Reference no: EM133136035

Questions -

Q1. Revlon hired Logisticon to install a real-time invoice and inventory processing system. Seven months later, when the system crashed, Revlon blamed the Logisticon programming bugs they discovered and withheld payment on the contract. Logisticon contended that the software was fine and that it was the hardware that was faulty. When Revlon again refused payment, Logisticon repossessed the software by disabling the software and rendering the system unable. After a three-day standoff, Logisticon reactivated the system. Revlon sued Logisticon, charging them with trespassing, breach of contract, and misappropriation of trade secrets ( Revlon passwords.). Logisticon countersued for breach of contract. The companies settled out of court. Would Logisticon's actions be classified as sabotage or repossession? Why? Would you find the company guilty of committing a computer crime?

Q2. An employee at an electrical engineering firm was unhappy about being overlooked for a promotion opportunity and decided to resign. He started working at a competing firm in the same city. The former firm soon realised that their innovative designs in engineering solutions were being made available at the new firm where the employee was now working. After a thorough investigation, it was found that the disgruntled employee's account and password (and therefore his access to confidential designs) were still active. The investigation indicated that the employee had regularly accessed his account and reviewed the confidential designs.

1. Identify and explain the type of fraud that has taken place.

2. What must have motivated the employee to commit the fraud? Explain your answer.

3. List two contributing factors to the type of fraud that had a place.