Fraud Awareness and Prevention in Cyber Crime: A Case Study

This case study discusses a cyber crime fraud that was committed in Canada and the legal actions taken against the fraudster. It highlights the characteristics of the fraudster and the identification of the victim(s) and fraudster(s). The case was prosecuted under Canadian cyber-crime laws and the fraudster was found guilty. The article also emphasizes the importance of fraud awareness and prevention in cyber crime.

Running Head; FRAUD AWARENESS PREVENTION
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FRAUD AWARENESS PREVENTION
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Facts of the case
Fraud description
The fraud under consideration, in this case, is cyber-crime that was committed between 8.00 AM
to 10.00 PM on 21st January 2018 at London city in Canada. This fraud act was allegedly
committed by John Black Hat. It was reported by one of the companies (AGH Company) in the
city that the alleged fraudster hacked into company’s bank account and transferred a huge
amount of money.
From the actions of John Black Hat, the police noted three main characteristics of this fraudster.
The first character associated with John was deprivation. When police confiscated his laptops
from his warehouse, he denied any ownership until the system recognized his as the most wanted
cyber-attacker (Bohm, 2013). Second, he is deceptive and lastly risk taker. Despite counter
cyber-cyber-crime set by Canadian legal system, John risked being arrested.
This fraud is an offense punishable by law. In this case, the fraud was perpetuated to be a
deliberate act that John Black Hat committed knowing the legal status of his act. Under Canadian
Criminal Code section 342, the fraud was categorized under Canadian cyber-crime laws. This
law was applied to determine whether John was liable or not. The company suffered damages for
financial loss. Thus, the case was perpetuated on the basis of section 342.
According to Canadian criminal code, hacking is a form of cyber-crime that result in a criminal
offense punishable by law. This fraud falls under section 342 of the criminal code that deals with
theft, forgery of credit cards and authorized use of a computer (Allen, 2011). Thus, this fraud
was prosecuted as a criminal offense. The body that propelled this case was given mandate by
Canadian computer crime laws. In this case, the plaintiffs would be AGH Company while the
defendant will be John Black Hat. During court proceedings, this case was presented as AGH
Company VS John Black Hat.
Identification of fraudster(s)
The name of the alleged fraudster was John Black Hat. The company later realized that the
hacker would not have managed to access the company’s bank account with inside information.

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Thus, it was discovered that several individuals assisted John Black Hat to access this
confidential information.
According to police interrogation, the company’s system administrator Mr. David Wright was
found liable for leaking confidential data to John Black Hat. There were blueprints that were
discovered by police that connect these two individuals (Allen, 2008). This was a supportive
action since Mr. David Wright got a share from that fraud.
Identification of victim(s)
This fraud exposed a lot of people and organization to risks. The immediate direct victim was the
company. The company lost a lot of money which may result in the collapse of the operations if
the money would not be recovered. Other victims, in this case, include investors. There were a
lot of people who invested in the company and suffered financial loss. All the shareholders in the
company also suffered damages. The company had borrowed a lot of money from the financial
institution which may result in delays in loan repayment. This form of breach of contract will
make the company lose external and external confidence.
Discovery and Outcomes
This fraud was discovered when the bank sent a memo notifying the company of huge
withdrawal of money from the account. This information revealed that unknown individual
transferred a huge amount of money to mysterious account was would not be traced. Upon
receiving this memo, the company responded with little or no knowledge of the withdrawal.
Records and bank balance indicated that the bank account has been accessed illegally (Alan,
2004). Police investigation revealed this as hacking or cyber-crime. Use techniques in ethical
hacking unit, police managed to reveal the blueprint of the person who hacked the back and his
place of action. John Black Hat was apprehended by police as he planned to damage evidence
against him.
From police investigation, it was clear that this fraud was committed by John and David
deliberately with the intention of stealing money from the company. They were taken to court
and charged under section 342 of the criminal code (Barnhorst, 2009). The ethical hacking unit
managed to recover the transferred money from mysterious bank accounts. The report from

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criminal court also found John Black Hat guilty of other cyber-crime offenses that had not been
discovered before. The court ordered full recovery of money lost through this kind of fraud
(Siegel, 2014). AGH Company managed to recover full amount that had been confiscated.
In the same, Mr. David Wright cooperated with the court and he confessed to having given
information to John Black Hat. In his rule, Judge Peter Moore found John Hat guilty and was
sent to jail for life. Mr. David Wright was also found guilty but he was sentenced to ten years in
jail since he assisted in police investigations.

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References
Alan, B. (2004).
Social Research Methods, 2nd edn. New York: Oxford University Press.
Allen, B.V. (2008).
Police Powers: Law, Order, and Accountability. Pearson Education Canada.
Allen, B.V. (2011).
Criminal Investigation: Search of the Truth (2nd edition). Pearson Education
Canada.
Barnhorst, R. (2009).
Criminal Law and the Canadian Criminal Code. McGraw-Hill Ryerson
Higher Education.
Bohm, R.M. (2013).
Introduction to Criminal Justice, 8th edn. McGraw-Hill Education.
Siegel, L.J. (2014).
Criminology: The Core, 5th edn. Wadsworth Publishing.