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Instructor’s Manual Materials to Accompany
COMPUTER SECURITY FUNDAMENTALS
CHAPTER 3
CYBER STALKING FRAUD AND ABUSE
CHAPTER 3 OBJECTIVES
When students finish reading this chapter, they will be able to:
Know the various types of Internet investment scams and auction frauds.
Know specific steps you can take to avoid fraud on the Internet.
Have an understanding of what identity theft is and how it is done.
Know specific steps that can be taken to avoid identity theft.
Understand what cyber stalking is and be familiar with relevant laws.
Know how to configure web browsers privacy settings.
Know what laws apply to these computer crimes.
CHAPTER OVERVIEW
Fraud and identity theft are real and growing problems. The global scope and relative newness of the Internet
makes these cyber crimes one of the fastest growing crimes. As with anything new, you simply need to exercise
caution when using the Internet. Countries and states are passing laws and training law enforcement to battle these
crimes, but it is critical that people take steps to protect themselves against these problems. Individuals must work
to protect their privacy using the steps and exercises in this chapter.
The major sections in this chapter are
2. Identity Theft. This section discusses identity theft and why it is such a fast growing crime.
4. Protecting Yourself Against Cyber Crime. This section provides steps on how to protect yourself against
fraud, identity theft, and cyber stalking.
CHAPTER OUTLINE
I. Chapter 3 Objectives
II. Introduction
III. How Internet Fraud Works
Investment Offers
Common Schemes
Investment Advice
Auction Frauds
The Federal Trade Commission and Auction Fraud
1. Shill Bidding
3. Bid Siphoning
IV. Identity Theft
Phishing
Spear phishing
V. Cyber Stalking
Real Cyber Stalking Cases
Laws about Internet Fraud
VI. Protecting Yourself Against Cyber Crime
Protecting Against Investment Fraud
Protecting Against Identity Theft
Secure Browser Settings
VII. Summary
VIII. Test Your Skills
IX. Exercises
X. Projects
KEY TERMS
bid shielding The process to enter fake high bids in an online auction, then withdrawing them just before the
auction concludes. This has the effect to protect one bid (one entered before the fake bidding began) from
competition.
bid siphoning Attempts to lure buyers from a legitimate auction site to an off-site auction that is a fraud.
dumpster diving The process to search through trash looking for information that might be useful in hacking
(particularly social engineering) or identity theft.
identity theft The process to get enough personal information on someone so that you might pose as that person.
Often done to secure credit or make purchases in the victim’s name.
phishing The process to send e-mails to people in which the e-mail purports to be from some legitimate financial
institution, such as a bank or credit card company, and induces the recipient to provide personal information.
pump and dump Artificially inflating the price of a stock so that you may sell your shares at a much higher value
than they should have been sold.
spyware Software that monitors computer use.
TEACHING NOTES
I. Internet Fraud
Teaching Tips: Discuss with students that, because cyberspace is a new territory, it is
sometimes compared to the “Wild West”—a frontier before laws and standard practices are put in place.
Teaching Tips: Why is Internet fraud grabbing the headlines when these crimes have
existed long before the Internet? (1) The Internet enables people to commit a crime across many
jurisdictions and countries. It becomes hard to prosecute someone in Nigeria for a U.S. victim. (2) Using
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the Internet, e-mail can be sent to hundreds of thousands of people at almost no cost. If only a fraction of
one percent respond, that still represents a great many victims. (3) The Internet allows a sense of
anonymity. You do not know who or where the person is on the other end of that e-mail.
II. Identity Theft
Teaching Tips: In the Internet age, identity theft is a big issue. How can you prove
who you are to a loan officer, the police, or even a store? Every type of authentication is fast becoming
bits in a computer file. How can you protect those bits from being used to authenticate someone else? In
the future, how can you make sure that no one can impersonate you over electronic communications?
III. Cyber Stalking
Teaching Tips: Using the Internet, not only can a person find out everything about
you, but they can also reach out and harass you without even being near you. The Internet also allows a
PROJECTS/EXERCISES
I. Discussion Questions
A. Discussion Question 1
What skills does law enforcement need to combat cyber crimes?
Answer: Students’ answers may vary. Students should understand that law enforcement
professionals must be aware of the methods cyber criminals use.
B. Discussion Question 2
In Germany, many Web sites are illegal due to “hate crimes” that would be
perfectly legal in the United States under laws of “free speech.” How can countries
combat crimes on the Internet that span the globe if each country has its own set of laws?
Answer: Students’ answers may vary. Students should discuss the importance of different
countries cooperating to keep cyber crime under control.
II. Web Projects
A. Web Project 1
E-mail frauds that attempt to get you to pay an “advance fee” to receive millions
of dollars by helping to transfer funds are called Nigerian or 419 scams. It is so common
that it is fast becoming a majority of all spam. Go to Google.com and type in “Nigerian
fraud” or “419 fraud,” or go to www.potifos.com/fraud/index.html to find out why it is
named in this way. Try to locate one with the most outrageous claims and share it with
the class.
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B. Web Project 2
One of the fastest growing identity thefts is against children. Children do not
check their credit history until they apply for a student loan or credit cards. By then, the
thief may be gone for many years. Using Google.com, find news stories of young
children that now have damaged credit due to identity theft. How can you protect your
kids against identity theft?
C. Web Project 3
Go to http://finance.yahoo.com/ and enter a stock symbol, such as “IBM.” Go to
the “News and Info” and “Message Board” for that company. Can you find any messages that look like
pump-and-dump scams?
D. Web Project 4
Go to a Web site where you do banking. How can you be sure that the Web site belongs
to your bank? How do you know that the information you type in is secure from phishing? Does your
bank site have any information about how to protect yourself online?
WEB RESOURCES
• Cyber crime resources
http://www.usdoj.gov/criminal/cybercrime/ Department of Justice Web site on cyber stalking
http://www.cybercrimes.net/ Web site of the University of Dayton School of Law devoted to
cyber crime
CHAPTER REVIEW/ANSWERS TO TEST YOUR SKILLS
Multiple Choice Questions
1. A common Internet investment fraud is known as the
2. What is the most likely problem with unsolicited investment advice?
3. Artificially inflating a stock to sell it at a higher value is referred to as
4. What are the four categories of auction fraud?
5. A seller bidding on her own item to drive up the price is referred to as
6. Submitting a fake but high bid to deter other bidders is referred to as
7. Identity theft is most often attempted to accomplish what goal?
8. According to the U.S. Department of Justice, identity theft is generally motivated by
9. Why is cyber stalking a serious crime?
10. What is cyber stalking?
11. What will law enforcement officials usually require of the victim to pursue harassment
allegations?
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D
12. What must exist for cyber stalking to be illegal in a state or territory?
13. What is the top rule for avoiding Internet fraud?
14. Which of the following is not one of the Security and Exchange Commission’s tips for avoiding
investment fraud?
15. Which of the following is not an efficient method to protect yourself from auction fraud?
16. What is the first step to protect yourself from identity theft?
17. Why is it useful to have a separate credit card dedicated to online purchases?
18. What can you do on your local computer to protect your privacy?
19. What percentage of cyber stalking cases escalates to real-world violence?
20. What is the top way to protect yourself from cyber stalking?
Exercises
EXERCISE 8.1: SETTING WEB BROWSER PRIVACY IN INTERNET EXPLORER AND EXERCISE 2:
SETTING WEB BROWSER PRIVACY IN NETSCAPE NAVIGATOR
EXERCISE 8.3: USING AN ALTERNATIVE WEB BROWSER
EXERCISE 8.4: TRACKING IN A CHAT ROOM
EXERCISE 8.5: USING ANTI-SPYWARE
Projects
PROJECT 8.1: FINDING OUT ABOUT CYBER STALKING AND THE LAW
PROJECT 8.2: LOOKING FOR AUCTION FRAUD
PROJECT 8.3: EXAMINING CYBER STALKING CASE STUDIES
This is a two-part project about cyber stalking. The first task for students is to simply find a case of cyber
Case Study
This case study about identity theft focuses students’ attention on two issues. First, how a person can
protect his identity online—students should note that in the case study John should not have used his real
name, nor given any specific information as to his actual identity (age, location, and profession).
