CHAPTER 3 - COMPUTER AND INTERNET CRIME (Case Study)

VIGNETTE

Trading Scandal at Society General

Questions to Consider:

1. Peter Gumble, European editor for Fortune magazine, comments, "Kerviel is a stunning example of a trader breaking the rules, but he's by no means alone. One of the dirty little secrets of trading floors around the world is that every so often, somebody is caught concealing a position and is quickly - and quietly - dismissed... [This] might be shocking for people unfamiliar with the macho, high-risk, high-reward culture of most trading floors, but consider this: the only way banks can tell who will turn into a good trader and who even the most junior traders to take aggressive positions. This leeway is supposed to be matched by careful controls, but clearly they aren't foolproof." What is your reaction to this statement by Mr. Gumble? 

          My reaction to Mr.Gumble's statement is that it is true that some of the bank's today can tell who will turn into a good trader ad who won't is by giving every youngster it hires a chance to show his mettle. That means allowing even the most junior traders to take aggressive positions. this leeway must matched by careful controls of trading floors.

link:http://tradereducatoronline.com/page/3/

 2. What explanation can there be for the failure of SocGen's internal control system to detect Kerviel's transactions while Eurex detected many suspicious transactions?

           For me, the failure of SocGen's internal control system is lack of security detection for some malicious industrial spy, they will take advantage to steal money from the organization. 

link: http://www.ft.com/intl/cms/s/0/927fe998-d5b2-11dc-8b56-0000779fd2ac.html#axzz1tjfDVfVa

Whistle-Blower Divides IT Security Community

Discussion Questions and Answers:

1. Do you think that Mike Lynn acted in a responsible manner? Why or Why not?

             Yes, because he reveal some secret about capturing and hacking the CISCO Router, Lynn's planned about it to prevent the problem in the future. 

link: http://www.schneier.com/

2. Do you think that CISCO and ISS were right to pull the plug on Lynn's presentation at the black hat conference ? why and why not ?

             Yes, because if they pull the plug on Lynn's presentation this will be the beginning of having a security and protection for stealing the internet of the CISCO routers.

link: http://noisefilter.blogspot.com/2005/08/wired-news-router-flaw-is-ticking-bomb.html

3. Outline a more reasonable approach toward communicating the flaw in the CIsco routers that would have led to the problem being promptly addressed without stirring up animosity among the parties involved.

           It is nice to hear some recommendations of some researchers that discover those problems it may cause a good effect to the CISCO company to avoid problem being promptly addressed without stirring up animosity among the parties involved.

link: http://www.taosecurity.com/