Computer Fraud
Computer fraud is the use of information technology to commit fraud. In the United States, computer fraud is specifically proscribed by the Computer Fraud and Abuse Act, which provides for jail time and fines.
1. Unauthorized access at North Bay
Abdulswamad Nino Macapayad, a former accounts payable clerk for North Bay Health Care Group, admitted to using her computer to access North Bay’s accounting software without authorization, and in turn issued various checks payable to herself and others. Several of the checks were cashed by Sabatia or deposited into her personal bank account, and some were deposited into the bank accounts of others. She attempted to conceal the fraud by altering the electronic check registers of North Bay to make it appear as if the checks had been payable to the company’s vendors. The fraudulent scheme resulted in losses to North Bay of at least $875,035.
On May 27, 2004, Sabatia, plead guilty to two counts of computer fraud, and faces a maximum sentence of five years in prison and a $250,000 fine.
2. Denial of Service Attack
On January 19, 2001, Dennis was sentenced to six months incarceration; three months in jail and three months of home confinement, followed by one year of supervised release. Additionally, he must allow authorities to monitor his computer activity, and perform 240 hours of community service.
3. Malicious Systems Admin at UBS
A disgruntled computer systems administrator for UBS PaineWebber was charged with using a "logic bomb" to cause more than $3 million in damage to the company's computer network, and with securities fraud for his failed plan to drive down the company's stock with activation of the logic bomb. Roger Duronio is charged in one count of securities fraud which carries a maximum penalty of 10 years in federal prison and a $1 million fine and one charge of computer fraud which carries a maximum prison sentence of 10 years and a fine of $250,000 or, alternatively, two times the gain made by the defendant
1. Unauthorized access at North Bay
Abdulswamad Nino Macapayad, a former accounts payable clerk for North Bay Health Care Group, admitted to using her computer to access North Bay’s accounting software without authorization, and in turn issued various checks payable to herself and others. Several of the checks were cashed by Sabatia or deposited into her personal bank account, and some were deposited into the bank accounts of others. She attempted to conceal the fraud by altering the electronic check registers of North Bay to make it appear as if the checks had been payable to the company’s vendors. The fraudulent scheme resulted in losses to North Bay of at least $875,035.
On May 27, 2004, Sabatia, plead guilty to two counts of computer fraud, and faces a maximum sentence of five years in prison and a $250,000 fine.
2. Denial of Service Attack
On January 19, 2001, Dennis was sentenced to six months incarceration; three months in jail and three months of home confinement, followed by one year of supervised release. Additionally, he must allow authorities to monitor his computer activity, and perform 240 hours of community service.
3. Malicious Systems Admin at UBS
A disgruntled computer systems administrator for UBS PaineWebber was charged with using a "logic bomb" to cause more than $3 million in damage to the company's computer network, and with securities fraud for his failed plan to drive down the company's stock with activation of the logic bomb. Roger Duronio is charged in one count of securities fraud which carries a maximum penalty of 10 years in federal prison and a $1 million fine and one charge of computer fraud which carries a maximum prison sentence of 10 years and a fine of $250,000 or, alternatively, two times the gain made by the defendant