THE MANY FACES OF CYBER-CRIME: THE IMPLICATIONS ONE-BANKING Ayo, C. K. (Ph.D),* ancl llabajidc, Uanicl Olutopc* '1'
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'''Dr. C harl es Korede !\ yo holds a R.S c, M.S c ami Ph .D. in Comput er Science . l ie is CUITentl y tiH.: I lead or Department of Co mputer and Information Science .. Coll ege or Science and T ec hnology, Covenant Uni versity. Ota . He is a member or the Ni gerian Computer Society (NSC) and Comput er Pro fe ss ional Registration Council or Nigeria (MPC ). E-mail: cba y_< l.!l!~~~il y_;_ti !(~!.LC OI~l *! Mr. Olutope Daniel 13ahajide (13Sc) is currentl y a Clraduatc/I- of se rvices and goo ds as we ll as stol e n or lo st ca rd s fraud (V ladimir, 2003). One of th e biggest proble ms of in sec urity is cau sed by th e broadband intern et access where sys te ms are le ft onlin e 24/7. Thus cyher-c rimin a ls cas h in o n this fa ct to ex ploit ga ps in sec urity netwo rk s · to defraud both indi viduals and co rporate organi za ti ons, while virus and worm attacks we re preva lent in a dial -up co nn ec tion , thi s problem is co mpounded in broadband access because of th e poss ibility of a third party to have access to th e sys te m (S mith :2004). match th e increase Ge nerall y, to awareness and acceptability of th e ne t, th ere is a relative boost in cyber-fraud . Hence it ha s become th e preferred too l for criminal s and terrori sts to attack th e un suspecting user. - The Intern et ha s prov id ed a virtual battlefield for countries to settle th e ir sco res. Particularly Taiwan against China, Israe l against Pales tin e, India again st Paki stan , China against US and Iraq again st US among others (Elmusharaf, 2004 ).
2.0 E-FRAUD This is a kind of fraud that is pe rpetrated through th e elec tro ni c gadgets. It in c lud es: cybe r-c rimes, viruses and worms, and cyber-terrori s m.
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2.1 CYBER-CRIME These refer to all forms of crime perpetrated through the inte rnet. It is otherwise referred to as Internet fraud . That is, usin g one or more component of (
th e l11tc me t suc h as Chat ruo111 s, E-1nail , Use net and th e Web , among others , to prese nt fraudul ent so licitati ons to pros pec ti ve victim s in oth er to co ndu ct fraudul ent tran sactions , or to tran smit th e proceeds o r fraud to finan c ial in stitution s (Bahu , 2004 ). This fraud is carried o ut und e r diffe rent names as li sted be low (G ue rin , 2004): Merchant Fraud This occurs throu gh a di shon es t stall or fak e merchants that collude with fraud sters to de fraud un suspectin g clients. It is e ith er that th e staff tran s mits th e client ' s credit card information to fraud ste rs who tak e over hi s account immediate ly o r th e me rchant him se lf puts up a fak e s it e \·Vith th e int ension of collecting th e clients' card information . Cardholder fraud Fraud perpetrated by ca rdhold er through th eir pa yme nt ca rd s. Clients, al'te r rece ivin g th e goods purc ha sed in stru c t th e ir ba nk s to stop payment o n th e ground that th ey diet not rece ive th e goods or that th e tran sac ti o n is under dispute . ATM fraud This fraud is now ve ry reduced because o f th e mandatory use of four di git PINs verifiable online. Th e fraud is perpetrated by capturing th e co nte nts o f th e mag neti c stripe as the card is inserted into th e reade r, a nd where such mea ns is not available th e fraudsters reso rt to "s hould er surfin g" loo kin g out for the ca rdh o ld er's PJN . Other forms of ATM fraud are : • Skimming This involves copying th e cardholders' PIN s to create a counterfeit copy and distribute abroad for fraudulent intention s. This is called "w hite plastic "
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l'raud . Th e fraud sters reproduc e th e ma gnetic strip e on a blank ca rd and w ork in co llu sio n w ith a merchant.
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Counterfeit Card Fraud
Thi s entail s ge nerat in g PIN s randoml y and produ ces c ard s usin g emb oss in g L'q uipmc nt. !1 1s a ve ry org;lni7e d Cl" lllle.
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Thi s is g reatest threat toe-bankin g and eco mmerce. It represe nted abo ut 43 % of all co mpl aints made to th e fede ral trad e co mmis sion (FTC). Thi s in vo l ves in siders se llin g private info rmati o n to rraucl sters or throu gh junk mai ls l o fak e an un suspec tin g c li ent.
Ct·edit Ca •·d theft
Card s are sto len and used qui ck ly to make seve ral purcha ses until the loss i s repo rted and block ed . Such c~ml s can he di stributed abroad parti cularl y in co untri es w here th ere 1s poo r te leco mmun icat i o n s net w ork.
Card-Not -Pres ent Fraud
T he card -not -present env ironment is ve ry ri sk y. T here is no ph ys ica l co ntact amo ng th e parti es and tel ephon e or th e web is th e o nl y mean s or int erac tion . :111 d e i (iJ l~ i () f (h C Ill C a 11 f: I k L' iJ j S identit y.
Identity Theft
phi shin g, w orm s, hac ki11 g. Howeve r, hi ghjack in g ~llld spywa re ;I re th e quint et of criminal activ iti es c urrentl y plaquin g th e co nsumer sid e o l'th e Intern et ((lo uld , 2004). P hi.-.;h i n ~~
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