CRIMES INVOLVING COMPUTERS COST AMERICANS MORE THAN $100 MILLION A YEAR AND PERHAPS AS MUCH AS $300 MILLION. THE VULNERABILITY OF COMPUTERS TO ILLEGAL MANIPULATION IS ATTRIBUTED TO THE LACK OF PROGRESS IN RECOGNIZING THE THREAT OF CRIME AND IN TAKING PROTECTIVE ACTION. THE EASE OF ACCESS TO MANY BUSINESS COMPUTERS LEAVES VIRTUALLY NO TRAILS FOR AUDITORS OR INVESTIGATORS TO FOLLOW. CONFIDENTIAL BUSINESS INFORMATION ATTRACTS THIEVES BECAUSE OF ITS POTENTIAL VALUE TO COMPETITORS. THE MOST COSTLY, AND PERHAPS THE MOST COMMON CRIMES INVOLVE FRAUDULENT TRANSFERS OF FUNDS BETWEEN ACCOUNTS. THE COMPUTERS THEMSELVES HAVE BEEN TARGETS OF VANDALISM AND SABOTAGE INVOLVING DISGRUNTLED EMPLOYEES AND POLITICALLY MOTIVATED CRIMINALS. NO SPECIAL KNOWLEDGE IS REQUIRED TO SABOTAGE A COMPUTER. ONCE ACCESS TO A FACILITY HAS BEEN GAINED, THEN A HAMMER OR GUN CAN DESTROY A MILLION-DOLLAR COMPUTER. THERE IS VIRTUALLY NO SECURITY PROTECTION AT MOST COMPUTER FACILITIES, YET MOST COMPUTER CRIMES RESULT FROM A WEAKNESS IN THE SYSTEM CONTROLS. THE PREVENTION OF COMPUTER ABUSE REQUIRES PHYSICAL SECURITY, IDENTIFICATION REQUIREMENTS FOR USERS, COMPLETE AUDITING OF TRANSACTIONS, AND CRYPTOGRAPHIC TECHNIQUES TO SCRAMBLE INFORMATION. THE LEGAL SYSTEM APPEARS INADEQUATE FOR THE PROSECUTION OF COMPLEX COMPUTER CASES. FOOTNOTES ARE PROVIDED. (TWK)