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Tuesday, 31 May 2011

Children as a target for cyber criminals

While on-line computer exploration opens a world of possibilities for children, expanding their horizons and exposing them to different cultures and ways of life, they can be exposed to dangers as they hit the road exploring the information highway. There are individuals who attempt to sexually exploit children through the use of on-line services and the Internet. Some of these individuals gradually seduce their targets through the use of attention, affection, kindness, and even gifts. These individuals are often willing to devote considerable amounts of time, money, and energy in this process. They listen to and empathize with the problems of children. They will be aware of the latest music, hobbies, and interests of children. These individuals attempt to gradually lower children's inhibitions by slowly introducing sexual context and content into their conversations.


There are other individuals, however, who immediately engage in sexually explicit conversation with children. Some offenders primarily collect and trade child-pornographic images, while others seek face-to-face meetings with children via on-line contacts. It is important for parents to understand that children can be indirectly victimized through conversation, i.e. "chat," as well as the transfer of sexually explicit information and material. Computer-sex offenders may also be evaluating children they come in contact with on-line for future face-to-face contact and direct victimization. Parents and children should remember that a computer-sex offender can be any age or sex the person does not have to fit the caricature of a dirty, unkempt, older man wearing a raincoat to be someone who could harm a child.
Children, especially adolescents, are sometimes interested in and curious about sexuality and sexually explicit material. They may be moving away from the total control of parents and seeking to establish new relationships outside their family. Because they may be curious, children/adolescents sometimes use their on-line access to actively seek out such materials and individuals. Sex offenders targeting children will use and exploit these characteristics and needs. Some adolescent children may also be attracted to and lured by on-line offenders closer to their age who, although not technically child molesters, may be dangerous. Nevertheless, they have been seduced and manipulated by a clever offender and do not fully understand or recognize the potential danger of these contacts.
This guide was prepared from actual investigations involving child victims, as well as investigations where law enforcement officers posed as children.


Thursday, 19 May 2011

ATTEMPT TO HACK HOUSTON ATMs NETS NORTH CAROLINA RESIDENT A PRISON TERM

(HOUSTON) - A 20-year-old computer hacker from North Carolina has been sentenced to prison for planning to hack into Houston area ATMs, United States Attorney José Angel Moreno announced today.

Thor Morris, 20, of Jacksonville, N.C., was sentenced to 37 months in federal prison without parole for fraud and related activity in connection with computers, a violation of 18 U.S.C. Sec. 1030(a)(4) and (b). Indicted in July 2010 for knowingly and with the intent to defraud attempting to access a protected automated teller machine without authorization to obtain money, Morris pleaded guilty to the federal felony offense in January 2011. 

U.S. District Judge Vanessa Gilmore sentenced Morris to 37 months in federal prison without parole. The charges against Morris came after an intensive computer intrusion investigation was initiated by FBI-Houston’s Cyber Crimes Division in the early spring of 2010. Agents uncovered a scheme where Morris planned to travel to Houston to hack into approximately 35 ATMs located throughout the city in an attempt to embezzle more Than $200,000. FBI Agents arrested Morris while in the act of attempting to gain unauthorized access into a storefront ATM machine on April 22, 2010.

Morris has been permitted to remain on bond pending the issuance of an order to surrender to a Board of Prisons facility to be designated in the near future.

COLLEGE STUDENT CHARGED WITH CREATING AND DISSEMINATING COUNTERFEIT ONLINE COUPONS OVER THE INTERNET

PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE K. FEDARCYK, Assistant-Director-In-Charge of the New York Field Office of the Federal Bureau of Investigation ("FBI"), announced the unsealing of a criminal complaint charging LUCAS TOWNSEND HENDERSON with wire fraud and trafficking in counterfeit goods, in connection with his creation, dissemination and use of counterfeit online coupons for consumer and electronic goods ranging from Tide laundry detergent to PlayStations. 

As a result of HENDERSON’s conduct, retailers and manufacturers paid out on the coupons and lost hundreds of thousands of dollars through the scheme. HENDERSON surrendered in federal court in Rochester, New York, earlier today.

According to the Complaint unsealed today in Manhattan Federal Court:
Since July 2010, HENDERSON allegedly created fraudulent coupons designed to look like legitimate online print-at-home coupons available to consumers on the Internet at www.SmartSource.com. These counterfeit coupons, which ranged from lower-priced consumer items such as energy drinks, beer and cigarettes, to more expensive consumer products such as X-Box and PlayStation, all made unauthorized use of the "Powered by SmartSource" logo, as well as a distinctive border, both of which are registered trademarks belonging to News America Marketing, a subsidiary of Manhattan-based News Corporation.




Between July 2010 and March 2011, HENDERSON made a number of the counterfeit coupons he had created available on the Internet by anonymously posting on two message boards devoted to the discussion of online coupons – using the nicknames "Anonymous 123," "Anonymous234," and "Anonymous345." In addition to creating and disseminating fake coupons himself, HENDERSON also wrote tutorials, which he posted online, providing instructions to others for creating counterfeit coupons using their own computers.

HENDERSON’s actions have resulted in substantial losses not only to the manufacturers of various affected products but also to retailers and consumers themselves. For example, in or about December 2010, $200,000 worth of counterfeit coupons for Tide laundry detergent were redeemed by consumers over a two to three week period. Proctor & Gamble, which manufactures Tide and is the single largest coupon issuer in the United States, has never issued a single online print-at-home coupon. The costs associated with the redemption of those counterfeit coupons were subsequently borne by Proctor & Gamble and the various retailers victimized by the fraud.


HENDERSON, 22, of Lubbock, Texas, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of trafficking in counterfeit goods, which carries a maximum sentence of 10 years in prison. Mr. BHARARA praised the work of the FBI. He added that the investigation is continuing.
This case is being handled by the Office’s Complex

Saturday, 7 May 2011

Chinese National Sentenced Today For Stealing Ford Trade Secrets

Former Ford employee, Xiang Dong Yu, aka Mike Yu, 49, of Beijing, China, was sentenced today to 70 months in federal prison and ordered to pay a fine of $12,500 as a result of having pleaded guilty in federal court to two counts of theft of trade secrets, announced Barbara L. McQuade, United States Attorney for the Eastern District of Michigan. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge of the FBI. In addition to his custodial sentence, Chief Judge Gerald E. Rosen ordered that Mr. Yu be deported from the United States upon completion of his sentence.

According to the plea agreement in this case, Yu was a Product Engineer for the Ford Motor Company from 1997 to 2007 and had access to Ford trade secrets, including Ford design documents. In December 2006, Yu accepted a job at the China branch of a U.S. company. On the eve of his departure from Ford and before he told Ford of his new job, Yu copied some 4,000 Ford documents onto an external hard drive, including sensitive Ford design documents. Included in those documents were system design specifications for the Engine/Transmission Mounting Subsystem, Electrical Distribution system, Electric Power Supply, Electrical Subsystem and Generic Body Module, among others. 
Ford spent millions of dollars and decades on research, development, and testing to develop and continuously improve the design specifications set forth in these documents. The majority of the design documents copied by the defendant did not relate to his work at Ford. On December 20, 2006, the defendant traveled to the location of his new employer in Shenzhen, China, taking the Ford trade secrets with him. On January 2, 2007, Yu emailed his Ford supervisor from China and informed him that he was leaving Ford’s employ.

The plea agreement further states that in November 2008, the defendant began working for Beijing Automotive Company, a direct competitor of Ford. On October 19, 2009, the defendant returned to the United States, flying into Chicago from China.
Upon his arrival, the defendant was arrested on a warrant issued upon the indictment in this case. At that time, the defendant had in his possession his Beijing Automotive Company laptop computer. Upon examination of that computer, the FBI discovered that forty-one Ford system design specifications documents had been copied to the defendant’s Beijing Automotive Company work computer. The FBI also discovered that each of those design documents had been accessed by the defendant during the time of his employment with Beijing Automotive Company.

"We will vigilantly protect the intellectual property of our U.S. automakers, who invest millions of dollars and decades of time in research and development to compete in a global economy," McQuade said. "Those who do not play by the rules will be brought to justice."

Special Agent Arena stated, “Michigan, as well as the rest of the United States, is significantly impacted by the auto industry. Theft of trade secrets is a threat to national security and investigating allegations involving theft of trade secrets is a priority for the FBI. The FBI will continue to aggressively pursue these cases.”

The investigation of this case had been conducted by the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Cathleen Corken.
http://www.cybercrime.gov/

How to Prevent Internet Fraud

Listed below are tips to protect yourself and your family from various forms of Internet fraud.

Tips for Avoiding Internet Auction Fraud:
  • Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller's obligations are before you bid.
  • Find out what actions the website/company takes if a problem occurs and consider insuring the transaction and shipment.
  • Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.
  • Examine the feedback on the seller.
  • Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.
  • If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.
  • Ask the seller about when delivery can be expected and whether the merchandise is covered by a warranty or can be exchanged if there is a problem.
  • Make sure there are no unexpected costs, including whether shipping and handling is included in the auction price.
  • There should be no reason to give out your passport number or driver’s license number to the seller.
Tips for Avoiding Non-Delivery of Merchandise:
  • Make sure you are purchasing merchandise from a reputable source.
  • Do your homework on the individual or company to ensure that they are legitimate.
  • Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.
  • Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn't required to open the account.
  • Consider not purchasing from sellers who won't provide you with this type of information.
  • Check with the Better Business Bureau from the seller’s area.
  • Check out other websites regarding this person/company.
  • Don’t judge a person or company by their website. Flashy websites can be set up quickly.
  • Be cautious when responding to special investment offers, especially through unsolicited e-mail.
  • Be cautious when dealing with individuals/companies from outside your own country.
  • Inquire about returns and warranties.
  • If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.
  • Make sure the transaction is secure when you electronically send your credit card numbers.
  • Consider using an escrow or alternate payment service.



Tips for Avoiding Credit Card Fraud:
  • Don't give out your credit card number online unless the site is a secure and reputable. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but provides some assurance.
  • Don't trust a site just because it claims to be secure.
  • Before using the site, check out the security/encryption software it uses.
  • Make sure you are purchasing merchandise from a reputable source.
  • Do your homework on the individual or company to ensure that they are legitimate.
  • Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.
  • Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn't required to open the account.
  • Consider not purchasing from sellers who won't provide you with this type of information.
  • Check with the Better Business Bureau from the seller’s area.
  • Check out other websites regarding this person/company.
  • Don’t judge a person or company by their website. Flashy websites can be set up quickly.
  • Be cautious when responding to special investment offers, especially through unsolicited e-mail.
  • Be cautious when dealing with individuals/companies from outside your own country.
  • If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.
  • Make sure the transaction is secure when you electronically send your credit card number.
  • Keep a list of all your credit cards and account information along with the card issuer’s contact information. If anything looks suspicious or you lose your credit card(s), contact the card issuer immediately.
Tips for Avoiding Investment Fraud:
  • Don’t judge a person or company by their website. Flashy websites can be set up quickly.
  • Don’t invest in anything you are not absolutely sure about. Do your homework on the investment and the company to ensure that they are legitimate.
  • Check out other websites regarding this person/company.
  • Be cautious when responding to special investment offers, especially through unsolicited e-mail.
  • Be cautious when dealing with individuals/companies from outside your own country.
  • Inquire about all the terms and conditions.
Tips for Avoiding Business Fraud:
  • Purchase merchandise from reputable dealers or establishments.
  • Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.
  • Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn't required to open the account.
  • Consider not purchasing from sellers who won't provide you with this type of information.
  • Purchase merchandise directly from the individual/company that holds the trademark, copyright, or patent.
Tips for Avoiding the Nigerian Letter or “419” Fraud:
  • Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.
  • Do not believe the promise of large sums of money for your cooperation.
  • Guard your account information carefully.

MALAYSIAN NATIONAL PLEADS GUILTY TO ACCESS DEVICE FRAUD

April 13, 2011


Lin Mun Poo, a resident and citizen of Malaysia, pleaded guilty to possessing stolen credit and debit card numbers. The plea was taken this morning before United States District Judge Dora L. Irizarry at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
Based on his plea, the defendant faces a maximum sentence of 10 years’ imprisonment. The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Brian G. Parr, Special Agent-in-Charge, United States Secret Service, New York Field Office.
In today’s proceedings, the defendant admitted that he possessed credit and debit card information belonging to others. The defendant also admitted that he compromised a computer server belonging to the Federal Reserve Bank, and that he installed a malicious code onto that server.
According to the government’s filings in this case, the defendant made a career of compromising computer servers belonging to financial institutions, defense contractors, and major corporations, among others, and selling or trading the information contained therein for exploitation by others. On October 21, 2010, the defendant traveled to the United States for the purpose of obtaining additional stolen financial account information from other hackers, which he planned to use and sell for his own profit. When he was arrested a few hours after his arrival at John F. Kennedy International Airport, Secret Service agents seized his encrypted laptop.