Question

This question mainly concerns the Computer Misuse Act 1990.

An employee of a credit card company is authorised to access the accounts of card holders which are on the company’s computer system – this is essential for him to be able to perform his job. The employee accesses accounts and passes on information to other persons, allowing counterfeit credit cards to be made. As a result of subsequent use of these credit cards, the credit card company loses nearly £1,000,000. Has the employee committed any offence? If so, what offence or offences? Refer to relevant cases in your answer.

Answer 1

The said act of Computer Misuse Act 1990 was passed by UK parliament. The tagline of this act is ' An act to make provision for securing computer material against unauthorised access or modification; and for connected purposes '.

Many business organisations store their confidential information in their computer servers. This information is very often targeted by rival competitors, criminals and disgruntled and disloyal employees.

There are companies which offers services like credit card, has very confidential information with them, theirs information pertains to personal and financial information of the card holder. These information is very easily accessible to their employees as these employees have to deal with these private, sensitive and financial data of their clients.

If the employees of these employees do any fraudulent activities and also take part in data breach and shares any confidential data to any third party who has malicious intention, then any such fraudulent activity is serious case of cyber crime, and these cyber crime has very severe consequences.   

Employees who are found guilty in data breach is punishable offence as per Cyber Crime Act. Here, such Companies are punished as per Section 43A - Compensation for failure to protect confidential data. Such Companies can take serious action against those employees.

Employees indulges in such cyber criminal activities like data breach, severely affects company's credibility, goodwill and also affects to the growth of the company.  

CASE STUDY:

MPhasis BPO fraud:

In 2005, four call center employees this company working at outsourcing facility in India, Obtained PIN codes from four customers of MPhasis client, CITI Group and misused this PIN to create bank account and stolen $ 426000. after investigation these found guilty and punished because these employees were not authorised to commit these financial transactions.