Information Technology Reference
In-Depth Information
loss due to illegal duplication of their copyrighted works. For example, the Motion Picture
Association of America (MPAA) estimates that the film industry lost approximately $7 billion
and associated technologies lead to a loss of user rights. For example, users can purchase a
music track online for under a dollar through Apple's iTunes music store. They can then
burn that song to a CD and transfer it to an iPod. However, the purchased music files are
encoded in the AAC format supported by iPods and protected by FairPlay, a DRM tech-
nology developed by Apple. To the consternation of music lovers, many music devices are
not compatible with the AAC format and cannot play iTunes' protected files.
Fraud
The first wave of Internet crime consisted mostly of online versions of offline hoaxes, the
usual get-rich-quick schemes. For example, many people received pleas from desperate
Nigerians trying to enlist their help in transferring funds out of their country. More recently,
however, fraud artists have begun to exploit the Internet to execute more sophisticated ploys,
using fake Web sites and spam.
Phishing
entails sending bogus messages purportedly from a legitimate institution to pry
personal information from customers by convincing them to go to a “spoofed” Web site.
The spoofed Web site appears to be a legitimate site but actually collects personal information
from unsuspecting victims. Phishing scams are frequently disguised as requests for donations
from a charitable organization. Sadly, criminals take advantage of the generosity of others
following every natural disaster by sending out tens of thousands of bogus requests for
donations from charitable organizations. Unfortunately, many generous but naive people
volves the use of phony e-mail requests from the U.S. Internal Revenue Service requesting
personal information to help speed the processing of tax refund checks. In the spring of
2008, tens of thousands of phishing messages were sent stating the fastest way to receive the
economic stimulus tax rebate was through direct deposit. The e-mail included a Web link to
an online submission form designed to steal submitted information from those fooled by the
phishing scam. The IRS never initiates taxpayer communications via e-mail.
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Click fraud
can arise in a pay-per-click online advertising environment when additional
clicks are generated beyond those that come from actual, legitimate users. In pay-per-click
advertising, the advertiser pays when a user clicks its ad to visit its Web site. The additional
clicks may be generated by an illegitimate user, automated script, or some other means. These
bogus clicks generate revenue for the advertising network such as Google or Yahoo!.
Bigreds.com, an online seller of collectibles, employed a pay-per-click advertising service run
by Yahoo and sued the firm for more than $1 million in damages and penalties. Bigreds.com
alleged that it paid more than $900,000 for clicks that its ads received on sites affiliated with
Yahoo, but that many of those clicks were fraudulent because they were generated by software
programs and people other than actual customers.
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Online auction fraud represents a major source of complaints both in the United States
and abroad. In 2007, the Internet Crime Complaint Center at the U.S. Federal Trade
Commission received 124,130 complaints related to Internet auction fraud and nondelivery
auctions, which account for roughly half the auction sites. On these sites, it is up to the buyer
and seller to resolve details of payment and delivery; the auction sites offer no guarantees.
Sticking with auction sites like eBay (
www.ebay.com
)
that ensure the delivery and quality of
all the items up for bidding can help buyers avoid trouble.
Another Internet auction-related problem is fake goods that find their way onto virtually
all of the online auctions. eBay, as the world's largest online auction site, is constantly battling
counterfeiters. For example, eBay and Montres Rolex S.A. have been engaged in court battles
example, seven people were charged with selling counterfeit limited edition prints of works
by Pablo Picasso, Andy Warhol, Marc Chagall, and others for over $5 million on eBay. eBay
says it is simply not possible for them to distinguish between a legitimate item and a fake
among the millions of items sold on its site each year.
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phishing
A practice that entails sending
bogus messages purportedly from a
legitimate institution to pry personal
information from customers by
convincing them to go to a “spoofed”
Web site.
click fraud
A problem arising in a pay-per-click
online advertising environment
where additional clicks are
generated beyond those that come
from actual, legitimate users.
