Module A: Overview of Cybercrime
Lesson 1: Concepts and Methods of Cybercrime Introduction
- Cybercrime definition and categories
- methods for committing cybercrimes
- the reasons behind cybercrime
- Cybercrime’s effects on people, corporations, and society
Lesson 2: Cybercrime channels
- platforms and networks online that are used to commit cybercrimes
- Cybercrime and social media
- Deep web channels and the dark web
- channels used to distribute malware
Lesson 3: Strategies for Cybercrime
- Cybersquatting and stalking
- Extortion and cheating online
- Cyberterrorism and Cyberwarfare
- Hacking and phishing
Lesson 4: Computer security
- Internet fraud and criminal activity
- User Errors & Their Causes
- Failures of banks
- weaknesses in hardware and software security
Lesson 5: Hackers on computers
- profiles and motives of hackers
- black hat, white hat, and grey hat hackers
- infamous hacker individuals and groups
- Community and culture of hackers
Module B: Management of Fraud
Lesson 6: Preventing Computer Fraud
- Protection Measures
- Monitoring Controls
- Protection measures
- Cryptography and decryption
Lesson 7: A Cybercrime Incident
- Reporting of Cybercrime
- Investigation of Cybercrime
- Cybercrime Prevention
- Collection of Evidence and Chain of Custody
- Managing the Risk of Cybercrime
- Digital forensics
- Electronic transactions
Module C: Electronic transactions
8. Online transactions
- Ideas, New Trends, and Legal Consequences
- Online transactions that are secure
- E-commerce and virtual money
Lesson 9: Processing International Payments
- Payment processors and gateways
- Transnational business and its issues
- AML/CFT stands for anti-money laundering and countering the financing of terrorism.
Lesson 10: Data Security and Payment Cards
- PCI-DSS, or Payment Card Industry Data Security Standard
- Optimal procedures for protecting cardholder data
- End-to-end encryption and tokenization
Lesson 11: Frauds using electronic cards
- ATM Card Theft
- Credit Card Theft
- Smart Card Theft
- Techniques for detecting and preventing fraud
Module D: Cyber laws and Regulatory Compliance
Lesson 12: Indian Cyber Law
- 2000 Information Technology Act
- Key provisions and amendments to the IT Act
- Challenges with jurisdiction and enforcement
Lesson 13: Taxation and Electronic Transactions
- The effects of electronic transactions on taxes
- Cross-border taxation and digital taxation difficulties
- A system of regulations for digital taxation
14. Human Characteristics
- Psychiatric characteristics of online criminals
- partners and co-conspirators in cybercrime
- Behaviour analysis and cybercriminals’ profiles
Lesson 15: Adherence to Regulations
- adherence to the rules and legislation governing data protection
- industry-specific rules and requirements
- Best practices for developing a compliance programme for cyber security
Lesson 1: Concepts and Methods of Cybercrime Introduction
Definition of cybercrime
Cybercrime is the term for illegal activities committed online that specifically target computers, networks, and other electronic equipment. These offences frequently entail fraud, the theft of private information, or the interruption of services.
An illustration of identity theft is when a cybercriminal accesses a victim’s email account, takes the victim’s personal information, and then uses it to apply for loans or make purchases under the victim’s name.
1.2 Different Types of cybercrime
Cybercrimes come in a variety of forms, which are generally divided into the following categories:
Cyberstalking is the act of threatening or harassing someone online, frequently through persistent unwelcome communication. Example: A person is distressed and concerned for their safety after receiving multiple unwelcome messages from an ex-partner on social media.
Identity theft is the act of stealing a person’s personal information in order to impersonate them for nefarious motives like financial gain. Using the victim’s Social Security number, for instance, a hacker can apply for a credit card in the victim’s name.
Financial fraud is the use of technology to trick someone in order to steal their money, assets, or services. As an illustration, a con artist may pose as a bank representative to persuade a victim to divulge their account information, which is subsequently exploited to steal money.
Unauthorised access to computer systems, networks, or data is known as hacking. An illustration of this is when a cybercriminal uses a weakness in a company’s network to obtain sensitive information like client records.
1.3 Techniques Employed in Cybercrime, Section
Cybercriminals use a variety of techniques and instruments to commit their crimes, such as:
Social engineering is the art of coercing others into disclosing sensitive information or taking acts that jeopardise security. Example: To fix a problem with the victim’s account, a fraudster posing as a tech support agent persuades the victim to supply their login information.
Phishing is the practise of sending false emails or messages to deceive recipients into disclosing personal information or downloading malicious software. As an illustration, a phishing email that appears to be from a bank asks the recipient to enter their account information on a false website.
Malware is harmful software that infiltrates a target system with the intention of stealing data, causing harm, or aiding in other attacks. An illustration of this is when a victim accidentally downloads ransomware, which encrypts their files and demands payment to decrypt them.
DDoS attacks: Surges of traffic that overwhelm a target website or network, disrupting service. Example: During a vital time for sales, a group of hackers launches a DDoS attack against a well-known e-commerce site, making it unavailable to users.
1.4 The causes of cybercrimes
Cybercriminals act for a variety of reasons, including the following:
Financial gain: The desire for financial gain is a common motivation for cybercrimes. As an illustration, a hacker steals and sells credit card data on the dark web for their own gain.
Cybercriminals sometimes hack in order to advance a specific cause or philosophy. Example: To oppose censorship practises, a hacktivist group tampers with a government website.
Espionage: To get sensitive information, cybercriminals may spy on people, businesses, or governments. As an illustration, state-sponsored hackers break into a foreign corporation to steal trade secrets or intellectual property.
Personal grievances, jealousy, or a desire for vengeance may be the driving force behind some cybercrimes. An illustration of this would be a fired employee who harmed a company’s network.
1.5 Effects of Cybercrime
Cybercrime can have far-reaching effects on people, corporations, and society as a whole.
Loss of personal information: Cybercriminals may steal or reveal the passwords or financial information of their victims. Identity theft, financial losses, and emotional pain might result from this. A healthcare provider’s data breach exposes patient medical details, endangering their privacy and raising the possibility of fraud or prejudice.
Financial losses: Both individuals and organisations may suffer large financial losses as a result of cybercrimes. These expenses cover both the immediate costs of coping with an attack’s aftereffects and the indirect costs of lost revenue or reputational harm. Example: A small business has a ransomware attack, which forces them to pay a sizable price to restore their files while losing clients as a result of the downtime and damaged reputation.
Reputational harm: Cybercrime can damage a person’s or business’s reputation, making it challenging to win back the confidence of clients, consumers, or the broader public. For instance, a high-profile data breach at a big store undermines consumer faith in the firm’s ability to safeguard their personal information, resulting in a drop in sales and a tarnished reputation for the company.
Cyberattacks that target vital infrastructure, governmental systems, or military assets might have a significant impact on public safety and national security. Example: A nation’s electrical system is compromised by a cyberattack sponsored by a foreign power, leading to widespread blackouts and possible harm to the populace.
Psychological effects: Victims of cybercrime may experience worry, anxiety, and emotions of violation, which may have a long-lasting psychological effect. Example: As a result of the persistent harassment and concern about their safety, a victim of cyberstalking may have anxiety, depression, or post-traumatic stress disorder (PTSD).
Overall, it is crucial for both individuals and organisations to comprehend the numerous kinds of cybercrimes, the methods used to commit them, and their extensive effects. To effectively avoid, detect, and minimise the dangers associated with cybercrime, it is imperative to have this expertise.
Lesson 2: Cybercrime channels
Online networks and platforms
Websites, forums, and chat rooms are examples of online networks and platforms that can be used as channels for cybercrime. These platforms are utilised by cybercriminals for communication, planning, and the sharing of data or tools used in cybercrime.
A cybercriminal might distribute a novel form of malware on an internet forum where other crooks can download it and use it to infect victims’ systems. The forum might also serve as a meeting spot for online criminals to plan their attacks, share hacking strategies, and seek tips on how to stay undetected.
2.2 Cybercrimes and social media
Cybercriminals routinely use social media platforms for a variety of illegal activities, such as identity theft, cyberstalking, and the distribution of malware. To access sensitive information, cybercriminals may create fictitious profiles, assume other people’s identities, or alter already-existing profiles.
As an illustration, a cybercriminal might construct a phoney social network profile to pose as a person’s friend or relative before sending them a message with a phishing link. The victim clicks on the link because they think it’s from a reliable source, accidentally downloading malware or giving their login information.
2.3 Channels on the deep and dark web
Parts of the internet known as the “dark web” and “deep web” cannot be accessed without specialised software, such as the Tor browser. Particularly the dark web is renowned for housing illicit activities like drug markets, gun sales, and forums for cybercrime.
As an illustration, a hacker buys credit card data from a dark web marketplace so they can use it to make fraudulent purchases. The black web also has forums where cybercriminals may interact, share information, and trade hacking tools.
2.4 Malware delivery methods
Malware is spread by cybercriminals through a variety of techniques, including as email attachments, rogue websites, and corrupted software. These channels are frequently made to deceive users into downloading and installing malware on their gadgets, giving the hacker access or control.
An illustration of this is when a victim gets an email with a malicious attachment that appears to be a crucial document, like an invoice or a resume. When they click on the attachment, malware is installed on their machine, giving the hacker access to steal personal data or launch other assaults.
For the purpose of spotting prospective risks and taking the necessary safeguards, it is essential to understand the channels through which cybercrimes are carried out. People and organisations can better defend themselves against cyberattacks and lower their chance of becoming victims by being informed of the numerous platforms, networks, and techniques utilised by cybercriminals.
Lesson 3: Strategies for Cybercrime
3.0 Cybersquatting and stalking
Cyberstalking is the act of threatening or harassing someone online, frequently by making repeated unwelcome contact. Cyberstalkers may threaten, watch over, or manipulate their victims through social media, email, or other online platforms. The victim may experience mental discomfort, worry, and safety concerns as a result of this behaviour.
An illustration would be someone who starts getting frequent and threatening messages from an unknown user on social media. In order to damage the victim’s reputation, the stalker may also keep tabs on their online activities, make an effort to find out personal information about them, or disseminate rumours about them.
Cybersquatting is the practise of registering a domain name that is confusingly similar to an already-existing brand or trademark with the aim of misleading users, profiting from the brand’s notoriety, or extorting money from the legitimate owner. Cybersquatters may develop websites that look genuine but are intended to deceive users or make money from their confusion.
As an illustration, a cybersquatter might register a domain name that is strikingly similar to a well-known e-commerce business. Users who unintentionally land on the bogus website risk being duped into entering their login information or credit card details, which the cybersquatter can use for illicit activities.
3.2 Online extortion and cheating
Threats or coercion are used in cyber extortion to extract money, sensitive data, or other goods from a victim. Ransomware, which encrypts the victim’s files and demands money in exchange for the decryption key, is a popular type of cyber extortion.
Example: A company experiences a ransomware assault and has its crucial files encrypted. The attackers threaten to permanently erase the files or reveal important information if the ransom is not paid, and they demand a significant amount of cryptocurrency in exchange for the decryption key.
Cybercheating: This term refers to a variety of online fraud schemes, including romance scams, investment fraud, and online auction fraud. Cybercheating typically aims to get money, but it can also have other evil motives like accessing private information or hurting someone’s feelings.
Example: A person starts dating someone they’ve never met in person on the internet. The con artist persuades the victim to send money under the guise of being in love for an emergency or trip expenditures, only to vanish after the money has been transferred.
3.3 Cyberterrorism and Warfare
Cyberwarfare: Cyberwarfare is the term used to describe state-sponsored or politically motivated cyberattacks against a foreign country’s military, government, or essential infrastructure. These assaults have the potential to seriously compromise national security while also causing major disruption, harm, and possibly physical harm.
An illustration would be when a foreign state-sponsored hacking group gains access to the power grid’s management systems, resulting in massive blackouts and the instability of the country’s economy and public safety.
Cyberterrorism is the use of the internet to carry out or assist in terrorist acts. This can involve disseminating propaganda, gathering recruits, planning attacks, or executing cyberattacks on targets with strategic or symbolic value.
An illustration of this would be if a terrorist group broke into the computer systems of a busy transit hub, causing chaos and panic, and then used social media to incite fear and take credit for the attack.
3.4 Hacking and phishing
Phishing: Phishing attacks entail sending phoney emails or messages meant to dupe recipients into disclosing private information or installing malware. These communications frequently contain links to phoney websites that closely mimic the actual ones while purporting to be from a reliable source, such a bank, a government agency, or a well-known firm.
An employee receives a fake email from their company’s IT department asking them to click a link and enter their login information to confirm their account.
Lesson 4: Computer security
Internet fraud and crime (4.1)
Any illegal conduct that takes place online or includes the usage of the internet is referred to as internet crime. This can include cyberstalking, phishing, identity theft, hacking, and other types of fraud.
Example: A cybercriminal records a person’s keystrokes using a keylogger in order to obtain their online banking login information. The perpetrator then accesses the victim’s bank account using this information to take money from it.
Internet fraud is the use of deception or manipulation to engage in illicit actions on the internet, usually with the intention of making money. Online romance scams, financial scams, and online auction fraud are all common types of internet fraud.
A fraudster, for instance, might fabricate an online auction listing for a valuable object, such a priceless piece of art. They effectively steal the buyer’s money by taking the winning bidder’s money but never sending the purchased item.
4.2 User Errors & Their Causes
User Errors: In computer security, user errors happen when people make mistakes or do things that jeopardise their own security or the security of others. Weak passwords, exposing private information, and succumbing to social engineering scams are a few examples of these mistakes.
An employee, for instance, makes use of a weak password across numerous accounts, including their work email. The password is cracked by a cybercriminal, who then has access to the company’s private data and could cause a data breach.
The reasons behind user mistakes in computer security might vary, but they frequently have to do with a lack of knowledge, insufficient security measures, or both. Other factors include human error, negligence, or even intentional security-compromising behaviours.
As an illustration, if a business does not give its staff proper cybersecurity training, there is a higher danger of phishing assaults. Employees may not be aware of phishing emails, which increases their propensity to click on dangerous links and unintentionally download malware.
4.3 Bank Insolvency
Bank Failure: In the context of computer security, bank failure refers to financial institutions’ inability to keep their clients and computer systems safe from online threats. This may involve using insufficient security measures, not providing enough employee training, or failing to properly address new risks.
Example: Hackers obtain access to consumer information, such as account numbers and balances, by taking advantage of an obsolete bank’s security measures. The breach causes the bank’s reputation to suffer as well as the theft of money from customer accounts.
It is crucial for both individuals and organisations to comprehend computer security issues and the elements that contribute to them. It is feasible to lower the risks associated with cybercrime and safeguard sensitive data and systems by identifying potential vulnerabilities, putting robust security measures in place, and encouraging awareness and training.
Lesson 5: Hackers on computers
Five Categories of Hackers
White Hat Hackers: White hat hackers, also referred to as ethical hackers, use their expertise to find and remedy security flaws in computer networks, software, or systems. They operate lawfully and with the owner’s consent, frequently as consultants or members of a cybersecurity team.
Example: A business contracts a white hat hacker to run a network penetration test. They locate a security flaw and offer fixes to the business, assisting in safeguarding the system from possible online assaults.
Black Hat Hackers: In order to hurt others, steal information, or obtain unauthorised access for their own benefit or financial gain, black hat hackers engage in unlawful actions by exploiting security flaws in computer systems, networks, or software.
Example: A black hat hacker identifies a security hole in an e-commerce website and uses it to get credit card data from users. They either utilise the stolen data for fraudulent transactions or sell it on the dark web.
Grey Hat Hackers: These cybercriminals work between the white hat and black hat camps. Even while they might use security flaws to their advantage without the system owner’s consent, they don’t always have evil intents. After using the vulnerability, they might reveal it to the owner or the general public, drawing attention to the security concern.
As an illustration, a grey hat hacker discovers a security hole in a well-known software programme and uses it to gain unauthorised access. Instead of exploiting the access for their own gain, they alert the software developer to the flaw and offer a solution.
5.2 Hacking Methods
Social engineering: Social engineering is the practise of coercing someone into disclosing sensitive data, such as login passwords or private information, or into taking acts that jeopardise security. Phishing, pretexting, and baiting are examples of common social engineering techniques.
Example: A hacker contacts a staff member as a company’s IT assistance agent and persuades them to divulge their login information by claiming there is an urgent security issue that has to be fixed.
Exploiting Software flaws: In order to acquire unauthorised access to or control over a system, hackers may use known or undocumented flaws in software, such as operating systems, applications, or online services. They might make use of zero-day exploits, which prey on flaws that haven’t yet been patched or made known to the public.
An illustration of this is when a hacker takes advantage of a web browser’s previously undiscovered vulnerability to run malicious malware and take over the victim’s machine.
Brute force attacks: To access a system or decode data, brute force attacks systematically try every conceivable combination of passwords or encryption keys. This technique can be time-consuming, but it might be effective if the target uses passwords that are weak or simple to guess.
Using a brute force attack, a hacker could be able to unlock a user’s email account and possibly other accounts that use the same password by guessing a weak password, like “123456,” that the user has chosen.
For individuals and organisations trying to safeguard their systems and data from cyber attacks, understanding the various hacker types and their methods is crucial. It is feasible to create efficient security measures and strategies to avoid, detect, and reduce the dangers connected with computer hacking by being aware of the techniques employed by hackers.
Lesson 6: Preventing Computer Fraud
6.1 Preventative measures
Controls for prevention are steps taken to avoid fraud or cyberattacks in the first place. Strong authentication procedures, firewalls, and frequent software updates are a few examples of these.
Multi-factor authentication (MFA) is used by a corporation to secure all user accounts. To access their accounts, users must give additional verification (such as a one-time code delivered to their phone). Due to stolen or compromised credentials, the risk of unauthorised access is decreased.
6.2 Controls for Detection
Controls for detection are intended to show when a fraud, cyberattack, or security breach is happening or has already happened. These may include log monitoring, security information and event management (SIEM) systems, and intrusion detection systems (IDS).
An organisation might set up an intrusion detection system to watch network traffic for suspicious activities, including recurrently unsuccessful login attempts or unauthorised access attempts. When the IDS notices such behaviour, it notifies the security team and requests more information.
6.3 Reduction Measures
Measures known as mitigation controls are intended to lessen the effects of a security breach or cyberattack after they have already happened. These could include disaster recovery plans, data backups, and incident response plans.
An illustration would be a ransomware assault that encrypts crucial company files. The business has a strong backup system in place as a mitigating control, enabling them to restore their files from a recent backup without having to pay the ransom.
6.4 Cryptography and decryption
Data is encoded during the encryption process so that it cannot be decoded without the proper key. The process of transforming encrypted data back into its original, readable form is known as decryption. Even if sensitive information is intercepted or stolen, using encryption and decryption can help prevent unauthorised access.
Example: A business uses powerful encryption methods to protect their sensitive client data. Without the decryption key, a hacker would not be able to read or utilise the encrypted data even if they were to successfully obtain it.
Lesson 7: A Cybercrime Incident
7.1 Reporting of Cybercrime
Informing the right authorities or organisations about a cybercrime incidence is known as cybercrime reporting. This may entail informing law enforcement, regulatory bodies, or internal security teams about the crime.
Example: Someone loses money as a result of falling for an online fraud. They inform their local police force of the occurrence and supply information about the con artist—such as email addresses or account numbers—to aid in the investigation.
7.2 Investigation of cybercrime
The procedure of gathering, examining, and deciphering digital evidence associated with a cybercrime incidence is known as a cybercrime investigation. This may entail malware analysis, network analysis, and digital forensics.
Example: After a corporation experiences a data breach, its internal security staff looks into possible cybercrimes. To pinpoint the source of the breach, pinpoint the attackers, and gather proof for potential legal action, they examine server logs, network traffic, and affected systems.
7.3 Cybercrime Prevention
To prevent, detect, and respond to cybercrime occurrences, strategies and processes must be developed and put into place. Initiating regular security assessments, adopting cybersecurity rules, and educating staff members on cybersecurity best practises are a few examples of how to do this.
As an illustration, a business develops a thorough cybersecurity strategy that specifies authorised resource use, password restrictions, and incident reporting guidelines. To further reduce cybercrime occurrences, they also regularly train their staff in cybersecurity.
7.4 Gathering Evidence and Chain of Custody
The process of locating, preserving, and recording digital evidence connected to a cybercrime incidence is known as evidence collecting. The integrity of the evidence is preserved by upholding a correct chain of custody, increasing the likelihood that it will be admitted into evidence in court.
A digital forensics professional might gather evidence from a hacked system, like log files and network traffic captures, as part of an investigation into a cyber crime. To ensure that the chain of custody is upheld, they record the evidence, including the date, time, and place of collecting.
7.4 Risk Management for Cybercrime
Identification, evaluation, and mitigation of the risks connected to cybercrime occurrences include cyber crime risk management. This may entail performing risk analyses, putting security controls in place, and keeping an eye out for new risks.
An organisation could undertake a risk assessment to find potential weak spots and threats to its data and systems. In order to reduce the risks found, they adopt extra security measures, such as intrusion detection systems and frequent security audits.
Cyberforensics 7.6
The gathering and examination of digital evidence pertaining to cybercrime situations is a part of cyberforensics. To determine the origin and extent of an incident, this may involve analysing computer systems, networks, and portable electronic devices.
As an illustration, a computer system that has been infected with malware is examined by a digital forensics specialist. The incident response team benefits from their insights as they utilise specialised tools and methodologies to determine the type of malware, how it was introduced, and any activities it took on the system.
Lesson 8. Online transactions
8.1 Ideas, New Developments, and Legal Implications
Online payments, banking, and shopping are just a few examples of transactions that can be done online. Online purchases are more common and practical as a result of rising internet usage. Mobile payments, digital wallets, and blockchain-based transactions are all new trends in online commerce. Online transactions may be subject to financial rules, consumer protection legislation, and privacy laws.
An individual uses their credit card to make an online purchase. The buyer receives a confirmation of their purchase once the transaction is securely executed. Consumer protection regulations, which mandate that the seller give correct product details and safeguard the customer’s personal information, apply to this transaction.
Mobile payments: Payments made with a mobile device, such as a tablet or smartphone, are referred to as mobile payments. The ease and accessibility of this payment method are making it more and more popular. Apple Pay, Google Pay, and Samsung Pay are three common mobile payment options.
Example: A person uses Apple Pay on their smartphone to pay for a meal at a restaurant. They use their fingerprint or facial ID to validate the transaction while holding their phone close to the payment terminal.
Payments can be made online or in-person using digital wallets, which are software programmes that hold credit card information. In addition to credit cards and debit cards, digital wallets can also contain gift cards and loyalty cards.
An individual might keep the details of their credit or debit cards in a smartphone app called a digital wallet. They use the software to shop online without having to repeatedly enter their credit card information.
Transactions that use blockchain technology to store and process transaction data are referred to as “blockchain-based transactions.” Blockchain technology offers a promising solution for safe online transactions since it is a decentralised and secure way to store data.
Example: A person makes a purchase from a seller using a blockchain-based payment system. The blockchain records the transaction, guaranteeing its security and openness.
Privacy laws: Privacy laws are rules that control how personal data is gathered, used, and protected. Privacy regulations are vital to take into account because online transactions frequently entail the acquisition of personal data, such as name, address, and credit card information.
A corporation must abide by privacy standards, such as the General Data Protection Regulation (GDPR) in the European Union, if it gathers personal information from clients for online transactions. Customers’ permission is required before the business can collect, utilise, and safeguard their personal information.
Consumer protection laws: Laws that guard consumers from unfair or dishonest commercial practises are referred to as consumer protection laws. Consumer protection laws, such as those that demand accurate and transparent pricing and shield customers from fraud, apply to online transactions.
As an illustration, an online merchant must safeguard its clients from fraud by providing them with accurate and transparent pricing information. The retailer could face legal repercussions if it uses dishonest tactics or neglects to protect the data of its customers.
Laws and rules that control financial institutions and transactions are referred to as financial regulations. Financial rules, including know-your-customer (KYC) and anti-money laundering (AML) legislation, apply to online transactions involving financial institutions, including banks and credit card providers.
Example: Financial regulations, such as AML regulations, which mandate that banks identify and report suspicious transactions to law enforcement, must be complied with by banks that execute online transactions. Utilising KYC regulations, the bank must additionally confirm the identity of its clients.
Lesson 9: Processing International Payments
9.1 Data Security & Payment Cards
Online transactions frequently use payment cards, like debit and credit cards. To safeguard against fraud and unauthorised transactions, payment card data security is crucial. This may entail adhering to PCI data security regulations and putting robust authentication measures in place, such as tokenization and encryption.
As an illustration, a business handles credit card transactions for its online store. To reduce the danger of data theft, they utilise tokenization to replace sensitive credit card data with a special identifier. To maintain the security of their payment card processing, they also adhere to PCI data security guidelines.
Tokenization minimises the risk of data theft and makes it more challenging for attackers to use stolen credit card information. Tokenization is the act of substituting sensitive payment card data with a special identifier or “token.”
When a customer pays with a credit card, the payment processor substitutes a token for the credit card number. The payment is then processed using this token rather than the actual credit card information.
Data is encrypted when it is changed into a coded format that cannot be read without a decryption key. Sensitive payment card data can be shielded from unauthorised access by using encryption.
For illustration, a business encrypts all credit card information kept in its database. Without the decryption key, the encrypted data would be unreadable even if an attacker obtains access to the database.
Payment Card Industry Data Security Standards (PCI DSS): To protect the security of payment card data, the leading payment card firms established the PCI DSS security standards. Any organisation that conducts credit card transactions must adhere to the PCI DSS.
Example: The PCI DSS mandates network security, access control, and recurring security audits for businesses that conduct credit and debit card transactions. Payment card processing services may no longer be available if PCI DSS compliance is not maintained.
9.2 Processing of Global Payments
The ability to process payments from clients using different currencies and national currencies is referred to as global payment processing. This involves the capacity to convert between foreign currencies as well as knowledge of the national laws and financial systems of each nation.
As an illustration, a business that conducts international business must be able to handle payments in several currencies and adhere to local financial laws. They might make use of an international transaction specialist for a worldwide payment processor.
The rates at which one currency can be exchanged for another are known as foreign exchange rates. For the processing of international payments, understanding and control of exchange rates are crucial.
As an illustration, a person from the United States buys something from a business situated in Europe. The payment is handled in euros, and the amount is converted to dollars using the exchange rate between euros and dollars.
International financial rules: When processing payments, each nation’s financial rules must be complied with. These can include laws governing sanctions compliance, know-your-customer (KYC), and anti-money laundering (AML).
As an illustration, a business that accepts payments from clients in other nations must abide by their respective financial laws. This may entail confirming consumers’ identities, alerting authorities to questionable transactions, and abiding by sanctions policies.
Lesson 10: Data Security and Payment Cards
Online transactions frequently use payment cards, like debit and credit cards. To safeguard against fraud and unauthorised transactions, payment card data security is crucial. The Payment Card Industry Data Security Standard (PCI-DSS), the best practises for protecting cardholder data, tokenization, and end-to-end encryption will all be covered in this session.
PCI-DSS, or Payment Card Industry Data Security Standard
To guarantee the security of payment card data, the leading payment card firms created the Payment Card Industry Data Security Standard (PCI-DSS). Any organisation that conducts payment card transactions must adhere to PCI-DSS. There are 12 requirements in the standard that deal with various facets of payment card security, such as network security, access control, and routine security evaluations.
For instance, the PCI-DSS mandates network security, access control, and recurring security audits for businesses that conduct credit card transactions. All credit card information must be securely sent and retained by the business.
Optimal procedures for protecting cardholder data
To prevent fraud and unauthorised transactions, it is crucial to implement best practises for securing cardholder data. This can involve putting strong authentication measures in place, including two-factor authentication, and keeping an eye out for unusual activities.
A business that processes credit and debit card transactions, for instance, uses two-factor authentication for all workers who have access to credit and debit card information. Additionally, the business keeps an eye out for any suspicious behaviour, such as abnormally high or low dollar amounts, in all credit card transactions.
End-to-end encryption and tokenization
Payment card data is protected using end-to-end encryption and tokenization, respectively. Tokenization decreases the risk of data theft and makes it more challenging for attackers to utilise stolen credit card information by substituting sensitive payment card data with a special identifier or “token.” End-to-end encryption protects credit card information throughout the whole transaction by encrypting it from the point of entry to the point of processing.
To reduce the danger of data theft, a company that processes payment card transactions utilises tokenization to replace sensitive credit card data with a distinctive identity. In order to ensure that the data is secure throughout the entire transaction, the organisation additionally uses end-to-end encryption to encrypt credit card data from the point of entry to the point of processing.
Lesson 11: Frauds using electronic cards
10.1 Cards for ATM
The use of stolen or duplicate ATM cards to withdraw cash or make unauthorised purchases is known as ATM card fraud. Strong authentication techniques, like PINs or biometric authentication, can be used to prevent this, and suspicious activity can be watched for.
An illustration would be a criminal who copies a victim’s ATM card and uses it to take money from the victim’s account. The individual’s account is blocked by the bank once it notices the suspicious behaviour and notifies them to stop further fraud.
ATM skimming: The process of using a device that is attached to an ATM to collect card information from unwary users is known as ATM skimming. This can be avoided by utilising ATMs located in secure areas and checking ATMs for signs of tampering.
As an illustration, a thief attaches a skimming device to an ATM and records the card information of users. When the bank notices the unusual behaviour, it alerts the concerned customers and blocks their accounts to stop further fraud.
10.2 Cards – Credit
The use of stolen or duplicated credit cards to make unauthorised purchases or for cash advances is known as credit card fraud. Strong authentication techniques, such chip and PIN or two-factor authentication, can stop this. Suspicious activity should also be watched out for.
Example: A thief takes a victim’s credit card number and uses it to make unauthorised online purchases. When the credit card company notices the unusual activity, they get in touch with the cardholder to notify them of the fraud and block their account.
Skimming: Using a device to record credit card information during an authorised transaction is known as credit card skimming. This can be avoided by adopting secure payment methods like chip and PIN and checking card readers for signs of tampering.
Example: A thief uses a point-of-sale terminal to connect a skimming device, which records the credit card information of customers who make purchases. When a credit card issuer notices questionable behaviour, it alerts the concerned customers and blocks their cards to stop further fraud.
Smart Cards 10.3
The use of cloned or stolen smart cards, which have an implanted microchip, to conduct fraudulent transactions is known as smart card fraud. Strong authentication procedures, encryption, and vigilant monitoring can stop this from happening.
Example: A thief steals a person’s smart card and then uses it to make illegal purchases. When the card issuer notices the unusual activity, they get in touch with the cardholder to inform them of the fraud and block their account.
Fraudulent use of contactless payments: Fraudulent use of contactless payments comprises making unauthorised purchases using a stolen or duplicated contactless payment card. Using secure payment methods, such two-factor authentication, and keeping an eye out for unusual behaviour can stop this.
As an illustration, a thief steals a victim’s contactless payment card and uses it to complete illegal transactions. When the card issuer notices the unusual activity, they get in touch with the cardholder to inform them of the fraud and block their account.
Lesson 12: Indian Cyber Law
12.1 The 2000 Information Technology Act
In order to solve problems with electronic transactions and cybercrime, the Information Technology Act (IT Act) was passed in 2000. The act creates sanctions for cybercrimes, regulates digital signatures, and gives legal status to electronic transactions.
A group of people who sent threatening comments to a victim online engaged in cyber harassment, and the IT Act was used to bring charges against them. According to the IT Act, the people were held accountable for their behaviour.
12.2 Taxation and Electronic Transactions
Understanding the tax ramifications of electronic transactions is crucial for both individuals and organisations as these transactions are taxable. This can include laws governing income tax, goods and services tax, and value-added tax (VAT).
An e-commerce platform, for instance, must abide by local tax laws, which may include collecting and remitting VAT or GST on sales and disclosing income for tax purposes. Legal repercussions may occur from breaking these regulations.
Cybercrime and Penalties, 12.3
Cybercrimes including hacking, identity theft, and cyberterrorism are punishable under the IT Act. Penalties may include fines, incarceration, and victim restitution.
An illustration is when someone is accused of breaking into a company’s computer network and taking private information. According to the IT Act, the offender is subject to legal repercussions, including imprisonment and payment for the business’ losses.
Investigation and Evidence of Cybercrime
Specialised knowledge and methods are needed to investigate cybercrimes, and gathering and maintaining evidence is crucial for prosecution. The IT Act offers guidelines for investigating cybercrimes and determining when electronic evidence is admissible.
As an illustration, law enforcement agents examine computer logs, emails, and other electronic evidence when looking into a case of online financial fraud. The IT Act’s processes are followed while gathering and preserving electronic evidence, and this evidence is admissible in court.
12.5 Reporting Cybercrime and Cyber Cells
Cybercrimes must be reported in order to be found and stopped before they spread. The IT Act specifies guidelines for reporting cybercrimes and the creation of cyber cells, which are specialised groups in charge of conducting cybercrime investigations.
Example: When someone reports an online fraud plan to the cyber cell, the cell looks into the scheme and finds the perpetrators. The cyber cell employs the processes outlined by the IT Act to bring charges against fraudsters.
Lesson 13. Human characteristics
13.1 Partners
Associates are people or organisations that participate in cybercrime together. Identification and prevention of cybercrime can be aided by an understanding of the social dynamics of colleagues.
An illustration of a phishing attack is when a group of friends use phoney emails or websites to collect sensitive data from people. The people who were involved in the phishing scheme can be found and brought to justice by law enforcement officers by examining the associates’ social connections and communication histories.
13.2 Conduct
Cybercrime can be influenced by psychological considerations, such as the excitement of breaking the law or the desire for financial gain. Cybercrime can be prevented and discouraged by having an understanding of these behaviours.
An individual might hack systems for the joy of getting into them and accessing private data, for instance. Law enforcement personnel can take action to prevent and dissuade the individual’s activities by understanding the individual’s motivations and behaviours.
13.1 Computer Security
Social engineering is the practise of using deceit and manipulation to persuade someone to provide sensitive information or carry out forbidden behaviours. Phishing emails and pretexting are just a couple of the many ways that social engineering assaults can manifest.
An illustration of a phishing email is when a criminal requests sensitive information from a person while posing as a genuine company. The person falls for the trick and gives the criminal the information they need, which they subsequently utilise fraudulently.
Insider Threats, 13.4
The term “insider threat” describes the danger posed by people who have access to confidential data or computer systems and abuse that access for their own advantage or malicious intent. Insider threats may be purposeful or accidental.
Example: A worker at a business who has access to private customer information uses that access to steal the information and sell it to a rival. The organisation can lessen the danger of insider threats by putting access controls in place and keeping an eye out for unusual activities.
13.5 Cybercrime Deterrence and Prevention
A multifaceted strategy involving awareness, education, and enforcement is needed to prevent and discourage cybercrime. Cybercrime can be decreased by educating people and organisations about the dangers it poses and how to take precautions.
As an illustration, a law enforcement agency collaborates with a neighbourhood business group to offer instruction and training on preventing cybercrime. The training covers information on the consequences for cybercrime as well as best practises for protecting computer systems and sensitive data. The alliance aids in reducing community cybercrime by raising awareness and educating the populace.
Lesson 14: Adherence to Regulations
Compliance with laws, rules, and industry standards pertaining to cybersecurity and data protection is referred to as regulatory compliance. Compliance can aid in lowering cybercrime risk and safeguarding sensitive data.
14.1 Cybersecurity Rules
Cybersecurity rules and regulations are those that are created to guard against online threats and data breaches. These laws can include cybersecurity standards, data protection legislation, and notification rules for data breaches, depending on the nation or industry.
An illustration of a law in the European Union is the General Data Protection law (GDPR), which mandates that businesses protect the personal data of EU individuals and notify the EU within 72 hours of any data breaches. Businesses that violate the GDPR could be subject to harsh fines and penalties.
14.2 Industry Guidelines
Industry groups or organisations produce guidelines and best practises, which are referred to as industry standards. These guidelines can assist organisations in strengthening their cybersecurity defences and defending against online threats.
To safeguard the security of payment card data, the major payment card firms created the Payment Card Industry Data Security guidelines (PCI DSS), a collection of guidelines. Any organisation that conducts credit card transactions must adhere to the PCI DSS.
14.3 Audits of Compliance
Compliance audits are performed to determine whether a company is adhering to all applicable rules, laws, and standards. These reviews can assist in locating weak points and enhancing the organization’s cybersecurity posture.
To make sure they are adhering to the Payment Card Industry Data Security Standards (PCI DSS), for instance, a company that processes payment card transactions goes through a compliance audit. The organization’s security procedures and controls are evaluated during the audit to see if they comply with PCI DSS regulations.
14.4 Repercussions for Failure to Comply
Penalties for breaking cybersecurity laws and industry standards can be severe and include fines, legal culpability, and reputational harm.
An illustration is the General Data Protection Regulation (GDPR), which carries a maximum fine of 4% of a company’s global revenue, or €20 million, whichever is higher. In addition to monetary fines, the business may also be subject to legal liabilities and reputational harm.
14.5 Advantages of Complying
Numerous advantages, such as a competitive edge, greater consumer trust and loyalty, and lower risk of cyber threats and data breaches, can be attained by adhering to cybersecurity legislation and industry standards.
Customers can be assured that their payment card information is secure if an organisation complies with the Payment Card Industry Data Security Standards (PCI DSS). Customers’ trust and loyalty may increase as a result, and businesses may gain an edge over rivals that do not adhere to PCI DSS.