Welcome to the Internet Fraud seminar. This seminar meets on Thursday evenings from 6:00pm - 9:00 pm for 10 weeks. We will explore this topic through discussions, hands on training, student presentations and perhaps a guest lecture or two. Your participation is essential.

COURSE MATERIALS

There is no textbook for this class. Course materials will be posted periodically at the reading materials section of this Web site.

GRADES AND COURSE REQUIREMENTS

Grades will be based on class participation [20%], in-class presentation [20%], a fraud investigation memo [25%] and a final project [35%].

IN-CLASS PRESENTATIONS -- Each student will be expected to present an outline and lead an in-class discussion (approximately 15 minutes in length) on the current issues and controversies surrounding a specific topic. Each presentation should take the class a step beyond the course materials and discuss items in the news, pending legislation (federal and state), any current cases of interest, and identifiable trends. Creativity is greatly appreciated and handouts are strongly encouraged.

TOPICS FOR IN-CLASS PRESENTATIONS: A list of suggested topics is included at the end of this syllabus. This list is a work-in-progress and will be periodically expanded in the weeks leading up to the first class. Please pick your top three choices for your in-class presentation and provide that list at the beginning of the second class meeting. You may propose additional topics, but those proposed topics should be raised prior to the beginning of the second class.

SHORT FRAUD INVESTIGATION MEMO -- Each student must conduct an online investigation and locate a potential target for an Internet fraud investigation by law enforcement. The student must then provide an objective memo to their "supervisor" providing evidence and argument why a law enforcement action should be taken against the target. The due date for this assigment will be March 27, 2003.

FINAL PROJECT -- The student may pick a final assignment from the choices below. The final project will be due shortly after the end of the semester. The due date will be announced on the last day of class.

DETAILED FRAUD INVESTIGATION MEMO: Students may prepare a detailed fraud investigation memo. This memorandum must contain two sections. Section one should describe a target for possible law enforcement action based on allegations of some type of online fraud discussed in class. This section must include information regarding: (1) the particular consumer protection law or laws that is allegedly being violated, (2) why the student believes that the law is being violated, including information about possible consumer victims or "online dissatisfaction level" as well as the particular facts, representations or omissions that suggest a law violation; and [3] prior cases or matters involving the same type of law violation and/or same factual scenario that serve as precedent for your assertion that the target is engaged in law violations. Section two of the memorandum shall provide investigatory information gathered online about your proposed target for law enforcement action. Some information that may be considered for inclusion in this section includes, but is in no way limited to: (1) known e-mail addresses, Web sites, phone numbers and addresses of the investigation target; (2) domain name registrars and domain registration information; (3) Internet service providers or Web designers and their contact information; (4) third party payment processors; (5) consumer victims and [6] "scuttlebutt" from anti-sites, newsgroups, online bulletin boards or any other publicly available information. The investigation information should be presented in a format that explains why certain information was sought and what information was received. The detailed fraud investigation memo will largely be graded on three criteria: (1) the submittors' understanding and explanation of the law(s) allegedly being violated and the connection of this potential fraud to prior consumer protection cases and matters; (2) the submittor's investigation techniques and information digging abilities; and (3) the strength of the target for law enforcement action.

ADVOCACY BRIEF: Students may draft an advocacy brief arguing why their potential target for investigation has violated a consumer protection statute. This brief should be styled as a temporary restraining order or preliminary injunction. The brief should assert that the defendant has violated a consumer protection statute. The brief will be graded based on the presentation of facts, the application of the law of the facts and persuasiveness in arguing for the relief requested.

ALTERNATIVE FINAL PROJECTS: Students may proposed an additional alternative final project such as academic papers. Any alternative project must be approved by the instructor prior to the last day of class.

CLASS SCHEDULE

Session One: Introduction -- January 23, 2003

T his session will consider some of the history and trends of fraud in the online world. We will conduct an overview of some of the fraud issues that will be discussed throughout the semester. We will also identify and discuss the roles of many of the major institutions that attempt to combat online fraud.

Session Two: Internet Fraud Investigative Techniques -- January 30, 2003

This session looks more carefully at how law enforcement agencies conduct investigation of Internet fraud. This session will examine various tools for locating fraud and techniques to gather evidence.

Session Three: "Old Wine In New Bottles" -- February 13, 2003

T his session will examine how "traditional" scams -- including pyramids, work at home, business opportunities, travel and health care scams -- have proliferated over the Internet.

Session Four: Auction Fraud -- February 27, 2003

Internet auction fraud is the number one Internet related complaint received by law enforcement agencies. This session looks at how Internet auctions work and how Internet auction fraud occurs. This session will also consider law enforcement issues in investigating auction fraud cases and what can be done to minimize this type of fraud.

• Guest Speaker -- Adam Sokol, Assistant Attorney General, Illinois Attorney General's Office

Session Five: Financial Fraud -- March 6, 2003

This session will look at financial fraud conducted over the Internet. This session will examine the ins and outs of credit card and securities fraud committed online and consider what law enforcement and private industry can do about the problem.

• Guest Speaker -- John Sikora, Deputy Assistant Director, Securities and Exchange Commission, Midwest Region

• Guest Speaker -- Daniel Dick, Special Agent, United States Secret Service

• In-Class Presentation -- Walls: Latest Credit Card Innovations

Session Six: "High-Tech" Internet Scams -- March 20, 2003

Some types of fraud could only happen online. This session considers those more "high-tech" scams, including deceptive practices involving executable files, "page jacking," modem hijacking, copycat Web sites and the use of deceptive meta-tags and mouseover text tags.

• In-Class Presentation -- Hicks: Deceptive Metatags

• In-Class Presentation -- Slater: Modem Hijacking

• In-Class Presentation -- Newman: Fine Line Between Copyright Infringement and Fraud

Session Seven: Spam -- March 27, 2003

This session considers more closely the role of unsolicited commercial e-mail in online fraud. The class will attempt to define the spam problem and consider ways to solve the problem.

• In-Class Presentation -- Bardeleben: E-Mail Headers

Session Eight: Privacy Related Deception -- April 3, 2003

This session examine privacy related deceptive practices. The class will consider what companies can do to keep their privacy policies clear and conspicuous. The class will analyze law enforcement actions brought in this area. The class will also consider when the use of cookies, Web bugs and "spyware" crosses the line into deceptive behavior. This session will also consider the Internet's role in the problem of identity theft. The class will explore how identity theft occurs, examine how the problem is being addressed and consider other solutions to the problem.

• In-Class Presentation -- Terlaje: Deceptive Privacy Policies

• In-Class Presentation -- Meier: Cookies & Web Bugs

• In-Class Presentation -- Lai: Spyware

Session Nine: Legal Issues -- April 10, 2003

This session considers common legal issues that arise in Internet investigations and prosecutions. Among other things, this session will consider legal issues involving privacy statutes, international scope of law enforcement investigations and appropriate legal remedies for Internet fraud.

• Guest Speaker -- Eric Sussman, Assistant U.S. Attorney, Northern District of Illinois

• Guest Speaker -- Brian Brusokas, Special Agent, Federal Bureau of Investigation

• In-Class Presentation -- Grayer: Patriot Act

• In-Class Presentation -- Rollins: Web Designer & ISP Fraud Liability

• In-Class Presentation -- Patterson: International Issus in the Fight Against Fraud

Session Ten: The Future of Internet Fraud -- April 24, 2003

Tsession will wrap up the semester by discussing the latest hot topics and consider what the future of Internet fraud may hold with the influx of new technology such as wireless Internet and interactive television nears.

• In-Class Presentation -- Waid: ID Theft

• In-Class Presentation -- Broomfield-Billips: Interactive TV Issues

IN-CLASS PRESENTATION TOPICS

• The latest credit card industry innovations to minimize credit card fraud.
• The role of alternative payment systems (e.g., PayPal, Firecash) in fraud on the Internet.
• Modem hijacking
• Deceptive metatags and hyperlinks
• Interactive television fraud/privacy issues
• Location based wireless device advertising and privacy issues
• What are Web bugs and cookies?
• The fine line between copyright infringement and fraud
• ID Theft -- what's the problem and solution?
• Spyware
• Can individuals commit fraud in the subject lines of e-mail?
• How to read e-mail headers
• Open relays and open proxies
• What are SPEWS, MAPS, and Spamcop?
• When does a privacy policy violate the FTC Act?
• "Copycat" Web sites
• "Pump and dump" investment scams
• How the Patriot Act affected ECPA?
• The "perfect" spam statute
• Is Internet fraud being attacked on an International level?
• Credit card payment system
• Internet auction shill bidding
• Web designer/ISP liablity for fraud

Steven Wernikoff, JMLS Adjunct Faculty

Last updated 29 March 2003