Cybercrime exam

AI

branch of computer science that uses computational models to perform tasks that previously required human intelligence

generative AI

compiles existing info to create new content

dangers associated with AI

social manipulation through AI algorithms, weakening ethics and goodwill, autonomous weapons, financial crises, uncontrollable self-aware AI

API (application programming interface)

software that allows two applications to communicate with each other

issues with autonomous weapons powered by ai

1. immoral - cannot comprehend value of human life

2. threat to security- cheaper, safer, and more damage

3. lack of accountability- who is responsible and punished?

market spoofing

market manipulation where traders place orders to buy or sell securities but then cancel them before executed

front running or tailgating

investor buys or sells stock from it’s own account then fills customers orders that drive the price along with it, creating insider info out of thin air

turning test

method of inquiry in AI for determining whether a computer is capable of thinking like a human being

phising

sending emails or other messages purporting to be from reputable companies in order to induce individuals to reveal personal info such as passwords and credit card info

quishing

use of fraudulent QR codes in order to plant malware on devices and get access to personal data

smishing

sending texts purporting to be from reputable companies in order to induce individuals to reveal personal info such as passwords or credit card numbers

voice cloning

uses AI to create a synthetic copy of a person’s voice. typically used through phone calls where a voice recognition software prompts victim to respond and records their voice

CEO scam

mass emails sent to employees of a company impersonating a CEO or high-level employee. asks employees to make payment or share confidential info

wormGPT

chat gpt’s evil twin that is designed for malicious attacks

traditional phising

deceptive message with a sense of urgency to get you to click on an attachment, that when you download or click takes you to a spoofed website or installs malicious software on your device

AI phising

leverages machine learning and algorithm processing to make phising emails personalized, and greater in number

four pillars of AI phising

data analysis, personalization, content creation, scale and automation

black mamba

AI that is using a large language model which is designed to generate malware

identity theft

fraudulent acquisition and use of a person’s private identifying info, usually for financial gain

identity theft is considered a ____ crime

gateway

fastest growing group of victims of identity theft

children

financial identity theft

whenever someone uses another person’s info for financial gain

GD/GB fraud

when someone illegally uses another’s identity to claim benefits like SS, disability, or unemployment payments

identity thieves use your health insurance data to

pay for medical services

tax-related identity theft

when someone uses your stolen personal info, including your SS # to file a tax return claiming a fraudulent refund

HT identity theft

when someone forges a signature and submits a deed transfer to city hall showing you’ve sold your home to them

internet of things

the network of physical objects or “smart objects” that are connected to the internet and exchange data with other devices

internet of forgotten things

vast # of connected devices that have been abandoned by their manufacturers and are no longer supported with security updates

common risk with smart home devices

privacy intrusion

fraud

wrongful or criminal intentional deception intended to result in financial or personal gain, theft by deception

deception

key trait separating fraud from theft or larceny

technology influences fraud by allowing scammers to

organize sophisticated attacks that are also scalable

wire fraud

criminal act that involves using electronic communication, such as the internet, to commit fraud

business email compromise

criminal act in which an attacker obtains access to a BE account and imitates the owner’s identity, in order to defraud the company and its employees, customers, or partners

charity fraud

type of deception, that involves obtaining money from people who believe they are donating to a charity

charity scams are more heinous because

they usually occur after a natural disaster or emergency, preventing the real victims from getting assistance and influences future donors to be more reluctant to help

debt collection scams

criminal act where a scammer impersonates a debt collector and tries to defraud individuals by using fear and pressure to receive a debt payment from them

debt settlement/relief

scammers offer other options to pay off debt like consolidation, settlement, or forgiveness

FDIC logo scams

when companies (fake or real) use the FDIC logo even if they aren’t affiliated to trick customers into thinking that they are investing in a safe place where their money is guaranteed

fake banks (FDIC scam example)

websites with names that sound legit but are not, criminals try to entice people into creating an account or transferring money or disclosing info

malicious apps (FDIC logo scam examples)

banking apps that install malware on your phone or tablet

email links (FDIC scam examples)

designed to get people to click links that include malware

foreclosure relief or mortgage loan modification scams

scammers find desperate homeowners looking to avoid foreclosures via email or phone

grandparent scams

scammers pretend to be a relative in need to convince an elderly person to pay a ransom, fine, or fee and almost always happens first via phone

lottery or prize scams

contact individuals claiming to represent a lottery or sweepstakes. they demand that you quickly transfer or wire them money and they will release your winnings

man-in-the-middle scams

cyber attacks that allow attackers to intercept, alter, or steal sensitive data being exchanged between two parties

sale of nonexistent goods or services

scammers sell nonexistent goods or services online by advertising them at low prices on websites, social media, or classifieds

typical strategies by sale of nonexistent goods scammers

using logos, profiles, business details of reputable sellers, claim to have trouble with shipment, make excuses for why a customer can’t inspect potential purchase, create sense of urgency

typical payment requirements for goods and services scam

P2P payment apps, gift cards, money transfer services

machine learning in fraud detection

computer programs that learn from data to predict future events, can identify patterns and flag fraudulent activity, happens in banks when credit card spending is unusual and the bank freezes the account

AI in fraud prevention

AI can make decisions and process info much quicker than humans, use machine learning to flag activities and make macro lvel decisions or analyses

biometrics

an advanced form of identification that works by measuring and analyzing biological characteristics like fingerprints, eye retinas, or facial features

biometric authentification

used as a passwordless method of authetification, offering a more secure method of identification than a traditional password

rule-based systems

rules for algorithms and AI, as well as corporate decision making to highlight activities that are outside of normal patterns of behavior

blockchain technology

produces immutable and dependable records using digital ledgers that are decentralized, primary driver for all cryptocurrencies

predictive analytics

type of data analytics that interprets large data sets to form assumptions about risks and the probability of something happening

investment fraud

illegal sale or purported sale of financial instruments characterized by low or no-risk investments, guaranteed returns, overly-consistent returns, complex strategies, or unregistered securities

investment fraud trending up

2023 reported more money lost than any other category of fraud

while identity theft is most common fraud,

investment fraud is the most costly and fastest growing

why has investment fraud exploded?

new tech and interaction by millions, gambling online, COVID and crypto booms

cryptocurrency investment fraud

involves scammers exploiting people’s lack of knowledge on crypto to steal money

crypto investment fraud on micro level

occurs through building relationship with someone via tect or social media DMS, crosses with romance scams

crypto investment fraud on macro level

trying to promote either specific crypto coins or to create a culture of coercion and shame that encourages investors to pump more money into crypto and not pull out their money when crypto loses value

mark cuban case study

lost almost a mill of cryptocurrencies, there’s no higher authority to provde evidence of fraud so the bank or law enforcement cant get money back, this is also why scammers use crypto more commonly

pump-and-dumps

most large scale crypto frauds occur through pump and dumps

two big differences between stock PND and crypto PND

1. crypto doesn’t have regulators or agencies that can shut down sketchy traders

2. crypto can’t reach massive audiences of novices and advertise for free online

NFT

non-fungible tokens, one of a kind digital assets that can be bought and sold online using the blockchain

NFT fraud

when a scammer tricks a buyer or seller into gaining access to the victim’s crypto wallet

rug pull scams

when something is promoted online with famous personalities. creates trust and authenticity which leads people to believe the activity is safe and normal

crypto wallet

app designed to store your private key, keeping your crypto accessible at all times, it also allows you to send, receive, and spend cryptocurrencies

SIM swap

a basic account takeover fraud that targets weaknesses in two-factor authentication and two-step verification

reg flags in internet investment scams

promie of high returns with 0 risk, offshore operations, E-Currency sites, recruiting your friends, professional websites with little to no actual information, no written info on how money is made

ponzi scheme

fraud that lures investors and pays profits to early investors with funds from more recent investors, can now scale nuclear

rental investments

scammers take real ads for rental properties and repost them on sites like Craigslist

REIT investments

investment vehicles that allow people to invest in real estate without owning the physical properties themselves

ways REIT frauds defraud someone

1. misrepresenting the value of the REIT

2. ponzi scheme (steal from it)

3. unauthorized trading of shares

4. account manipulation by lying on financial statements to show property is doing better than actually is

cyberblackmail

far wider net than traditional black mail due to the use of the internet and social media

corporate black mail

involves threatening to do damage to a company’s infrastructure or reputation unless certain demands are met

threats involved with corporate black mail include

1. release of trade secrets

2. shut down the company’s tech

3. wipe out all of the company’s servers and data

4. damage the company’s reputation

return fraud

any scam method that abuses a business’ return process, a customer returns an item and gets a refund without being entitled to it

strategies used in return fraud

1. item never received

2. price arbitrage

3. price switching

4. buy online pick up in-store

5. cross-retailer returns

Adress Poisoning

a scam that watches the blockchain for transactions by sending a small amount of crypto to your wallet with a vanity address that looks very similar to the one that you just made a transaction with

check cooking

type of check fraud that involves using digital tools to alter stolen checks and cash them in

scam rap

subgenre of hip hop that originated in detroit between 2015-2020 that rap about how to commit various types of online fraud

voiceprint scams

voice phising using AI to replicate voices and trick people into sharing sensitive info

trolling

someone baits others into having pointless, time-consuming, and often aggressive online discussions, not a crime, but when paired with harrassment, bullying, or stalking it can be

shaming

public humiliation has been used by many cultures as a punishment

doxxing

act of searching for and publishing private or identifying info about a particular person on the internet, typically with malicious intent, not illegal in itself

stalking

action of engaging in a course of conduct directed at a specific person that would cause a reasonable person to: (A) fear for their safety or the safety of others, or (B) suffer substantial emotional distress

cyberstalking

use of electronic communication to harass, threaten, or intimidate someone, definitions are somewhat subjective

sextortion

criminal act and form of sexual exploitation that involves coercing a minor using or threatening to use images or videos that were previously obtained to demand additional ones that are sexual in nature

switch

a metal or plastic piece that can be made to fit the butt of a gun and allow a semi-automatic to fire as an automatic

lower-receiver part of gun

only part of most guns that require a background check to purchase from a dealer

SETs

technology-based innovations that enhance the five senses of law enforcement in order to prevent crime or stop those who commit crimes

UAVs

police drones or cop drones that can be used for a variety of tasks

ALPR

use cameras to capture images of license plates and compare them to databases

FRT

computer vision that uses optical input to identify and verify people in images and videos

two reasons why Law enforcement use FRT

1. proactively catch a wanted suspect by tracking their movements or identifying their location

2. reactively go back into their system during a trial as evidence to prove that a suspect was at a certain location at a certain time

Is FRT legal?

debate in Congress right now, primarily bc of concerns about privacy

Crime mapping

where crimes occur, types of crimes, how often they occur