Chapter 05 Identity Theft and Identity Fraud

Multiple Choice: Choose the one alternative that best completes the statement or answers the question.1. Which of the following best distinguishes identity theft?

a. Identity theft is the illegal use or transfer of a third party’s personal identification information with unlawful intent.

b. Identity theft encompasses identity fraud within its purview.c. Identity theft involves any attempts by minors to use fake IDs to purchase alcohol or

gain access to nightclubs or gambling establishments.d. Identity theft is a vast array of illegal activities based on fraudulent use of identifying

information of a real or fictitious person.Answer: aObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 115Level: Intermediate

2. Which of the following examples may be classified as identity fraud?a. You are wrongfully accused of a crime committed by an impostor.b. Your phone bill reflects long distance charges you did not make.c. You have documents that helped you illegally immigrate into the country.d. You use a fake name to make a restaurant reservation.

Answer: cObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 115Level: Difficult

3. Which of the following is the most general problem faced by American law enforcement and government officials who want to eradicate identity fraud/theft?

a. the rise of terrorists and organized crime groupsb. the increasing use of compound surnamesc. the trend toward removing social security numbers from drivers licensesd. the boundless nature of the Internet

Answer: dObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 116Level: Difficult

4. Which of the following statements correctly distinguishes between identity theft and identity fraud?

a. Identity fraud is always a victimless crime.b. Identity fraud may involve the fabrication of identity information based on a fictitious person.c. Identity theft may be done for criminal purposes.d. Identity theft does not utilize historical or biometric information.

Answer: b

Objective: Understand the difference between identity theft and identity fraud.Page number: 116Level: Intermediate

5. Which of the following types of identity theft/fraud is a person engaged in if he created a fictitious profile on a social networking site so as to facilitate an extramarital affair?

a. criminal record identity theft/fraudb. assumption of identityc. credit or financial theftd. virtual identity theft/fraud

Answer: dObjective: Explore the five types of identity theft/fraud.Page number: 118Level: Intermediate

6. Which of the following types of identity theft/fraud is defined as the use of stolen personal and financial information to facilitate the creation of fraudulent accounts?

a. virtual identity theft/fraudb. criminal record identity theft/fraudc. theft for employment and/or border entryd. credit identity theft/fraud

Answer: dObjective: Explore the five types of identity theft/fraud.Page number: 121Level: Basic

7. If someone found a lost driver’s license and then used it to open multiple bank accounts and commit tax-related fraud, which type of identity theft/fraud was committed?

a. reverse criminal record identity theftb. criminal record identity theft/fraudc. virtual identity theft/fraudd. credit identity theft/fraud

Answer: dObjective: Explore the five types of identity theft/fraud.Page number: 119Level: Intermediate

8. Which of the following types of identity theft/fraud is by far the most common and also the most feared by the American public?

a. credit identity theft/fraudb. assumption of identityc. theft for employment and/or border entryd. virtual identity theft/fraud

Answer: aObjective: Explore the five types of identity theft/fraud.Page number: 121

Level: Basic

9. An upstanding citizen with no police record, Jonathan discovers that a past acquaintance who’s now a career criminal is claiming Jonathan’s identity. What form of identity theft/threat is Jonathan a victim of?

a. assumption of identityb. theft for employmentc. reverse criminal record identity theftd. credit identity theft/fraud

Answer: cObjective: Explore the five types of identity theft/fraud.Page number: 122Level: Basic

10. Paper shredders and disk-wiping software are means to avoid which of the following physical methods of identity theft?

a. mail theftb. bag operationsc. ATM manipulationd. dumpster diving

Answer: dObjective: Explore the five types of identity theft/fraud.Page number: 127Level: Basic

11. “Popcorning” is a technique used in which of the following physical methods of identity theft?

a. child identity theftb. mail theftc. fraudulent or fictitious companiesd. theft of computers

Answer: bObjective: Explore the five types of identity theft/fraud.Page number: 127Level: Basic

12. Which of the following physical methods of identity theft involves the surreptitious entry into hotel rooms to steal, photograph, or photocopy documents?

a. bag operationsb. insidersc. card skimmingd. dumpster diving

Answer: aObjective: Explore the five types of identity theft/fraud.Page number: 129Level: Basic

13. Which of the following is true regarding the theft of computers as a physical method of identity theft?

a. Physical theft of computers is the least common technique employed by identity thieves.b. Individuals without technical expertise cannot successfully execute this physical method of identity theft.c. Areas particularly vulnerable to theft of computers include private residences and recreation centers.d. Theft of computers does not alleviate the need to analyze and organize voluminous paper documents.

Answer: cObjective: Explore the five types of identity theft/fraud.Page number: 128Level: Intermediate

14. Which of the following is true regarding bag operations as a physical method of identity theft?

a. They include sifting through commercial or residential trash or waste for information deemed valuable.b. They are typically conducted by the host government’s security or intelligence services.c. They are executed by depositing personal documents in unlocked containers on the side of the road until they are retrieved.d. They involve the creation of shell companies that engage in the collection of personal financial information.

Answer: bObjective: Explore the five types of identity theft/fraud.Page number: 129Level: Intermediate

15. Which of the following is NOT a reason why lenders have often confounded law enforcement by their reluctance to join in the efforts to combat identity threat/fraud?

a. Consumers are unconcerned and won’t take steps to protect their accounts.b. Lenders are singularly motivated by capitalism.c. Benefits flow to them from easily available credit.d. Lenders willingly absorb costs associated with identity theft/fraud.

Answer: aObjective: Explore the five types of identity theft/fraud.Page number: 125Level: Difficult

16. Which of the following is NOT a category of phishing attacks?a. redirectorsb. pharmingc. botnets

d. spoofingAnswer: cObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 133Level: Basic

17. Which of the following is an example of a bag operation?a. A person surreptitiously enters a suspect’s hotel room to download information from

the suspect’s laptop computer.b., A person retrieves a bag full of documents containing personal and financial

information from his neighbor’s mailbox.c. A logistics manager is accused of losing tapes containing personal information of

government employees during shipment.d. A person is found sifting through bags of commercial trash, looking for passwords,

computer systems, and software.Answer: aObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 134Level: Intermediate

18. Which of the following is a disadvantage of using SpyBuddy to steal passwords?a. It may be detected by software.b. It is hard to install and remove.c. It initiates after start-up.d. It is attached to a local machine.

Answer: dObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 135Level: Intermediate

19. Which of the following is true regarding keyloggers?a. They are designed to capture passwords and other private information.b. They are designed to recover lost work in the case of computer problems.c. They are designed to use company trademarks to represent a legitimate institution.d. They are designed for worthwhile goals like parental control.

Answer: aObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 136Level: Basic

20. Which of the following is true regarding Trojans?a. They provide a mechanism for cybercriminals to change Web site IP addresses.

b. They are malicious programs that redirect users’ network traffic to undesired sites.c. They record every keystroke, including BIOS passwords, and are undetectable by software.d. They are potentially unwanted and are often housed with commercial utilities.

Answer: dObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 137Level: Basic

21. Which of the following would NOT be classified under insurance and loan fraud?a. enrolling in distance education and online courses using fake identitiesb. creating multiple accounts with a bank to commit-tax related fraudc. dropping out of community colleges upon receiving government loans for educationd. obtaining free medical care by procuring a victim’s personal information

Answer: bObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 138Level: Difficult

22. Today an identity thief is often remote from the victim. How does this pose a special problem to law enforcement?

a. Victims often don’t care if a person is using their identity in a distant state.b. Jurisdictional questions often confound local authorities.c. The federal government can’t prosecute identity thieves who work exclusively online.d. Only a few states have passed laws forbidding Internet-facilitated identity theft and

fraud.Answer: bObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 142Level: Intermediate

23. Which of the following are most often used fraudulently to obtain immigration benefits?a. student IDb. drivers’ licensesc. documentation of residencyd. credit cards

Answer: cObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 140Level: Basic

24. Which of the following types of fraud is most likely to involve faked work permits and green cards?

a. insurance fraudb. identity fraudc. computer fraud d. immigration fraud

Answer: dObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 139Level: Basic

25. The Visa Waiver Pilot Program (VWPP) caused the most recent surge in which of the following fraudulent activities?

a. credit card fraudb. immigration benefit fraudc. alien smugglingd. trafficking

Answer: bObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 140Level: Intermediate

True/False: Write ‘T’ if the statement is true and ‘F’ if the statement is false.1. Identity fraud is committed when a credible identity is created by accessing others’ credit cards, financial or employment records, or computer system.Answer: TrueObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 115Level: Basic

2. Procurement of one foundational document of identification is often enough for its holder to secure a variety of others.Answer: TrueObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 116Level: Intermediate

3. An individual who creates a false virtual identity has automatically crossed the line into illegal activity.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 120Level: Intermediate

4. Assumption of identity is the most common form of identity theft/fraud.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 117Level: Intermediate

5. Reverse criminal record identity theft/fraud is relatively uncommon and the immediate financial repercussions are usually not significant.Answer: TrueObjective: Explore the five types of identity theft/fraud.Page number: 119Level: Intermediate

6. An individual who has been a victim of reverse criminal record identity theft does not face legal obstacles to his or her identity rehabilitation.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 120Level: Intermediate

7. Bag operations involve sifting through commercial or residential trash or waste for information deemed valuable.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 127Level: Intermediate

8. According to the Federal Trade Commission, there is a marked increase in the number of children victimized by identity theft since 2003.Answer: TrueObjective: Explore the five types of identity theft/fraud.Page number: 130Level: Basic

9. Consumers are encouraged to use different ATM machines for every transaction in order to reduce fraud caused by ATM manipulation.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 132Level: Basic

10. A full accounting of the prevalence of identity theft has been confounded by the lack of mandatory reporting and inconsistent application by federal agencies.Answer: TrueObjective: Explore the five types of identity theft/fraud.Page number: 122

Level: Intermediate

11. According to victim reports, 42 percent of identity theft involved cases involving the procurement of government documents or benefits.Answer: TrueObjective: Explore the five types of identity theft/fraud.Page number: 123Level: Difficult

12. Hardware keyloggers provide screen-capture features, which users can utilize to view screenshot images of victim activity.Answer: FalseObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 136Level: Basic

13. Costs associated with identity theft/fraud are incurred by the individual victim but not the financial institution or lender extending money or credit based on fraudulent identity.Answer: FalseObjective: Explore the five types of identity theft/fraud.Page number: 123Level: Intermediate

14. Theft for border entry involves the willful misrepresentation of material fact on a petition or application to secure an immigration benefit.Answer: FalseObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 140Level: Intermediate

15. To safeguard belongings and identity from dedicated criminals, it is important to develop alternate means of identity authentication.Answer: TrueObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 143Level: Difficult

Fill in the Blank: Write the word or phrase that best completes each statement or answers the question.1. ________ is defined as the use of a vast array of illegal activities based on fraudulent use of identifying information of a real or fictitious person. Answer: Identity fraudObjective: Gain a quick clarification of terms related to identity theft and fraud.

Page number: 115Level: Basic

2. Passports, birth certificates, and social security cards are all examples of ________ documents. Answer: breederObjective: Gain a quick clarification of terms related to identity theft and fraud.Page number: 115Level: Basic

3. ________ is defined as the illegal use or transfer of a third party’s personal identification information with unlawful intent. Answer: Identity theftObjective: Understand the difference between identity theft and identity fraud.Page number: 116Level: Intermediate

4. ________ involves the fraudulent use of stolen or fictitious personal information to obtain employment or to gain entry into the United States. Answer: Theft for employmentObjective: Explore the five types of identity theft/fraud.Page number: 118Level: Basic

5. ________ identity theft/fraud occurs when a criminal uses a victim’s identity not to engage in criminal activity but to seek gainful employment.Answer: Reverse criminal record Objective: Explore the five types of identity theft/fraud.Page number: 119Level: Intermediate

6. ________ identity theft/fraud may be defined as the use of stolen personal and financial information to facilitate the creation of fraudulent accounts.Answer: Credit Objective: Explore the five types of identity theft/fraud.Page number: 121Level: Basic

7. Exact government figures and statistics on identity theft/fraud are not available due primarily to a lack of ________ and the criminal multiplicity of the phenomenon.Answer: mandatory reportingObjective: Explore the five types of identity theft/fraud.Page number: 122Level: Intermediate

8. In the technique known as ________, thieves often score credit card numbers and banking information by targeting those whose red flag signals outgoing mail.Answer: popcorningObjective: Explore the five types of identity theft/fraud.Page number: 127Level: Basic

9. Many authorities suggest that corporate and government ________ pose the greatest risk to identity fraud with varying motivations and unintentional facilitation.Answer: insidersObjective: Explore the five types of identity theft/fraud.Page number: 131Level: Intermediate

10. ________ involves the reading and recording of personal information encoded on the magnetic strip of an ATM or credit card.Answer: Card skimmingObjective: Explore the five types of identity theft/fraud.Page number: 132Level: Basic

11. In ________, some individuals willingly divulge personal and financial information to strangers if they believe that a large financial windfall will soon follow.Answer: advance-fee fraud or 419 fraudObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 134Level: Basic

12. ________ provide a mechanism for cybercriminals to change Web site IP addresses repeatedly without affecting the domain name.Answer: BotnetsObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 135Level: Basic

13. ________ is a broad class of software that is surreptitiously installed on a user’s machine to intercept the interaction between users and their computers.Answer: SpywareObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 135Level: Intermediate

14. ________ and other forms of malware are often referred to as PUPS (potentially unwanted programs).Answer: TrojansObjective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 137Level: Basic

15. ________ may be conducted by either individuals or criminal organizations to secure border crossings, obtain immigration benefits, or further terrorist activity.Answer: Immigration fraudObjective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 139Level: Basic

Matching: 1. Match the identity theft/fraud with the example.

Identity Theft/Fraud Example1. Assumption of identity a. Michelle provided false information

about herself and created a fictitious identity so as to engage in online flirtation.

2. Theft for employment b. Matthew used a stolen driver’s license to open a fake bank account and acquire false credit cards.

3. Reverse criminal record identity theft c. Ashley stole personal information from her neighbor to create documents that helped her gain entry into the United States.

4. Virtual identity fraud d. Joshua changes physical characteristics, analyzes personal histories, and masters communication nuances of his friend Jason.

5. Credit or financial theft e. To protect herself from her criminal record, Amanda used her mother’s ID to apply for government benefits.

Answer:1. d2. c3. e4. a5. b

Objective: Explore the five types of identity theft/fraud.Page number: 117

Level: Difficult

2. Match the phishing attacks to their characteristics.Phishing Attacks Characteristics

6. Spoofing a. changing a Web site IP repeatedly without affecting the domain name

7. Floating windows b. redirecting users’ network traffic to undesired sites

8. Botnets c. using company trademarks and logos in emails for online scams

9. Redirectors d. giving money to strangers who promise a larger sum in return

10. 419 fraud e. developing Javascript replicas that are variations of legitimate URLs

Answer: 6. c7. e8. a9. b10. d

Objective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 134–135Level: Intermediate

Essay: Write your answer in the space provided or on a separate sheet of paper.1. List and explain the four phases of criminal activity facilitated by identity theft/fraud.The answer should include the following points:

Procurement of stolen identifiers Creation of breeder document Usage of breeder document to create additional documents and solidification of identity Employment of fraudulent identity

Objective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 138Level: Intermediate

2. How can identity theft be distinguished from identity fraud? Is it true that identity theft leads to identity fraud? Explain with an example of your own.The answer should include the following points:

Definition of identity theft Definition of identity fraud Relationship between ID theft and ID fraud Example explaining how ID theft leads to ID fraud

Objective: Gain a quick clarification of terms related to identity theft and fraud.

Page number: 117–121 Level: Difficult

3. How do college students become victims of insurance and loan fraud? Offer suggestions on how students can minimize or overcome this victimization.The answer should include the following points:

What information is used How they obtain this information How students are affected Conclusions and recommendations on reducing insurance and loan fraud

Objective: Develop a knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 139Level: Difficult

Critical Thinking: Write your answer in the space provided or on a separate sheet of paper.1. Discuss the various crimes that are easily facilitated by identity theft/fraud. What, in your opinion, should be the measures taken by the government to eradicate such crimes?The answer should include the following points:

Insurance and loan fraud Immigration fraud Immigration benefit fraud Border crossings

Objective: Develop knowledge of the crimes that are committed due to identity theft/fraud and also the process in which they are committed.Page number: 138–141Level: Difficult

2. Assess the virtual or Internet-facilitated methods by which computer criminals steal an identity. Elaborate with examples of your own.The answer should include the following points:

Phishingi) Spoofingii) Pharmingiii) Redirectorsiv) Advance-fee fraud or 419 fraudv) Phishing Trojans and spywarevi) Floating windowsvii)Botnets

Spyware and crimeware Keyloggers and password stealers Trojans

Objective: Investigate the virtual and Internet methods in which computer criminals steal an identity.Page number: 133–137

Level: Difficult

Chapter 06 Terrorism and Organized Crime

Multiple Choice: Choose the one alternative that best completes the statement or answers the question.1. Who among the following define(s) terrorism as an attempt to communicate messages through the use of orchestrated violence?

a. Schmid and Jongmanb. UN Resolution Languagec. Tsfati and Weimannd. League of Nations Convention

Answer: cObjective: Fully understand the concept of terrorism.Page number: 148Level: Basic

2. What type of terrorism is exemplified by the Irish Republican Army and Euzkadi Ta Askatasuna?

a. religious terrorismb. political-social terrorismc. environmental terrorismd. nationalist terrorism

Answer: dObjective: Fully understand the concept of terrorism.Page number: 149–150Level: Basic

3. What was the basis of the wide acceptance of tyrannicide during the Age of Absolutism? a. the writings of Juan de Marianab. the ideology of conservation of natural resourcesc. the staging of anti-royalty plays in public theatersd. the assassination of Julius Caesar

Answer: aObjective: Fully understand the concept of terrorism.Page number: 151Level: Intermediate

4. Which of the following types of justification is employed by terrorists who superficially proclaim an abhorrence of violence and stress the urgency for a diplomatic settlement?

a. “no choice” justificationsb. peaceful, nonviolent rhetoricc. demonizing and delegitimization justificationsd. emphasis of weakness

Answer: bObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 154–155Level: Intermediate

5. Which of the following types of terrorists often openly embrace and promote human suffering, and glorify violence as divine ordination?

a. political terroristsb. environmental terroristsc. national terroristsd. religious terrorists

Answer: dObjective: Fully understand the concept of terrorism.Page number: 155Level: Intermediate

6. Which of the following facilitated Muhammad Siddique Khan’s coordination of the 2005 London bombings?

a. online training videosb. electronic dead dropsc. satellite imagingd. online social networking sites

Answer: bObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 158–159Level: Basic

7. Which social network has become a popular site for online communities of al Qaeda sympathizers?

a. Facebookb. MySpace c. Tumblerd. Orkut

Answer: dObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 159Level: Basic

8. What did a Western intelligence service seize from Kamel Daoudi, an al Qaeda computer engineer, during his arrest?

a. a codebook to decrypt e-mails and telephone conversationsb. a pile of hard copies of Google maps used by al Qaedac. a codebook for making bombs and bulletproof vests sent as ebooks d. a list of the names foreign officials targeted by al Qaeda

Answer: aObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 159Level: Intermediate

9. Which of the following attacks involve directing conventional weapons against a computer facility for its transmission lines?

a. electronic attacksb. electromagnetic attacksc. physical attacksd. computer network attacks

Answer: cObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 160Level: Intermediate

10. Which of the following cyberterrorist attacks was employed in Operation Desert Storm?a. physical attack b. computer network attackc. electronic attackd. electromagnetic attack

Answer: aObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 160Level: Intermediate

11. Which of the following was NOT a factor that made Estonia particularly vulnerable to a cyberattack in 2007?

a. Most of the nation’s banking transactions and parliamentary elections are affected through the Internet.

b. Main media outlets could be shut down, effectively isolating residents and preventing them from appealing to a global audience.

c. The nation’s nuclear facilities were run on a Windows operating system that was uniquely vulnerable to Stuxnet.

d. The country has an extensive network of free Wi-Fi.Answer: cObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 161–162Level: Difficult

12. Which of the following has been described as a “military-grade cybermissile”?a. Estoniab. Orkutc. Skyped. Stuxnet

Answer: dObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 159Level: Basic

13. Which of the following federal agencies and offices holds the database of information on potential terrorists and people suspected of narcotics trafficking or other law enforcement violations?

a. Department of State—Consular Lookout and Support Systemb. Department of State—TIPOFF Databasec. Federal Bureau of Investigation—Violent Gang and Terrorist Organization Filed. Immigration and Customs Enforcement—Border Inspection System

Answer: dObjective: Develop a working knowledge of organized crime.Page number: 165Level: Basic

14. Which of the following groups serve as the basis of the formation of organized crime groups?a. religious fanaticsb. criminal gangsc. social activistsd. national terrorists

Answer: bObjective: Develop a working knowledge of organized crime.Page number: 167–168Level: Intermediate

15. An early evaluation of criminal gangs in New York determined that groups coming together for the sole purpose of committing criminal activity didn’t last long if they lacked what?

a. flexible rules and regulationsb. competitionc. moneyd. ethnic solidarity

Answer: dObjective: Develop a working knowledge of organized crime.Page number: 170Level: Intermediate

16. Which of the following factors plays a role in the solidification of norms and expectations of the members of an organized crime group?

a. culture and traditionb. earlier affiliationsc. economy or financial statusd. educational background

Answer: aObjective: Develop a working knowledge of organized crime.Page number: 171Level: Intermediate

17. Which of the following is an example of monopolization by an organized crime group?a. the trade and commerce in Madrid

b. the garbage industry in New Yorkc. the mass media industry in Beijingd. the food businesses in Rome

Answer: bObjective: Develop a working knowledge of organized crime.Page number: 172Level: Intermediate

18. Which of the following refers to the illegal duplication of credit cards achieved by running the card through a reader that captures information stored in the magnetic strip on the back?

a. skimmingb. hackingc. spammingd. carding

Answer: aObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 176Level: Basic

19. In which of the following points does a strong dissimilarity between terrorism and organized crime manifest?

a. rules and regulationb. beliefs and motivationc. adaptability and resilience d. punishments for noncompliance

Answer: bObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 183Level: Difficult

20. What is the nature of the criminal activity undertaken by groups such as Darkprofits and Shadowcrew?

a. selling or sharing information about stolen credit cards and bank account numbersb. smuggling of humans across international bordersc. printing counterfeit denominations of American currencyd. distribution of pornographic films

Answer: aObjective: Gain insight into the future direction of organized crime.Page number: 173Level: Intermediate

21. Which of the following refers to scams designed to delude a victim into thinking that he or she had been singled out to be the beneficiary of millions of dollars being given away by a company or government agency?

a. skimmingb. pump and dump

c. cardingd. 4-1-9

Answer: dObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 178Level: Intermediate

22. ________ is defined as the introduction of illegally obtained funds into the legitimate financial marketplace.

a. Extortionb. Currency counterfeitingc. Fencing d. Money laundering

Answer: dObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 177Level: Basic

23. All of the following are similarities among terrorism and organized crime EXCEPT which?a. Both have rules and regulations.b. Both require absolute obedience.c. Both have formal goals and objectives.d. Both are politically motivated and economically driven.

Answer: dObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 183Level: Intermediate

24. Which of the following cybercrimes, traditionally involving real estate transactions and straw purchases, now uses contemporary methods like electronic layering, international commodities, and online businesses?

a. fraudb. money launderingc. gamblingd. counterfeiting of currency

Answer: bObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 174Level: Intermediate

25. Which of the following, according to a recent report to Congress, has now surpassed international drug trafficking as a terrorist financing enterprise?

a. cargo heistsb. cybercrimec. weapons manufacturingd. pornography

Answer: bObjective: Gain insight into the future direction of organized crime.Page number: 164Level: Intermediate

True/False: Write ‘T’ if the statement is true and ‘F’ if the statement is false.1. Theorists argue that terrorism may be characterized as theater in which the audience is far more important than the actors. Answer: TrueObjective: Fully understand the concept of terrorism.Page number: 152Level: Basic 2. The word “terror” comes from the Arabic term hashashin, which means “to arouse fear.”Answer: FalseObjective: Fully understand the concept of terrorism.Page number: 148Level: Basic

3. According to Tsfati and Weimann, a resurgence in terrorist rhetoric in Europe has led to a marked increase in both the development of European-based terrorist groups and their presence on the Web.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 153Level: Basic

4. The UN Universal Declaration of Human Rights is a document which attempts to ensure equality for all and eradicate terrorist groups.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 155Level: Intermediate

5. The success of a terrorist’s agenda largely depends upon the size of the audience selected.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 154Level: Intermediate

6. The Taliban forbids the use of modern innovations.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 158Level: Intermediate

7. One drawback to the use of dead drops is that communications are not anonymous.Answer: FalseObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 159Level: Intermediate

8. Directing conventional weapons against a computer facility is an example of a physical attack.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 160Level: Basic

9. A critical data threat involves the compromise of a critical computer system to alter, manipulate, or destroy critical data with the potential of death, destruction, and/or economic turmoil.Answer: TrueObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 161Level: Basic

10. All organized crime groups began as criminal gangs.Answer: TrueObjective: Develop a working knowledge of organized crime.Page number: 167Level: Basic

11. Organized crime groups want to remain unrecognized and have no impact within their communities.Answer: FalseObjective: Develop a working knowledge of organized crime.Page number: 170Level: Basic

12. Traditional methods of human smuggling involve unsecured border crossings via the use of private transportation.Answer: TrueObjective: Develop a working knowledge of organized crime.Page number: 174Level: Basic

13. Traditional methods of ATM/credit card fraud were largely successful due to the lack of computerized databases and lax security measures.Answer: TrueObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 176Level: Basic

14. The Nigerian Advance Fee Scheme is known internationally as “4-1-9.”Answer: TrueObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 178Level: Intermediate

15. The U.S. Border Patrol and the U.S. Customs Service are now under the large umbrella of the Department of State.Answer: FalseObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 181Level: Basic

Fill in the Blank: Write the word or phrase that best completes each statement or answers the question.1. ________ is a new type of fraud that uses account numbers and counterfeit identity documents to complete identity theft and defraud banks and retailers.Answer: CardingObjective: Develop a working knowledge of organized crime.Page number: 173Level: Basic

2. Groups of individuals brought together through the Internet which commit nonviolent criminal acts facilitated by the exploitation of networked or interconnected systems are known as ________. Answer: cybergangsObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 173Level: Basic

3. ________ terrorism is often overlooked in discussions of the phenomenon, as there is a collective perception that they have limited impact and do not constitute a significant threat.Answer: IndividualObjective: Learn the impact of the Internet on terrorism and organized crime.Page number: 149Level: Intermediate

4. Organized crime groups enhance their profitability through monopolization, which is possible through their use of violence and ________ racketeering. Answer: laborObjective: Develop a working knowledge of organized crime.Page number: 172Level: Basic

5. A ________ is initiated through an unsolicited electronic communication in which the perpetrators claim to be members of the Nigerian government’s unit designed to make restitution to victims of Nigerian scams.Answer: recompensation scamObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 178Level: Intermediate

6. To profit from their various criminal schemes, organized crime groups transform commodities into cash, an activity known as ________. Answer: fencingObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 179Level: Intermediate

7. The introduction of ________ has vastly expanded the potentiality of organized crime groups and enhanced their methods of operation.Answer: technologyObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 182Level: Basic

8. Terrorist groups are ideologically or politically motivated while organized crime groups are ________ driven.Answer: economicallyObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 183Level: Basic

9. ________ attacks are those that involve malware, computer or network intrusion, or other cyberattacks on critical computer systems.Answer: Computer networkObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 160Level: Basic

10. The site of initial infection of ________ was identified as a USB port in Iran.Answer: StuxnetObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 163Level: Intermediate

11. The ________ Act requires all information gathered during a criminal investigation, related to foreign or counterintelligence, be shared with other federal agencies.Answer: Homeland Security Objective: Develop a working knowledge of organized crime.

Page number: 165Level: Basic

12. The ________ of terror is less important than the emotional or psychological repercussions resulting from the act.Answer: physicalityObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 166Level: Basic

13. The Chicago Crime Commission’s early definition of organized crime in the United States referred to it as ________ crime.Answer: institutionalized Objective: Develop a working knowledge of organized crime.Page number: 168Level: Intermediate

14. The ________, formally known as the Senate Permanent Subcommittee on Investigations, helped to prove the existence of the Italian mafia as the international conspiracy trafficking narcotics in the United States.Answer: McClellan CommitteeObjective: Gain insight into the future direction of organized crime.Page number: 168–169Level: Basic

15. The practice of ________ to organizational leaders or elders furthers the interests of the organization in the form of political bribery or the support of criminal defense.Answer: tithingObjective: Recognize and understand the contemporary characteristics of organized crime.Page number: 171Level: Basic

Matching: 1. Match the crimes with the contemporary methods/schemes used in making it a cybercrime.1. credit card fraud a. online auction2. fraud b. Internet sports wagering3. gambling c. site defacement4. money laundering d. electronic layering5. extortion e. skimmersAnswer: 1. e

2. a3. b4. d5. c

Objective: Learn the impact of the Internet on terrorism and organized crime.

Page number: 174Level: Intermediate

2. Match the types of terrorism with the correct descriptive phrase.6. environmental terrorism a. perpetrated by groups which are

attempting to accomplish an articulable political agenda

7. state-sponsored terrorism b. characterized by groups which share a collective perception of oppression or persecution

8. religious terrorism c. an ideology based on the conservation of natural resources

9. nationalist terrorism d. those governments that engage in acts of terror against their own or support and carry out terrorist acts against other governments

20. political-social terrorism e. claims to be empowered by some god and justified by some scripture

Answer: 6. c7. d8. e9. b10. a

Objective: Fully understand the concept of terrorism.Page number: 149–150Level: Intermediate

Essay: Write your answer in the space provided or on a separate sheet of paper.1. Discuss the justifications used by terrorists to maximize ideological appeal.The answer should include the following points:

“No choice” justifications Demonizing and delegitimization justifications Emphasis of weakness Peaceful, nonviolent rhetoric

Objective: Fully understand the concept of terrorism.Page number: 154–155Level: Intermediate

2. Expound on the points where terrorism and organized crime meet and divert.The answer should include the following points:

Similarities between terrorism and organized crime Dissimilarities between terrorism and organized crime

Objective: Develop a working knowledge of organized crime.Page number: 182–184Level: Intermediate

3. Explain the difference between the traditional and contemporary methods used by organized crime groups.The answer should include the following points:

Extortion/protection rackets Cargo heists Credit card fraud Fraud Gambling Money laundering Theft of property Sex and pornography Confidence scams Trafficking Counterfeiting of currency Manufacture and sale of counterfeit goods Illegal substances Human smuggling

Objective: Recognize and understand the contemporary characteristics of organized crime.Page number: 174Level: Intermediate

Critical Thinking: Write your answer in the space provided or on a separate sheet of paper.1. Explain the different definitions of terrorism given and analyze which one is most accurate and applicable in today’s situation. Answer should include the following points:

Definition by League of Nations Convention (1937) Definition by UN Resolution Language (1994) Definition by U.S. Department of Defense (2007) Definition by Schmid and Jongman (1998) Definition by Tsfati and Weimann (2002)

Objective: Fully understand the concept of terrorism.Page number: 148Level: Difficult

2. Based on the information presented in the chapter, evaluate the potential future of organized crime in the United States.Answer should include the following points:

Advances in technology Proliferation of more organized crime Government measures to curb organized crime groups

Objective: Gain insight into the future direction of organized crime.Page number: 146–184Level: Difficult