E Fraud Essay

An e- deceit is considered to be an electronic crime that affects non only individuals c bees and g either(prenominal) move intonments but withal al pocket-sizeds for rattling negatively intelligent people and hackers to intake their intelligence to log into others accounts use their credit pecker numbers and trusting password and fulfil big amounts of mint and money . it has been seen that e pasquinade is on the join on and this is because of the low levels of aw beness, the inappropriate counter measures that be in effectual to handle this kind of skulker has take to e devices being on the incr rest .The only playing argona that has been actively involved in reducing the impact of fraud is the technical side leaving the other so m both(prenominal) variables come push by meat of of the closet of the celestial horizon of the e fraud scenario. This has make e fraud even over oftentimes easier because there contrive been no mechanisms to annul these occ urrences and even if there be there has been limited penalties issued to the frauds that happen on the cyber piazza. Introduction The complexity of ripe enterprises, their reliance on technology, and the heightened Interconnectivity among makeups that is both a result and a number one wood of e- air these are rapidly evolving developments that create widespread opportunities for theft, fraud, and other forms of exploitation by offenders both outside and inside an organization (KPMG 2000) The paper tries to assimilate and test the strategies that elicit be adopted by e veryone who deals on the cyber stead to treasure their knowledge and finances securely.This paper also tries to analyze why much(prenominal) frauds occurs and what preempt be done by stakeholders to minimize the occurrences and is it worthwhile an feat to bring in a global governance ordinance which could uphold traffices and agencies nab the criminals . It is recorded that global e profession sales are steadily growing and with this the e duty fraud too. The eco dust which has promoted the sentiment of ecommerce streams from the millions of shoppers and customers who use their debit and credit loosens .Though online shopping is intercommunicate to be a very safe way of shopping and bank transactions through secured stipend modes, frauds nurse been continually on the increase . It has been objectively researched that e commerce transactions wear to be heightsly secured . Every transaction has to be screened for the following inputs . 1. Risk based assay-mark should be enabled for every transaction and to prove the ace of the user. 2. Card holderss data has to be tokenized so that consumers identity great deal be certain and protected. . Reputed brands should shut down phishing and Trojan barrages that make easy e commerce frauds. Some practical applications for reducing e commerce brands tommyrot detecting and taproom by addressing the critical collects of the entire credit card eco ashes. Evaluating transactions for the risk and balancing risk activities in cards . blue transaction abandonment rates that results from poor user experience . minify the compliance costs so that we ecommerce frauds commitment costs become lavishly .The following diagrammatic representation shows how the individualized data eco governance is subject to hacking by very professional hackers. ( radicalGoogle. com) Credit card fraud The credit card attention reports huge frauds conducted over the internet in the US alone, in the year 2010, $8. 6 zillion card frauds occurred (Aite Group study). With worldwide electronic selective reading sourcing and data storage and the thousands on online purchasing that is going on, the frequence of card usage has increased and this has resulted in financial institutions and cardholders becoming victims of e fraud .Countries worldwide experience set up agencies to monitor e fraud and countenance their own agencies t o take mission of much(prenominal) crimes particularly those tie in to the cyber space and those which happen on cyberspace and in ecommerce space . E commerce sales is expected to total almost $1 trillion by 2013. Ecommerce fraud is also growing along with this. dishonest transactions rose from 2. 7 billion in 2010 to $3. 4 billion in 2011 and are expected to grow exponentially. The use of internet has made these frauds possible. on that point are m any reasons why these frauds occur. . The increasing complex software package that is at a time being employ to relay ecommerce has made the agreements vulnerable to attacks . 2. There are thousands of malicious codes and other tools that avail hackers and attackers . 3. The increasing use of gamy speed internet at homes with very little security makes attack much easy . 4. The rate at which technology is changing and the ease of adaptation to the new technology and the users rather slow pace in adopting to good calculator security practices is a nonher compelling reason for fraud . . the hidden costs that are involved in an ecommerce portal goes unperceived because the security systems that nurse to take care of this and when systems are set up, there is always the likelihood that ambitious technology experts deed over least taste sensation to securing the learning site and privacy conditions People and clientele which conduct rail line online do not inform people of the expected frauds that could occur imputable to ecommerce transactions, because of this frauds happen .The lack of proper governance and regulation regarding attribute of penalties and punishments that would be disposed(p) to fraud committers is rather slack . There are no world wide global police forces to tackle much(prenominal) frauds and hence frauds that are committed online find no jurisdictional limits and so governing bodys do not know how to pin point the responsibility . This loop hole has been used by fraudsters . The online world is full of pseudonyms and pseudo identities . Hence tracking such frauds also becomes very difficult. There are no experts who could be given the responsibility of tracking and strategizing how such frauds occur .Though technology now is slowly trying to understand the macro environment of the fraud related scenarios, the risk and costs associated with bringing in security is very high and hence the adaptability of such scenarios cannot be done by all firms who have e commerce portals . Stakeholders involvement in the vulnerability that exists across the protect chain is seen as the most critical issue in a fraud . Crime congress global This is an imitative taken by the agency to help stakeholders and victims of e commerce fraud to find effective solutions.This proves information security in all countries of the world to meet the challenges arising from e commerce. This agency prominently uses technology and provides technology solutions in partnership with the business community to prevent frauds through information security technology and information risk management, forensics, probes, audit, risk, compliance and fraud. This agency has been conducting global sensation programs for reaching out to institutes, businesses and government to partner in helping reduce ccurrences of e fraud to strategic and technological challenges. This is a strategic initiative involving al stakeholders to proactively reduce the risks of ecommerce frauds and to defend IT systems from those threats which are emerging and to comply with relevant good and restrictive laws . this initiative is a pervert towards combating the threat of the increasing cases of fraud. This partnership brings out very important initiatives to protect not only customers but also business houses from succumbing to the increasing menace of hackers.Technology solutions and other security solutions are placed in a consultative approach towards tackling this . If an international busi ness committed right of first publication infringements then legal action under roughshod Jurisprudence legal action can be resorted to under phrase 61 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) where the loser has got legal repair to his stolen property by means of criminal sanctions and which will thereby allow for legal and criminal punishment of the infringement and the infringer . t has been felt that all types of infringement should be punished with criminal sanctions. People can appeal under this act for legal action or they can hotlist an organization under cyber space if there are cases of patent stealth and web site hacking. The Copyright, Designs and Patents Act 1988 also cognise as the CDPA can be used in cases where infringement has taken place. If an international business committed copyright infringements or steals a patent then as a victims we can take recourse under the above mentioned acts which give protective cover to IRP whi ch are stolen and pirated and copied..Early referral is verbalize to be the best outdoor(a) to ensure that the evidence is properly secured and that all the investigative revenues are amply explored with the possible undercover law enforcement activities. Perhaps, communication with the law enforcement activities allows the victim to machinate civil proceedings with the possible criminal enforcement. Though legally recourse is available it is easy to settle out of court because protection of copyright is a prelude to reapingion of the material or product.People who even off hold to protect their patents. Once the patent is protected then it cannot be copied or pirated as punishments are very severe in such cases. With so many innovations taking place in the US especially with cyber technology there has been very estimable issue of pirating software and the capital of Red China convention has called for all member countries to come out with anti pirating laws which could ef ficaciously punish those who are caught. USA will have to worry near the number of infringements that are taking place.It has admitted legal course in serious cases but USA is neither able to gun down the culprit nor is it able to find means of putting an end to it because of the geographical standoffishness which makes it impossible to monitor the use of technology. USA is very careful in dealing with countries where incidences of Infringement are very high and tries to bring in severe legal clauses to protect their interests. Computer forensics investigator and other laws A computer forensics investigator works with a pre determined stamp of computer crimes.But that is not a sufficient coverage that should be catered. A computer forensics investigator looks upon other law system too such as data protection, data integrity, data control, audit of data components, probe around the computer and etc. A forensics investigator moves with an initial precession of computer crime. Bu t he should be sanitary governed with other laws. This helps him to prepare himself more concretely on the crime scene. He is prepared with the notion of covering up the areas totally in order to fully pay himself on the grounds that nothing is left-hand(a) behind.He checks into the data system, recovers the data, checks the integrity of the data, protects the data, looks for evidences around the computer, checks the network system of the accused person, goes more deeply with the figure system to enable him searching beyond the computers to narrow down his investigation procedure. Some other laws such as, human rights, digital rights, information system laws, computer laws are of special interest to him. This gives him the power to deal with any case that involves ethical computer crime.He is much more develop investigator if he is well adverse with the above law system. E Discovery E Discovery or electronic Discovery refers to husking in civil litigation. This find butt a gainst deals with the exchange of information in the electronic format. Electronic Discovery is pretty multipurpose for the forensics depth psychology. We know that Forensics analysis deals with the investigation of crime scene involving computer and cyber crimes and evidence is the prime reference work of investigation that reach outs to a successful procedure.Hence the investigator is pretty much confident virtually the E Discovery System. The investigator with the help of E Discovery processes such as Electronic messages, voicemail smart phones etc recover every bit of information that is necessitate in the gathering of evidence take for the forensics investigation. The whole process of collection data through E breakthrough and jotting it down to the report makes it much easier for the investigator. The E discovery has led to new developments and changes in the investigation system of the cyber crimes.With latest e discovery modes as mentioned above, an investigator is mu ch more confident about its reason into the IT system of the accused criminal, and supporting the cause with rather strong and current evidences gathered. E discovery is a radical change in the process of investigation and has led to much more focused and integrated system of computer investigation. Conclusion The whole conclusion is based on the cyber crimes and the enacting system of law prevailing. The cyber crimes have increased in geometric progression over the age which have led to many disasters and crimes.With the increased number of crimes taking place day in day out, the laws have been made much stricter in order to ensure that the numbers of crime taking place gets minimized and there is a fear of messing up the computer system. The laws have addressed the message of intent of distorting computer systems which will constitute a crime. Many forensics investigators have been seen in the picture off late which governs the system of computer crime. These investigators are well adverse with the system laws and crime scenes. They in effect handle the situation and get to the desired results enabling quick and complete reply to crime involved.Thus the laws have been successful over the years in minimizing computer threats and crimes. Ecommerce has revolutionized trade in many ways and consumers have also been cheated in ways that were unknown in traditional sales. In order to protect the consumers, traders on the internet and operators in the cyber space have got together to form associations and laws that would protect the consumers in the text of ecommerce. Though every country has passed consumer protection acts which are rules and regulations to protect the consumers from fraudulent trade practices in the market.There laws were enacted to protect the consumers and give them rights to ensure that they obtain truthful information and right products as so knowing by the seller. The laws have been designed to protect consumers from businesses indulgin g in unlawful and unsportsmanlike practices . The governments of all countries have passed regulations to protect the rights of consumers especially in those products where health and safety are of import ingredients. Consumer protection is also in the form of consumer rights which consumers can exercise through redressal grievance and consumer courts.This is the history behind the concept of consumer protection. In lineal logical argument to the traditional business where the buyer and seller are in direct contact with each other and the buyer can inspect the goods before buying, in ecommerce the communication is only through an electronic form and business is conducted in a paperless environment. More importantly the internet or e transactions play a very important role in helping buyers and in assisting in choice comparisons and locating a product on the internet. (http//www. apec. rg/apec/apec_ convocations/som_special_task_groups/electroniccommerce. html. Accessed on 13/2/0 4) Consumer concerns in e commerce starts form the point of instance as the buyer is not known to the seller and vice versa and hence the privacy and confidentiality aspect of a trade which has to be concluded needs authenticity. Consumers are maladjusted about 1. The unfair marketing practices that sellers resort to on the web. 2. The terms of sale, refunds, cancellation of orders, warranty conditions 3. Enforceability of the contract, performance and non performance. . rake time, late deliveries and no delivery verification. 5. The most illegal use of information available on credit cards payment made for online purchases. 6. Fraud and cheating because transactions are not authenticated by any physical source. 7. unsafe products not confirming to safety standards. 8. Misuse of private information for other purposes. Since majority of e commerce transactions lead to the buyer being put to a disadvantage the Issues relating to consumer junkd have to be minimized and arbitrated. t is all the more difficult because the sellers are beyond national jurisdiction as it happens on cyberspace and SO the risks that arise out of such trade has to be taken care of and the consumers have to be suitably protected. a landmark development n the form of the E -Commerce group otherwise known as The Electronic Commerce and Consumer Protection Group is constituted by leading companies on the net like America Online, AT&T, Dell, IBM, Microsoft, Network Solutions and period Warner.These companies predominately deal in online sales of their products and so recognize the growing need of consumer protection and have addressed issues regarding consumer protection as best practices of industry and have created an environment which would allow consumers to resolve remainders arising on cyber space. The American obviate Association assess rip on E-commerce and Alternative Dispute resolvent is one of the best reference guide to consumer protection on the cyber space.This orga nization was asked to suggest workable guidelines that parties dealing in online transactions can use for ODRs (online dispute redressal) . the complexity further arose from the item that there was multijurisdictional disputes arising from B2B and B2c businesses. (THIS IS THE fairness ENFORCEMENT AND IS REFREED TO IN EXACT TEXT) To quote the words of the task force of the Ecommerce group that there are many ways to help prevent as well as to help resolve disputes or complaints that arise from e-commerce transactions, the Task Force makes the following recommendations and observations 1.E-commerce businesses should place an enhanced emphasis on all stages of dispute prevention, complaints handling, and effective methods of redress through ADR and ODR. 2. net income merchants, governmental and non-profit-making entities should place a greater emphasis on consumer education and the prevention of e-commerce disputes. 3. Protecting consumers requires adequate standards and codes of conduct for ecommerce businesses. 4. cyberspace merchants should be encouraged to come in in and subscribe to relevant e-commerce codes of conduct and trust mark programs. 5.Internet merchants should develop or continue to improve on their in-house complaints handling mechanisms, and domesticate consumers as to how to use these in-house procedures effectively. 6. For consumers, recourse to in-house complaints mechanisms is normally the first and best means to obtain redress from reputable merchants. Accordingly, consumers should be encouraged to utilize the in-house complaints handling mechanisms offered by reputable Internet merchants before resorting to third party dispute resolve mechanisms. 7. at present, the lack of ODR does not appear to be a material impediment to the growth of B2C e-commerce. . At present, ODR is subsidiary to other higher(prenominal) priority consumer protection activities, including consumer education and use of measures that help prevent or decrease the incidence of fraud in Internet transactions. 9. Recognizing that enforcement of outcomes and decisions reached through ODR may be difficult, consumers should be encouraged to consider using other dispute prevention mechanisms such as escrow services and credit card awaken back mechanisms when transacting online. 10. Rather than create a code of conduct for ODR advantage Providers, the Task Force has drafted Recommended Best Practices by ODR Service Providers. 1. The Task Force recommends the creation of a new informational entity (referred to as the ADRCenter) that would provide information about ODR in an effort to educate and familiarize consumers, businesses, lawyers and other professionals with this new type of service. 12. For the advancement of ODR as an effective and efficient means of cross-border dispute resolution for both B2B and B2C transactions, there needs to be an appropriate emphasis on the development of interoperable communication and data-sharing platforms. 3. The Task Force believes that much of the education that will be useful for consumers will also be useful for businesses especially small to medium sized enterprises and those who are new to the Internet marketplace and to cross-border transactions. ( Task force quoted verbatim) among all of ecommerce frauds the greatest of consumer complaints arose from identity thefts. The federal trade commission has released statistics stating that out of 2004,000 complaints received from consumers 42% elated to fraud and identity of the seller, followed by internet auctions which constituted 10%,followed by other non performances like non delivery of goods, inferior quality goods, trial offers from the net, shop at home offers and so on. This only reiterates that consumers have to be protected and laws of cyber space have to be strictly regulated to afford consumer protection. Consumer protection measures were seen very importantly in the light of an interactive poll which shows the increa sed awareness of consumers against online frauds .They were dissuaded by online shopping and cited some of the reasons why they had not shopped recently. 57% verbalise that they were worried about their credit card number being stolen,57% were worried about confidentiality measures being violated,38% doubted the integrity on the seleers,26% precious some personal attention to be given while they shopped,37% doubted the reliability of the sellers,47% say that wanted to physically inspect the product and 25% cited many unknown reasons. source Harris interactive)It was increasingly felt that consumer education will be able to help protect consumers better. It also shows increased concerns about consumers not knowing how to transact online. It is suggested that traders using the electronic media need to given all information that is required for consumers to feel safe about shopping online .Quoting Internet merchants association , Merchants need to have greater and enhanced disclosure on their websites as well as heightened compliance with relevant consumer protection law. Another pertinent consumer protection data and study conducted by a New Zealand organization on 700 web sites explicitly brought out the consumers heightened awareness of ecommerce frauds and consumers came out with their reasons of the need for defend their rights against fraudulent organizations.They said that 50% of the vendors had not installed security measures on the payment options, 62% did not speak of refund policies, 78% said that the vendors did not advice customers of how to lodge complaints,90% said that they did not know about laws pertaining to consumer redresses and 25% said that the vendors did not show physical address. Despite all this majority of consumers like to shop online so laws pertaining to consumer protection need to be implemented in its fullest sense.Consumers International released its Privacy net study in which it concluded that though almost all the traders online collected data regarding the personal information of the buyers very few of them institutionalized a privacy policy regarding the use of the information that the buyer gave. Though these were correct measures to provide security, majority of these proved hollow to the buyers. it was very common in the US and Europe to find traders bragging(a) scant respect to global standards on data privacy.Even the fundamental principles of informing the customers of how the data will be used, how the firm will admittance the data , how the consumer can use the data and how the security of the data is want and maintained is not disclosed. A relative study of the sites of USA and UK are no different with regard to privacy policy as both played on the information made available to them. The US online trade sites set decent privacy policies which looked good enough to follow.In The European trading sites the consumers had the law backing them up and the presence of an ombudsman and a go vernment representative in the form of a data protection policeman took care of the consumer rights and protection if breached. He also intervened to speak on behalf of the consumers if the law was tampered with . in fact it is sad to know that both the countries have left little choice to consumers in terms of data protection.. This was a comparative study of the European merchants and the USA merchants.But both of them accepted the fact that consumer protection was a must if their sales and revenues had to increase. As a step towards greater protection measures to consumers the task force on ecommerce and protection said that various disputes redressal mechanisms have to be introduced in the form of dispute prevention like education of consumers, feedback collection from consumers, ombudsman appointments, negotiations, mediation, arbitrators, and assessment of valid consumer grievances.