Looking for a Tutor Near You?

Post Learning Requirement »
x

Choose Country Code

x

Direction

x

Ask a Question

x

x
x
For better view click here
x
Hire a Tutor
DISCOVER

Cyber Frauds

Loading...

Published in: Banking & Finance | Computer Science | Financial Management
3,982 Views

This notes deals with examples of various cyber frauds, their statistics in India, ill effects of cyber frauds, preventive measures and laws enacted in India to prevent and detect cyber frauds.

Vyshnavi P / Vijayawada

5 years of teaching experience

Qualification: B.Com (Acharya Nagarjuna University, Guntur - 2016), CA (Institute of Chartered Accountants of India - 2017), CS (Institute of Company Secretaries of India - 2015)

Teaches: Communicative English, Handwriting, Basic Computer, MS Office, School Level Computer, Tally ERP 9, CA - CPT, CA - IPCC, CS - Executive, Direct Tax Laws, Accountancy, Auditing, Banking & Finance, Direct Tax, Company Laws, Contract Act Laws, Tax Laws, Slow Learners

Contact this Tutor
  1. P.Y.V. Vyshnavi's 1 CYBER FRAUDS INTRODUCTION: Looking back at the recent history of technological innovations, the Internet revolutionized the way we do business. The ability to sell goods and services across vast distances and international borders with just the tap of the keyboard or a click of a mouse created almost endless opportunities for businesses large and small. Even the accounting process has been simplified through computers and even lead to computerization of audit processes. With this new frontier also came new opportunities for fraud — no surprise, perhaps, in a world where fraudsters follow the money and look for the latest scheme to help them increase their haul. FRAUD: Wrongful or criminal deception intended to result in financial or personal gain. CYBER FRAUD: A Cyber Fraud is the use of computers and Internet services or software with Internet access to defraud victims or to otherwise take advantage of them; for example, by stealing personal information, which can even lead to identity theft. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.
  2. P.Y.V. Vyshnavi's STATISTICS: 2 UP TOPS CYBER CRIMES LIST NCRB, in its 2016 report, said India had registered 11,592 cases of cyber crimes in 2015; Uttar Pradesh topped the list with 2,208 cases, followed by Maharashtra with 2,195 cases. A bulk of the crimes was committed primarily for financial gains by people in white-collar jobs, but sexual cyber crimes also dominated stats. MOTIVES OF CYBER CRIME Financial gain Fraud/illegal gain Insult to modesty of women Sexual exploitation Causing disrepute 9.6 5.2 5.1 33 0 5 10 5.1 (in %) 333 25 30 35 (in 0/6) 19.6 15 10 10 20 PROFILE OF ACCUSED IN CYBER CRIMES Business competitor Neighbour/friends/relatives Professional hackers Students Sexual predators Disgruntled employees o 3.1 5 14.7 13.5 15 20 25 Source NCRB Report (2016) IT minister Ravi Shankar Prasad revealed Cyber Crime statistics in India More than 8000 Indian websites hacked the first three months of 2016 according to the details Communications and IT Minister Ravi Shankar Prasad furnished to the Parliament. Below are the statistics mentioned in his written reply to the Lok Sabha.
  3. Year 2013 2014 2015 Total cybercrimes including fishing malicious code, website intrusion, denial of service, scanning, etc. 41,319 44,679 49,455 P.Y.V. Vyshnavi's The Indian website hacking incidents 28,481 32,323 27,205 REASONS FOR CYBER FRAUDS: 1. Failure of Internal Control Systems 2. Failure of organisations to update themselves to new set of risk 3. Smart fraudsters: These are people who are able to target the weaknesses in the system, lacunae's in the internal controls even before the organisation realizes that such gaps are there. TYPES OF CYBER FRAUDS: Based on functionality, there are two types of Cyber frauds: 1. Pure Cyber Fraud: Frauds which exist only in cyber world. They are born out of use of technology. Eg: website hacking. 2. Cyber Enabling Fraud: Frauds which can be committed in physical world also but with use of technology. Size, scale and location of fraud changes. Eg: withdrawal of money from bank account by stealing PIN number. CYBER ATTACKS: Identity theft Identity theft and fraud is one of the most common types of cybercrime. The term Identity Theft is used, when a person purports to be some other person, with a view to creating a fraud for financial gains. Ransomware This is one of the detestable malware-based attacks. 0) Ransomware enters your computer network and encrypts your files using public-key encryption, and unlike other malware this encryption key remains on the hacker's server. Attacked users are then asked to pay huge ransoms to receive this private key. Phishing:
  4. P.Y.V. Vyshnavi's It is the act of attempting to acquire information such as user name, passwords and 4 credit card details by masquerading as a trustworthy entity in an electronic communication. Network Scanning: It is process to identify active host of a system for purposr of getting information about IP addresses etc. Virus/ Malicious code: As per section 43 of Information technology Act, 2000, computer viruses means any computer instruction, information, data or program that destroys, damages, degrades or adversely effects the performance of computer resources or attaches itself to another computer resources and operates when a program data or instruction is executed or some other events take place in the computer resources. Spam: E-mailing the same message to everyone on one or more Usenet news groups or LISTSERV lists is termed as spam. Website Compromise/ Malware Propagation: It includes website defacement, hosting malware on websites in an unauthorised manner. Others: 1. Cracking Eavesdropping 2. E-mail forgery 3. E-mail Threat 4. 5. Scavenging IMPACT OF CYBER FRAUDS ON ENTERPRISES: frauds lead to actual cash loss to target 1. Financial Loss: Cyber company/organisation. For example, wrongfully withdrawal of money from bank accounts. 2. Legal Repercussions: Entities hit by cyber frauds are caught in legal liabilities to their customers. Section 43A of the Information Technology Act, 2000, fixes liability for companies/organisations having secure data of customers. These entities need to
  5. P.Y.V. Vyshnavi's ensure that such data is well protected. In case a fraudster breaks into such database, 5 it adds to the liability of entities. 3. Loss of credibility or competitive edge: News that an organisations database has been hit by fraudsters, leads to loss of competitive advantage. This also leads to loss of credibility. There have been instances where share prices of such companies went down, as the news of such attach percolated to the market. 4. Disclosure of Confidential, Sensitive or Embarrassing Information: Cyber-attack may expose critical information in public domain. For example, the instances of individuals leaking information about governments secret programs. 5. Sabotage: The above situation may lead to misuse of such information by enemy country. MEASURES TO CONTROL CYBER FRAUDS: Encryption: This is considered as an important tool for protecting data in transit. Plain text (readable) can be converted to cipher text (coded language) by this method and the recipient of the data can decrypt it by converting it into plain text again by using private key. This way except for the recipient whose possessor of private key to decrypt the data, no one can gain access to the sensitive information. Synchronised Passwords: These passwords are schemes used to change the password at user's and host token. The password on synchronised card changes every 30-60 seconds which only makes it valid for one time log-on session Firewalls: It creates wall between the system and possible intruders to protect the classified documents from being leaked or accessed. It would only let the data to flow in computer which is recognised and verified by one's system. It only permits access to the system to ones already registered with the computer. Digital Signature: Are created by using means of cryptography by applying algorithms. This has its prominent use in the business of banking where customer's signature is identified by using this method before banks enter into huge transactions. Make sure to install and update security software - It should come equipped with anti-virus, anti-phishing, anti-spyware and intrusion prevention software to keep out malicious people and programs. The security software also should come with backup and restore ability so that the company can recover any information it might lose. Do not open unknown e-mails, visit unknown Web sites or click on suspicious links or attachments - If people are even slightly unsure about a link or attachment, they should not open it. It is not worth the risk to the business or customers.
  6. P.Y.V. Vyshnavi's Create smart passwords - All passwords should be at least eight characters long and should incorporate both letters and numbers. Use different passwords for each account, and change them regularly. Do not share passwords or write them down where other people could access them. Educate employees - The biggest risk to the security of a business can be an employee who does not have a basic understanding of cyber security. Implement regular training sessions for employees so that they become familiar with security measures they can take. Create a contingency plan - the company should have a contingency plan prepared in case the business becomes the victim of a cyber attack. Cyber Insurance: It has become an acceptable reality in India these days. Many 6 Cybe companies have shown their interests in obtaining cyber insurance and some of them have actually obtained the same. Before taking up a cyber insurance policy in India, the concerned company or individual must be well aware of the techno legal compliance requirements of India and the potential cyber risks. INFORMATION TECHNOLOGY ACT 2000: The silent features of the Act are; The Act gives legal recognition of Electronic Documents. The Act gives legal recognition of Digital Signatures. It describes and elaborates Offenses, penalties and Contraventions. It gives outline of the Justice Dispensation Systems for cyber crimes. The Act also provides for the constitution of the Cyber Regulations Advisory Committee, which shall advice the government as regards any rules, or for any other purpose connected with the said act. The said Act also proposed to amend to; The Indian Penal Code, 1860, The Indian Evidence Act, 1872, The Bankers' Books Evidence Act, 1891, The Reserve Bank of India Act, 1934 etc...
  7. P.Y.V. Vyshnavi's INFORMATION TECHNOLOGY AMENDMENT ACT 2008: 7 The newly amendment Act came with following highlights: It focuses on privacy issues. It focuses on Information Security. It came with surveillance on Cyber Cases. The Concept of Digital Signature was elaborated. It clarified reasonable security practices for corporate. Role of Intermediaries were focuses. It came with the Indian Computer Emergency Response Team. New faces of Cyber Crime were added. Powers were given to Inspector to investigate cyber crimes as against only to DSP. Severe Punishments and fine were added. CONCLUSION: Cyber fraud is a scary concept for many reasons. As the internet technology advances, so does the threat of cyber fraud. It is not possible to eliminate cyber fraud completely, but it is quite possible to check it.

Need a Tutor or Coaching Class?

Post an enquiry and get instant responses from qualified and experienced tutors.

Post Requirement

Related Study Notes

Upload Study Notes

If you have your own Study Notes which you think can benefit others, please upload on LearnPick. For each approved Study Note you will get 100 Credit Points and 100 Activity Score which will increase your profile visibility.

Upload Now
Home > Study Notes > Cyber Frauds