8-1 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 8 Protecting People and Information Threats and Safeguards

8-2 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Presentation Overview Ethics Ethics Privacy Privacy Information Information Security Security

8-3 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Opening Case Study Digital Destruction Beyond All Imagination One of the lessons learned from 9/11 is that with careful and thorough protection of important information, not even a calamity like the one that occurred in New York can put you out of business. One of the lessons learned from 9/11 is that with careful and thorough protection of important information, not even a calamity like the one that occurred in New York can put you out of business. In what ways is information vulnerable and what can you do to protect important information? In what ways is information vulnerable and what can you do to protect important information?

8-4 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Ethics Ethics - the principles and standards that guide our behavior toward other people. Ethics - the principles and standards that guide our behavior toward other people. Ethics depend on: Ethics depend on: 1. Your basic ethical structure, which you developed as you grew up. 2. The set of practical circumstances involved in the decision that you’re trying to make – that is, all the shades of gray in what are rarely black or white decisions.

8-5 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Ethics Two Factors That Determine How You Decide Ethical Issues 1. Consequences 2. Society’s opinion 3. Likelihood of effect 4. Time to consequences 5. Relatedness 6. Reach of result

8-6 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Ethics Guidelines for Ethical Computer System Use In the figure to the right you see the four quadrants of ethical and legal behavior. In the figure to the right you see the four quadrants of ethical and legal behavior. You’re pretty safe if you can manage to stay in quadrant I. You’re pretty safe if you can manage to stay in quadrant I.

8-7 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Ethics Intellectual Property Intellectual property - intangible creative work that is embodied in physical form. Intellectual property - intangible creative work that is embodied in physical form. Copyright - the legal protection afforded an expression of an idea. Copyright - the legal protection afforded an expression of an idea. Fair Use Doctrine - says that you may use copyrighted material in certain situations. Fair Use Doctrine - says that you may use copyrighted material in certain situations. Pirated software - the unauthorized use, duplication, distribution or sale of copyrighted software. Pirated software - the unauthorized use, duplication, distribution or sale of copyrighted software.

8-8 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Ethics Intellectual Property Counterfeit software - software that is manufactured to look like the real thing and sold as such. Counterfeit software - software that is manufactured to look like the real thing and sold as such. On Your Own Are You Careful About Your Posture? (p. 377)

8-9 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy - the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent. Privacy - the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent.

8-10 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Other Individuals Key logger, or key trapper, software, - a program, when installed on a computer, records every keystroke and mouse click. Key logger, or key trapper, software, - a program, when installed on a computer, records every keystroke and mouse click. Team WorkWhat Would You Do? (p. 380)

8-11 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Other Individuals is completely insecure. is completely insecure. Each you send results in at least 3 or 4 copies being stored on different computers. Each you send results in at least 3 or 4 copies being stored on different computers.

8-12 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Employees Companies need information about their employees and customers to be effective in the marketplace. Companies need information about their employees and customers to be effective in the marketplace. In 2001, 63% of companies monitored employee Internet connections including about two-thirds of the 60 billion electronic messages sent by 40 million users. In 2001, 63% of companies monitored employee Internet connections including about two-thirds of the 60 billion electronic messages sent by 40 million users.

8-13 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Employees Hardware key logger - a hardware device that captures keystrokes on their journey from the keyboard to the motherboard. Hardware key logger - a hardware device that captures keystrokes on their journey from the keyboard to the motherboard.

8-14 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Consumers Customers want businesses to: Customers want businesses to:  Know who they are, but they want them to leave them alone.  Provide what they want, but they don’t want businesses knowing too much about their habits and preferences.  Tell them about products and services they might like to have, but don’t want to be inundated with ads.

8-15 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Consumers Cookie - a small record deposited on your hard disk by a Web site containing information about you and your Web activities. Cookie - a small record deposited on your hard disk by a Web site containing information about you and your Web activities. Adware - software to generate ads that installs itself on your computer when you download some other (usually free) program from the Web. Adware - software to generate ads that installs itself on your computer when you download some other (usually free) program from the Web. Trojan-horse software - software you don’t want hidden inside software you do want. Trojan-horse software - software you don’t want hidden inside software you do want.

8-16 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Consumers Spyware (also called sneakware or stealthware) - software that comes hidden in free downloadable software and tracks your online movements, mines the information stored on your computer, or uses your computer’s CPU and storage for some task you know nothing about. Spyware (also called sneakware or stealthware) - software that comes hidden in free downloadable software and tracks your online movements, mines the information stored on your computer, or uses your computer’s CPU and storage for some task you know nothing about.

8-17 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Consumers Web log - consists of one line of information for every visitor to a Web site and is usually stored on a Web server. Web log - consists of one line of information for every visitor to a Web site and is usually stored on a Web server. Clickstream - records information about you during a Web surfing session. Clickstream - records information about you during a Web surfing session. Anonymous Web browsing (AWB) services - hides your identity from the Web sites you visit. Anonymous Web browsing (AWB) services - hides your identity from the Web sites you visit.

8-18 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and Government Agencies Government agencies have about 2,000 databases containing personal information on individuals. Government agencies have about 2,000 databases containing personal information on individuals. For example, The National Crime Information Center (NCIC) database contains information on the criminal records of more than 20 million people. For example, The National Crime Information Center (NCIC) database contains information on the criminal records of more than 20 million people. Team Work What Are The Biggest Internet Scams? (p. 387)

8-19 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and International Trade Safe-harbor principles - a set of rules to which U.S. businesses that want to trade with the European Union (EU) must adhere. Safe-harbor principles - a set of rules to which U.S. businesses that want to trade with the European Union (EU) must adhere. On Your Own What’s Your Opinion? (p. 388)

8-20 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Privacy Privacy and International Trade The rights granted to EU citizens include the consumer’s right to: The rights granted to EU citizens include the consumer’s right to:  Know the marketer’s source of information.  Check personal identifiable information for accuracy.  Correct any incorrect information.  Specify that information can’t be transferred to a third party without the consumer’s consent.  Know the purpose for which the information is being collected.

8-21 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information Information as Raw Material Raw materials are the components from which a product is made. Raw materials are the components from which a product is made. Wood, glue, and screws are raw materials for a chair. Wood, glue, and screws are raw materials for a chair. Almost everything you buy has information as part of the product. Almost everything you buy has information as part of the product. The most successful companies place the highest value on information. The most successful companies place the highest value on information.

8-22 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Information Information as Capital Capital is the asset you use to produce a product or service. Capital is the asset you use to produce a product or service. Buildings, trucks, and machinery are assets. Buildings, trucks, and machinery are assets. Information is capital since it is used by companies to provide products and services. Information is capital since it is used by companies to provide products and services.

8-23 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Employees Most of the press reports are about outside attacks on computer systems, but actually, companies are in far more danger of losing money from employee misconduct than they are from outsiders. Most of the press reports are about outside attacks on computer systems, but actually, companies are in far more danger of losing money from employee misconduct than they are from outsiders. White-collar crime accounts for about $400 billion in losses every year. White-collar crime accounts for about $400 billion in losses every year.

8-24 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Employees

8-25 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Collaboration Partners If you use collaboration systems, representatives of other companies can gain access to your systems. If you use collaboration systems, representatives of other companies can gain access to your systems. Grid computing - harnesses far-flung computers together by way of the Internet or a virtual private network to share CPU power, databases, and database storage. Grid computing - harnesses far-flung computers together by way of the Internet or a virtual private network to share CPU power, databases, and database storage.

8-26 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Outside Threats 85% of large companies and governmental agencies were broken into during % of large companies and governmental agencies were broken into during Hackers - very knowledgeable computer users who use their knowledge to invade other people’s computers. Hackers - very knowledgeable computer users who use their knowledge to invade other people’s computers.

8-27 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Outside Threats Computer virus (or simply a virus) - is software that is written with malicious intent to cause annoyance or damage. Computer virus (or simply a virus) - is software that is written with malicious intent to cause annoyance or damage. Worm - a type of virus that spreads itself, not just from file to file, but from computer to computer via and other Internet traffic. Worm - a type of virus that spreads itself, not just from file to file, but from computer to computer via and other Internet traffic. Denial-of-service attack (DoS) - floods a Web site with so many requests for service that it slows down or crashes. Denial-of-service attack (DoS) - floods a Web site with so many requests for service that it slows down or crashes.

8-28 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security and Outside Threats Computer viruses can’t: Computer viruses can’t:  Hurt your hardware (i.e. monitors, printers, or processor.)  Hurt any files they weren’t designed to attack.  Infect files on write-protected disks.

8-29 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security Precautions Risk management - consists of the identification of risks, security implementation, and effective measures. Risk management - consists of the identification of risks, security implementation, and effective measures. Risk assessment - measure the risk exposure of IT assets. Risk assessment - measure the risk exposure of IT assets. Risk assessment asks: Risk assessment asks:  What can go wrong?  How likely is it to go wrong?  What are the possible consequences if it does go wrong?

8-30 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security Precautions Backup - making a copy of computer information. Backup - making a copy of computer information. Anti-virus software - detects and removes viruses. Anti-virus software - detects and removes viruses. Firewall – protects computers from intruders. Firewall – protects computers from intruders. Intrusion-detection software - looks for people on the network who shouldn’t be there. Intrusion-detection software - looks for people on the network who shouldn’t be there. Security auditing software - checks out your computer or network for potential weaknesses. Security auditing software - checks out your computer or network for potential weaknesses.

8-31 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Security Security Precautions Biometrics - the use of physical characteristics to provide identification. Biometrics - the use of physical characteristics to provide identification. Encryption – scrambles the contents of a file so that you can’t read it without having the decryption key. Encryption – scrambles the contents of a file so that you can’t read it without having the decryption key. Public key encryption (PKE) - an encryption system that uses two keys: a public key that everyone can have and a private key for only the recipient. Public key encryption (PKE) - an encryption system that uses two keys: a public key that everyone can have and a private key for only the recipient.

8-32 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Studies Protecting More than Health Protecting More than Health  What steps could the Cleveland Clinic take to prevent these security breaches? Is the Safe harbor Safe for U.S. Businesses? Is the Safe harbor Safe for U.S. Businesses?  Would you like to have stronger privacy laws in this country?

8-33 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Assignments & Exercises 1. Helping a friend 2. Find Anti-virus software 3. Find out what happened in the U.S. 4. Investigate monitoring systems 5. Check out the Computer Ethics Institute’s advice

8-34 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Visit the Web to Learn More Airlines Airlines Trains and busses Trains and busses Rental cars Rental cars Road conditions and maps Road conditions and maps Lodging Lodging One-stop travel sites One-stop travel sites Destination information Destination information Security and Privacy Security and Privacy