ions within the computer program. In that these crimes have been in existence for several years, they have acquired names, including "Trojan Horse," "Logic Bomb," and "Trap Door," to indicate the various programming techniques utilized for the execution of unauthorized functions. As an example of such a crime, the Loganville Insurance Company lost in excess of $5 million during Fiscal Year 1987-1988 due to the commission of an internal programming crime by an unknown person. With the use of a "Logic Bomb," the probable "Hacker" was able to delete from the monthly accounting system over 160,000 premium-holder records from the firm's computer files. This deletion resulted in considerable financial loss and disruption of services to the firm's clients. To date, the firm has not been successful in discovering the identity of the "Hacker." Following this incident, the firm contracted the services of a computer-crime specialist to install a security system involving several levels of access and checks and balances to prevent recurrence of such a criminal activity.
Conly and McEwen (1990) note that internal computer crimes also consist of hardware and/or software pilferage. During 1986, The United States Department of Justice (Bureau of Statistics, 1988, p. 4) received in excess of one million reports of stolen or missing computer system hardware and/or software. The department estimates that this number of complaints represents less than half of all occurrences. The primary problem encountered by those companies which have hardware/software stolen is that their security systems are incapable of preventing equipment misallocation due to faulty documentation processes. The checks and balances put in place are insufficient to prevent an employee from, for example, ordering equipment for his/her office or personal use under the budget code of another department. A further problem is that, when an employee leaves the firm, his/her co...