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Transcript of Security Ethical Challenges MIS
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Security and Ethical
Challenges
James A. O'Brien, and George Marakas.Management Information Systems with MISource2007, 8th ed. Boston, MA: McGraw-Hill, Inc.,2007. ISBN: 13 9780073323091
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Learning Objectives
Identify several ethical issues in how the use ofinformation 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 canbe used to ensure the security of business
applications of information technology Propose several ways that business managers and
professionals can help to lessen the harmful effectsand increase the beneficial effects of the use of IT
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Case 1 Cyberscams and
Cybercriminals Cyberscams are today’s fastest-growing
criminal niche
87 percent of companies surveyed reporteda security incidentThe U.S. Federal Trade Commission says
identity theft is its top complaint
eBay has 60 people combating fraud;Microsoft has 65
Stolen credit card account numbers areregularly sold online
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Case Study Questions What are several reasons why “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 Which one or two of the four top cybercriminals described in
this case poses the greatest threat to businesses? Toconsumers? Explain the reasons for your choices, and how businesses
and consumers can protect themselves from thesecyberscammers
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IT Security, Ethics, and Society
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IT has both beneficialand detrimentaleffects on society andpeopleManage work
activities tominimize thedetrimental effects
of ITOptimize the
beneficial effects
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Business Ethics
Ethics questions that managers confront as partof their daily business decision making include:Equity
RightsHonestyExercise of corporate power
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Categories of Ethical Business
Issues
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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 ofsociety, who allow corporations to exist
Stakeholder Theory
Managers have an ethical responsibility to manage a firmfor the benefit of all its stakeholders
Stakeholders are all individuals and groups that have astake 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; there must be no alternative thatachieves the same or comparable benefits with less harm orrisk
Informed Consent - Those affected by the technology should
understand and accept the risks Justice
The benefits and burdens of the technology should bedistributed fairly
Those who benefit should bear their fair share of the risks,
and those who do not benefit should not suffer a significantincrease in risk
Minimized Risk - Even if judged acceptable by the other threeguidelines, the technology must be implemented so as toavoid all unnecessary risk
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AITP Standards of Professional
Conduct
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Responsible Professional
Guidelines A responsible professionalActs with integrity
Increases personal competenceSets high standards of personal performanceAccepts responsibility for his/her workAdvances the health, privacy, and general
welfare of the public
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Computer Crime
Computer crime includesUnauthorized use, access, modification, or
destruction of hardware, software, data, ornetwork resources
The unauthorized release of informationThe unauthorized copying of softwareDenying an end user access to his/her own
hardware, software, data, or network resourcesUsing or conspiring to use computer or
network resources illegally to obtaininformation or tangible property
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Cybercrime Protection Measures
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Hacking Hacking isThe obsessive use of computersThe unauthorized access and use of networked
computer systems Electronic Breaking and EnteringHacking into a computer system and reading
files, but neither stealing nor damaging anything
CrackerA malicious or criminal hacker who maintains
knowledge of the vulnerabilities found forprivate advantage
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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 crashing the site
Scans Widespread probes of the Internet to determine types of
computers, services, and connections Looking for weaknesses
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 intopassing along critical information like passwords or credit cardnumbers
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Common Hacking Tactics
Trojan House A program that, unknown to the user, contains instructions thatexploit a known vulnerability in some software
Back Doors A hidden point of entry to be used in case the original entry
point is detected or blocked Malicious Applets
Tiny Java programs that misuse your computer’s resources,
modify files on the hard disk, send fake email, or stealpasswords
War Dialing
Programs that automatically dial thousands of telephonenumbers in search of a way in through a modem connection
Logic Bombs An instruction in a computer program that triggers a malicious
act
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Common Hacking Tactics
Buffer Overflow Crashing or gaining control of a computer by sending too muchdata to buffer memory
Password Crackers Software that can guess passwords
Social Engineering Gaining access to computer systems by talking unsuspecting
company employees out of valuable information, such aspasswords
Dumpster Diving Sifting through a company’s garbage to find information to help
break into their computers
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Cyber Theft
Many computer crimes involve the theft ofmoney
The majority are “inside jobs” that involve
unauthorized network entry and alternation ofcomputer databases to cover the tracks of theemployees involved
Many attacks occur through the Internet
Most companies don’t reveal that they havebeen targets or victims of cybercrime
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Unauthorized Use at Work
Unauthorized use of computer systems andnetworks is time and resource theft
Doing private consulting
Doing personal financesPlaying video gamesUnauthorized use of the Internet or company
networks
SniffersUsed to monitor network traffic or capacityFind evidence of improper use
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Internet Abuses in the WorkplaceGeneral email abusesUnauthorized usage and accessCopyright infringement/plagiarismNewsgroup postingsTransmission of confidential dataPornographyHacking
Non-work-related download/uploadLeisure use of the InternetUse of external ISPsMoonlighting
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Software Piracy
Software PiracyUnauthorized copying of computer programs
LicensingPurchasing software is really a payment
for a license for fair useSite license allows a certain number of copies
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A third of the softwareindustry’s revenues are
lost to piracy
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Theft of Intellectual Property
Intellectual PropertyCopyrighted material Includes such things as music, videos,
images, articles, books, and software Copyright Infringement is IllegalPeer-to-peer networking techniques have
made it easy to trade pirated intellectualproperty
Publishers Offer Inexpensive Online Music Illegal downloading of music and video is
down and continues to drop
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Viruses and Worms
A virus is a program that cannot work withoutbeing inserted into another programA worm can run unaided
These programs copy annoying or destructive
routines into networked computersCopy routines spread the virus
Commonly transmitted throughThe Internet and online servicesEmail and file attachmentsDisks from contaminated computersShareware
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Top Five Virus Families of all Time
My Doom, 2004 Spread via email and over Kazaa file-sharing network Installs a back door on infected computers Infected email poses as returned message or one that can’t be
opened correctly, urging recipient to click on attachment Opens up TCP ports that stay open even after termination of
the worm Upon execution, a copy of Notepad is opened, filled with
nonsense characters Netsky, 2004
Mass-mailing worm that spreads by emailing itself to all email
addresses found on infected computers Tries to spread via peer-to-peer file sharing by copying itself
into the shared folder It renames itself to pose as one of 26 other common files along
the way
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Top Five Virus Families of all Time SoBig, 2004
Mass-mailing email worm that arrives asan attachment Examples: Movie_0074.mpg.pif, Document003.pif
Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking foremail addresses to which it can send itself
Also attempts to download updates for itself Klez, 2002
A mass-mailing email worm that arrives with a randomly namedattachment
Exploits a known vulnerability in MS Outlook to auto-execute on
unpatched clients Tries to disable virus scanners and then copy itself to all local
and networked drives with a random file name Deletes all files on the infected machine and any mapped
network drives on the 13th of all even-numbered months
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Top Five Virus Families of all Time Sasser, 2004
Exploits a Microsoft vulnerability to spread from computer tocomputer with no user intervention
Spawns multiple threads that scan local subnets forvulnerabilities
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The Cost of Viruses, Trojans,
Worms Cost of the top five virus familiesNearly 115 million computers in 200 countries
were infected in 2004Up to 11 million computers are believed to
be permanently infected In 2004, total economic damage from virus
proliferation was $166 to $202 billionAverage damage per computer is between
$277 and $366
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Adware and Spyware
AdwareSoftware that purports to serve a useful
purpose, and often doesAllows advertisers to display pop-up and
banner ads without the consent of thecomputer users
SpywareAdware that uses an Internet connection in
the background, without the user’s permissionor knowledge
Captures information about the user andsends it over the Internet
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Spyware Problems
Spyware can steal private information and alsoAdd advertising links to Web pagesRedirect affiliate paymentsChange a users home page and search settingsMake a modem randomly call premium-rate
phone numbersLeave security holes that let Trojans in
Degrade system performance Removal programs are often not completely
successful in eliminating spyware
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Privacy Issues
The power of information technology to storeand retrieve information can have a negativeeffect on every individual’s right to privacy
Personal information is collected with everyvisit to a Web siteConfidential information stored by credit
bureaus, credit card companies, and the
government has been stolen or misused
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Opt-in Versus Opt-out
Opt-InYou explicitly consent to allow data to be
compiled about youThis is the default in Europe
Opt-OutData can be compiled about you unless you
specifically request it not beThis is the default in the U.S.
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Privacy Issues Violation of Privacy
Accessing individuals’ private email 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 Mobile and paging services are becoming more closely
associated with people than with places Computer Matching
Using customer information gained from many sources tomarket additional business services Unauthorized Access of Personal Files
Collecting telephone numbers, email addresses, credit cardnumbers, and other information to build customer profiles
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Protecting Your Privacy on the
Internet There are multiple ways to protect your privacyEncrypt emailSend newsgroup postings through
anonymous remailersAsk your ISP not to sell your name and
information to mailing list providers and
other marketersDon’t reveal personal data and interests on
online service and website user profiles
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Privacy Laws Electronic Communications Privacy Act
and Computer Fraud and Abuse Act Prohibit intercepting data communications messages, stealing or
destroying data, or trespassing in federal-related computersystems
U.S. Computer Matching and Privacy Act Regulates the matching of data held in federal agency files to
verify eligibility for federal programs Other laws impacting privacy and how
much a company spends on compliance Sarbanes-Oxley
Health Insurance Portability and Accountability Act (HIPAA) Gramm-Leach-Bliley USA Patriot Act California Security Breach Law Securities and Exchange Commission rule 17a-4
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Computer Libel and Censorship The opposite side of the privacy debate…
Freedom of information, speech, and press Biggest battlegrounds - bulletin boards, email boxes, and
online files of Internet and public networks
Weapons used in this battle – spamming, flame mail,libel laws, and censorship Spamming - Indiscriminate sending of unsolicited email
messages to many Internet users Flaming
Sending extremely critical, derogatory, and oftenvulgar email messages or newsgroup posting to otherusers on the Internet or online services
Especially prevalent on special-interest newsgroups
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Cyberlaw Laws intended to regulate activities over the Internet or via
electronic communication devices Encompasses a wide variety of legal and political issues Includes intellectual property, privacy, freedom of
expression, and jurisdiction The intersection of technology and the law is controversial
Some feel the Internet should not be regulated Encryption and cryptography make traditional form of
regulation difficult The Internet treats censorship as damage and simply
routes around it Cyberlaw only began to emerge in 1996
Debate continues regarding the applicability of legalprinciples derived from issues that had nothing to do withcyberspace
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Other Challenges Employment
IT creates new jobs and increases productivity It can also cause significant reductions in job opportunities, as well as
requiring new job skills Computer Monitoring
Using computers to monitor the productivity and behavior of employees asthey work
Criticized as unethical because it monitors individuals, not just work, and isdone constantly
Criticized as invasion of privacy because many employees do not knowthey are being monitored
Working Conditions IT has eliminated monotonous or obnoxious tasks
However, some skilled craftsperson jobs have been replaced by jobsrequiring routine, repetitive tasks or standby roles
Individuality Dehumanizes and depersonalizes activities because computers eliminate
human relationships Inflexible systems
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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 repetitivekeystroke jobs
Carpal Tunnel SyndromePainful, crippling ailment of the hand
and wristTypically requires surgery to cure
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Ergonomics
Designing healthywork environments Safe, comfortable,
and pleasant for
people to work in Increases
employee moraleand productivity
Also called human
factors engineering
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Ergonomics Factors
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Societal Solutions
Using information technologies to solve humanand social problemsMedical diagnosisComputer-assisted instruction
Governmental program planningEnvironmental quality controlLaw enforcementJob placement
The detrimental effects of ITOften caused by individuals or organizations
not accepting ethical responsibility for theiractions
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Security Management of IT
The Internet was developed for inter-operability,not impenetrabilityBusiness managers and professionals alike
are responsible for the security, quality, and
performance of business information systemsHardware, software, networks, and data
resources must be protected by a varietyof security measures
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Case 2 Data Security Failures
Security Breach Headlines Identity thieves stole information on 145,000
people from ChoicePointBank of America lost backup tapes that held
data on over 1 million credit card holdersDSW had its stores’ credit card data
breached; over 1 million had been accessed
Corporate America is finally owning up to a long-held secret It can’t safeguard its most valuable data
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Case Study Questions
Why have there been so many recent incidentsof data security breaches and loss of customerdata by reputable companies?
What security safeguards must companies have
to deter electronic break-ins into their computernetworks, business applications, and dataresources like the incident at Lowe’s?
What security safeguards would have deterred
the loss of customer data at TCI
Bank of America
ChoicePoint?43
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Security Management
The goal of securitymanagement is theaccuracy, integrity,
and safety of allinformation systemprocesses andresources
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Internetworked Security Defenses
EncryptionData is transmitted in scrambled form It is unscrambled by computer systems for
authorized users onlyThe most widely used method uses a pair of
public and private keys unique to eachindividual
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Public/Private Key Encryption
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Internetworked Security Defenses
FirewallsA gatekeeper system that protects a
company’s intranets and other computer
networks from intrusionProvides a filter and safe transfer point for
access to/from the Internet and othernetworks
Important for individuals who connect to theInternet with DSL or cable modems
Can deter hacking, but cannot prevent it
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Internet and Intranet Firewalls
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Denial of Service Attacks
Denial of service attacks depend on threelayers of networked computer systemsThe victim’s website The victim’s Internet service provider
Zombie or slave computers that have beencommandeered by the cybercriminals
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Defending Against Denial of Service
At Zombie MachinesSet and enforce security policiesScan 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
Email MonitoringUse of content monitoring software that scans
for troublesome words that might compromisecorporate security
Virus DefensesCentralize the updating and distribution of
antivirus softwareUse a 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
Security Monitors Monitor the use of computers and networks
Protects them from unauthorized use, fraud, and destruction
Biometrics Computer devices measure physical traits that make each
individual unique Voice recognition, fingerprints, retina scan
Computer Failure Controls Prevents computer failures or minimizes its effects Preventive maintenance Arrange backups with a disaster recovery organization
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Other Security Measures In the event of a system failure, fault-tolerant systems have
redundant processors, peripherals, and software that provide Fail-over capability: shifts to back up components Fail-save capability: the system continues to operate at the
same level Fail-soft capability: the system continues to operate at a
reduced but acceptable level A disaster recovery plan contains formalized procedures to follow
in the event of a disaster 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 databases
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Information System Controls
Methods anddevices thatattempt toensure theaccuracy,validity, andpropriety ofinformation
systemactivities
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Auditing IT Security
IT Security AuditsPerformed by internal or external auditorsReview and evaluation of security measures
and management policiesGoal is to ensure that that proper and
adequate measures and policies are in place
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Protecting Yourself from
Cybercrime
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Case 3 Managing Information
Security OCTAVE Security Process MethodologyRisk Evaluation
Self-direction by people in the organization Adaptable measures that can change with technology A defined process and standard evaluation
procedures A foundation for a continual process that improves
security over time
Risk Management A forward-looking view A focus on a “critical few” security issues Integrated management of security policies and
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Case 3 Managing Information
SecurityOrganizational and Cultural
Open communication of risk information
and activities build around collaborationA global perspective on risk in the context
of the organization’s mission and business
objectives
Teamwork
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Case Study Questions
What are security managers doing to improveinformation security?
How does the OCTAVE methodology work
to improve security in organizations? 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”?
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Case 4 Maintaining Software
Security Security professionals have 7 to 21 days before
hacker’s tools used to exploit the most recent
vulnerabilities become available on the InternetMicrosoft’s monthly patch-release date is
known as “Patch Tuesday” Security software companies go to work
immediately to update their productsUpdate must be thoroughly tested beforebeing deployed
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Case Study Questions What types of security problems are typically
addressed by a patch-management strategy?Why do such problems arise in the first place?
What challenges does the process of applying
software patches and updates pose for manybusinesses?What are the limitations of the patching
process?
Does the business value of a comprehensivepatch-management strategy outweigh its costs,its limitations, and the demands it placed on theIT function?