IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 11-1 Chapter 11 Managing Information Systems.

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 The Three Waves of Change The Third Wave by Alvin Toffler describes three phases or “waves of changes” First wave  A civilization based on agriculture and handwork  Relatively primitive stage  Lasted thousands of years 11-2

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 The Three Waves of Change (cont’d) 11-3 Second wave  The Industrial Revolution  Began at the end of the 18 th century and lasted about 150 years Third wave  The Information Age  Information becomes the currency

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Computer Literacy Computer literacy  Necessary skill in today’s world  May be the difference between being employed or unemployed  Many different jobs involve the use of computers 11-4

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Digital Divide 11-5 Major ethical challenge New class system of power  Power comes from knowledge The gap in the United States is shrinking  Rural communities, the elderly, people with disabilities, and minorities lag behind national averages Widening gap between developed and developing countries

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 One Laptop Per Child (OLPC) 11-6 OLPC Make Internet access affordable for everyone Goal is to get the price down to $100 each for governments and charities to buy Target: Children in developing world

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Computer Ethics 11-7 Issues and standards of conduct pertaining to the use of information systems 1986—Richard O. Mason article  Most ethical debates relate to:  Information privacy  Information accuracy  Information property  Information accessibility

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Information Privacy 11-8 What information should you have to reveal? Information you might want to keep private:  Social security number  Medical history  Family history Identity theft  Fastest growing “information” crime  Biometrics for better protection

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Information Privacy (cont’d) 11-9 Companies seem to know about our every move—how much information do we need to reveal? Amazon.com is famous for personalization What are the costs?

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Identity Theft 11-10 Fastest growing “information crimes” Stealing another person’s:  Credit card number  Social Security number  Other personal information Results in bad credit for victim

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 How to Maintain Your Privacy Online 11-11 Review the privacy policy of the company with which you are transacting The policy should indicate:  What information is being gathered about you  How the seller will use this information  Whether and how you can “opt out” of these practices Additional tips:  Choose Web sites monitored by independent organizations  Avoid having cookies left on your machine  Visit sites anonymously  Use caution when requesting confirmation e-mail

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Information Accuracy 11-12 Ensuring of the authenticity and fidelity of information High costs of incorrect information  Banks  Hospitals Difficult to track down the person who made the mistake

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Avoid Getting Conned in Cyberspace 11-13 U.S. Federal Trade Commission compiled a list of advices (List of top 10 things not to do)

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Information Property 11-15 Who owns information about individuals? How can this information be sold and exchanged?

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Data Privacy Statements 11-16 Company maintaining the database with customer information legally owns it  Is free to sell it o Cannot sell information it agreed not to share o Must insure proper data handling practices

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Spam, Cookies, and Spyware 11-17 Spam  Unsolicited e-mail  CAN-SPAM Act of 2003  Little protection available Cookies  Text file storing Web browsing activity  Can opt for cookies not to be stored  Web sites might not function properly without cookies Spyware  Software used for data collection without the users’ knowledge  Unlikely this activity will become illegal anytime soon

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cybersquatting 11-18 The practice of registering a domain name and later reselling it  Example: Eminem Victim Some of the victims include:  Panasonic, Hertz, Avon Anti-Cybersquatting Consumer Protection Act in 1999  Fines as high as $100,000  Some companies pay the cybersquatters to speed up the process of getting the domain

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Digital Rights Management (DRM) 11-19 DRM Technology solution to control digital content  Music, movies, books, and so on Some critics, “digital restriction management” Digital watermarking  Electronic version of physical watermarks

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Information Accessibility 11-20 Who has the right to monitor the information? Example: e-mail capture by Carnivore

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Carnivore 11-21 Developed by the government to monitor all cyber communication In 2005 FBI abandoned Carnivore for commercially available software

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Need for a Code of Ethical Conduct 11-22 Many businesses have guidelines for appropriate use Universities endorse guidelines proposed by EduCom

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Need for a Code of Ethical Conduct (cont’d) 11-23 Responsible computer use (based on work of the Computer Ethics Institute) prohibits: 1. Using a computer to harm others 2. Interfering with other people’s computer work 3. Snooping in other people’s files 4. Using a computer to steal 5. Using a computer to bear false witness 6. Copying or using proprietary software without paying for it 7. Using other people’s computer resources without authorization 8. Appropriating other people’s intellectual output

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Computer Crime 11-24 Using a computer to commit an illegal act  Targeting a computer—unauthorized access  Using a computer to commit an offense  Using a computer to support a criminal activity Overall trend of computer crime declining

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Types of Computer Crimes and Financial Losses 11-25 Figures based on a survey of 194 organizations

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Financial Impact of Virus Attacks 11-26 Losses from computer crime can be tremendous  $14.2 billion in estimated losses due to viruses alone in 2005

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Unauthorized Computer Access 11-27 Using computer systems with no authority to gain such access Other examples from the media  Employees steal time on company computers to do personal business  Intruders break into government Web sites and change information displayed  Thieves steal credit card numbers and buy merchandise

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Federal and State Laws 11-29 Two main federal laws against computer crime 1. Computer Fraud and Abuse Act of 1986 prohibits:  Stealing or compromising data  Gaining access to computers owned by the U.S. government  Violating data belonging to financial institutions  Intercepting communication between foreign countries  Threatening to damage computer systems in order to gain profit  1996 Amendment prohibits:  Dissemination of computer viruses and other harmful code

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Federal and State Laws (cont’d) 11-30 Electronic Communications Privacy Act of 1986  Breaking into any electronic communication service is a crime USA PATRIOT Act of 2002  Controversial law  Investigators may monitor voice communication Other laws  Patent laws protect some software and hardware  Right to Financial Privacy Act  All 50 states passed laws prohibiting computer crime

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Computer Forensics 10-31 Use of formal investigative techniques to evaluate digital information  Evaluation of storage devices for traces of illegal activity  Now common in murder cases  Restoration of deleted files Honeypots used to entice and catch hackers and crackers 11-31

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Hacking and Cracking 11-32 Hackers  Individuals gaining unauthorized access  Motivated by curiosity  No intentions to do harm Crackers  Break into computers with the intention of doing harm Hacktivists  Break into computer systems to promote political or ideological goals

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Types of Criminals 11-33 No clear profile as to who commits computer crimes Four groups of computer criminals 1. Current or former employees  85-95% of theft from businesses comes from the inside 2. People with technical knowledge committing crimes for personal gain 3. Career criminals using computers to assist them in crimes 4. Outside crackers hoping to find information of value  About 12% of cracker attacks cause damage

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Software Piracy 11-36 Legal activities  Making one backup copy for personal use  Sharing free software (shareware or public domain software) Illegal activities  Making copies of purchased software for others  Offering stolen proprietary software (warez peddling) Applicable copyright laws  1980 Computer Software Copyright Act  1992 Act making software piracy a felony  1997 No Electronic Theft (NET) Act

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Software Piracy Is a Global Business 11-37 Worldwide losses for 2005 estimated at $34 billion Some factors influencing piracy around the world o Concept of intellectual property differs between countries o Economic reasons for piracy o Lack of public awareness about the issue

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Software Piracy Terms 11-38 Intellectual property (IP)  Creations of the mind(s)  Example, Music, software, etc. Patents  Process, machine or material of inventions  Example: Amazon’s “one-click” buying experience Copyrights  Legal way of protecting IP  1980 Computer Software Copyright Act

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Computer Viruses and Other Destructive Code 11-39 Malware (malicious software)  1,400 new pieces released in one month  Viruses  Reproduce themselves  Usually delete or destroy files  Boot sector viruses  File infector viruses  Viruses can spread through e-mail attachments

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Worms, Trojan Horses, and Other Sinister Programs 11-41 Worm  Does not destroy files  Designed to copy and send itself  Brings computers down by clogging memory Trojan horse  Does not copy itself  Often remains hidden to the user Logic bombs and time bombs  Variations of Trojan horse  Do not disrupt computer function until triggering event/operation

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Internet Hoaxes 11-42 False messages circulated online  New viruses (that don’t exist)  2004 e-mail told recipients to erase a file that was actually a part of Windows operating system  Collection of funds for certain group  Cancer causes  Possible consequences  Spammers harvesting e-mail addresses from hoaxes

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cyber Harassment, Stalking, and Bullying 11-43 Cyber harassment  Crime that broadly refers to the use of a computer to communicate:  Obscene, vulgar, or threatening content Cyber stalking  Making false accusations that damage reputation  Gaining information on a victim by monitoring online activates  Using the Internet to encouraging other to harass a victim  Attacking data and equipment of a victim  Using the Internet to place false goods or orders

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cyber Bullying 11-44 Cyber bullying  The deliberate cause of emotional distress to a victim Online predator  Typically target vulnerable population for sexual or financial purposes  “To Catch a Predator” Chris Hanson—NBC Dateline

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cyberwar 11-45 Military’s attempt to disrupt or destroy other country’s information and communication systems  Goal is to diminish opponent’s communication capabilities  Used in concert with traditional methods

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cyberwar Vulnerabilities 11-46 1. Command and control systems 2. Intelligence collection and distribution systems 3. Information processing and distribution systems 4. Tactical communication systems and methods 5. Troop and weapon positioning systems 6. Friend-or-foe identification systems 7. Smart weapons systems

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 The New Cold War 11-47 A 2007 report on Internet security listed a cyber cold war as a threat Patriot Hackers—independent citizens that attack perceived enemies of the state In 2006 the U.S. Air Force launched Cyber Command See Figure 11.22

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Cyberterrorism 11-48 Governments not involved Can be launched from anywhere in the world Goal is to cause fear, panic, and destruction Cyberterrorism will likely become weapon of choice

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Assessing the Cyberterrorism Threat 11-52 The U.S. Department of Defense  Popular target for hackers and crackers  60-90 attempts a day  Some successful attacks  1991—Gulf War Dutch crackers stole information about the movement of U.S. troops and offered it for sale to Iraq Iraqis turned down the offer  2000—U.S. presidential elections Web sites targeted with political motives DoS attacks launched  2007—Government and bank networks within Estonia came under attack for the removal of a Soviet-era memorial

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 Obstacles to Cyberterrorism 11-53 1. Computer systems are complex and attacks may not have desired outcome 2. Fast-changing security measures 3. Cyberattacks rarely cause physical harm to victims

IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 11-1 Chapter 11 Managing Information Systems.

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IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 11-1 Chapter 11 Managing Information Systems.

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Presentation on theme: "IS Today (Valacich & Schneider) Copyright © 2010 Pearson Education, Inc. Published as Prentice Hall 6/23/2016 11-1 Chapter 11 Managing Information Systems."— Presentation transcript:

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