For This Assignment, Follow The Specific Scenario Below

For This Assignment Follow The Specific Scenario Below And Then Provid

For this assignment follow the specific scenario below and then provide a 4-5 page Memo using MS Words Memorandum template to Executive Management concerning the response to the 3 questions being asked. Scenario: The scenario presented to your forensics team will be related to a financial crime and fraud perpetrated against a financial institution called CB Federal Credit Union. An employee of this bank received an email with malware attached. Upon opening the attachment, the bank employee activated the malware backdoor. Once in the network the malware searches the network, finds the administrative laptop, embeds the infection and records all financial activity.

The attacker then intercepts a clerk’s screen and then replicates all the admin’s behavior for the bank’s cash-transfer system. The attacker alters balances and pockets the remaining money. The attacker then uses online and e-payments to transfer all the extracted funds. Respond to the questions below, and prepare the Memo to management on how this case will be handled. (Ch. 4-5) Memo requirements: · Provide Memo header: To: Executive Management, From: Digital Forensics Team, Subject: Bank Fraud Case, Date: [Current Date] · Provide Introduction to case (1/2 page): Describe the case scenario and overview of what activities the Digital forensics team will perform. · Question 1: As the primary bank investigator, what sources of evidence will you exploit in order to retrieve evidence of this fraudulent activity? (1.5 pages) · Question 2: What digital forensics tools (ex., Encase) and Fraud detection tools (ex., Clearsale, Signifyd) and related procedures can be used to retrieve and analyze the bank fraud evidence? Provide a response for both one digital forensics tool and one fraud detection tool. (1.5 pages) · Question 3: What are the federal laws applicable to the Bank Fraud and the possible penalties applicable in this case? (1 pages) · Conclusion: Describe what will be accomplished once the investigation is done and the intended products to be given to bank management Provide APA citations as applicable in the main body of the memo, and a reference list in APA format at the end of the memo as references are required to backup assertions.

Paper For Above instruction

The incident involving CB Federal Credit Union signifies a sophisticated financial crime where malware facilitated unauthorized access and theft of funds through manipulation of banking systems. This case underscores the importance of comprehensive digital forensic investigations to uncover, analyze, and respond to cyber-enabled financial fraud effectively. The digital forensics team will undertake a methodical approach, including the collection of digital evidence from multiple sources, the utilization of specialized tools for data recovery and analysis, and the application of relevant legal frameworks to ensure a lawful and thorough investigation. The following document details the strategic approach to evidence collection, analysis using specific forensic and fraud detection tools, applicable federal legislation, and the expected outcomes for the bank’s management following the conclusion of the investigation.

Introduction to Case and Activities of the Digital Forensics Team

The case involves a cybersecurity breach where malware, introduced via a phishing email, compromised CB Federal Credit Union's network. Once activated by an employee, the malware established a backdoor, allowing the attacker to clandestinely monitor banking activities, embed within critical administrative systems, and record financial transactions. Subsequently, the attacker mimicked the administrator's actions to alter account balances and transfer funds, which were directed outside the bank using electronic payment platforms. The digital forensics team’s core activities will include identifying and acquiring digital evidence across the bank’s network infrastructure, emails, storage devices, and transaction logs. Evidence collection will be conducted following proper chain of custody protocols to maintain integrity and admissibility in legal proceedings. The team will also analyze logs, network traffic, and the malware’s artifacts to reconstruct the attack timeline and identify perpetrators. Forensic imaging tools will be employed to create exact copies of relevant digital media, which will be scrutinized for traces of malware, unauthorized access, and financial transaction records. Throughout this process, collaboration with legal experts and law enforcement agencies will ensure compliance with applicable laws and standards for evidence handling. Ultimately, this investigation aims to uncover the scope of the breach, trace the source of the attack, quantify stolen funds, and strengthen security measures to prevent future incidents.

Question 1: Sources of Evidence

In addressing the primary responsibility of retrieving evidence of the fraudulent activity, the forensic investigator will pursue multiple sources within the bank’s digital environment. First, the investigation will focus on analyzing the infected workstations, especially the administrative laptops, which served as the pivot points for the malware embedding and activity monitoring. Using disk imaging tools like EnCase or FTK Imager, the forensic team will create bit-by-bit copies of the hard drives to preserve original data integrity for detailed examination. These images will be scrutinized for malware remnants, unauthorized files, and altered system configurations (Carrier, 2005). Network traffic logs are another critical source, captured via network forensic tools such as Wireshark or NetWitness, to trace malicious communications, command-and-control server interactions, and data exfiltration paths. The investigation will also include logs from firewalls, intrusion detection systems (IDS), and security information and event management (SIEM) systems, which record access attempts, suspicious activities, and data movements within the network. Email servers will be examined for phishing messages and malicious attachments, as these often serve as initial vectors for malware infections. Additionally, transaction and audit logs of the bank’s core banking system and cash transfer platform will be analyzed to identify anomalies correlating with unauthorized fund transfers. The analysis of these evidence sources will involve timeline reconstruction, malware signature detection, and correlation of logs to establish a sequence of malicious events. Collecting volatile data such as RAM snapshots will help identify malware processes still running at the time of investigation, providing real-time insight into the attacker’s operational footprint. Overall, leveraging multiple evidence sources ensures a comprehensive understanding of the incident and facilitates accurate reconstruction of the attack.

Question 2: Digital Forensics and Fraud Detection Tools and Procedures

Effective investigation of financial cybercrimes relies heavily on a combination of digital forensic tools and fraud detection platforms. A widely used digital forensic tool in this scenario is EnCase Forensic, developed by Guidance Software. EnCase offers robust capabilities for disk imaging, file recovery, malware detection, and timeline analysis. Its ability to create forensically sound images ensures the original data remains unaltered during examination. EnCase’s advanced keyword search and carving features enable investigators to locate hidden or encrypted malicious files. Its automation features facilitate rapid analysis of large data sets, making it invaluable during in-depth investigations like this. Through EnCase, investigators can reconstruct the series of activities from the infected machines, detect unusual data accesses, and identify the malware’s artifacts embedded within the system. The comprehensive nature of EnCase supports a detailed examination of both static and volatile data points, ensuring thorough evidence collection.

Regarding fraud detection tools, Signifyd is a leading platform that can be employed to analyze and detect suspicious online payment transactions. Signifyd utilizes machine learning algorithms and behavioral analytics to evaluate transaction risk levels in real-time, helping to identify fraudulent activity swiftly. During an internal investigation, integrating Signifyd’s insights can assist in correlating anomalous transactions with malware activity and unauthorized transfers. Conducting transaction analysis through Signifyd’s dashboards allows for the identification of patterns indicative of fraud, such as rapid successive transfers, mismatched device fingerprints, or known malicious IP addresses. This helps not only in gathering evidence of fraudulent transactions but also in understanding the scope and scale of the financial theft.

The investigation procedures involve initial scanning of digital media using EnCase to locate malware artifacts, followed by detailed timeline reconstruction to establish attack sequences. Parallelly, transaction records flagged by Signifyd as high-risk transactions will be scrutinized to connect the dots between malware activity and stolen funds. Both tools support a layered investigative approach, combining digital forensic evidence with behavioral analytics, to comprehensively address the breach.

Question 3: Federal Laws and Penalties

The primary federal laws applicable in this scenario include the Computer Fraud and Abuse Act (CFAA) of 1986, which criminalizes unauthorized access to computer systems and fraud involving protected computers (18 U.S.C. § 1030). The law targets activities such as hacking, malware deployment, and data theft, which are evident in this case. Under the CFAA, individuals found guilty of accessing protected computers without authorization or exceeding authorized access can face significant penalties, including fines and imprisonment. Additionally, the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws are relevant because the suspect used electronic funds transfers and online payment systems to launder stolen money. Violations of the BSA may entail substantial fines and sanctions, especially if the institution fails to comply with reporting requirements.

Furthermore, the Electronic Fund Transfer Act (EFTA) governs electronic payments and protections for consumers and financial institutions against unauthorized transactions. Violations under EFTA can result in criminal charges as well. Penalties for these federal offenses range from a minimum of one year in prison for certain violations to several years depending on the severity and criminal history. For instance, under 18 U.S.C. § 1030, offenders can face up to 10 years imprisonment for hacking-related crimes, along with hefty fines. In cases where the fraud involves monetary losses exceeding $1 million or involves multiple victims, increased penalties may be imposed, including longer imprisonment terms and restitution orders (U.S. Department of Justice, 2023). Prosecutors may also pursue charges for conspiracy or identity theft, further augmenting potential sanctions.

Conclusion

Upon completion of the investigation, the primary goal is to produce a comprehensive report detailing the scope of the breach, evidence of malicious activities, and the identities of the perpetrators if possible. The investigation will culminate in a detailed timeline reconstruction, malware analysis report, and transaction analysis, all of which will form the basis for legal action and internal security improvements. The products furnished to bank management will include digital evidence files, forensic analysis summaries, and recommended remediation measures to prevent future incidents. Additionally, the investigation aims to recover stolen funds, identify vulnerabilities in the bank’s cybersecurity defenses, and establish protocols for rapid response to similar threats. Ultimately, this process will strengthen the bank’s security posture, ensure regulatory compliance, and support legal proceedings against the offenders. The evidence compiled will also serve as a deterrent to future cybercriminal attacks and reinforce the bank’s commitment to safeguarding customer assets and data integrity.

References

• Carrier, B. (2005). File System Forensic Analysis. Addison-Wesley.
• Guidance Software. (2019). EnCase Forensic. Retrieved from https://www.guidancesoftware.com/encase-forensic
• U.S. Department of Justice. (2023). Cybercrime & Digital Evidence. https://www.justice.gov/criminal-ccips
• Kessler, G. C. (2018). Cybercrime: Critical Issues in Cybersecurity and Digital Forensics. CRC Press.
• NIST. (2018). Guide to Integrating Forensic Techniques into Incident Response. Special Publication 800-101.
• Ulrich, C., & Peltier, T. R. (2020). Computer Forensics: Incident Response Essentials. CRC Press.
• Rogers, M. (2019). Cybersecurity and the Law. Taylor & Francis.
• Financial Crimes Enforcement Network. (2022). Bank Secrecy Act. FINCEN Regulation.
• Signifyd. (2023). Fraud Detection & Prevention. Retrieved from https://www.signifyd.com
• Gordon, M., & Ford, R. (2021). Information Security Law and Policy. CRC Press.