademarks, unlike patents, can be renewed forever as long as they are being used in commerce. Legal Issues Involving Trademarks/ Trademark Violation: Trademark rights do not stop others from copying a product, but they do prevent them from calling or labeling their product by a name or phrase that is confusingly similar to the trademark. Trademark protection is obtained automatically when the mark is applied to a product that is then sold. Trademark protection is available for a mark or phrase that is not already in use by someone else. In addition, it must (1) not be just geographically descriptive (e.g. Chicago Retail Store), (2) not be just descriptive of the type of goods (e.g. The Soft Drink Store), (3) not be just a surname (e.g. Smith Enterprises), and (4) not be likely to deceive others. Trademarks can be registered with the U.S. Patent Office and this provides some legal benefits. Names that create a false impression about a product or which might mislead others in terms of the product or the company cannot be protected by trademark. This "likelihood of confusion" is an important factor in determining trademark infringement. Trade Secret Protection: This method of protecting ownership of an idea is to ensure that the idea is kept a secret. Generally, a trade secret can include a formula, pattern, compilation, program, device, method, technique or process that is used in one's business, and has independent economic value that provides an advantage over competitors who are not aware of it or use it. Under most circumstances, a trade secret is lost once it is independently discovered. Example of trade secret is the formula used in preparing Coca Cola syrup. Very few employees know the formula, and those who do are required to sign nondisclosure agreements in order to have access to it. The formula is safe as long as no employee divulges the secret. The company could take them to court if they did so. Another example of a trade secret may be a companys business plan or strategy. Trade secrets can only exist if the basis for the idea can be kept a secret. This may not be possible in the world of computer technology and programming. A new Trademark regime has been introduced in India since September 15, 2003. The new Trade Marks Act, 1999 has many innovative features: [1] Service Marks: [2] Collective Marks: [3] Well-known marks: [4] Enlarged scope of registration: [5] Stringent punishment: [6] Appellate Board: [7] Expedited procedure: [8] Enhanced renewal period: [9] License agreements do not need to be compulsorily registered. [10] Marks may include the shape of goods. [11] Marks may include a combination of colors. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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d) What is a Patent? A patent is a right of ownership given to a new idea for a machine, manufacture, composition of matter, or method, or for an improvement on an existing one of any of these. The right of ownership is given for 17 years. In order to get this right, the applicant must state the details of the idea clearly in writing and submit it to the U.S. Patent and Trademark Office for their assessment of its uniqueness. Patents can be licensed or sold to others. Patents can sometimes be combined with copyrights or trademarks. For example, if someone writes a computer program that does something new, it can be copyrighted. If the program also meets the criteria for a patent because it deals with a new method, then it may be patentable too. Patents are territorial in that patent protection must be applied for in each country where protection is sought. What is a Patent Violation? Patent Violation is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent violation may vary by jurisdiction(field), but it typically includes using or selling the patented invention. In many countries, a use is required to be commercial (or to have a commercial purpose) to constitute a patent violation. The scope of the patented invention or the extent of protection is defined in the claims of the granted patent. In other words, the terms of the claims inform the public of what is not allowed without the permission of the patent holder. Patents are territorial, and infringement is only possible in a country where a patent is in force. The scope of protection may also vary from country to country, because the patent is examined by patent office in each country or region and may have some difference of patent ability, so that a granted patent has not worldwide enforceability. Patent law of India has the following most main features, which decide whether a patent will be granted or not:1. The Object: The object of patent law in India is to encourage scientific research, new technology, and industrial progress. 2. Inventive Step: The fundamental principle of Patent law is granted only for an invention. The Indian Patent Law named as The Patents Act introduced in 1970 & amended (modified) by The Patents (Amendment) Act 2005. The Patents Rules, 2003, as amended by The (Amendment) Rules 2006. e) What is Source Code Theft? Computer source code is the most important asset of software companies. Simply put, source code is the programming instructions that are compiled into the executable files that are sold by software development companies. As is expected, most source code thefts take place in software companies. Some cases are also reported in banks, manufacturing companies and other organizations that get original software developed for their use. Scenario 1: The suspect (usually an employee of the victim) steals the source code and sells it to a business rival of the victim.

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Scenario 2: The suspect (usually an employee of the victim) steals the source code and uses it as a base to make and sell his own version of the software. Modus Operand: If the suspect is an employee of the victim, he would usually have direct or indirect access to the source code. He would steal a copy of the source code and hide it using a virtual or physical storage device. If the suspect is not an employee of the victim, he would hack into the victims servers to steal the source code. Or he would use social engineering to get unauthorized access to the code. He would then contact potential buyers to make the sale for scenario 1. He would then modify the source code (either himself or in association with other programmers) and launch his own software for scenario 2. Usual motives: Illegal financial gain. Applicable law (Before 27 October, 2009): Sections 43, 65 & 66 of the Information Technology Act and section 63 of Copyright Act. Applicable law (After 27 October, 2009): Sections 43, 65, 66 & 66B of the Information Technology Act and section 63 of Copyright Act. Section 65 of the Information Technology Act - 2000 in india, provides for punishment of tampering of computer source code whosoever knowingly or intentionally conceals, destroys or alters computer source code when it is required to be kept by law shall be punished with imprisonment up to 3 years or fine up to 2 lakhs or both. 6.3) Cyber Squatting: Cyber squatting (also known as domain squatting), cyber squatting is registering, trafficking in, or using a domain name with bad-faith OR Cyber squatting refers to the bad faith registration of a domain name containing another persons brand or trademark The term derives from squatting, the practice of inhabiting someone else's property without their permission. In one variation of cyber squatting, called typo squatting. Cyber squatters sometimes register variants of popular trademarked names, a practice known as typo squatting. Typo squatters rely on the fact that Internet users will make typographical errors when entering domain names into their web browsers. Once a cyber squatter has registered such a domain name, the cyber squatter can place advertisements on a website linked to that domain name, and collect income any time an Internet user clicks on one of those advertisements. Some common examples of cyber squatting include: The omission of the dot in the domain name: wwwexample.com; A common misspelling of the intended site: exemple.com A differently phrased domain name: examples.com A different top-level domain: example.org Another strategy is as follows: Internet domain name registrations are for a fixed period of time. If the owner of a domain name doesn't re-register the name with an internet registrar prior to the domain's expiration date, then the domain name can be purchased by anybody else after it expires.At this point the registration is considered lapsed. A cybersquatter may Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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use automated software tools to register the lapsed name the instant it is lapsed. This strategy is one of a family of identity theft schemes including renewal snatching, extension exaggeration and alert angling. (Domain names are also trademarks and protected by ICANNs domain dispute resolution policy and also under trademark laws. Cyber Squatters registers domain name identical to popular service providers domain so as to attract their users and get benefit from it.)
Cyber squatting is a Big Business in India

India forensic Research Foundation have came out with the research report on Domain Squatting in Banking Industry ( Country Code Top Level Domain Names).The report provides thousands of insights the problem of cyber squatting in India and some interesting facts about the banking industry in India. This is a first of its nature research after the online registry in India was launched on 16.02.2005. The following factors will be considered in determining whether a domain name has been registered in bad faith. The first four would count against a determination of bad faith while the remainder would weigh in favor of a bad faith determination. 1. If registrant has any trademark or other intellectual property rights in the name. 2. If this is the legal or nickname of the registrant. 3. The registrant's prior use of the domain name in connection with the good faith offering of goods and services. 4. Lawful noncommercial or fair use of the mark in a web site under the domain name. 5. Intent to divert to a site that could harm the trademark owner's goodwill - either for commercial gain or with intent to tarnish by creating likelihood of confusion as to source, sponsorship or affiliation, or endorsement of the site. 6. Offer to sell the domain name without having used, or having an intent to use, it in the bona fide offering of goods or services, or a prior pattern of such conduct. 7. Intentional provision of misleading contact information in the domain name registration application or the history of such conduct. 8. Warehousing of multiple domain names known to be identical or confusingly similar to distinctive marks or dilutive of famous marks, without regard to the goods or services of the parties. 9. The extent to which a mark is distinctive or famous. The World Intellectual Property Organization (WIPO) saw a 20 per cent increase in the number of cyber squatting (abusive registration of trademarks as domain names) cases filed in 2005 as compared to 2004. In 2005, a total of 1,456 cyber squatting cases were filed with WIPO's Arbitration and Mediation Centre, according to a WIPO release. Securing domain name protection in India is a very tedious and troublesome task as India has no domain name protection law as well as cyber squatting law. All cases of cyber squatting are dealt with under the trade mark act, 1999 of India. This is the main reason why domain name dispute resolution services in India are provided by few selective players only.

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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6.4) Cyber Terrorism: Cyber Terrorism is the use of Internet based attacks in terrorist activities, including acts of deliberate, large-scale disruption of computer networks, especially of personal computers attached to the Internet, by the means of tools such as computer viruses. Cyber terrorism is the premeditated, politically motivated attacks which result in violence against noncombatant targets by sub national groups or clandestine agents. Computers and the internet are becoming an essential part of our daily life. They are being used by individuals and societies to make their life easier. They use them for storing information, processing data, sending and receiving messages, communications, controlling machines, typing, editing, designing, drawing, and almost all aspects of life. The most deadly and destructive consequence of this helplessness is the emergence of the concept of cyber terrorism. The traditional concepts and methods of terrorism have taken new dimensions, which are more destructive and deadly in nature. The expression "cyber terrorism" includes an intentional negative and harmful use of the information technology for producing destructive and harmful effects to the property, whether tangible or intangible, of others. For instance, hacking of a computer system and then deleting the useful and valuable business information of the rival competitor is a part and parcel of cyber terrorism The word cyber terrorism refers to two elements: cyberspace and terrorism. Another word for cyberspace is the virtual world i.e. a place in which computer programs function and data moves. Targeted attacks on military installations, power plants, air traffic control, banks, trail traffic control, telecommunication networks are the most likely targets. Others like police, medical, fire and rescue systems etc. Cyber terrorism is an attractive option for modern terrorists for several reasons. 1. It is cheaper than traditional terrorist methods. 2. Cyber terrorism is more anonymous than traditional terrorist methods. 3. The variety and number of targets are enormous. 4. Cyber terrorism can be conducted remotely, a feature that is especially appealing to terrorists. 5. Cyber terrorism has the potential to affect directly a larger number of people. 6. The action is very difficult to be tracked. 7. They can hide their personalities and location. 8. There are no physical barriers or check points to cross. Forms of cyber terrorism: (I) Privacy violation: The violation of privacy attracts both civil as well as criminal consequences under the respective laws. The various provisions of the Act aptly protect the online privacy rights of the citizens. (II) Secret information appropriation and data theft: A computer network owned by the Government may contain valuable information concerning defense and other top secrets, which the Government will not wish to share otherwise. The same can be targeted by the terrorists to facilitate their activities, including destruction of property. It must be noted that the definition of property is not restricted to moveable or immoveable alone. (III) Demolition of e-governance base:

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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The aim of e-governance is to make the interaction of the citizens with the government offices hassle free and to share information in a free and transparent manner. Right to receive and impart information is implicit in free speech. This, right to receive information is, however, not absolute but is subject to reasonable restrictions which may be imposed by the Government in public interest. (IV) Distributed denial of services attack: A distributed denial of service (DoS) attack is accomplished by using the Internet to break into computers and using them to attack a network. Hundreds or thousands of computer systems across the Internet can be turned into zombies and used to attack another system or website. (V) Network damage and disruptions: The main aim of cyber terrorist activities is to cause networks damage and their disruptions. This activity may divert the attention of the security agencies for the time being thus giving the terrorists extra time and makes their task comparatively easier. This process may involve a combination of computer tampering, virus attacks, hacking, etc. Some incidents of cyber terrorism: The following are notable incidents of cyber terrorism: In 1998, ethnic Tamil guerrillas swamped Sri Lankan embassies with 800 e-mails a day over a two-week period. The messages read "We are the Internet Black Tigers and we're doing this to disrupt your communications." Intelligence authorities characterized it as the first known attack by terrorists against a country's computer systems. During the Kosovo conflict in 1999, NATO computers were blasted with e-mail bombs and hit with denial-of-service attacks One of the worst incidents of cyber terrorists at work was when crackers in Romania illegally gained access to the computers controlling the life support systems at an Antarctic research station, endangering the 58 scientists involved. More recently, in May 2007 Estonia was subjected to a mass cyber-attack by hackers inside the Russian Federation which some evidence suggests was coordinated by the Russian government, though Russian officials deny any knowledge of this. This attack was apparently in response to the removal of a Russian World War II war memorial from downtown Estonia Here are few key things to remember to protect from cyber-terrorism: 1. All accounts should have passwords and the passwords should be unusual, difficult to guess. 2. Change the network configuration when defects become know. 3. Check with venders for upgrades and patches. 4. Audit systems and check logs to help in detecting and tracing an intruder. 5. If you are ever unsure about the safety of a site, or receive suspicious email from an unknown address, don't access it. It could be trouble. Effects of Cyber Terrorism on economic & social life Direct Cost Implications Loss of sales during the disruption Staff time, network delays, intermittent access for business users Increased insurance costs due to litigation Loss of intellectual property research, pricing, etc. Costs of forensics for recovery and litigation Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Loss of critical communications in time of emergency. Indirect Cost Implications Loss of confidence and credibility in our financial systems Tarnished relationships& public image globally Strained business partner relationships domestic and internationally Loss of future customer revenues for an individual or group of companies Loss of trust in the government and computer industry Note: Information Technology (Amendment) Act 2008 has been notified and enforced on 27th Oct, 2009.This Act punishes various cyber crimes including Cyber Terrorism. For punishment for cyber terrorism. cyber terrorism a punishable crime with highest fine and imprisonment similar to the lines of Section 121 and Section 120 B of IPC might be considered, as the punishment with imprisonment of either description for a term which might extend to 10 years is the highest imprisonment terms given for any offence under the IT Act. It was also stated that morphing would get covered in sub-clause (1) of Sections 43 and 66F. 6.5) Banking/Credit card Related crimes:In the corporate world, Internet hackers are continually looking for opportunities to compromise a companys security in order to gain access to confidential banking and financial information. Use of stolen card information or fake credit/debit cards are common. Bank employee can grab money using programs to deduce small amount of money from all customer accounts and adding it to own account also called as salami. Cyber-related crimes present high risk to banking industry. What types of cybercrimes are risks specific to the banking industry and what can be done to mitigate them? With plenty of companies using the Internet as marketing and sales tools, relying on high-speed communication networks, and encouraging real-time remote and a wireless mobile computing, the likelihood of loss and intrusion (interruption) grows daily. With the advent of computers (and especially the Internet) businesses are subject to threats of malicious activities and cyber-crimes like hacking (i.e., the unauthorized use or attempt to circumvent the security mechanisms of an information system or network), cracking (i.e., breaking into a computer system), phishing (i.e., attempting to acquire identifiers and passwords), or phreaking (i.e., cracking a phone or communication network). The banking sector consists of public sector private sector and foreign banks apart from smaller regional and co-operative banks. In the market, various IT-based banking products, services and solutions are available. The most common of them are: Phone Banking; ATM facility; Credit, Debit and Smart Cards; Internet Banking & Mobile Banking; SWIFT Network & INFINET Network; Connectivity of bank branches to facilitate anywhere banking. The banking sector in India is on the verge of revolutionary changes in the way it functions and delivers its services to customers. The traditional brick-and mortar bank branches are getting networked and becoming an integral part of an enterprise wide banking platform, called core banking solutions.

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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What is Bank fraud? Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense. While the specific elements of a particular banking fraud law vary between jurisdictions, the term bank fraud applies to actions that employ a scheme or artifice, as opposed to bank robbery or theft. For this reason, bank fraud is sometimes considered a white-collar crime. Are You a Target of Bank Fraud? Bank and banking related fraud can occur in many ways from cheque fraud to credit card fraud. Read on to learn about some of the different types of bank and banking related frauds and learn ways to protect your personal information and prevent yourself from becoming the next target of bank and banking related fraud. Types of Bank and Banking Related Frauds: Cheque Fraud: is responsible for the loss of about $815 million yearly, which is nearly 12 times the amount robbed from banks each year. Many types of cheque scams exist, including: Forged Signatures involves forging a signature on legitimate blank check Forged Endorsement includes endorsing and cashing or depositing a stolen check Counterfeit Checks is on the rise with the advancement in color copying and desktop publishing Altered Checks where a person changes the name of the payee or dollar amount on a legitimate check Check Kiting where a person deposits a non-sufficient fund check into an account, then writes another check against that amount for another account. Uninsured Deposits: occurs when illegitimate companies persuade customers with high rates of interest or offshore secrecy to avoid paying taxes. These companies are not monitored or authorized by any federal bank or financial institution, meaning depositors do not receive protection or insurance on their investments from any state or federal institution. Credit Card Fraud: is a common type of fraud that affects millions each year. Statistics show that credit card causes $500 million in damages to card companies and credit card holders. So, its wise to learn how to keep your credit card and bank documents safe to prevent credit fraud from happening to you. And, if you suspect that youre a target of credit fraud contact your bank or credit card company immediately to check for fraud. Falsification of Loan Applications: also known as Loan Fraud. It occurs when a person produces false information to qualify for a loan, such as a mortgage for their house. Sometimes, loan officers may be in on the fraud. Ways To Protect Yourself from bank and banking related fraud: The best way to protect yourself from bank and banking related fraud is by being informed of these types of fraud. Here are some useful tips you can use to help keep your money safe: Keep an eye on your credit cards, bank documents, and cards at all times Treat your cards and check book like its cash Monitor your accounts and keep receipts of your purchases to check against your monthly statements Report any suspicious or bogus activity or charges made to your accounts Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Write down all your card numbers and keep it in a safe place, incase you need to report a lost or stolen card Educate yourself about the risks of online banking fraud. What is Credit card fraud? Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also an adjunct to identity theft. According to the Federal Trade Commission, while identity theft had been holding steady for the last few years, it saw a 21 % increase in 2008. Credit/debit card fraud is committed when one person 1) fraudulently obtains, takes, signs, uses, sells, buys, or forges someone else's credit or debit card or card information; 2) uses his or her own card with the knowledge that it is revoked or expired or that the account lacks enough money to pay for the items charged; and 3) sells goods or services to someone else with knowledge that the credit or debit card being used was illegally obtained or is being used without authorization.4) A thief could also open new accounts in the victims name, incurring more charges on the victims line of credit. These actions could in turn affect not only the victims immediate pocketbook, but future credit as well. The Identity Theft Resource Center (ITRC) predicts that the current economic downturn may lead to an increase in credit card scams and fraud. The ITRC suggests that tight credit in a strained economy could lead thieves to advertise the availability of credit cards to those with poor credit or without a SSN.64 Unfortunately, statistics show the price of credit card fraud is high - forcing cardholders and credit card issuers as much as $500 million a year. Despite the fact that credit fraud continues to rise, many consumers are still unsure of how to protect their information. That's why it's important to learn as much as possible about credit card fraud, credit card fraud prevention and even the history of credit card fraud. If you are hit by credit fraud, be sure you know how to handle it. Learn what's involved in reporting will help you take the best and most efficient steps possible towards regaining control of your information. Tips for Avoiding Credit Card Fraud: Don't give out your credit card number online unless the site is a secure and reputable. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but provides some assurance. Don't trust a site just because it claims to be secure. Before using the site, check out the security/encryption software it uses. Make sure you are purchasing merchandise from a reputable source. Do your homework on the individual or company to ensure that they are legitimate. Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working. Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn't required to open the account. Consider not purchasing from sellers who won't provide you with this type of information. Check with the Better Business Bureau from the sellers area. Check out other websites regarding this person/company. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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Dont judge a person or company by their website. Flashy websites can be set up quickly. Be cautious when responding to special investment offers, especially through unsolicited email. Be cautious when dealing with individuals/companies from outside your own country. If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong. Make sure the transaction is secure when you electronically send your credit card number. Keep a list of all your credit cards and account information along with the card issuers contact information. If anything looks suspicious or you lose your credit card(s), contact the card issuer immediately.
Other Ref :http://www.spamlaws.com/credit-card-fraud.html

6.6) E-commerce/ Investment frauds Sales and Investment Fraud: Many companies using the Internet as marketing and sales tools, relying on high-speed communication networks, and encouraging real-time remote and a wireless mobile computing, the likelihood of loss and intrusion (interruption) grows daily. An offering that uses false or fraudulent claims to solicit investments or loans, or that provides for the purchase, use, or trade of forged or counterfeit securities. Merchandise (products) or services that were purchased or contracted by individuals online are never delivered. The fraud attributable to the misrepresentation of a product advertised for sale through an Internet auction site or the non-delivery of products purchased through an Internet auction site. Investors are enticed to invest in this fraudulent scheme by the promises of abnormally high profits. What Is Investment Fraud? Investment fraud is any scheme or deception relating to investments that affect a person or company. Investment fraud includes: illegal insider trading fraudulent manipulation of the Stock Market prime bank investment schemes 1) The term "insider trading" can refer to legal or illegal trades. Insider trading is legal when corporate insidersofficers, directors, and key employeesbuy and sell shares of their company. The United States Securities and Exchanges Commissions (SEC) keep a record of all trades conducted by corporate insiders. Insider trading, however, becomes illegal when corporate insiders violate their companys confidentiality and secretly share or sell private information to an outsider. The outsider will use the information not available to the public to buy or sell shares of the company to make a decent amount of profit. Illegal insider trading often gets pinpointed as the cause for the higher cost of capital for securities issuers, thus lowering overall economic growth. 2) Fraudulent manipulation of the Stock Market occurs mainly when telemarketers or spammers use persuasive techniques to paint pretty pictures of often-unprofitable investments over the phone or through unsolicited emails. Most of these fraudsters add legitimacy to their pitches by Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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referring to investment counselors and using professionally designed brochures to pitch the investment. Other types of Stock Market fraud include wash-trading, match-trading, and false prospectus. Wash trading happens when an investor simultaneously buys and sells shares of the same company through two different brokers. Wash trading is done to increase the activity of a stock in hopes of producing the impression that something big is coming. Match trading, is similar to wash trading, but usually a computer is used to pair-up shares of the same value to buy and sell to increase stock activity. At the end of each fiscal year, companies produce a prospectus for prospective buyers summarizing the companys goals, assets, debts, and financial risks to help buyers decide whether or not they should invest in a company. Sometimes companies produce false prospectus misrepresenting risks or losses to influence potential shareholders to invest. Learn more about the Golden Tree Asset Management. 3) Prime bank investment scheme is another type of investment fraud. Prime is a generic term used to describe legitimate financial institutions that issue investments. These schemes often claim false affiliations with organizations like the International Chamber of Commerce (ICC) and International Monetary Fund (IMF) to deceive investors. Offenders using this scheme trick prospective investors to believe that theyre participating in an innovative investment program. Offenders might request investors to sign papers agreeing not to disclose their identities, or any of the transactions made through the programs. How one can Spot an Investment Scheme? Some of the characteristics of these investment programs include: Using legal-looking documents and financial jargon to influence the buyer that the investments are credible and profitable promising high unrealistic returns in a short time of period shipping the money to offshore secrecy so investors can avoid paying taxes on guaranteed returns asking investors to promote the innovative investment programs or pitches to their friends and family If you spot an investment fraud or scheme, alert your local securities regulatory authorities or contact your local police and ask to speak to the Fraud Department. Fraud and the amendment of a section 34 application in India.
Other Ref: http://www.spamlaws.com/investment-fraud.html

Tips for Avoiding Investment Fraud: Dont judge a person or company by their website. Flashy websites can be set up quickly. Dont invest in anything you are not absolutely sure about. Do your homework on the investment and the company to ensure that they are legitimate. Check out other websites regarding this person/company. Be cautious when responding to special investment offers, especially through unsolicited email. Be cautious when dealing with individuals/companies from outside your own country. Inquire about all the terms and conditions. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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6.7) Sales of ill-legal article: This would include trade of narcotics, weapons and wildlife etc., by posting information on websites, auction websites, and bulletin boards or simply by using email communication. Research shows that number of people employed in this criminal area. Daily peoples receiving so many emails with offer of banned or illegal products for sale. It is becoming increasingly common to find cases where sale of illegal articles such as narcotics drugs, weapons, wildlife etc. is being facilitated by the Internet. Information about the availability of the products for sale is being posted on auction websites, bulletin boards etc. It is practically impossible to control or prevent a criminal from setting up a website to transact in illegal articles. Additionally, there are several online payment gateways that can transfer money around the world at the click of a button. The Internet has also created a marketplace for the sale of unapproved drugs, prescription drugs dispensed without a valid prescription, or products marketed with fraudulent health claims. Many sites focus on selling prescription drugs and are referred to by some as Internet pharmacies. These sites offer for sale either approved prescription drug products, or in some cases, unapproved, illegal versions of prescription drugs. This poses a serious potential threat to the health and safety of patients. The broad reach, relative anonymity, and ease of creating new or removing old websites, poses great challenges for law enforcement officials. Illustration: In March 2007, the Pune rural police cracked down on an illegal rave party and arrested hundreds of illegal drug users. The social networking site, Orkut.com, is believed to be one of the modes of communication for gathering people for the illegal drug party. The suspect creates an email ID using fictitious details. He then posts messages, about the illegal products, in various chat rooms, bulletin boards, newsgroups etc. Potential customers can contact the seller using the email IDs provided. Applicable law (Before/After 27 October, 2009): Information Technology Act usually does not apply. Depending upon the illegal items being transacted in, the following may apply: Narcotic Drugs and Psychotropic Substances Act, Arms Act, Indian Penal Code, Wildlife related laws etc. 6.8) Defamation (Cyber Smearing): It takes place with the help of computer and or internet. The information published in the website or email sent to defame targeting an individual or an organization. Defamation can be understood as the intentional infringement of another person's right to his good name. Defamation can be understood as tarnishing the image, respect or dignity of any person in front of right thinking members of the society. Cyber Defamation occurs when defamation takes place with the help of computers and / or the Internet. E.g. someone publishes defamatory matter about someone on a website or sends e-mails containing defamatory information to all of that person's friends A matter defaming a person is sent to the said person directly is not defamation however if the said mail is sent through CC or BCC to third parties and if the contents tarnish (blemish/dull) the image of the recipient it is defamation. Publication of defamatory articles and matter on a website are defamation. Cyber defamation is also called as Cyber smearing.

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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What is Internet Defamation? Internet Defamation is a negative false statement of material fact published on the Internet. With the Internet, defamatory statements can be published online to a worldwide audience, making Internet Defamation potentially disastrous to your reputation and to your business. It takes the expertise and experience of an Internet Defamation Lawyer to assist you in protecting your good name. Internet defamation laws may vary by jurisdiction. An Internet defamation lawyer with experience in cyber libel, cyber slander, Internet defamation law, and in-depth knowledge of the technical aspects of the Internet can effectively assist you to defend your name from cyber defamation. Internet Defamation Lawyers can assist you no matter where the Internet Defamation lies Lawyer from Internet Defamation Law Firm can assist you to protect your online reputation What if the defamatory statements are published by third parties in an Internet forum, Online Blog/internet? Counting with the experience of an Internet defamation law lawyer, in the absence of an expensive Internet defamation lawsuit, you may only be able to obtain the name of the poster of the Internet libel by securing the cooperation of the Internet Service Provider (ISP) or the owner of the website where the Internet defamation statements were posted. Internet business competition is unforgiving. Your competitors may attempt to engage in Internet business defamation, Internet libel, or online libel by posting defamatory posts to gain a competitive advantage. Defamatory forum posts, blog posts, or online articles could ruin your business. Once the Internet defamation is circulated on the Internet, recovering from Internet defamation may be difficult and time consuming. Your business may not be able to recover its lost customers and the business opportunities lost as a result of Internet defamation. An Internet defamation lawyer is an expert in removing defamatory posts on the Internet and in prosecuting legal action against those who defame your business online, even cyber-gripers. As an individual, a defamatory post may keep you from obtaining your dream job or from growing your own business. As a professional, Internet defamation may cause you to lose your clients and be questioned by your peers. Internet defamation attorneys (lawyers) can assist you to protect your good name. Position In India IPC (Indian panel code) on Defamation: IPC exclusively talks of defamation under Section 499: Whoever, by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said . . . to defame that person. Section 500 prescribes the punishment in such cases: Whoever defames another shall be punished with simple imprisonment for a term, which may extend to two years, or with fine, or with both. Developed By: Kejal C. Vadza
Sutex Bank College of Computer Applications & Science, Amroli, Surat

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The Indian IT Act also needs to evolve with the rapidly changing technology environment that breeds new forms of crimes and criminals. We are now beginning to see new categories and varieties of cyber crimes, which have not been addressed in the IT Act. This includes cyber stalking, cyber nuisance, cyber harassment, cyber defamation and the like. But through Section 67 of the same act provides for punishment for publishing of information which is obscene in electronic form. Whoever publishes or transmits or causes to be published in the electronic form, any material which is lascivious, shall be punished for a term upto 3 years or fine upto 5 lakhs.
Other ref: http://www.cyberdefamationlawyer.com/

6.9) Cyber stalking: It refers to use of the internet, email, or other electronics communications devices to stalk another person. Stalking involves harassing, or threatening behavior that an individual is engaged in repeatedly. Stalking laws requires that the perpetrator make a credible threat of violence against the victim; other includes threat against the victims immediate family. Cyber Stalking can be defined as the repeated acts harassment or threatening behavior of the cyber criminal towards the victim by using Internet services. Stalking in General terms can be referred to as the repeated acts of harassment targeting the victim such as 1. Following the victim 2. Making harassing phone calls 3. Killing the victims pet 4. Vandalizing victims property 5. Leaving written messages or objects Stalking may be followed by serious violent acts such as physical harm to the victim and the same has to be treated and viewed seriously. It all depends on the course of conduct of the stalker. Cyber-stalking refers to the use of the Internet, e-mail, or other electronic communications device to stalk another person. It is a relatively new form of harassment, unfortunately, rising to alarming levels especially in big cities like Mumbai. Who is a cyber stalker? A cyber stalker sends harassing or threatening electronic communication to the victim. Both kinds of stalkers online and offline - have desire to control the victims life. How does a cyber stalker operate? 1. A typical cyber stalker collects all personal information about the victim such as name, family background, telephone numbers of residence and work place, daily routine of the victim, address of residence and place of work, date of birth etc. If the stalker is the victims acquaintances, he/ she has easy access to this information. If the stalker is a stranger, he/ she collects the information from internet resources such as various profiles, the victim may have filled in while opening chat or e-mail accounts or while signing an account with some website. 2. The stalker may post this information on any website related to sex-services or dating services, posing as if the victim is posting this information and invite the people to call

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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3.

4. 5. 6.

7.

8.

the victim on her telephone numbers to have sexual services. A stalker even uses very filthy and obscene language to invite the interested persons. People of all kind from nook and corner of the World, who come across this information, start calling the victim at her residence and/or work place, asking for sexual services or relationships. Some stalkers subscribe the e-mail account of the victim to innumerable pornographic and sex sites, because of which victim starts receiving such kind of unsolicited e-mails. Some stalkers keep on sending repeated e-mails asking for various kinds of favors or threaten the victim. The stalkers follow their victim from message board to message board. They "hangout" on the same boards as their victim, many times posting notes to the victim, making sure the victim is aware that he/she is being followed. Many times they will "flame" their victim (becoming argumentative, insulting) to get their attention. Stalkers will almost always make contact with their victims through email. The letters may be loving, threatening, or sexually explicit. They will many times use multiple names when contacting the victim. In extreme cases, the stalker becomes bold enough to contact victim via telephone to make calls to the victim to threaten, harass, or intimidate him/ her. Ultimately, the stalker is even known to track the victim to his/ her home.

When does cyber stalking happen? In many cases, the cyber stalker and the victim had a prior relationship, and the cyber stalking begins when the victim attempts to break off the relationship. However, there also have been many instances of cyber stalking by strangers. Given the enormous amount of personal information available through the Internet, a cyber stalker can easily locate private information about a potential victim with a few mouse clicks or keystrokes. The fact that cyber stalking does not involve physical contact may create the misperception that it is more benign than physical stalking. This is not necessarily true. As the Internet becomes an ever more integral part of our personal and professional lives, stalkers can take advantage of the ease of communications as well as increased access to personal information. In addition, the ease of use and non-confrontational, impersonal, and sometimes anonymous nature of Internet communications may remove disincentives to cyber stalking. Put another way, whereas a potential stalker may be unwilling or unable to confront a victim in person or on the telephone, he or she may have little hesitation sending harassing or threatening electronic communications to a victim. Finally, as with physical stalking, online harassment and threats may be a prelude to more serious behavior, including physical violence.

Developed By: Kejal C. Vadza

Sutex Bank College of Computer Applications & Science, Amroli, Surat

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