Entries Tagged "crime"

Page 12 of 39

Pickpockets are a Dying Breed

Pickpockets in America are dying out. This is the bit I found interesting:

And perhaps most important, the centuries-old apprenticeship system underpinning organized pickpocketing has been disrupted. Pickpocketing has always perpetuated itself by having older hooks­—nicknamed “Fagins,” after the crime boss in Oliver Twist—teach younger ones the art, and then absorbing them into canons. But due to ratcheted-up law enforcement measures, including heftier sentences (in some states, a pick, defined as theft from the body of another person and charged as a felony regardless of the amount taken) and better surveillance of hot spots and known pickpockets, that system has been dismantled.

This is not the case in Europe, where pickpocketing has been less of a priority for law enforcement and where professionals from countries like Bulgaria and Romania, each with storied traditions of pickpocketing, are able to travel more freely since their acceptance into the European Union in 2007, developing their organizations and plying their trade in tourist hot spots like Barcelona, Rome, and Prague. “The good thieves in Europe are generally 22 to 35,” says Bob Arno, a criminologist and consultant who travels the world posing as a victim to stay atop the latest pickpocketing techniques and works with law enforcement agencies to help them battle the crime. “In America they are dying off, or they had been apprehended so many times that it’s easier for law enforcement to track them and catch them.”

Posted on March 3, 2011 at 6:35 AM • View Comments

Stealing SIM Cards from Traffic Lights

Johannesburg installed hundreds of networked traffic lights on its streets. The lights use a cellular modem and a SIM card to communicate.

Those lights introduced a security risk I’ll bet no one gave a moment’s thought to: that criminals might steal the SIM cards from the traffic lights and use them to make free phone calls. But that’s exactly what happened.

Aside from the theft of phone service, repairing those traffic lights is far more expensive than those components are worth.

I wrote about this general issue before:

These crimes are particularly expensive to society because the replacement cost is much higher than the thief’s profit. A manhole is worth $5–$10 as scrap, but it costs $500 to replace, including labor. A thief may take $20 worth of copper from a construction site, but do $10,000 in damage in the process. And the increased threat means more money being spent on security to protect those commodities in the first place.

Security can be viewed as a tax on the honest, and these thefts demonstrate that our taxes are going up. And unlike many taxes, we don’t benefit from their collection. The cost to society of retrofitting manhole covers with locks, or replacing them with less re­salable alternatives, is high; but there is no benefit other than reducing theft.

These crimes are a harbinger of the future: evolutionary pressure on our society, if you will. Criminals are often referred to as social parasites, but they are an early warning system of societal changes. Unfettered by laws or moral restrictions, they can be the first to respond to changes that the rest of society will be slower to pick up on. In fact, currently there’s a reprieve. Scrap metal prices are all down from last year—copper is currently $1.62 per pound, and lead is half what Berge got—and thefts are down too.

We’ve designed much of our infrastructure around the assumptions that commodities are cheap and theft is rare. We don’t protect transmission lines, manhole covers, iron fences, or lead flashing on roofs. But if commodity prices really are headed for new higher stable points, society will eventually react and find alternatives for these items—or find ways to protect them. Criminals were the first to point this out, and will continue to exploit the system until it restabilizes.

Posted on January 13, 2011 at 12:54 PM • View Comments

Sometimes CCTV Cameras Work

Sex attack caught on camera.

Hamilton police have arrested two men after a sex attack on a woman early today was caught on the city’s closed circuit television (CCTV) cameras.

CCTV operators contacted police when they became concerned about the safety of a woman outside an apartment block near the intersection of Victoria and Collingwood streets about 5am today.

Remember, though, that the test for whether the surveillance cameras are worth it is whether or not this crime would have been solved without them. That is, were the cameras necessary for arrest or conviction?

My previous writing on cameras.

EDITED TO ADD (12/17): When I wrote “remember, though, that the test for whether the surveillance cameras are worth it is whether or not this crime would have been solved without them,” I was being sloppy. That’s the test as to whether or not they had any value in this case.

Posted on December 13, 2010 at 2:01 PM • View Comments

Bulletproof Service Providers

From Brian Krebs:

Hacked and malicious sites designed to steal data from unsuspecting users via malware and phishing are a dime a dozen, often located in the United States, and are a key target for takedown by ISPs and security researchers. But when online miscreants seek stability in their Web projects, they often turn to so-called “bulletproof hosting” providers, mini-ISPs that specialize in offering services that are largely immune from takedown requests and pressure from Western law enforcement agencies.

Posted on November 11, 2010 at 12:45 PM • View Comments

The Business of Botnets

It can be lucrative:

Avanesov allegedly rented and sold part of his botnet, a common business model for those who run the networks. Other cybercriminals can rent the hacked machines for a specific time for their own purposes, such as sending a spam run or mining the PCs for personal details and files, among other nefarious actions.

Dutch prosecutors believe that Avanesov made up to €100,000 ($139,000) a month from renting and selling his botnet just for spam, said Wim De Bruin, spokesman for the Public Prosecution Service in Rotterdam. Avanesov was able to sell parts of the botnet off “because it was very easy for him to extend the botnet again,” by infecting more PCs, he said.

EDITED TO ADD (11/11): Paper on the market price of bots.

Posted on November 4, 2010 at 7:04 AM • View Comments

Control Fraud

I had never heard the term “control fraud” before:

Control fraud theory was developed in the savings and loan debacle. It explained that the person controlling the S&L (typically the CEO) posed a unique risk because he could use it as a weapon.

The theory synthesized criminology (Wheeler and Rothman 1982), economics (Akerlof 1970), accounting, law, finance, and political science. It explained how a CEO optimized “his” S&L as a weapon to loot creditors and shareholders. The weapon of choice was accounting fraud. The company is the perpetrator and a victim. Control frauds are optimal looters because the CEO has four unique advantages. He uses his ability to hire and fire to suborn internal and external controls and make them allies. Control frauds consistently get “clean” opinions for financial statements that show record profitability when the company is insolvent and unprofitable. CEOs choose top-tier auditors. Their reputation helps deceive creditors and shareholders.

Only the CEO can optimize the company for fraud.

This is an interesting paper about control fraud. It’s by William K. Black, the Executive Director of the Institute for Fraud Prevention. “Individual ‘control frauds’ cause greater losses than all other forms of property crime combined. They are financial super-predators.” Black is talking about control fraud by both heads of corporations and heads of state, so that’s almost certainly a true statement. His main point, though, is that our legal systems don’t do enough to discourage control fraud.

White-collar criminology has a set of empirical findings and theories that are useful to understanding when markets will act perversely. This paper addresses three, interrelated theories economists should know about. “Control fraud” theory explains why the most damaging forms of fraud are situations in which those that control the company or the nation use it as a fraud vehicle. The CEO, or the head of state, poses the greatest fraud risk. A single large control fraud can cause greater financial losses than all other forms of property crime combined they are the “super-predators” of the financial world. Control frauds can also occur in waves that can cause systemic economic injury and discredit other institutions essential to good government and society. Control frauds are commonly able to defeat for several years market mechanisms that neo-classical economists predict will prevent such frauds.

“Systems capacity” theory examines why under deterrence is so common. It shows that, particularly with respect to elite crimes, anti-fraud resources and willpower are commonly so limited that “crime pays.” When systems capacity limitations are severe a “criminogenic environment” arises and crime increases. When a criminogenic environment for control fraud occurs it can produce a wave of control fraud.

“Neutralization” theory explores how criminals neutralize moral and social barriers that reduce crime by constraining our decision-making to honest enterprises. The easier individuals are able to neutralize such social restraints, the greater the incidence of crime.

[…]

White-collar criminology findings falsify several neo-classical economic theories. This paper discusses the predictive failures of the efficient markets hypothesis, the efficient contracts hypothesis and the law & economics theory of corporate law. The paper argues that neo-classical economists’ reliance on these flawed models leads them to recommend policies that optimize a criminogenic environment for control fraud. Fortunately, these policies are not routinely adopted in full. When they are, they produce recurrent crises because they eviscerate the institutions and mores vital to make markets and governments more efficient in preventing waves of control fraud. Criminological theories have demonstrated superior predictive and explanatory behavior with regard to perverse economic behavior. This paper discusses two realms of perverse behavior the role of waves of control fraud in producing economic crises and the role that endemic control fraud plays in producing economic stagnation.

EDITED TO ADD (11/11): Related paper on the effects of executive compensation on the abuse of controls.

Posted on November 1, 2010 at 6:02 AM • View Comments

Electronic Car Lock Denial-of-Service Attack

Clever:

Inspector Richard Haycock told local newspapers that the possible use of the car lock jammers would help explain a recent spate of thefts from vehicles that have occurred without leaving any signs of forced entry.

“We do get quite a lot of car crime in the borough where there’s no sign of a break-in and items have been taken from an owner’s car,” Inspector Haycock said. “It’s difficult to get in to a modern car without causing damage and we get a reasonable amount of people who do not report any.

“It is a possibility that central locking jamming is being used,” he added.

Devices that block the frequency used by a car owner’s key fob might be used to thwart an owner’s attempts to lock a car, leaving it open for waiting thieves. A quick search of the internet shows that devices offering to jam car locks are easily available for around $100. Effectiveness at up to 100m is claimed.

I thought car door locks weren’t much of a deterrent to a professional car thief.

EDITED TO ADD (10/22): The thieves are not stealing cars, they’re stealing things left inside the cars.

EDITED TO ADD (11/10): Related paper.

Posted on October 21, 2010 at 2:07 PM • View Comments

Cloning Retail Gift Cards

Clever attack.

After researching how gift cards work, Zepeda purchased a magnetic card reader online, began stealing blank gift cards, on display for purchase, from Fred Meyer and scanning them with his reader. He would then return some of the scanned cards to the store and wait for a computer program to alert him when the cards were activated and loaded with money.

Using a magnetic card writer, Zepeda then rewrote one of the leftover stolen gift card’s magnetic strip with the activated card’s information, thus creating a cloned card.

Posted on August 13, 2010 at 7:36 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.