Thursday, March 14, 2019

Computer Fraud – an Analysis on Oracle Corp vs. Sap Ag

learning ashes has been compete a grave essential role in daily none activities. Over the past decade, the detection rate of computer abhorrences concerning nurture system of rules attacks has risen sharply. According to Kunz and Wilson (2004), reported computer plagues have been septupled from 2000 to 2003 and leads to inestimable economic expiration. Therefore, themes on information hostage, especi tout ensembley the pr up to nowtion of computer juke, have attracted progressively attentions (Romney and Steinbart, 2009).However, it counts that perpetrators can always find new techniques to stealth invaluable business try secrets stored, processed or protected by those information systems. Moreover, some wickedness techniques have been used in economic espionage, which causes a yearly loss of $250 billion (ibid). vaticinator Corp vs. run out AG could be unmatchable of the relating teddys occurred in the recent 2007 and is not yet closed till present. This scree n leave alone firstly introduce the Case. Then by using antic Triangle, analyze the reason of use ups loading of computer pseud and data theft.Fin every last(predicate)y, suggestions on how to improve the security of companionships information system will be addressed with some reflections of the Case. It has been reported that the globes softw be giant scan AG was sued by its largest competitor, prophesier Corporation, for computer faker and data theft in March 2007 (Anon, 2010). In the Complaint, oracle Corporation (2007) stated that in November 2006, unusual heavy download activities were spotted on Customer Connection, a website oracle used to treat its customers. The uncovered addition originated from an IP address in one of jades braches with log-in IDs of PeopleSoft and J.D. Edwards customers. It is discovered later that TomorrowNow and wash up TN, two pirate flag subsidiaries, committed a series of unauthorized access to vaticinators customer swear out sy stem and more(prenominal) than 10,000 illegal download activities. visual sense of important materials, including right of first publicationed software codes and confidential documents was theft. In this way, SAP was loose of establishing a serving library for PeopleSoft and J. D. Edwards products, and launched a marketing campaign to bitch prophets customers. The invention resulted in Oracles long hundred copyrights infringed and posed the threats of losing 358 customers (Kawamoto, 2007).On 24 November 2010, the U. S. Federal District Court for northern California announced that Oracle won the Case with SAP apt(predicate) for $1. 3 billion compensation. As Slappendel (2010) points out, this is the largest amount ever awarded in copyright infringement cases. The core reason whitethorn lies that the finding of fact is based upon the sportsmanlike market value of the licenses for utilizing those resources instead of Oracles profit loss. afterward the verdict, SAPs stock pri ce has been falling significantly and TomorrowNow had to be shut down (Anon, 2011 Team, 2010).Although SAP accepted the liability and apologized for its inappropriate behavior, the caller has been arguing that the penalty was contrary to the reality of the damage caused by the snake oil (Margan, 2011). It is also reported that SAP has filed motions to the Court and therefore SAPs computer fraud case does not seem to end at present. The action of data theft has brought unnecessary troubles to both SAP and Oracle. In order to prevent computer fraud effectively, it is essential to fully consider the reason of SAPs behavior. Fraud Triangle will be used as an analysis putz.It is estimated by Romney and Steinbart (2009) that Fraud Triangle consists of the one-third normal conditions for fraud to occur drives, opportunities and rationalizations. Figure 1 shown below is a brief summary of Fraud Triangle in the Case. 5. Homely meals in software industry FIGURE 1 FRAUD TRIANGLE OF SAP P ressure Opportunity Rationalization 2. Oracles insufficient security management 4. Theft by early(a) companies (i. e. Siebel Systems) before 1. Financial uncivilized controversy in the market 3. Few evidence whitethorn not be spottedFirstly, SAP is probably under the severe pressure of maintaining the top one throne in the software market. During the last decade, competition between Oracle and SAP has greatly increased and the rivalry has highly-developed into a feud. Particularly in 2004, Oracle began a series of acquisitions, aiming at increasing the share of enterprise applications market, where SAP owned the leadership (PeopleSoft, 2011). later realizing the seriousness, SAP fighted back by offering special discounts to woo customers, and and thence a cruel price battle initiated.However, the strategy did not seem to rescue much, SAPs market share die hards down(prenominal) sloping (Team, 2010). Currently, Oracle and SAP are vying for the third-party enterprise software prolong and tending market. The enormous pressure of win may contribute to the commitment of computer fraud, especially for spying the business secrets of the largest competitor. The following two international conditions may possibly be linked to SAPs unwise actions Oracles insufficient security management and an opportunity to entomb the fraud.Oracle has provided the Customer Connection as a supplementary of its service to the customers. However, the semi-open system, which stores countless precious information, does not appear to be equipped with superscript security management techniques. A spacious defect exists that allows easy access to resources supposed to be protected from outsiders. In terms of the flaw, Oracle may be partially liable of its loss. Even though Oracles detection of abnormal access is relatively sensitive, it could not take a step ahead of the crime.Besides, Oracles dependence on service website offers the probability to conceal fraud, since compara bly less evidence would be left for detection. With technology improvement, computer fraud may become far more difficult to spot in the future (The National Fraud Center, Inc. , 2000). Moreover, the work through of being a casualty of computer crimes might have lift SAPs rationalization of being a perpetrator. It is recorded that in 1999, SAP filed a lawsuit against Siebel Systems and claimed of being a victim of the supposed White Collar Crime (Kawamoto, 2007).Additionally, it may be reasonable to disclose the fact that most people in software industries regard the fact of computer fraud as homely meals, because almost all businesses in this market have grabbed some most advanced computer techniques, in concert with some abuse techniques obviously. As a result, SAPs fraud behavior may not be that severe in the look of the decision makers. Hence, accelerate the germination of computer crimes. After fully sagacity of why SAP may err, suggestions on how to improve the security of enterprises information system will be addressed with reflections of the Case.In the perspective of prevention, several control methods could be considered to raise the security capability of the enterprises information systems. First of all, persuade or put through all employees, even the customers, to use strong password to access to follows database or service websites (Standler, 2007). Requirement of password changes at weak time intervals would be necessary to prevent some former employees of customers company from entering the system, which may exactly Oracle needs.Secondly, restrict physical and opposed access to system resources unless the both the log-in ID and IP address are authorized (Backhouse and Dhillon, 1995). Thirdly, safeguard and double encrypt all data and programs. For example, materials on the Customer Connection could be double encrypted so that without further encoding, the downloaded materials would bear useless for non-employees or non-customers. Besides, techniques such as anti-virus software and firewall could to some finish protect the system from worms and viruses attack.Although using the above prevention method could avert some dispensable loss, perpetrators penetrate everywhere (Romney and Steinbart, 2009). Therefore, an efficient detection system should be ready for any mathematical incidences. The establishment of a fraud hotline is recommended, which contains the employment of computer security officers, consultants and forensic specialists. The control system will be engaged in monitoring all malicious actions and account back as soon as possible. In the Case, Oracle took usefulness of its superior detection system and made SAPs fraud evidence traceable and suppressible (Oracle Corporation, 2007).Despite prevention and detection, there are other preparations could be made ahead of the arrival of any disasters with the intention of step-down the loss caused by computer fraud (Kunz and Wilson, 2004). These rou tines mainly concern damages application, recovery plans constitution, material back-up within the whole information system. Furthermore, timely crime reporting to the government crime center and effectively legislative tool using might be helpful for retrieving pretty compensations from perpetrators, as it has been do by Oracle Corporation in the Case.Some ERP market analysts even suspect that the Lawsuit could be a sort of Oracles strategy to decrease the competition in the third-party enterprise software maintenance and support market. Whatever the original purpose is, Oracle has achieved benefit from winning the Lawsuit for the current period. To conclude, SAPs situation has satisfied all of the three conditions presented in Fraud Triangle, some of which heavily depend on industrial environment as well as the design of Oracles information system.Thus, objectively, SAP may not liable for all the censure, though it really has been occupied in illicit competition using computer fraud. Oracle could be considered partially responsible for its loss and the sentenced $1. 3 billion seems somewhat too cruel for SAP to bear. Although some experts may argue that the breach of intellectual property is unforgivable culpable negligence, it looks possible for the Court to adjust the amount of penalty towards a more true-to-life(prenominal) number. Since the next round hearings will not start until July 2011, all the outcomes remain unpredictable (Margan, 2011).It is undeniable that, however, computer fraud could bring about huge losses for the entire society, especially when it is used in economic espionage. In the speeding advancing information century, nearly all of the impossible could be made possible. Consequently, it seems that only the creation of a healthy competition environment, fury on business ethics and proper education may attend in bringing down the upward climbing computer crime rate. REFERENCE Anon. (2007) SAP-We Will Aggressively Defend Against Or acles Claims online. Ziff Davis Media, United Press International. visible(prenominal) at 30 April 2011 Anon. (2010) Oracle Awarded $1. 3bn In SAP Data Theft Case online 24 November. BBC News. uncommitted at 28 April 2011 Anon. (2011) SAP Posts Sharp Profit Drop Due To Oracle Lawsuit online 26 January. Available at 29 April 2011 Backhouse,J. and Dhillon,G. (1995) Managing Computer Crime A Research Outlook online. Computer and protective cover 14(1995) 645-651. Available at 29 April 2011 Granick,J. S. (n. d. ) Faking It figure Loss In Computer Crime Sentencing online. Available at 1 whitethorn 2011 Kawamoto,D. (2007) Oracle Sues SAP On Spying Charges online 22 March. CNET News. Available at 28 April 2011 Kunz,M and Wilson,P. (2004) Computer Crime And Computer Fraud online. Available at 1 whitethorn 2011 Margan,T. P. (2011) Oracle, SAP Still Going At It Over TomorrowNow online 28 February. Available at 29 April 2011 Niccolai,J. (2010) SAP Court Lops $500M Off Oracles au thorization Damages online November. IDG News. Available at 1 May 2011 Oracle Corporation (2007) Oracle Vs. SAP Lawsuit Complaint online. Available at 28 April 2011 Panorama Consulting Group. (2010) contact Of The Titans An Independent Comparison Of SAP Vs. Oracle online. Available at 10 April 2011 PeopleSoft (2011) Oracle vs. SAP online 1 May. Available at 1 May 2011 Romney,M. B. and Steinbart,P. J. 2009) Accounting Information Systems, 11th Ed. Pearson Prentice Hall. Shaw,E. et al. (n. d. ) The Insider Threat To Information Systems The Psychology Of The Dangerous Insider online. Security Awareness Bulletin No. 2-98. Available at 29 April 2011 Slappendel,S. (2010) Oracle v. SAP Highest Damages Awarded For A Copyright Infringement Lawsuit online. Available at 28 April 2011 Standler,R. B. (2007) Tips For Avoiding Computer Crime online 25 November.Available at 29 April 2011 Team,T. (2010) SAP-Oracle Lawsuit Could matter On SAP Market Share, Stock Price online 14 December. Ava ilable at 29 April 2011 The National Fraud Center, Inc. (2000) The Growing Global Threat Of scotch And Cyber Crime online December. Available at 1 May 2011 APPENDIX A reduplicate OF THE NEWS REPORT Oracle awarded $1. 3bn in SAP data theft case 24 November 2010 Last updated at 0732 GMTOracle chief executive Larry Ellison testified during the case European software giant SAP has been ordered by a Californian court to pay US rival Oracle $1. 3bn (? 820m) after losing a data theft case. The case revolved around customer-support documents and software stolen by SAPs subsidiary TomorrowNow. Oracle say that the German company intended to use the data to poach the 358 customers involved, and demanded $1. 65bn compensation. SAP had claimed it owed only $40m, but the jury decided in Oracles favour. SAP verbalise it was disappointed with the jurys decision and would look to challenge the verdict. We will pursue all available options, including post-trial motions and appeal if necessary, it said in a statement. It did, however, reiterate that it had made a mistake We regret the actions of TomorrowNow, we have accepted liability, and have been willing to fairly compensate Oracle. Big dreams Oracle co-president Safra Catz expressed her satisfaction with the verdict For more than three years, SAP stole thousands of copies of Oracle software and then resold that software and related services to Oracles own customers. The trial made it free that SAPs most senior executives

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