Cyber Crimes: Understanding the Legal Consequences
Cyber crimes are everywhere. They’re the reason you have to change your passwords all the time and commit to two-factor authentication. The reality is we’re caught in a modern version of the old board game “Mousetrap.” Every time security standards are upgraded, someone out there is working on a way to beat them.
The digital age revolutionized how we communicate, work, and conduct business. It made a lot of things easier and faster. However, it also made it easier to commit cyber crimes like hacking, internet fraud, and identity theft.
We’re writing this article to make it easier to understand the consequences so you can protect yourself and ensure your business complies with the law. We’ll explain what constitutes a cyber crime in the eyes of the law, the different types of offenses, and the legal repercussions for the guilty party.
What is Cyber Crime?
Cyber crimes are any illegal activities committed using computers, networks, or the internet. These crimes usually go after sensitive data, financial information, or infrastructure typically categorized into two main types:
Crimes Against Individuals: These crimes include identity theft, online harassment, and internet fraud. In Massachusetts a woman earned 3 years in prison for her role in a credit card fraud scheme. She used her access to a credit card processing system to steal customer information and sell it to other criminals.
Crimes Against Organizations or Governments: These are the kind of crimes (hacking, data breaches, and cyber-terrorism) that make national and international news. You might remember Target’s nationwide data breach that exposed the credit card information of over 100 million customers. A security guard at a local Massachusetts Target store used his access to the store's computer system to sell credit card information to cyber criminals.
Common Types of Cyber Crimes
1. Hacking
Hacking involves unauthorized access to computers or networks to manipulate, steal, or destroy data. This can range from "white hat" hacking (legal, ethical testing of systems) to "black hat" hacking, where criminals look for system vulnerabilities. Hacking is a federal offense in the U.S., punishable by fines and prison sentences of up to 20 years, depending on the severity of the crime.
2. Internet Fraud
Internet fraud is broadly defined as using online platforms to deceive your victims for financial gain. Think phishing scams, fake e-commerce websites, and romance scams. These get rich quick schemes come with hefty fines and up to 20 years in prison. Many of them are dramatic enough to warrant a documentary!
3. Identity Theft
When you use another person's personal information, like their Social Security numbers or credit card details, without permission you are committing identity theft. Identity theft is a federal crime and can land you in prison for up to 15 years.
4. Cyber Stalking and Harassment
Cyber stalkers use online platforms to persistently harass their victims, often threatening them with physical harm or encouraging them to harm themselves. It’s a growing concern, especially for students on social media. Penalties for the perpetrators can include imprisonment, fines, and restraining orders.
Are Cyber Crimes a “Victimless” Crime?
No. Cyber crimes are financially and emotionally devastating. Victims face financial losses, damage to their credit score, relationships and reputation. Then there's the stress of navigating the legal process to regain control of their identities or recover stolen assets. These damages are amplified when it happens to your business. If you’re a victim of a corporate cyber crime the business can suffer:
Reputation Damage: Loss of customer trust can lead to a decline in business.
Financial Loss: Costs associated with responding to a breach, including fines and lawsuits.
Legal Consequences: Failure to protect customer data can result in regulatory penalties.
State Cyber Crimes Laws in the U.S.
Each state has its own set of cyber crime laws. Massachusetts passed one of the most comprehensive early data privacy laws in the US. The Massachusetts Data Security Law (201 CMR 17.00) went into effect in 2010, requiring businesses to implement strict measures to safeguard personal information.
This law protected Massachusetts residents when a local healthcare provider was targeted in a cyber attack. The law requires encryption and secure storage of personal data preventing hackers from getting information like Social Security numbers and medical records.
The Massachusetts Attorney General used the law to enforce penalties against the healthcare company for the lapses in their security protocols that allowed the attack to occur. The Massachusetts Data Security Law minimizes harm during breaches and holds organizations accountable for safeguarding sensitive data.
Federal and International Cyber Crime Laws
There are several federal and international statutes that address cyber crimes. They cover unauthorized access and damage to computers, the privacy of electronic communications and specific laws for safeguarding children’s data online.
Cyber crime often crosses borders, making international cooperation essential. Treaties like the Budapest Convention on Cybercrime provide frameworks for countries to collaborate on investigation and prosecution.
How to Protect Yourself from Cyber Crimes
Use Strong Passwords: Use unique, complex passwords for each account and enable multi-factor authentication.
Be Cautious Online: Avoid clicking on suspicious links or sharing personal information unnecessarily.
Monitor Financial Accounts: Regularly check bank and credit card statements for unauthorized transactions.
Install Security Software: Keep your antivirus and anti-malware programs updated.
How to Protect Your Business from Cyber Crimes
Employee Training: Educate employees about phishing scams and other cyber threats.
Data Encryption: Protect sensitive data with strong encryption methods.
Incident Response Plans: Have a plan in place to address potential breaches quickly.
Compliance with Laws: Ensure adherence to data protection regulations, such as GDPR for businesses operating internationally.
How Do Lawyers Help You Fight Cyber Crime?
Lawyers help hacking, identity theft, or online scam victims receive what restitution is available for their losses by:
Filing lawsuits against perpetrators to recover financial losses.
Gather the digital evidence and show a secure chain of custody to strengthen their case.
Working with law enforcement and cyber security experts to identify and prosecute offenders.
Making sure your business is in compliance with every federal, state, and international regulation designed to protect consumer data and prevent cyber crimes.
Advising on policies and training programs to reduce the risk of internal cyber threats, such as phishing attacks.
Developing and implementing plans to respond to data breaches or cyber-attacks.
Strengthening your agreements (contracts) and policies both internally and with customers.
Staying up to date on emerging cybercrime trends so you don’t have to.
The Future of Cyber Crime and Legal Challenges
As technology advances, so does the threat of cyber crime. Emerging issues like ransomware attacks, cryptocurrency fraud, and deepfake technology present daily challenges for lawmakers and legal professionals. Staying ahead of these trends is essential to adapting laws and ensuring justice in the digital era.
Cyber crime is a serious issue with far-reaching consequences for you and your business. Understanding the legal ramifications, as a victim or a defendant, is the first step in preparing for the challenges posed by internet fraud, hacking, and other digital offenses.
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Disclaimer: This blog article is for informational purposes only and should not be considered a substitute for formal legal advice from Attorneys Jim and Steve Brady and Associates P.C. Please consult a qualified professional for personalized advice tailored to your needs.