Fraudsters recruit computer kids for crime

[William Knowles <wk () C4I ORG>]

http://www.zdnet.co.uk/news/2000/38/ns-18162.html

Thu, 28 Sep 2000 15:58:28 GMT
Will Knight

Organised criminals could enlist young computer enthusiasts to carry
out online fraud

Organised crime syndicates are increasingly targeting budding computer
crackers to carry out fraud, warned the assistant director of the
International Chamber of Commerce (ICC) Cyber Crime Unit, Thursday.

The new ICC unit is designed to combat what is seen as a growing
threat to financial institutions. Assistant director John Merrett says
that organised criminals are looking towards computers and the
Internet to carry out credit card and banking fraud and that
recruiting young people with an in depth knowledge of computers and
computer security is a natural next step. He suggested crackers may
even be targeted at conventions and other meetings.

"This is the most organised area of crime," said Merrett. "There is a
danger of [crackers] being recruited. Especially if they are young and
want to make some money." Merrett added that computer crackers who
carry out fraud on someone else's behalf risk bearing the brunt of
punishment for illegal activity. "They're the fall guy. The people
orchestrating fraud are usually well hidden."

Disgruntled employees may also, says Merrett, enlist help from
outsiders in order to defraud a company. "A disillusioned employee is
always a very dangerous animal."

Although more retailers are admitting to being a victim of computer
crime, Merrett says that banks are still the most attractive targets.
"Banks are technology-based companies, and people are trying to poke
holes in that technology," he says.

Internet fraud is the fastest growing area of computerised crime, he
said, with credit card falsification and online trading fraud the
worst areas.

A recent survey from business information company Experian estimates
that in certain retail sectors, such as software and ticket sales,
fraudulent transactions can account for as much as 40 percent of all
Internet sales. The problem is compounded, according to the study,
because it is impractical to report and trace all fraudulent
transactions and because the police lack the required expertise and
resources to combat such crime.

The authors of the report speculate that the Internet has become a
haven for petty fraudsters, but Merrett says to his knowledge even
petty Internet fraud is usually well organised.


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