Fear about reporting e-crime

[InfoSec News <isn () c4i org>]

http://www.news.com.au/common/story_page/0,4057,8340425%255E15306,00.html

January 7, 2004

FRAUD and electronic crime was burgeoning yet was too often swept
under the carpet by people and companies who were too ashamed to admit
they have been swindled, a report said.

In 2002 Victorians were fleeced of what has been conservatively
estimated to be more than $641 million by fraudsters and electronic
criminals.

Yet during a two year inquiry into the area the Victorian
Parliamentary Drugs and Crime Prevention Committee found a widespread
unwillingness to own up to having been a victim.

The committee's final report handed down today was accompanied by 51
recommendations largely aimed at bringing fraud and electronic crime
more into the open.

Committee chair Carolyn Hirsh said white collar crime was growing but
companies were some of the most reluctant victims to lay charges.

"We have heard evidence that fraud is increasing but an accurate
measurement ... is difficult to obtain," she said.

"It is often undetected and even when detected is often not reported
to law enforcement agencies."

Companies like banks rarely admitted to being cheated because they did
not want clients to lose confidence in their security or they did not
want to inspire copycats.

Identity theft was one type of fraud against banks that was growing.

One recent scam involved internet hackers copying a bank's website and
emailing customers asking for personal financial details, saying the
bank was upgrading its technology.

Another increasingly common fraud involved shop counter staff using
special machines to read key details on a credit card's strip of
magnetic tape.

Using that information the fraudsters could empty accounts or run up
huge credit debts during lavish shopping sprees.

The committee said smart cards should be introduced speedily to
replace the current magnetic strip cards.

In addition the committee recommended the creation of a Victorian
Fraud Information Reporting Centre to record and track fraud.

The agency would ideally be mirrored at the federal level with a
commonwealth body staffed by officers well schooled in new technology
plus hacking and e-crime, she said.

Ms Hirsh said the units would build on existing fraud squads but
reflect the growth in electronic crime with greatly expanded
technological and investigative skills.

"We're hoping that (the recommendation) will be adopted at both state
and commonwealth levels and ensure that both the public and private
sectors report fraud."



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