Information Systems Today: Managing in the Digital World Chapter Securing Information Systems “66 percent of all Webroot-scanned personal computers are infected with at least 25 spyware programs.” Webroot (2005) COIS11011 WEEK 9

Information Systems Today: Managing in the Digital World 6-2 Learning Objectives

Information Systems Today: Managing in the Digital World 6-3 Learning Objectives

Information Systems Today: Managing in the Digital World 6-4 Information Systems Security All systems connected to a network are at risk o Internal threats o External threats Information systems security o Precautions to keep IS safe from unauthorized access and use Increased need for good computer security with increased use of the Internet

Information Systems Today: Managing in the Digital World 6-5 Primary Threats to Information Systems Security Accidents and natural disasters o Power outages, cats walking across keyboards Employees and consultants Links to outside business contacts o Travel between business affiliates Outsiders Viruses

Information Systems Today: Managing in the Digital World 6-6 Unauthorized Access Unauthorized people o Look through electronic data o Peek at monitors o Intercept electronic communication Theft of computers or storage media Determined hackers gain administrator status

Information Systems Today: Managing in the Digital World 6-7 Gaining Access to a Password Brute force o Try combinations until a match is found Protection: o Wait time requirements after unsuccessful login attempt o CAPTCHA

Information Systems Today: Managing in the Digital World 6-8 Information Modification User accesses electronic information User changes information o Employee gives himself a raise

Information Systems Today: Managing in the Digital World 6-9 Denial of Service Attack Attackers prevent legitimate users from accessing services Zombie computers o Created by viruses or worms o Attack Web sites

Information Systems Today: Managing in the Digital World 6-10 Computer Viruses Corrupt and destroy data Destructive code can o Erase a hard drive o Seize control of a computer Worms o Variation of a virus o Replicate endlessly across the Internet o Servers crash MyDoom attack on Microsoft’s Web site

Information Systems Today: Managing in the Digital World 6-11 Spyware Within freeware or shareware Within a Web site Gathers information about a user o Credit card information o Behavior tracking for marketing purposes Eats up computer’s memory and network bandwidth Adware – special kind of spyware o Collects information for banner ad customization

Information Systems Today: Managing in the Digital World 6-12 Spam Electronic junk mail Advertisements of products and services Eats up storage space Compromises network bandwidth Spim o Spam over IM

Information Systems Today: Managing in the Digital World 6-13 Protection Against Spam Barracuda Spam Firewall 600 o Filters spam and other threats o Decreases amount of spam processed by the central server o Handles 3,000 – 10,000 active users o Spam messages blocked or quarantines

Information Systems Today: Managing in the Digital World 6-14 Phishing Attempts to trick users into giving away credit card numbers Phony messages Duplicates of legitimate Web sites E.g., eBay, PayPal have been used

Information Systems Today: Managing in the Digital World 6-15 Cookies Messages passed to a Web browser from a Web server Used for Web site customization Cookies may contain sensitive information Cookie management and cookie killer software Internet Explorer Web browser settings

Information Systems Today: Managing in the Digital World 6-16 Other Threats to IS Security 1. Employees writing passwords on paper 2. No installation of antivirus software 3. Use of default network passwords 4. Letting outsiders view monitors

Information Systems Today: Managing in the Digital World 6-17 Other Threats to IS Security (II) 5. Organizations fail to limit access to some files 6. Organizations fail to install firewalls 7. Not doing proper background checks 8. Lack of employee monitoring 9. Fired employees who are resentful

Information Systems Today: Managing in the Digital World 6-18 Learning Objectives

Information Systems Today: Managing in the Digital World 6-19 Safeguarding Information Systems Resources Information systems audits o Risk analysis Process of assessing the value of protected assets oCost of loss vs. cost of protection Risk reduction oMeasures taken to protect the system Risk acceptance oMeasures taken to absorb the damages Risk transfer oTransferring the absorption of risk to a third party

Information Systems Today: Managing in the Digital World 6-20 Technological Safeguards Physical access restrictions o Authentication Use of passwords Photo ID cards, smart cards Keys to unlock a computer Combination Authentication limited to o Something you have o Something you know o Something you are

Information Systems Today: Managing in the Digital World 6-21 Biometrics Form of authentication o Fingerprints o Retinal patterns o Body weight o Etc. Fast authentication High security

Information Systems Today: Managing in the Digital World 6-22 Access-Control Software Access only to files required for work Read-only access Certain time periods for allowed access Business systems applications o Built-in access control capabilities

Information Systems Today: Managing in the Digital World 6-23 Wireless LAN Control Wireless LAN cheap and easy to install Use on the rise Signal transmitted through the air o Susceptible to being intercepted o Drive-by hacking

Information Systems Today: Managing in the Digital World 6-24 Virtual Private Networks Connection constructed dynamically within an existing network Secure tunnel o Encrypted information

Information Systems Today: Managing in the Digital World 6-25 Firewalls System designed to detect intrusion and prevent unauthorized access Implementation o Hardware, software, mixed Approaches o Packet filter – each packet examined o Application-level control – security measures only for certain applications o Circuit-level control – based on certain type of connection o Proxy server – firewall acts as the server and intercepts all messages; Network Address Translation

Information Systems Today: Managing in the Digital World 6-26 Firewall Architecture a) Basic software firewall for a home network b) Firewall router Home office Small office

Information Systems Today: Managing in the Digital World 6-27 Firewall Architecture Larger Organization

Information Systems Today: Managing in the Digital World 6-28 Encryption Message encoded before sending Message decoded when received Encryption allows for o Authentication – proving one’s identity o Privacy/confidentiality – only intended recipient can read a message o Integrity – assurance of unaltered message o Nonrepudiation – use of digital signature

Information Systems Today: Managing in the Digital World 6-29 The Encryption Process Key – code that scrambles the message o Symmetric secret key system Sender and recipient use the same key Cons: Management problems o Public key technology Asymmetric key system Each individual has a pair of keys oPublic key – freely distributed oPrivate key – kept secret

Information Systems Today: Managing in the Digital World 6-30 How Encryption Works (Asymmetric)

Information Systems Today: Managing in the Digital World 6-31 Encryption for Websites Certificate Authority o Third party – trusted middleman Verifies trustworthiness of a Web site Checks for identity of a computer Provides public keys Secure Sockets Layer (SSL) o Developed by Netscape o Popular public-key encryption method

Information Systems Today: Managing in the Digital World 6-32 Other Encryption Approaches 1976 – Public/private key 1977 – RSA o Technology licensed to Lotus and Microsoft o Federal law prohibited exporting encryption technology Limited use by organizations 1991 – Pretty good privacy o Versatile encryption program o Global favorite 1993 – Clipper chip o Chip generating uncrackable codes o Scrapped before it became reality

Information Systems Today: Managing in the Digital World 6-33 The Evolution of Encryption Future encryption programs will provide o Strong security o High speed o Usability on any platform Encryption for cellular phones Encryption for PDAs

Information Systems Today: Managing in the Digital World 6-34 Recommended Virus Precautions Purchase and install antivirus software o Update frequently Do not download data from unknown sources o Flash drives, disks, Web sites Delete (without opening) from unknown sources Warn people if you get a virus o Your department o People on list

Information Systems Today: Managing in the Digital World 6-35 Audit Control Software Keeps track of computer activity Spots suspicious action Audit trail o Record of users o Record of activities IT department needs to monitor this activity

Information Systems Today: Managing in the Digital World 6-36 Other Technological Safeguards Backups o Secondary storage devices o Regular intervals Closed-circuit television (CCTV) o Monitoring for physical intruders o Video cameras display and record all activity o Digital video recording Uninterruptible power supply (UPS) o Protection against power surges

Information Systems Today: Managing in the Digital World 6-37 Human Safeguards Use of federal and state laws as well as ethics

Information Systems Today: Managing in the Digital World 6-38 Learning Objectives

Information Systems Today: Managing in the Digital World 6-39 Managing Information Systems Security Non-technical safeguards o Management of people’s use of IS Acceptable use policies o Trustworthy employees o Well-treated employees

Information Systems Today: Managing in the Digital World 6-40 Developing an Information Systems Security Plan Ongoing five-step process 1. Risk analysis a.Determine value of electronic information b.Assess threats to confidentiality, integrity and availability of information c.Identify most vulnerable computer operations d.Assess current security policies e.Recommend changes to existing practices to improve computer security

Information Systems Today: Managing in the Digital World 6-41 Security Plan: Step 2 2. Policies and procedures – actions to be taken if security is breached a.Information policy – handling of sensitive information b.Security policy – technical controls on organizational computers c.Use policy – appropriate use of in-house IS d.Backup policy e.Account management policy – procedures for adding new users f.Incident handling procedures – handling security breach g.Disaster recovery plan – restoration of computer operations

Information Systems Today: Managing in the Digital World 6-42 Security Plan: Remaining Steps 3. Implementation a.Implementation of network security hardware and software b.IDs and smart cards dissemination c.Responsibilities of the IS department 4. Training – organization’s personnel 5. Auditing a.Assessment of policy adherence b.Penetration tests

Information Systems Today: Managing in the Digital World 6-43 Responding to a Security Breach 1988 – Computer Emergency Response Team (CERT) o Started after Morris worm disabled 10% of all computers connected to the Internet Computer Security Division (CSD) o Raising of awareness of IT risks o Research and advising about IT vulnerabilities o Development of standards o Development of guidelines to increase secure IT planning, implementation, management and operation

Information Systems Today: Managing in the Digital World 6-44 The State of Systems Security Management Financial losses of cybercrime are decreasing o Computer virus attacks result in the greatest financial losses o Only about 25% of organizations utilize cyberinsurance o Only about 20% of organizations report intrusions to the law enforcement Fear of falling stock prices o Most organizations do not outsource security activities o 90% of organizations conduct routine security audits o Most organizations agree security training is important Majority said they do not do enough of training

Information Systems Today: Managing in the Digital World 6-45 Use of Security Technologies CSI/FBI computer crime and security survey respondents (2006)

End of Chapter Content

Information Systems Today: Managing in the Digital World 6-47 Opening Case: Managing in the Digital World: Drive-by-Hacking % of corporate wireless networks do not use security “War driving” – a new hacker tactic o Driving around densely populated areas “War spamming” o Attackers link to an server and send out millions of spam messages o Companies pay millions in bandwidth fees Businesses fight back using bogus access points o FakeAP Network scanners distinguish between real and fake APs o Netstumbler Fast Packet Keying – to fix shortcomings of WEP

Information Systems Today: Managing in the Digital World 6-48 Spyware Lurks on Most PCs Webroot o Producer of software to scan and eliminate spyware Webroot company data o 66% of scanned PCs infected with at least 25 spyware programs o Incidents of spyware slightly decreasing

Information Systems Today: Managing in the Digital World 6-49 To Cookie or Not to Cookie Cookies collected by companies to get data about customers o Footprints that marketers can trace o Sometimes sold to other companies Web browsers can protect against accepting cookies o Constant pop-ups o Some sites will not work properly o Customized information will not be available National Security Agency (NSA)

Information Systems Today: Managing in the Digital World 6-50 Is Big Brother Watching You Employers can use equipment to o Read your o Monitor Web-surfing behavior o Collect keystrokes o Follow the movement of employees RFID and GPS Companies have rights to collect almost any information about employees while on the job

Information Systems Today: Managing in the Digital World 6-51 Backhoe Cyber Threat Telecommunications infrastructure is vulnerable o Damage to telephone lines, fiber-optic cables, water lines, gas pipelines 675,000 incidents in 1 year o Infrastructure information publicly available o Most of Internet communication goes through cables buried along major highways and railroads Only two major routes across US for Internet traffic