Lillian Reed

The Evening Sun

Computer owners can be at risk of losing money, files and personal records through Internet crimes.

The Federal Bureau of Investigation warns against at least 18 online scams that trick people.

In 2014, Pennsylvania ranked No. 6 in the country in the amount of money lost in Internet scams.

The screen of Hanover resident Dan Saia's computer went red, and a page of text appeared instructing him to transfer a certain amount of Bitcoin currency to an account or risk having his files taken away from him forever.

Every family photo, business finance record, personal document or other file stored on the computer was locked unless he paid up.

It's not the traditional "stick 'em up" situation people might imagine when they think of a robbery, but criminals are using online scams and malicious software to steal from people.

Experts are cautioning that citizens need to change the way they think about protecting their computers and digital assets.

What's at risk?

Computer users stand to lose more than just money when they become victims of Internet crime.

Saia was home sitting at his personal computer the night he received the note that his files had been encrypted.

The Hanover business owner, who operates the information technology service Aldan Computers, was familiar with ransomware, the type of malicious software that had been downloaded to his computer.

These programs can hold victims' files hostage for money in the form of a Bitcoin, a type of digital currency. The ransomware encrypts the files and may even delete them after a period of time if the money is not paid, Saia said.

"I don't panic because I deal with this stuff all the time," Saia said. "But I did start to freak out because everything was on my computer."

Even Saia's Dropbox was encrypted because the account had been linked to his computer. The ransomware indicated that any attempt to decrypt his files besides paying the ransom would result in his files being locked away forever. Luckily, Saia had a second device where his files were safe, and he did not have to pay the ransom, he said.

Still, many of his own clients have not been so lucky.

"I've had two customers call me flipping out," he said.

Ransomware is not the only way criminals use the Internet to try to scam people. More than 269,000 complaints regarding Internet crimes were reported to the FBI's Internet Crimes Complaint Center in 2014, and more than 3.175 million complaints have been reported since 2000, according to the department's website.

In 2014, Pennsylvania ranked No. 6 in the country in the amount of money lost in Internet scams, according to the FBI's website.

Mike Shay, owner of Affordable Computers in Hanover, estimates about 90 percent of his customers come to him because of problems with Internet security. The most common scam Shay encounters involves his clients receiving a message informing them that something is wrong with their computer and asking them to call a phone number to get the problem fixed.

Once they call the phone number, the person on the other end requests access to the individual's computer, Shay said. This is how the scammers are able to download spyware onto the device. This software records everything a person types, including passwords, social security numbers and bank account numbers, he said.

"If I came to your house and knocked on your door and you didn't know me, would you let me in?" Shay said. "No. So why would you let me on your computer?"

Saia also warns his customers about a scam that targets users attempting to sell an item of value on Craigslist. Saia, who had posted an ad on Craigslist earlier this year to sell an iPad Mini, received messages from someone who offered to send a check for more than he was asking for the device. The only catch was that he had to send back the extra money when he mailed the iPad.

This is a sign that the check might be a fake. If you cash the check and then send the money and goods to the buyer, but the check bounces, you will end up owing the bank that money, Saia said.

Ransomware, spyware and Craigslist scams are just some of many types of Internet scams. The Federal Bureau of Investigation even has an Internet crimes division and a list of at least 18 schemes that can trick people into giving away money, sensitive information or goods.

Some of the scams the FBI cautions against include false lottery schemes where an individual is asked to pay a $1,000 to $5,000 processing fee to receive the lump sum, which is then never sent. Another scam is the Nigerian letter scheme where a false Nigerian official asks for temporary financial help that will supposedly be repaid along with a lump sum of money.

Local efforts against Internet crimes

The Hanover Borough Police Department receives reports of computer scams at least one or two times per month, Chief Chad Martin said.

Investigating Internet crimes, especially on a local level, can be very difficult, Martin said. For example, tracking the path of a bitcoin may take investigators out of their jurisdiction or even the country, making schemes involving the currency nearly impossible for an average police department to pursue.

"We can take a report, but there's only so far we can go what with jurisdictions and filing search warrants for IP addresses," Martin said. "As far as that goes, there's not a lot we can do."

The Hanover Borough Police Department directs victims to the FBI's Internet crime division, Martin said.

The division's Internet Crime Complaint Center finds patterns in the complaints filed and uses them to build referrals that are eventually forwarded to local, state, federal and international law enforcement agencies for further investigation and prosecution, the website states. Several other countries, including the United Kingdom, Canada and Germany, have created similar centers, the site states.

Adams County IT Director Phil Walter has worked to ensure government computers and networks are safe. Adams County has strong data integrity policies in place to protect government and resident information, Walter said. The county has given presentations on cyber safety in every department and enacted seven safety policies earlier this year to prevent security breaches.

However, he encourages municipalities using IT consultants to do what they can to educate staff about safe Internet practices, he said.

Should a cyber breach occur, Adams County already has a reaction plan in place, Walter said, adding that the county also has cyber security insurance.

Internet safety tips

If an online offer sounds too good to be true, it probably is. - Dan Saia, owner of Aldan Computers

When selling items on Craigslist, one red flag that might indicate a scam is if the buyer requires the seller to do something unusual like send money to complete the transaction. - Saia

Install a good anti-virus, but do not install more than one because they can cancel each other out. - Phil Walter, Adams County IT director

Use an external hard drive to back up all of the files. - Walter

Run anti-virus programs manually, not just automatically. - Mike Shay, owner of Affordable Computers

Use different, strong passwords for every online account. - Chad Martin, Hanover Borough police chief

Only download applications from trusted sites. - Martin

If your files are encrypted, file a police report with local law enforcement. - Martin

What is Bitcoin?

Bitcoin is a type of virtual currency, or cryptocurrency, that allows people to trade assets without the fees or oversight of a centralized bank, said Eric Grill,CEO of Coin Outlet Inc., a company that manages Bitcoin ATMs.

The company's Lancaster ATM, which was placed in 2014, has since been moved elsewhere, but Grill is certain that the technology behind the currency is going to become increasingly commonplace.

"I could talk forever about Bitcoins because there's so many other things about it that are great," Grill said. "This is the most exciting thing I've ever seen in finance."

Bitcoins are a representation of currency that are recorded in something called a blockchain, which is a permanent Internet ledger, Grill said. Using bitcoins on the blockchain ledger has all of the functionality of a bank, without any fees or regulations, he said.

Bitcoins can be used in lieu of long distance money markets, such as Western Union, which typically charges a fee, Grill said. If an individual wishes to send some money to a friend, family member or even a charity a rural area where credit or bank accounts are uncommon, Bitcoin can facilitate that, he said.

"With just a piece of paper you can accept bitcoins," Grill said. "You can just have your code on paper so it can be very low tech at the same time."

Though the ledger is public and designed to be self-policing, one can participate from anywhere in the world, making it difficult for law enforcement to locate and prosecute those who abuse the system.

Criminal use of Bitcoin is upsetting to business people like Grill, who believe the currency shows great potential for future use, but is tarnished by criminals, he said.

"It bothers me because it calls negative attention," Grill said. "It's just another new way to rip people off."

The FBI has had some success in policing ransomware scams involving Bitcoin. FBI officials instructed Grill that his company cannot legally convert U.S. currency into Bitcoin for an individual who identifies that the purpose is to pay off a ransomware, he said.

Still, criminals who use Bitcoin are at risk as well, because of the way a blockchain ledger is designed, he said.

"People think it's anonymous, but it's not," Grill said. "Bitcoin, in fact, is not a good way to commit a crime. Criminals would probably be better to buy a bitcoin and then convert to another currency."

Every time a bitcoin exchanges hands, the transaction is recorded into the blockchain's ledger forever, Grill said. Law enforcement can trace Bitcoin accounts through IP addresses, credit cards, phones and computers.

"Mailing money in an envelope would be more anonymous," he said.