Deck 11: Computer Crime, Fraud, Ethics, and Privacy

Question 1

The TRW Company Credit Data Case is an example of "valuable information" computer crime.

Answer 1

True

Question 2

Many types of computer abuse have other, more common names such as "vandalism" or "embezzlement."

Answer 2

True

Question 3

"Shoulder surfing" is a victimless crime.

Answer 3

False

Question 4

In Canada, trafficking in passwords is immoral, but not illegal.

Question 5

Canada passed an important piece of federal legislation referring to criminal activities involving computers in 1987, making it illegal to alter or destroy federal information.

Question 6

The absence of good statistics on computer crime is partially explained by the fact that a large proportion of the computer crime committed in private organizations is handled as an internal matter and thus is never publicly divulged.

Question 7

According to the chapter, a computer virus is an example of a type of computer crime called "denial of service."

Question 8

The largest known computer crime of record is the TRW Company Credit Data Case.

Question 9

A conflict exists between providing bona fide AIS users easy access to computer resources and security objectives.

Question 10

We believe that most computer crimes are not discovered.

Question 11

One conclusion that we can draw about computer crime is that it is growing.

Question 12

There were less than 200 documented cases of computer crime at the time the textbook was written.

Question 13

VoIP refers to a type of antivirus software.

Question 14

Automated accounting information systems are a particularly important potential target of computer crime.

Question 15

Most computer abuse that we have caught so far has been because of good accounting controls.

Question 16

It is generally accepted that hackers are motivated only by greed.

Question 17

In Canada, there is a widely accepted definition of computer crime given by the Canadian Police College.

Question 18

A paradoxical matter in the TRW Case was that the prosecution had trouble acquiring testimonies because the buyers as well as the sellers of the credit information were technically in violation of the law.

Question 19

No one really knows how much is lost each year as the result of computer abuse.

Question 20

When organizations discover a computer crime, the cost of auditing and investigating the loss can exceed the actual monetary loss.

Question 21

Computer abuse could still result in computer crime, even though the person realized no personal gain.

Question 22

Smishing scams use text messages on cell phones to ask you to provide or update your personal information.

Question 23

Experts suggest that policies on computer abuse are ineffective, and therefore should not be used to help educate employees about computer abuse.

Question 24

Most computer criminals are individuals of questionable background, little education, and no morals.

Question 25

Worm programs are viruses that insert themselves into computer systems and disrupt operations or files.

Question 26

The RCMP estimates that credit card fraud in Canada cost banks over $365 million in 2010, while debit card fraud cost was over $119 million.

Question 27

Most computer criminals we have been fortunate enough to catch have had long, criminal backgrounds.

Question 28

Forensic accountants are to accounting as detectives are to criminal justice.

Question 29

VoIP converts voice signal into digital signals that travel over the Internet.

Question 30

According to a recent CSI survey, the most common problem encountered by the respondents is viruses.

Question 31

Fortunately, thwarting most forms of computer abuse does not require the support of top management.

Question 32

Most computer criminals we have been fortunate enough to catch have had strong, technical backgrounds.

Question 33

Monitoring activity over Wi-Fi networks is crucial for an effective physical security of the IT network of a company.

Question 34

Watching for telltale signs may help detect computer crime.

Question 35

When a hacker commits a distributed denial-of-service attack, he or she uses virus software to infect a single computer.

Question 36

A "strong password" is a password that lasts a long time.

Question 37

The term "distributed denial-of-service" is closely connected with the term "zombie computers."

Question 38

According to a KPMG survey, companies that stress the importance of business ethics tend to get about the same results as companies that do not stress its importance.

Question 39

Cultural standards have no impact on ethical standards.

Question 40

A computer virus may lie dormant in a system until software is copied and run on non?licensed machines.

Question 41

All of these are reasons why we think that computer crime is rising except:

A)Some Internet web sites now instruct users how to perform certain types of computer abuse
B)More people now know how to use computers
C)Computer usage continues to grow
D)all of these are reasons

Question 42

Which of the following best explains why we have incomplete information on computer crime?

A)Most companies handle abuse as an internal matter
B)Most newspapers no longer have any interest in reporting computer crime
C)Documentation of abuses is usually poor
D)We believe that most computer crime is not caught

Question 43

The TRW Case is notable because:

A)The amount of dollars involved was so large
B)No one got caught
C)The real victims were TRW customers
D)A routine audit was responsible for detecting the fraud

Question 44

At present, we think that computer crime is:

A)Falling
B)Random
C)Rising
D)Flat

Question 45

According to the chapter, which of these statements is most accurate?

A)Today, most computers are safe from computer abuse
B)Today, very few computers are completely safe from computer abuse
C)Today, "hacking" is no longer possible
D)Today, all of these statements are accurate

Question 46

According to the chapter, which of these statements is most accurate?

A)Almost all computer crime is committed for personal gain
B)Very little computer crime is committed for personal gain
C)Most computer crime is just as easily described as "embezzlement"
D)We actually know very little about computer abuse

Question 47

According to the chapter, which of these statements is most accurate?

A)Most computer abuses are performed as retaliation against employers
B)Very little computer crime is committed for personal gain
C)Some computer abuses are performed simply to meet a challenge
D)We catch most computer abusers with good accounting controls

Question 48

_________ was eventually arrested for computer hacking.

A)Robert Moore
B)Bernard Madoff
C)Kenneth Lay
D)Barak Obama

Question 49

Which of the following statements is true?

A)Many Canadian provinces lack specific computer crime laws
B)Most computer crime laws define their terms
C)All computer crime laws have only felony provisions
D)none of the above statements is true

Question 50

A "logic bomb" is a computer program that:

A)Rewrites the instructions of a particular computer program
B)Remains dormant until an event triggers it
C)Contains an error in it
D)"Blows away" impresses)the boss when he or she sees it

Question 51

The process of changing data before, during, or after they are entered into a computer system is called:

A)Data diddling
B)Salami technique
C)Logic bombs
D)Social engineering

Question 52

Which of these would be an example of "denial-of-service" computer abuse?

A)Social engineering
B)Salami technique
C)Trojan horse program
D)Embezzlement using computerized data
E)none of these

Question 53

Which of these is an acronym for privacy legislation?

A)ACL
B)BART
C)PIPEDA
D)DOS

Question 54

Hacking involves:

A)Stealing carbons of credit cards
B)Destroying computer hardware
C)Gaining illegal entry to computer files from remote locations
D)Inserting a logic bomb in a computer program

Question 55

Some of the most informative reports of computer abuses are found in which of the following periodicals?

A)Dr.Virus
B)Hacking Today
C)Parade of Perpetrators
D)Computerworld

Question 56

The TRW Credit Data Case is an example of:

A)The round?off trick
B)An outsider ripping off a corporate computer
C)Valuable information computer crime
D)none of the above

Question 57

A computer virus is:

A)A disease that computer programmers are very susceptible to
B)A small processing routine that the user accidentally introduces into the system
C)A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves
D)Harmless

Question 58

Much of what has been termed computer crime has merely involved the computer but probably would be more accurately classified as other types of crimes.A notable exception to this involves:

A)Raiding dormant bank accounts
B)Inventory misappropriation
C)Embezzlement
D)Theft of computer time

Question 59

Which of these terms describes a computer program that remains dormant until triggered by some specific circumstance or date?

A)Trojan horse program
B)DDoS program
C)Logic bomb
D)Dial back system

Question 60

__________ describes the technique of stealing small amounts of money from a large number of accounts over time.

A)Salami technique
B)Buffet system
C)Baloney method
D)Dialing for dollars

Question 61

A forensic accountant is an accountant who:

A)Performs autopsies on dead accountants
B)Tries to explain why some accounts become inactive
C)Investigates suspected fraud
D)Performs court-approved accounting tasks for bankrupt companies

Question 62

Probably the most important federal legislation governing the privacy of personal information is:

A)CAN-SPAM Act
B)Federal Privacy Act
C)PIPEDA
D)Criminal Code of Canada

Question 63

Computer programs that can scan computer disks for virus-like coding are called:

A)Antivirus software
B)Virus software
C)Detection software
D)Friendly applets

Question 64

Accounting "ethics" means:

A)Whatever the corporate manual says it means
B)Acting responsibly as long as no dollars are involved
C)Only being honest; everything else is up for grabs
D)Acting responsibly, no matter what

Question 65

An example of a conflict-of-interest situation is:

A)Not working for a new company in a job similar to your last job
B)Not talking to outsiders about general business concerns
C)A decision where personal and corporate goals conflict
D)Refusing to use a new computer if your colleagues are not provided similar systems

Question 66

One of the most effective deterrents to prevent/discourage computer hacking is:

A)User education, that is, making potential hackers aware of the ethical issues involved in this sort of behavior
B)The Criminal Law Improvement Act of 1987
C)The Criminal Law Amendment Act of 1985
D)none of the above

Question 67

The term "smishing" means:

A)Conducting identify theft by using text messages on cell phones
B)Attempting to appear unnoticeable for an illegal act
C)Stealing small amounts of monies from several computer accounts
D)Masquerading as a corporate manager in order to obtain useful information

Question 68

In the context of thwarting computer abuse, which of the following is true?

A)It is not important to enlist the support of top management
B)Many top managers are not concerned about computer abuse
C)Computer crime mostly means controlling computer hardware
D)Most computer crime happens because of a failure of controls, not an absence of controls

Question 69

It is important to be able to recognize the symptoms of employee fraud.In practice, which of the following might be the best clue that fraud might be occurring?

A)Accounting irregularities
B)Internal control procedures that managers feel are inadequate
C)Anomalies that, together, seem unreasonable
D)Trial balances that almost always contain errors

Question 70

Most computer criminals who have been caught:

A)Have inferior educational backgrounds
B)Have superior educational backgrounds
C)Work for organized crime
D)Are ill suited to their jobs

Question 71

Thwarting computer abuse can be enhanced by all of the following except:

A)Enlisting top-management support
B)Increasing employee awareness and education
C)Allowing only 10% of employees access to computers
D)Using strong passwords

Question 72

Almost all computer criminals can be described as:

A)Professional criminals
B)Technical hackers possessing strong computer skills
C)White collar professional criminals
D)Amateurs who describe themselves as relatively honest

Question 73

One of the major computer crimes is the intent to illegally obtain information or tangible property through the use of computers.Which of the following methods might accomplish this type of crime if the perpetrator can change data before, during, or after they are entered into a computer system?

A)Salami technique
B)Data diddling
C)Shoulder surfing
D)Trojan horse program

Question 74

A small computer program that is stored on a web server and designed to run in conjunction with browser software is called an):

A)Applet
B)Logic bomb
C)Worm
D)Boot sector

Question 75

Which of the following is true?

A)Only the AICPA has drafted an ethical code of conduct
B)Computer crime only refers to manipulating a computer to dishonestly obtain money, property, or some other advantage of value
C)ACM society is an acronym meaning "association of corporate managers"
D)Ethical use of computers means realizing that the availability of a system does not convey its unrestricted use

Question 76

All of the following are ways to thwart computer viruses except:

A)Acquiring a vaccine or anti?virus program
B)Avoiding downloading computer games from questionable sources
C)Opening suspicious emails and attachments
D)Buying shrink?wrapped software from reputable sources

Question 77

Acts such as dumpster diving, phishing, and smishing are all conducted to:

A)Conduct a denial of service attack
B)Disrupt computer services
C)Get food
D)Perform identity theft

Question 78

Which of the following is an important reason why accountants should be concerned about computer crime and abuse?

A)They might lose their job if they don't detect computer crime or abuse in their organization
B)They might lose their professional credibility and license if computer crime or abuse continues for a long time in their organization and they do not detect it
C)They are responsible for designing, implementing, and monitoring the control procedures for AISs
D)all of the above are equally important

Question 79

Which of the following is not a common way to steal personal identity information?

A)Altering computer records
B)Using key logging software
C)Dumpster diving
D)Phishing

Question 80

Which of the following does not destroy data but merely replicates itself repeatedly until the user runs out of internal memory or disk space?

A)Computer virus
B)Worm program
C)Java applet
D)Salami technique