ELECTRONIC MONEY LAUNDERING AND TAX EVASION
For some time now, electronic funds transfers have assisted in concealing and in moving the proceeds of crime. Emerging technologies will greatly assist in concealing the origin of ill-gotten gains. Legitimately derived income may also be more easily concealed from taxation authorities. Large financial institutions will no longer be the only ones with the ability to achieve electronic funds transfers transiting numerous jurisdictions at the speed of light. The development of informal banking institutions and parallel banking systems may permit central bank supervision to be bypassed, but can also facilitate the evasion of cash transaction reporting requirements in those nations which have them. Traditional underground banks, which have flourished in Asian countries for centuries, will enjoy even greater capacity through the use of telecommunications.
With the emergence and proliferation of various technologies of electronic commerce, one can easily envisage how traditional countermeasures against money laundering and tax evasion may soon be of limited value. I may soon be able to sell you a quantity of ANYTHING, in return for an untraceable transfer of stored value to my "smart-card", which I then download anonymously to my account in a financial institution situated in an overseas jurisdiction which protects the privacy of banking clients. I can discreetly draw upon these funds as and when I may require, downloading them back to my stored value card.
ILLEGAL INTERCEPTION OF TELECOMMUNICATIONS
Developments in telecommunications provide new opportunities for electronic eavesdropping. From activities as time-honoured as surveillance of an unfaithful spouse, to the newest forms of political and industrial espionage, telecommunications interception has increasing applications. Here again, technological developments create new vulnerabilities. The electromagnetic signals emitted by a computer may themselves be intercepted. Cables may act as broadcast antennas. Existing law does not prevent the remote monitoring of computer radiation.
ELECTRONIC FUNDS TRANSFER FRAUD
Electronic funds transfer systems have begun to proliferate, and so has the risk that such transactions may be intercepted and diverted. Valid credit card numbers can be intercepted electronically, as well as physically; the digital information stored on a card can be counterfeited.
Of course, we don't need Willie Sutton to remind us that banks are where they keep the money. In 1994, a Russian hacker Vladimir Levin, operating from St Petersburg, accessed the computers of Citibank's central wire transfer department, and transferred funds from large corporate accounts to other accounts which had been opened by his accomplices in The United States, the Netherlands, Finland, Germany, and Israel. Officials from one of the corporate victims, located in Argentina, notified the bank, and the suspect accounts, located in San Francisco, were frozen. The accomplice was arrested. Another accomplice was caught attempting to withdraw funds from an account in Rotterdam. Although Russian law precluded Levin's extradition, he was arrested during a visit to the United States and subsequently imprisoned. (Denning 1999, 55).
The above forms of computer-related crime are not necessarily mutually exclusive, and need not occur in isolation. Just as an armed robber might steal an automobile to facilitate a quick getaway, so too can one steal telecommunications services and use them for purposes of vandalism, fraud, or in furtherance of a criminal conspiracy.1 Computer-related crime may be compound in nature, combining two or more of the generic forms outlined above
Spam
1. The most common type of cyber crime is spam. While email spam laws are fairly new, there have been laws on the books regarding "unsolicited electronic communications" for many years.
Fraud
2. Credit fraud is another common form of cyber crime. Certain computer viruses can log keystrokes on your keyboard and send them to hackers, who can then take your Social Security number, credit card number and home address. This information will be used by the hacker for his own means.
Cyber Bullying
3. Harassment, or cyber bullying, is a growing problem among teenagers. Many countries in Europe and several states in the United States have laws to punish those who consistently harass somebody over the Internet.
Drug Trafficking
4. Believe it or not, drug trafficking is happening over the Internet. Many traffickers use encrypted email or password-protected message boards to arrange drug deals.
Cyberterrorism
5. There are many forms of cyberterrorism. Sometimes it's a rather smart hacker breaking into a government website, other times it's just a group of like-minded Internet users who crash a website by flooding it with traffic. No matter how harmless it may seem, it is still illegal.
Piracy
6. Far and away the most talked about form of cyber crime is thievery. Yes, downloading music from peer-to-peer websites is illegal and therefore a form of cyber crime.