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Computer crimes involves activities where a computer is used in the commission of a crime or the
computer its self it¶s the target through exploitation of the internet. This activity encompasses a broad
range of potentially illegal activities which are accompanied with damaging consequences. There are
various types of cyber crime where a computer or a computer network serves as the location, means,
target, or as the source.
Once associated strictly with malicious viruses and computer system crashes, more businesses are
recognizing the threat of cyber crime. By exploiting the Internet's borderless nature, cyber criminals can
inspire loss of consumer confidence. Ignoring these risks can damage a company's profitability, destroy
its reputation and eventually drive it out of business.
Types of cyber crime include identity theft, credit card fraud, cyber-stalking, phishing, child pornography,
and spoofing. Many types of cyber-crimes happen often through everyday emails, or in chat-rooms. Other
types of cyber-crimes also involve software pirating, downloading illegal music files, and stealing money
from banks by breaking into online websites.

Some of the effects are:

1)| loss of revenue

This occurs when a business¶s e-commerce site is compromised, while inoperable valuable income is lost
when consumers are unable to use the site. Also when an outside party who obtains sensitive financial
information, using it to withdraw funds from an organization.

2)| Damaged reputation

In cases where customer records are compromised by security breach associated with cyber crime, a
company¶s reputation is ruined. Such incident may cost the company its customers who lose confidence
in an organization hence take there services or businesses else where.

3)| Reduced productivity

Time is directly proportional to production rate of a firm, but due to measures put in place by most
companies to cube cyber crimes a lot of time is wasted by employees hence effect on their productivity.
Time spent entering many password and other time consuming acts in order to do their job often has a
negative effect on their productivity.

4)| Waste of time

The IT personnel spend lot of time trying to cube security breach time which they could have spent on
doing other activities that could see the productivity of the organization improved.

5)| Financial market impacts.

The stock and credit markets and bond rating firms may react to security breach announcements. Negative
reactions raise the cost of capital to reporting firms. Even firms that are privately held, and not active in
public securities markets, may be adversely affected if banks and other lenders judge them to be more
risky than previously thought.

6)| Signal to attackers.

A public announcement may alert hackers that an organization¶s cyber-defenses are weak, and inspire
further attacks.

7)| Job security.

IT personnel may fear for their jobs after an incident and seek to conceal the breach from senior
management.



Coinciding with organized crime's traditional need for secrecy is a greater demand for avenues to
launder its ill-gotten gains. This has major implications for business especially through the
growth of online auction and gambling websites---which make it easier than ever to spread
money internationally. Similarly, as online banking and e-commerce activities become
widespread, so will the pool of illegal transactions springing up in its wake.



Computers have revolutionized nearly every aspect of post-industrial society, accelerating the
process of globalization and making the world a much smaller place for personal interactions and
business transactions alike. Entire industries have either evolved or become obsolete as
Computer technology has advanced Computers have had an especially significant impact on four
major aspects of business: communication, record keeping, distribution and production,
including automation and outsourcing.

On the other hand, the implications of all this computer crimes for business are far-reaching.
They suggest that there is a need for major changes in thinking about internet-security and in
planning and implementing security measures. These are particularly important if e -commerce is
to reach its full potential and if individual companies are to avoid significant losses as a result of
criminal activities. Perhaps the most important changes are in thinking. This has two distinct but
overlapping dimensions: security has to be understood in b road rather than narrow terms, and
security can no longer be an after-thought, but needs to be part of intelligence, planning, and
business strategy.
With this in mind, there are several specific recommendations that need to be considered
carefully by firms in the high-tech sector.

These are:
1.| Business intelligence needs to include criminal intelligence analysis
2.| Recognize the real problem is crime, not hacking
3.| Beware of infiltration
4.| Develop partnerships and information-sharing arrangements