|Task Description:||The case study deals with a particular aspect of financial crime/cyber security.|
Describe the trend/s and issues (an increase/decrease, legislative reform, a change
in character, sequence of activities, and a problem) of your case study and analyze the repercussions of that financial crime/cyber security on business and the
community. The case study topic is your choice. You can choose a financial crime/
cyber security case study discussed in the unit or you can pick a financial crime/
cyber security topic that holds great interest for you.
Word limit: 3,000 words.
The structure of the finished Case Study is:
|Format:||Essay; 12 font; 1.5 spacing|
|Length:||Total word count: 3,000 words|
|Inherent Task Requirements:||The structure of the finished Case Study is:|
1. Short introduction
2. Case Description (In final form, this should be no more than 1000 words)
3. Case Analysis (In final form, this should be around 1500 words)
4. Short conclusion summarizing the main points you've made in your 'Analysis'
5. List of literature you've cited.
This Assessment Task relates to the following Learning Outcomes:
This report reflects the key understanding of the cyber environment in the government and business operation and particular aspect of financial crime/cyber security. In this report, character, the sequence of activities, and a problem of the case study and analyze the repercussions of that financial crime/cyber security on business and the community has been taken into consideration. In this report, the case study of the 90% suspected money laundry in Vietnam case done through the bank has been selected to assess the financial crime and cybersecurity.
This case study focuses has been made to assess the repercussions of that financial crime/cyber security on business. This case study reveals the 90% suspected money laundry in Vietnam case done through the bank money laundering is the main issue at Vietnam. Money laundering affects the banks of Vietnam by transferring their black money from peoples account. This is the major cybercrime of Vietnam. That is why it is important to employ full-time cybersecurity personnel. In today's world, it should be seen that nobody should live with fear and in an insecure environment. The cybercriminals are the persons who are generating the fear and hacks in the society (State Bank of Vietnam Money laundering case., 2019).
In the case given by the anti-money laundering department under the State Bank of Vietnam put light upon the fact that 90% of the suspected money laundering transactions are related to the banking sectors. It is analyzed that there is a major impact of the cyber environment in the operations of government and business (Bothra, et al. 2011). The cyber-attacks are growing on a high note by the ill-intentioned person to make the personal profit out of their wrongdoings. It is analyzed that when it comes to the size of the company there are several financial cybercrimes such as bombing in the personal bank accounting, hacking and malware attacks in the server of the banks by the ill-intentioned person. The main targets of these are corporate sectors, business, mid-sized organizations and professionals (SWAMY, 2017). To save the organization from cybercrime they have to apply more defenses and increase their technique so that they can face a growing crime. As the major issue related to it is a hijack of devices, stealing personal information, sending spam, and targeting bank accounts. For instance, transaction or business deals made by clients are done online on the Internet through the payment getaway channels.
As the internet is developing rapidly as a channel of business, security issues and protocols are reducing throughout the time (Nijenhuis, 2017). The internet is a major earning source in the whole world, but the increase in the number of cybercrime defines that there is nothing sufficient is done to stop or manage the risk. There are so many changes on the internet like information technology, business activities, and the communications environment. Today, seller and attacker both are involved in the race and the users are the losers. The government and business systems are regularly reporting on the data breaks and the system being invaded in government departments. The cell phones, consumer's computers, wireless modems are under attack from their ability to take control over the internet. In the last few years, there have been regular changes in the technology and it at the same requires a change in the security (Sudhakar, & Brinda, 2018).
It is analyzed that information technology has become an essential feature of society: cyberspace. The sort of value, dependability, and accessibility that has customarily been connected distinctly with power and water utilities is presently basic for the innovation used to convey government and business administrations running on the internet. Innovation is evolving quickly in banking, unofficial remittance, and real estate business and move are happening with the development of distributed computing. Distributed computing empowers people and associations to get to application administrations and information from anyplace through a web interface; it is basically an application specialist organization model of conveyance with a frame of mind (Nijenhuis, 2017). The economies conceivable through the utilization of cloud, instead of inner IT arrangements, will definitely observe most of the organizations and, progressively, governments running in the cloud inside the following five years. This significantly changes the manners by which associations can influence and oversee both their IT capacity and security in their frameworks. In the present time, various security techniques were created in a world where PC's are liable in extortion and other crimes by people who are working inside or even outside the association. Still, this has changed in the recent five years with quick increment in sorted out cybercrime through rise of robot system which empower crime to be led on an extraordinary worldwide scale and can likewise be utilized as power multipliers to convey horrible relinquish of administration assaults on focused organizations at a dimension at which countries are progressively in danger of being cut off from the worldwide Internet. Therefore, these are the risks which are faced by business and companies from cyber security risks (Das, 2013).
With the online banking system number of financial transactions is increased in huge number these days. With the use of monetary transactions in worldwide the illegal money can also be converted into legal with the use of structured transactions. Financial crime is not the only concept used in the current environmental surroundings of the banking, real estate and unofficial remittances of money from one place to another (Venkatachalapathy, 2019). Against these settings, monetary wrongdoing multiplies, what's more, differentiates itself into an increasingly modern option. Financial crime has been multiple and diversified itself into more knowledgeable options. It is greatly used illegal activity which is been used in the environment. Financial crime is related to all the factors which are related in illegal practice such as Crime against property, money laundering, cybercrime, fraud, credit card fraud, etc. The practice which we have studied in the case study is a financial crime. It is done on breaking the trust, concealment and not depends on any physical or violent. It has been understanding that financial crime is mainly done through the use of network i.e. the internet. The cybercrime is directly linked to the financial crime which causes a direct impact on the financial transaction overseas. As these crimes are majorly done on those places where no enforcement law can trace them. In this, they transfer the information around overseas where there are fewer chances of being caught as the cross-border cooperation not work well. To freeze and caught these transactions is not easy for any local agencies and the money transactions were finished in within a seconds (Bothra, Shukla, Murari., & Tater, 2011).To calculate this practice is actually impossible. Internet is used for the major fact of financial crime. Many people while thinking about a financial crime they think it with no person or victim involve under it. Financial crime is a vast level of economic and social industry which it touches daily. Financial crime and corruption are not new to society and people are making a profit by entering into the money laundering. For instance, ill-intentioned users such as some of the employees of the State bank of Vietnam who possess the confidential information may use this information to make the personal profit through the trading and passing the information to the other traders. For the development and continuation of financial markets in the economy, trust is necessary (BALASUBRAMANIYAN, 2010). Financial markets greatly depend upon the professional, ethical and legal standards. Financial crime may results in the bank soundness with large use of fiscal policies, discouraging foreign investment, and increasing the exchange rates. In the midst of high capital adaptability, budgetary wrongdoing makes national expense gathering and law authorization progressively troublesome. The various kinds of financial crimes will result in altering the allocation of resources and the distribution of wealth becomes costly. The economic loss will have a direct impact on the reputation of the company thus this will divert the investors of doing transactions in our country. These types of damages caused by financial crime have demoralized the financial system of the banking industry at large. Money laundering case has been increasing in the banking sector endeavors of numerous countries to set up changes into their economies through privatization (Upadhyay, 2019). Criminal associations have the monetary assets to outbid real buyers for beforehand state-possessed ventures. In past criminals can easily purchase the casinos, marinas resorts to hiding their illegal activities. It has resulted in the conversion of their black money into white. Money laundering which we have studied in the case study has a risk which is directly related to social cost and damage to the economy. In all these cases, the one who suffers is the consumer who has to pay for unfair practices. Many times consumers feel that they are getting fewer prices by bargaining for particular products, but they end by paying more prices for a product. Consumers suffer the most in society because of financial crime. They bear the cost for something which they have not done in reality. Managing these financial issues is not as easy for any policymaker. By challenging the illegal financial deals successfully we at the same also manage the social issues. To get the duties we have to see at what we can do to make our society free with the regulatory system. To make the result out of it members have to go above their duty and take responsibility from the members of financial services. In any case, it can likewise be a standout amongst the most amazing assets that we need to battle it. Just by cooperating and tackling innovation can private and open organizations truly want to take the battle to the youngster dealers, sedate cartels and prostitution rings and would like to win it (Pradhan, & Bai, 2018).
Financial crime is in worldwide and to prevent from it is every government responsibility. The bank crises occur in the past year was the reason for these unethical practices and illegal resulted in the financial sector worldwide. There has been increasing in the financial crises by average 18% since last three year which has a wide impact on the economic development of the country. With these numbers of crimes arising, it has involved global banks and other financial institutions together at the same place. With the increase of financial crime in financial sectors near the continents and with its link to the international terrorism and other offense against humanity like drug, smuggling, human trafficking, illegal gambling, etc. has made prevention of crime as the center of National and International policies and cooperation. There is a strict eye on the financial services sectors of International supervision today than before. Whereas Asian countries are in the forefront to fight against financial crime. Other countries have been depending on the central banks and regulators whereas in India al the higher officers in the government have been leading to fighting against the same. It also has a wide impact on the financial crises, loss on the damage of the monetary values and negatively impacted the economic development (Kirillova, et al. 2018).
It is analyzed that terrorist financing is a process in which all the terrorist will fund their working system to perform terrorist acts. To perform their activity they need financial support to achieve their targets. In their financial system there is a difference in terrorist and the criminals. They always show the same kind of weakness as compare to money laundering. They have a large organization which has started from the big regional body to little underground networks. Due to continue attacks and funding ways the Islamic state in Iraq and the Levant (ISIS/ISIL) are in huge funding of terrorist. They have gained a large amount of property by doing bank robbery, pirating oil fields, etc. They always raised their money from illegal activities like fraud or narcotics (Supriyayadav, 2018). Their main goal is to diminish the financial systems of all the countries to raise their income for ISIS/ISIL. It is found that Money laundering impacts the financial growth of the company and also lower down the profitability available to the stakeholders of the industry. They generally try in those countries or sectors where is fewer chances of getting caught due to weak money laundering programs. Money launderer always uses balanced financial systems because their main object is to get the illegal funds again back to the person who has created them. The financial services mainly depend on the fact that they function within a legal, professional and ethical order. In case if criminal activities were performed with the help of an institution may be they are relatives of employee or the person has taken a bribe for the same than they will also become the part of the criminal network. This will have impact directly on the other financial institutions and as well the customers. Various steps were taken by the International organizations, i.e. the United Nations and the Bank of International Settlements to know the actual problem. The American States and the Council of Europe have taken measures to keep their countries anti-money laundering (Braithwaite, 2011).
Research has found that drug-related crime is related to various crimes which include the feeling of unbeatable and it may also result in talking with abuse. Around 71% of criminals were caught by positive in testing of drugs in Scotland. It is represented in Columbia that the world’s drug problem is increasing rapidly. The promotions of laws must be done at national and international levels (Furnell, and Dowling, 2019). On the international level, many companies have negatively impacted by the money laundering acts. It results to lower down of the business growth by 19% since the last two years. The sponsors must clearly describe the political will for fighting with drug trafficking. An all-encompassing and preventive methodology is expected to address main drivers, for example, joblessness, absence of instruction, wellbeing, and lodging, just as destitution and social avoidance. Comprehensive methodologies that incorporate minorities and defenseless gatherings are additionally required, as is better collaboration among criminal equity frameworks since the exemption is the principle impediment hampering the battle against transnational wrongdoing. The Government anticipated fortifying collaboration through the sharing of best practices, knowledge, other data and capacity building (Hargovan, 2018).
With the increase in the importance of public Cybersecurity has become a matter. The main question is related to how professionals and business representatives such as directors and managers could help in lower down the money laundering acts. In the given case of the State Bank of Vietnam money laundry, it is found that State Bank of Vietnam needs to strengthen the legal policies and set rules to set up strong transparency in the books of account. It will help the company to lower down the marketing planning and manipulation of the financial data. The set code of conducts and ethical business practices helps in reducing the business process issues.
The cryptocurrency thefts from the exchange and infrastructure climb to $ 950 million in 2018 which occurred due to the liberal banking policies and infrastructure issues in the banking process. It includes many kinds of activities and issues which are related to it such as involvement of different actors, privacy, and decision making (Smith, 2011). It also includes relations between the citizen and the nation. It depends upon giving values to those who are making decisions. There is a direct connection between cybersecurity governance, and in the various values like safety, privacy, free market competition, and democracy. It is analyzed that cybersecurity approach picked shapes this association, investigating the methodologies behind cybersecurity activities or arrangements empowers a superior comprehension of which esteems are organized and advanced, and of how connections and obligations are comprised between the taking interest entertainers in the open circle. This settles on the topic of how choices about digital security are made an issue of open and political intrigue. The paper closes with a dialog of its discoveries and reflections on future research (Smith., 2010).
Organizing the research on the cybercrime the first is related to the setting up the policies a program related to the privacy. It is caused by the copying of the huge number of data from the internet. There three parties involved in piracy i.e. first who download the data on their PC's, second who transfers and distributed to the website in an illegal way and third people who download them to use has also come under the crime. It is found that hacking is done with the use of technology and knowledge regarding technology. It includes activities like breaking phone breaking, security hacking, and many different activities. Hackers can also with their skills of computers break the financial bank accounts as the transactions are done online (Smith., 2008).
While analyzing the research on cybercrime, it is analyzed that cybercrime has multiplied its growth in digit and it is amongst number four biggest crime threat in the whole world with including crimes, theft, and corruption. It has gathered lots of success worldwide and with facing issues it is not even facing any crisis at the same it is not showing any slowdown as at the time of economic difficulty. Even at the time of crisis, it has taken its business more profitable. The adult who was working online has fined that around 69% have found that new errors are being part of everyone’s life (Choo, & Smith2007).
With its rapid increase in the business-government and individuals are very much concerned about the rise of cybercrime and the matters which were related to its privacy and online security. The various strategies which were used were including both technically and legally. The law of cybercrime was adopted by 75% of the countries worldwide. To provide these needs, new remedies were organized which include multi-disciplinary tools and synthesizing the best techniques delivered through some institutions including World Bank.