Chapter 11

Security and Ethical Challenges

McGraw-Hill/Irwin ©2008,The McGraw-Hill Companies, All Rights Reserved

Learning Objectives

1.

2.

Identify several ethical issues in how the use of information technologies in business affects employment, individuality, working conditions, privacy, crime, health, and solutions to societal problems.

Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology.

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Learning Objectives

3.

Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of information technology.

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IT Security, Ethics and Society

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Ethical Responsibility

• Business professionals – have a responsibility to promote ethical uses of information technology in the workplace.

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Business Ethics

• Questions that managers must confront as part of their daily business decision making including: – Equity – Rights – Honesty – Exercise of Corporate Power

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Ethical Business Issues Categories

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Corporate Social Responsibility Theories

• Stockholder Theory – Managers are agents of the stockholders – Their only ethical responsibility is to increase the profits of the business – Without violating the law or engaging in fraudulent practices • Social Contract Theory – Companies have ethical responsibilities to all members of society – Which allow corporations to exist based on a social contract

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Corporate Social Responsibility Theories

• Stakeholder Theory – Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders – Stakeholders are all individuals and groups that have a stake in, or claim on, a company

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Principles of Technology Ethics

• • Proportionality – the good achieved by the technology must outweigh the harm or risk Informed Consent – those affected by the technology should understand and accept the risks • Justice – the benefits and burdens of the technology should be distributed fairly • Minimized Risk – even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk

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AITP Standards of Professional Conduct

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Responsible Professional Guidelines

• Acting with integrity • Increasing your professional competence • Setting high standards of personal performance • Accepting responsibility for your work • Advancing the health, privacy, and general welfare of the public

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Computer Crime

• The unauthorized use, access, modification, and destruction of hardware, software, data, or network resources • The unauthorized release of information • The unauthorized copying of software • Denying an end user access to his or her own hardware, software, data, or network resources • Using or conspiring to use computer or network resources illegally to obtain information or tangible property

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How large companies protect themselves from cybercrime

Source: 2003 Global Security Survey by Deloitte Touche Tohmatsu, New York, June 2003, In Mitch Betts, “The Almanac,”

Computerworld

, July 14, 2003, p 42.

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Hacking

• The obsessive use of computers, • Or the unauthorized access and use of networked computer systems

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Common Hacking Tactics

• Denial of Service – Hammering a website’s equipment with too many requests for information – Clogging the system, slowing performance or even crashing the site • Scans – Widespread probes of the Internet to determine types of computers, services, and connections – Looking for weaknesses

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Common Hacking Tactics

• Sniffer – Programs that search individual packets of data as they pass through the Internet – Capturing passwords or entire contents • Spoofing – Faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers

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Common Hacking Tactics

• Trojan Horse – A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software • Back Doors – A hidden point of entry to be used in case the original entry point has been detected or blocked • Malicious Applets – Tiny Java programs that misuse your computer’s resources, modify files on the hard disk, send fake e mail, or steal passwords

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Common Hacking Tactics

• War Dialing – Programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection • Logic Bombs – An instruction in a computer program that triggers a malicious act • Buffer Overflow – A technique for crashing or gaining control of a computer by sending too much data to the buffer in a computer’s memory

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Common Hacking Tactics

• Password Crackers – Software that can guess passwords • Social Engineering – Gaining access to computer systems – By talking unsuspecting company employees out of valuable information such as passwords • Dumpster Diving – Sifting through a company’s garbage to find information to help break into their computers

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Cyber Theft

• Computer crime involving the theft of money • Often inside jobs • Or use Internet to break in

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Unauthorized Use at Work

• Time and resource theft • May range from doing private consulting or personal finances, or playing video games, to unauthorized use of the Internet on company networks

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Internet Abuses in the Workplace

• • • • • • • • • • • General e-mail abuses Unauthorized usage and access Copyright infringement/plagiarism Newsgroup postings Transmission of confidential data Pornography – accessing sexually explicit sites Hacking Non-work related download or upload Leisure use of the Internet Usage of external ISPs Moonlighting

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Software Piracy

• Software Piracy – Unauthorized copying of computer programs • Licensing – Purchase of software is really a payment for a license for fair use – Site license allow a certain number of copies • A third of the software industry’s revenues are lost due to piracy

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Theft of Intellectual Property

• Intellectual property – Copyrighted material such as – Music, videos, images, articles, books, software • Copyright infringement is illegal • Peer-to-peer networking techniques have made it easy to trade pirated intellectual property

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Viruses and Worms

• Virus and worms copy annoying or destructive routines into networked computers • Often spread via e-mail or file attachments • Computer Virus – Program code that cannot work without being inserted into another program • Worm – Distinct program that can run unaided

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Cost of viruses and worms

• Nearly 115 million computers were infected in 2004 • As many as 11 million computers are believed to be permanently infected • Total economic damage estimated to be between $166 and $292 billion in 2004 • Average damage per installed Windows-based machine is between $277 and $366

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Adware and Spyware

• Adware – Software that purports to serve a useful purpose – But also allows Internet advertisers to display advertisements (pop-up and banner ads) – Without the consent of the computer’s user • Spyware – Adware that employs the user’s Internet connection in the background without your permission or knowledge – Captures information about you and sends it over the Internet

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Privacy: Opt-in versus Opt-out

• Opt-in – You explicitly consent to allow data to be compiled about them – Law in Europe • Opt-out – Data can be compiled about you unless you specifically request it not be – Default in the US

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Privacy Issues

• Violation of Privacy: – Accessing individuals’ private e-mail conversations and computer records, – Collecting and sharing information about individuals gained from their visits to Internet websites • Computer Monitoring: – Always knowing where a person is, especially as mobile and paging services become more closely associated with people rather than places

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Privacy Issues

• Computer Matching – Using customer information gained from many sources to market additional business services • Unauthorized Personal Files – Collecting telephone numbers, e-mail addresses, credit card numbers, and other personal information to build individual customer profiles

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Protecting your Privacy on the Internet

• E-mail can be encrypted • Newsgroup postings can be sent through anonymous remailers • ISP can be asked not to sell your name and personal information to mailing list providers and other marketers • Decline to reveal personal data and interests on online service and website user profiles

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Privacy Laws

• Rules that regulate the collection and use of personal data by businesses and the government

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Censorship Issues

• Spamming – Indiscriminate sending of unsolicited e-mail messages to many Internet users • Flaming – Sending extremely critical, derogatory, and often vulgar e-mail messages or newsgroup postings to other users on the Internet or online services

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Cyberlaw

• Laws intended to regulate activities over the Internet or via electronic data communications

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Other Challenges

• Employment – IT creates new jobs and increases productivity – But can also cause significant reductions in job opportunities as well as different types of skills required for new jobs • Computer Monitoring – Computers used to monitor the productivity and behavior of employees as they work

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Other Challenges

• Working Conditions – IT has eliminated monotonous or obnoxious tasks – But some jobs requiring a skilled craftsman have been replaced by jobs requiring routine, repetitive tasks or standby roles • Individuality – Dehumanize and depersonalize activities because computers eliminate human relationships – Systems without flexibility

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Health Issues

• Cumulative Trauma Disorders (CTDs) – Disorders suffered by people who sit at a PC or terminal and do fast-paced repetitive keystroke jobs • Carpal Tunnel Syndrome – Painful crippling ailment of the hand and wrist

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Ergonomics

• Designing healthy work environments • That are safe, comfortable, and pleasant for people to work in • Thus increasing employee morale and productivity

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Ergonomic Factors

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Security Management

• The goal of security management is the accuracy, integrity, and safety of all information system processes and resources.

Internetworked Security Defenses

• Encryption – Data transmitted in scrambled form and unscrambled by computer systems for authorized users only

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Public/Private Key Encryption

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Internetworked Security Defenses

• Firewalls – A gatekeeper system that protects a company’s intranets and other computer networks from intrusion – By providing a filter and safe transfer point for access to and from the Internet and other networks • Firewalls are also important for individuals who connect to the Internet with DSL or cable modems

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Internet and Intranet Firewalls

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How to Defend Against Denial of Service Attacks

• At the zombie machines (computers commandeered by cyber criminals) – Set and enforce security policies – Scan for vulnerabilities • At the ISP – Monitor and block traffic spikes • At the victim’s website – Create backup servers and network connections

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Internetworked Security Defenses

• E-mail Monitoring – Use of content monitoring software that scans for troublesome words that might compromise corporate security • Virus Defenses – Centralize the distribution and updating of antivirus software – Use security suite that integrates virus protection with firewalls, Web security, and content blocking features

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Other Security Measures

• Security Codes – Multilevel password system – Encrypted passwords – Smart cards with microprocessors • Backup Files – Duplicate files of data or programs • System Security Monitors – Programs that monitor the use of computer systems and networks and protects them from unauthorized use, fraud, and destruction

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Biometrics

• C omputer devices that measure physical traits that make each individual unique • Examples: – Voice verification – Fingerprints – Retina scan

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Computer Failure Controls

• Prevent computer failure or minimize its effects • Preventative maintenance • Arrange backups with a disaster recovery organization

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Fault Tolerant Systems

• Systems that have redundant processors, peripherals, and software that provide a: – Fail-over capability to back up components in the event of system failure – Fail-safe capability where the computer system continues to operate at the same level even if there is a major hardware or software failure – Fail-soft capability where the computer system continues to operate at a reduced but acceptable level in the event of system failure

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Disaster Recovery Plan

• Formalized procedures to follow in the event a disaster occurs including: – Which employees will participate – What their duties will be – What hardware, software, and facilities will be used – Priority of applications that will be processed – Use of alternative facilities – Offsite storage of an organization’s databases

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Information Systems Controls

• Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

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Auditing IT Security

• IT security audits – By internal or external auditors – Review and evaluate whether proper and adequate security measures and management policies have been developed and implemented

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How to protect yourself from cybercrime

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Case 1: Cyberscams: Four Top Cybercriminals: Who They Are and What They Do

• • • • • Fastest growing criminal niche.

Annual loss to computer crime - $67 Billion Many web sites eBay, Microsoft, and PayPal must defend themselves from frequent fraudulent attempts by cyberscammers.

Law enforcement authorities are looking for four individuals who are all Russians and have been identified as high priority targets in their investigations.

Many of these criminals are highly skilled and come from low income families and countries with unstable government.

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Case Study Questions

1.

2.

List several reasons “cyberscams are today’s fastest growing criminal niche.” Explain why the reasons you give contribute to the growth of cyberscams.

What are several security measures that could be implemented to combat the spread of cyberscams? Explain why your suggestions would be effective in limiting the spread of cyberscams.

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Case Study Questions

3.

Which of the four top cybercriminals described in this case poses the biggest threat to businesses? To consumers? Explain the reasons for your choices, and describe how businesses and consumers can protect themselves from these cyberscammers.

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Real World Internet Activity

1.

It is not advisable to visit any of the cyberscam Web sites mentioned in this case or any others you discover. To do so could make you, your computer, and your network vulnerable to various forms of cybercrime. Search other sites on the Internet for the latest information on cyberscams, the cybercriminals mentioned in this case, and ways to combat cyberscams. What are some of the new developments you find in each of these areas?

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Real World Group Activity

2.

–

How can you protect yourself from cyberscams and other forms of cybercrime?

Discuss this issue and formulate some key protective recommendations. Include all forms of cybercrime mentioned in this case in your recommendations, as well as those you uncover in your Internet research.

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• • • • Case 2: Lowe’s, TCI, Bank of America, ChoicePoint, and Others: Failures in Data Security Management Companies are having problem in protecting their valuable data of their customers.

Cheaper database software and storage devices have made it much easier for companies to gather and save private information about their customers, presenting a challenge in securing the information from hackers.

Lack of adequate and unreliable safeguard of data has led to theft of vital information of their customers.

The business cost of poor data security can be very high.

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Case Study Questions

1.

2.

Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies? Provide several possible reasons for this development.

What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources, like the incident at Lowe’s? Defend your proposed security measures.

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Case Study Questions

3.

What security safeguards would have deterred the loss of customer data at TCI, Bank of America, and Choice-Point? Defend your proposed security measures to avoid the incidents that occurred at each company.

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Real World Internet Activity

1.

Search the Internet for the latest information on computer security developments for the four main companies in this case and any other companies that have reported major data losses or other computer security problems. Then research information on the latest developments in security measures to protect companies from data theft and losses. Report some of your findings to the class.

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Real World Group Activity

2.

Share the information you have found in your Internet research on data losses, other computer security problems, and the latest developments in computer security measures. Develop several key computer security recommendations for companies to implement to avoid many of the problems you discovered.

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Case 3: Western Corporate Federal Credit Union and Others: Managing Information Security

• • • • Evolving threats and a greater exposure to risk are pushing companies to take a strategic view of security.

The growing use of wireless technologies and the tendency to connect internal networks with those of suppliers, partners, and customers have dramatically increased security risks and the potential cost of a breach.

Information security is a business problem and can not be simply addressed by firewalls and other tools.

OCTAVE helps companies identify infrastructure vulnerabilities, prioritize information assets, and create asset-specific threat profiles and mitigation plans.

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Case Study Questions

1.

2.

Why is information security a major concern for many companies today? What are security managers doing to improve their companies’ information security? What else should they be doing?

Why does the OCTAVE methodology promise to improve security in organizations? Does it work? Explain your answer with examples from the case or other sources on the Internet.

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Case Study Questions

3.

What does Lloyd Hession mean when he says information security is “not addressed simply by the firewalls and antivirus [tools] that are already in place”? What other security measures does he recommend to improve information security? What would you add to his recommendations? Explain your reasoning.

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Real World Internet Activity

1.

The focus on information security is an important one for modern organizations of all sizes. Use the Internet to find examples of companies that are striving to improve their information security. What approaches and methods are they using to improve the security of their companies?

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Real World Group Activity

2.

Private and corporate information is under attack from a wide variety of sources. Discuss the various threats to information security. Are you doing your share to protect your information?

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