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THOSE HIDDEN 'OPPORTUNITIES' FOR COMPUTER CRIME

NCJ Number
44433
Journal
Administrative Management Volume: 39 Issue: 1 Dated: (JANUARY 1978) Pages: 65,66,68,72,74,76,78
Author(s)
D GOTTHEIMER
Date Published
1978
Length
7 pages
Annotation
THE SCOPE OF COMPUTER ABUSE IN PRIVATE INDUSTRY IS EXAMINED, WITH REFERENCE TO EXAMPLES OF COMPUTER-RELATED CRIMES INVOLVING FRAUD, PHYSICAL ATTACKS ON HARDWARE, THEFT, AND MALICIOUS ACTS BY EMPLOYEES.
Abstract
AS OF 1975, 374 CASES INVOLVING COMPUTERS IN SUCH CRIMES AS FRAUD, EMBEZZLEMENT, TERRORISM, THEFT, LARCENY, EXTORTION, MALICIOUS MISCHIEF, ESPIONAGE, AND SABOTAGE HAD BEEN DOCUMENTED. COMPUTER ABUSE HAS BECOME THE THIRD MOST SERIOUS DATA-PROCESSING PROBLEM FACING BUSINESS, SUPERSEDED ONLY BY PROBLEMS CAUSED BY ERRORS AND OMISSIONS AND BY NATURAL DISASTERS. IT HAS BEEN ESTIMATED THAT TAMPERING WITH COMPUTERS HAS COST BUSINESS FROM $10 TO $15 MILLION A YEAR THROUGHOUT THE 1970'S. THE LARGEST SUM LOST IN A SINGLE FRAUD INVOLVING COMPUTER ABUSE WAS THAT IN THE EQUITY FUNDING CORPORATION CASE, WHICH SERVED TO ALERT THE BUSINESS WORLD TO THE NEED FOR COMPUTER SECURITY. ONE OUTGROWTH OF THE EQUITY FUNDING CASE HAS BEEN THE DEVELOPMENT OF TRAINING PROGRAMS DESIGNED TO HELP AUDITORS ESTABLISH AUDIT TRAILS IN ORGANIZATIONS THAT USE COMPUTERIZED ACCOUNTING SYSTEMS. INCIDENTS OF COMPUTER ABUSE DO NOT ALWAYS INVOLVE THE THEFT OF MONEY. THERE HAVE BEEN CASES INVOLVING THE THEFT OF COMPUTER PROGRAMS, THE MANIPULATION OF CREDIT-RATING DATA, THE THEFT OF MATERIAL GOODS, AND ACTUAL PHYSICAL ATTACKS ON COMPUTERS. THERE HAVE BEEN MANY INSTANCES IN WHICH COMPUTER ABUSES HAVE BEEN PERPETRATED BY PEOPLE WITH VERY LITTLE KNOWLEDGE OF COMPUTER TECHNOLOGY. POSSIBLE MOTIVATING FACTORS IN COMPUTER ABUSE INCLUDE THE INTELLECTUAL CHALLENGE PERCEIVED BY SOME POTENTIAL MANIPULATORS OF COMPUTER SYSTEMS, AS WELL AS THE IMPERSONAL NATURE OF THE ACT OF STEALING FROM A LARGE CORPORATION BY MEANS OF A MACHINE.