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Archive for the ‘financial crime and fraud’ Category

Identity Theft: Who’s At Risk?

October 27, 2014 Comments off

Identity Theft: Who’s At Risk?
Source: AARP Research

This AARP Fraud Watch Network study aimed to assess Americans’ habits around protecting their personal and financial information. Overall, the study finds that many are not taking precautions necessary to reduce their risk of identity theft.

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Identity Theft Legislation 2014

October 23, 2014 Comments off

Identity Theft Legislation 2014
Source: National Conference of State Legislatures

Identity theft occurs when someone uses another person’s identifying information, like a person’s name, Social Security number, or credit card number or other financial information, without permission, to commit fraud or other crimes. Identity theft continues to generate the most complaints with the Federal Trade Commission.

The chart below lists state legislation introduced or pending during the 2014 legislative session relating to identity theft. Legislation in 30 states and Puerto Rico is pending in the 2014 legislative session and includes legislation regarding criminal penalties, identity theft passports and identity theft prevention. Nineteen bills have been enacted in 2014.

CBO — How Initiatives to Reduce Fraud in Federal Health Care Programs Affect the Budget

October 22, 2014 Comments off

How Initiatives to Reduce Fraud in Federal Health Care Programs Affect the Budget
Source: Congressional Budget Office

Observers often cite fraud as an important contributor to high health care spending, particularly in federal programs. This report describes how CBO estimates the budgetary effects of legislative proposals to reduce fraud in Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP), and how those estimates are used in the Congressional budget process.

Police-reported cybercrime in Canada, 2012

October 1, 2014 Comments off

Police-reported cybercrime in Canada, 2012
Source: Statistics Canada

The Internet is an increasingly integral part of the daily lives of Canadians. According to results from the Canadian Internet Use Survey, 83% of Canadians aged 16 and over accessed the Internet for personal use in 2012. A majority of Internet users in Canada did their banking online (72%), visited social networking sites (67%), and ordered goods and services online (56%). The total dollar value of orders placed online by Canadians reached $18.9 billion in 2012 (Statistics Canada 2013).

The rapid growth in Internet use has allowed for the emergence of new criminal opportunities (Nuth 2008). Criminal offences involving a computer or the Internet as either the target of a crime or as an instrument used to commit a crime are collectively known as cybercrime (see Text box 1). Frauds, identity theft, extortion, criminal harassment, certain sexual offences, and offences related to child pornography are among the criminal violations that can be committed over the Internet using a computer, tablet, or smart phone.

Using data from the 2012 Incident-based Uniform Crime Reporting Survey (UCR2.2), this Juristat article examines police-reported cybercrime in Canada. Analysis is presented on the number of cybercrimes reported by police services covering 80% of the population of Canada, as well as the characteristics of incidents, victims, and persons accused of cyber-related violations. These findings are supplemented with self-reported data on cyber-bullying, based on results from the 2009 General Social Survey (GSS) on Victimization.

Empirically Characterizing Domain Abuse and the Revenue Impact of Blacklisting

September 29, 2014 Comments off

Empirically Characterizing Domain Abuse and the Revenue Impact of Blacklisting (PDF)
Source: George Mason University Department of Computer Science

Using ground truth sales data for over 40K unlicensed prescription pharmaceuticals sites, we present an economic analysis of two aspects of domain abuse in the online counterfeit drug market. First, we characterize the nature of domains abused by affiliate spammers to monetize what is evidently an overwhelming demand for these drugs. We found that the most successful affiliates are agile in adapting to adversarial circumstances, and channel the full spectrum of domain abuse to advertise to customers. Second, we use contemporaneous blacklisting data to provide an economic analysis of the revenue impact of domain blacklisting, a technique whereby lists of “known bad” registered domains are distributed and used to filter email spam. We found that blacklisting rapidly and effectively limited per-domain sales. Nevertheless, blacklisted domains continued to monetize, likely as a result of high demand, non-universal use of blacklisting, and delay in deployment. Finally, our results suggest that increasing the number of domains discovered and using blacklists to block access to spam domains could undermine profitability more than further improving the speed with which domains are added to blacklists.

Dialing Back Abuse on Phone Verified Accounts

September 26, 2014 Comments off

Dialing Back Abuse on Phone Verified Accounts (PDF)
Source: George Mason University

In the past decade the increase of for-profit cybercrime has given rise to an entire underground ecosystem supporting large-scale abuse, a facet of which encompasses the bulk registration of fraudulent accounts. In this paper, we present a 10 month longitudinal study of the underlying technical and financial capabilities of criminals who register phone verified accounts (PVA). To carry out our study, we purchase 4,695 Google PVA as well as pull a random sample of 300,000 Google PVA that Google disabled for abuse. We find that miscreants rampantly abuse free VOIP services to circumvent the intended cost of acquiring phone numbers, in effect undermining phone verification. Combined with short lived phone numbers from India and Indonesia that we suspect are tied to human verification farms, this confluence of factors correlates with a market-wide price drop of 30{40% for Google PVA until Google penalized verifications from frequently abused carriers. We distill our findings into a set of recommendations for any services performing phone verification as well as highlight open challenges related to PVA abuse moving forward.

Cyber-attacks: Effects on UK

September 23, 2014 Comments off

Cyber-attacks: Effects on UK
Source: Oxford Economics

The UK Centre for the Protection of National Infrastructure (CPNI) requested Oxford Economics to carry out a study of the impact of state-sponsored cyber-attacks on UK firms. The study consists of the elaboration of an economic framework for cyber-attacks, a survey of UK firms on cyber-attacks, an event study on the impact of cyber-attacks on stock market valuations, and a series of case studies illustrating the experience of several UK firms with cyber-attacks.

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