Data Encryption Question

[Blitz3d]

So like I've been studying IT for my HSC Course and I came across this passage:

"There is always a new challenge for software privacy and security - one recent challenge hasbeen the encryption of computer information, particularly as it relates to transactions on the internet and the use of databses. Encryption is the coding of data to make it inaccessible except to those with authorisation to do so. Encryption has long been used by defense departments, national security agencies and spies, and is increasingly used to protect confidentiality and to disguise criminal conduct as computer use expands."

Now, the question that I have to answer is:

How can encryption be used to disguise criminal conduct? Consider the example above and issues such as computer fraud, theft such as piracy and computer hacking...

I've tried to analayse this question in many different ways but I can't seem to come up with an answer for this. Could yous help me answer this by any chance?

All answers will be given plus rep

 

[Hypemaster]

Let's say through piracy you have a file that you obtained illegally. You want to share that file with your bud without any risk of getting caught, so you encrypt that file send it over through the internet and send him a key so he can decode the file for his own use. Also hackers can send out encrypted viruses so that it may go undetected keeping a low profile.

 

[Blitz3d]

Thanks you ~

 

[7PointOh]

It's not only about files, it's also about the transport. The Layer 4 of the OSI. You can create L2 or L3 tunnels with ipsec through public domains. These tunnels just shows raw data until it reaches the endpoint with the right authentication and destination. So you can create vpns so that other people that you've authorized can have access to the information or have a real time conversation via chat or ip telephony. Now having that isn't illegal, but the coordination of illegal activities, passing intellectual property, or being onsite and logging on to a terminal with that access can be.