13 Security and Ethical Challenges

IT Security, Ethics, and Society IT has both beneficial and detrimental effects on society and people  Manage work activities to minimize the detrimental effects of IT  Optimize the beneficial effects 2

Case: Catching Cases of Plagiarism Problem: The Internet provides abundant information to students who may be tempted to download material and submit it as their own work. Solution: Some companies (e.g., Plagiarism.org) are offering Internet-based anti-plagiarism technology to identify such cases of plagiarism. Manuscript are checked against a database of other manuscripts collected from different universities and from all over the Internet. Results: Cases of gross plagiarism are more likely to be flagged.

Business Ethics 4 Ethics questions that managers confront as part of their daily business decision making include:  Equity  Rights  Honesty  Exercise of corporate power Categories of Ethical Business Issues

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, who allow corporations to exist 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 5

AITP Standards of Professional Conduct 6

Responsible Professional Guidelines A responsible professional  Acts with integrity  Increases personal competence  Sets high standards of personal performance  Accepts responsibility for his/her work  Advances the health, privacy, and general welfare of the public 7

Computer Crime Computer crime includes  Unauthorized use, access, modification, or 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/her own hardware, software, data, or network resources  Using or conspiring to use computer or network resources illegally to obtain information or tangible property 8

Cybercrime Protection Measures 9

Hacking Hacking is  The obsessive use of computers  The unauthorized access and use of networked computer systems Electronic Breaking and Entering  Hacking into a computer system and reading files, but neither stealing nor damaging anything Cracker  A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage 10

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 address or Web page to trick users into passing along critical information like passwords or credit card numbers 11

Common Hacking Tactics Trojan House  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 is detected or blocked Malicious Applets  Tiny Java programs that misuse your computer’s resources, modify files on the hard disk, send fake , or steal passwords 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 12

Common Hacking Tactics Buffer Overflow  Crashing or gaining control of a computer by sending too much data 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 as passwords Dumpster Diving  Sifting through a company’s garbage to find information to help break into their computers 13

Malware The software  disrupt computer operations  gather sensitive information  gain access to private computer systems  display unwanted advertising. Concealment  Viruses, trojan horses, rootkits, backdoors and evasion Vulnerability to malware  Security defects in software  Insecure design or user error  Over-privileged users and over- privileged code  Use of the same operating system Anti-malware strategies  nti-virus and anti-malware software  Website security scans  "Air gap" isolation or "Parallel Network"

Cyber Theft Many computer crimes involve the theft of money The majority are “inside jobs” that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved Many attacks occur through the Internet Most companies don’t reveal that they have been targets or victims of cybercrime 15

Unauthorized Use at Work Unauthorized use of computer systems and networks is time and resource theft  Doing private consulting  Doing personal finances  Playing video games  Unauthorized use of the Internet or company networks Sniffers  Used to monitor network traffic or capacity  Find evidence of improper use 16

Internet Abuses in the Workplace  General abuses  Unauthorized usage and access  Copyright infringement/plagiarism  Newsgroup postings  Transmission of confidential data  Pornography  Hacking  Non-work-related download/upload  Leisure use of the Internet  Use of external ISPs  Moonlighting 17

Software Piracy  Unauthorized copying of computer programs Licensing  Purchasing software is really a payment for a license for fair use  Site license allows a certain number of copies 18 A third of the software industry’s revenues are lost to piracy

Theft of Intellectual Property Intellectual Property  Copyrighted material  Includes such things as music, videos, images, articles, books, and software Copyright Infringement is Illegal  Peer-to-peer networking techniques have made it easy to trade pirated intellectual property Publishers Offer Inexpensive Online Music  Illegal downloading of music and video is down and continues to drop 19

Viruses and Worms A virus is a program that cannot work without being inserted into another program  A worm can run unaided These programs copy annoying or destructive routines into networked computers  Copy routines spread the virus Commonly transmitted through  The Internet and online services  and file attachments  Disks from contaminated computers  Shareware 20

Top Five Virus Families of all Time My Doom, 2004  Spread via and over Kazaa file-sharing network  Installs a back door on infected computers  Infected 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 ing itself to all 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 21

Top Five Virus Families of all Time SoBig, 2004  Mass-mailing worm that arrives as an attachment  Examples: Movie_0074.mpg.pif, Document003.pif  Scans all.WAB,.WBX,.HTML,.EML, and.TXT files looking for addresses to which it can send itself  Also attempts to download updates for itself Klez, 2002  A mass-mailing worm that arrives with a randomly named attachment  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 22

Top Five Virus Families of all Time Sasser, 2004  Exploits a Microsoft vulnerability to spread from computer to computer with no user intervention  Spawns multiple threads that scan local subnets for vulnerabilities 23

The Cost of Viruses, Trojans, Worms Cost of the top five virus families  Nearly 115 million computers in 200 countries were infected in 2004  Up to 11 million computers are believed to be permanently infected  In 2004, total economic damage from virus proliferation was $166 to $202 billion  Average damage per computer is between $277 and $366 24

Adware and Spyware Adware  Software that purports to serve a useful purpose, and often does  Allows advertisers to display pop-up and banner ads without the consent of the computer users Spyware  Adware that uses an Internet connection in the background, without the user’s permission or knowledge  Captures information about the user and sends it over the Internet 25

Spyware Problems Spyware can steal private information and also  Add advertising links to Web pages  Redirect affiliate payments  Change a users home page and search settings  Make a modem randomly call premium-rate phone numbers  Leave security holes that let Trojans in  Degrade system performance Removal programs are often not completely successful in eliminating spyware 26

Privacy Issues The power of information technology to store and retrieve information can have a negative effect on every individual’s right to privacy  Personal information is collected with every visit to a Web site  Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused 27

Privacy Issues Violation of Privacy  Accessing individuals’ private 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 to market additional business services Unauthorized Access of Personal Files  Collecting telephone numbers, addresses, credit card numbers, and other information to build customer profiles 28

Protecting Your Privacy on the Internet There are multiple ways to protect your privacy  Encrypt  Send newsgroup postings through anonymous r ers  Ask your ISP not to sell your name and information to mailing list providers and other marketers  Don’t reveal personal data and interests on online service and website user profiles 29

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 computer systems 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 30 Bangladesh?

Computer Libel and Censorship The opposite side of the privacy debate…  Freedom of information, speech, and press Biggest battlegrounds - bulletin boards, 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 messages to many Internet users Flaming  Sending extremely critical, derogatory, and often vulgar messages or newsgroup posting to other users on the Internet or online services  Especially prevalent on special-interest newsgroups 31

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 legal principles derived from issues that had nothing to do with cyberspace 32

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 as they work  Criticized as unethical because it monitors individuals, not just work, and is done constantly  Criticized as invasion of privacy because many employees do not know they are being monitored Working Conditions  IT has eliminated monotonous or obnoxious tasks  However, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles Individuality  Dehumanizes and depersonalizes activities because computers eliminate human relationships  Inflexible systems 33

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  Typically requires surgery to cure 34

Ergonomics Designing healthy work environments  Safe, comfortable, and pleasant for people to work in  Increases employee morale and productivity  Also called human factors engineering 35 Ergonomics Factors

Societal Solutions Using information technologies to solve human and social problems  Medical diagnosis  Computer-assisted instruction  Governmental program planning  Environmental quality control  Law enforcement  Job placement The detrimental effects of IT  Often caused by individuals or organizations not accepting ethical responsibility for their actions 36

Security Management of IT The Internet was developed for inter-operability, not impenetrability  Business managers and professionals alike are responsible for the security, quality, and performance of business information systems  Hardware, software, networks, and data resources must be protected by a variety of security measures 37

Security Management The goal of security management is the accuracy, integrity, and safety of all information system processes and resources 38

Internetworked Security Defenses Encryption  Data is transmitted in scrambled form  It is unscrambled by computer systems for authorized users only  The most widely used method uses a pair of public and private keys unique to each individual 39

Public/Private Key Encryption 40

Internetworked Security Defenses Firewalls  A gatekeeper system that protects a company’s intranets and other computer networks from intrusion  Provides a filter and safe transfer point for access to/from the Internet and other networks  Important for individuals who connect to the Internet with DSL or cable modems  Can deter hacking, but cannot prevent it 41

Internet and Intranet Firewalls 42

Denial of Service Attacks Denial of service attacks depend on three layers of networked computer systems  The victim’s website  The victim’s Internet service provider  Zombie or slave computers that have been commandeered by the cybercriminals 43

Defending Against Denial of Service At Zombie Machines  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 44

Internetworked Security Defenses Monitoring  Use of content monitoring software that scans for troublesome words that might compromise corporate security Virus Defenses  Centralize the updating and distribution of antivirus software  Use a security suite that integrates virus protection with firewalls, Web security, and content blocking features 45

Other Security Measures 46 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

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 47

Auditing IT Security IT Security Audits  Performed by internal or external auditors  Review and evaluation of security measures and management policies  Goal is to ensure that that proper and adequate measures and policies are in place 48

Protecting Yourself from Cybercrime 49

Chapter Summary The vital role of e-bBusiness and e-commerce systems in society raises serious ethical and societal issues in terms of their impact on employment, individuality, working conditions, privacy, health, and computer crime. Managers can help solve the problems of improper use of IT by assuming their ethical responsibilities for ergonomic design, beneficial use, and enlightened management of e-business technologies in our society.

Chapter Summary (cont) Business and IT activities involve many ethical considerations. Ethical principles and standards of conduct can serve as guidelines for dealing with ethical businesses issues. One of the most important responsibilities of the management of a company is to assure the security and quality of its e-business activities. Security management tools and policies can ensure the accuracy, integrity, and safety of e-business systems and resources.