What is computer fraud and what are the primary risks to business from computer fraud?

A Management Information System ICT Revision Questions and Answers

Computer frauds is any unauthorized and/or illegal activities like – modification of data, modification of software, destruction of hardware, unauthorized access, etc. This is performed with the knowledge of computer technology and this results-in theft, unauthorized use of resources, modification of data, destruction of data/system, etc. Perpetrator can commit a fraud without leaving any evidence, therefore, computer fraud is often very difficult to detect than other frauds.
There are different types of risks that the business can face due to the computer frauds and in general, we can classify them in two threats – internal and external threats

Internal Threats: Internal threats are generated from the personnel within the organization and it was found that out of 5 attacks mostly that 4 attacks are internal.
External Threats: external threats are attacks that are attempted form the people outside the organization.
Both kind of threats results-in the following risks:
– Alteration of input to the system that can cause different financial losses, e.g., the attacker increases the salary amount of a employee in the salary-sheet.
– Unauthorized use of processes or system time, e.g. use of internet for personal purpose.
– Tampering, copying of the software processes in unauthorized manner.
– Changing the computer instruction so that a different result is obtained. For example, Fringe benefit is calculated at a higher rate then the authorized rate.
– Alteration of data
– Removal of information.
– Destruction of system integrity
– Interference with web pages
– Transmission of virus or other malicious software Interpretation of emails
– Interception and alteration of electronic payments

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