1. Learning Objectives
Identify several ethical issues regarding how the use of information technologies in business affects
Employment
Individuality
Working conditions
Privacy
Crime
Health
Solutions to societal problems

2. IT Security, Ethics, and Society
Information technology has both beneficial and detrimental effects on society and people
Manage work activities to minimize the detrimental effects
Strive to optimize the beneficial effects

3. Ethical responsibilities of business professionals
Business Ethics
Ethical responsibilities of business professionals
Promote ethical uses of information technology
Accept the ethical responsibilities of your job
Properly perform your role as a human resource
Consider the ethical dimensions of activities and decisions

4. IT Security, Ethics, and Society

5. Categories of Ethical Business Issues

6. Corporate Social Responsibility Theories
Stockholder Theory
Social Contract Theory
Stakeholder Theory
Managers are agents of stockholders. Their ethical responsibility is to increase profits without violating laws or engaging in fraud
Companies have an ethical responsibility to all members of society
Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders

7. Principles of Technology Ethics

8. Ethical Guidelines of the AITP

9. 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

10. Computer Crime
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

11. Corporate Protection Mechanisms

12. Hacking Hacking The obsessive use of computers
Unauthorized access/use of networked computers
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 vulnerabilities found for private advantage

13. Common Hacking Tactics

14. Cyber Theft Many computer crimes involve theft of money
Most are “inside jobs” that involve unauthorized network entry and alteration of 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 cyber crime

15. Cyberterrorism
The leveraging of an organization’s or government’s computers and information
Particularly through the Internet
To cause physical, real-world harm or severe disruption of infrastructure
Can have serious, large-scale influence
Can weaken a country’s economy
Can affect Internet-based businesses

16. Cyberterrorism Examples of Cyberterrorism
Life-support at Antarctic research station turned off
Release of untreated sewage into waterways
Nonessential systems shut down in nuclear power plants
Estonian government ministry and banks knocked offline
No successful attacks reported yet in the U.S.

17. 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 Internet or company networks
Sniffers
Monitor network traffic or capacity to find evidence of improper use

18. Internet Abuses in the Workplace
General abuses
Unauthorized use and access
Copyright infringement
Plagiarism
Newsgroup postings
Transmission of confidential data
Moonlighting
Use of external ISPs
Leisure use of Internet
Hacking
Pornography
Non-work-related downloads or upload

19. A third of the software industry’s revenues are lost to piracy
Software Piracy
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
Public domain software is not copyrighted
A third of the software industry’s revenues are lost to piracy

20. Theft of Intellectual Property
Copyrighted material
Includes 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

21. Viruses and Worms
A virus is a program that cannot work without being inserted into another program
A worm is a distinct program that 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

22. 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, Notepad is opened, filled with nonsense characters

23. Top Five Virus Families of all Time
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
Renames itself to pose as one of 26 other common files along the way

24. Top Five Virus Families of all Time
SoBig, 2003
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

25. Top Five Virus Families of all Time
Klez, 2002
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

26. 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

27. The Cost of Viruses, Trojans, Worms
Cost of the Top Five Virus Families
115 million computers in 200 countries infected in 2004
Up to 11 million computers permanently infected
Total economic damage was $166 to $202 billion in 2004
Average damage per computer is $277 to $366

28. Adware and Spyware Adware Spyware
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 user
1. Adware that uses an Internet connection in the background, without the user’s permission or knowledge
2. Captures information about the user and sends it over the Internet

29. Spyware Problems Spyware can steal private information and…
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
Spyware often can’t be eliminated

30. 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

31. Opt-in Versus Opt-out Opt-In Opt-Out
You must explicitly consent to allow data to be compiled about you
This is the default in Europe
Data can be compiled about you unless you specifically request that it not be
This is the default in the U.S.

32. Additional 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

33. Privacy Issues Computer Matching Unauthorized Access of Personal Files
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

34. Protecting Your Privacy on the Internet
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

35. Computer Matching and Profiling
Problems caused by mistakes in profiling and computer matching of personal data
Individuals mistakenly arrested and jailed
Unauthorized information about you sold to information brokers or other companies
Barrage of unsolicited promotional material and sales contacts
Privacy violations

36. 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 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

37. Privacy Laws
Other laws impacting privacy and how much a company spends on compliance
Sarbanes-Oxley
Health Insurance Portability & Accountability Act (HIPAA)
Gramm-Leach-Bliley
USA PATRIOT Act
California Security Breach Law
Securities and Exchange Commission rule 17a-4

38. Computer Libel and Censorship
The opposite side of the privacy debate…
Freedom of information, speech, and press
Biggest battlegrounds
Bulletin boards
boxes
Online files of Internet and public networks
Weapons used in this battle
Spamming
Flame mail
Libel laws
Censorship

39. Computer Libel and Censorship
Spamming
Flaming
Indiscriminate sending of unsolicited messages to many Internet users
Sending extremely critical, derogatory, and often vulgar messages or newsgroup postings to other Internet users or online services
Especially prevalent on special-interest newsgroups

40. Encompasses a wide variety of legal and political issues
Cyberlaw
Laws intended to regulate activities over the Internet via electronic communication devices
Encompasses a wide variety of legal and political issues
Includes intellectual property, privacy, freedom of expression, and jurisdiction

41. Cyberlaw 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

42. Other Challenges Employment Computer Monitoring
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; 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

43. IT has eliminated monotonous or obnoxious tasks
Other Challenges
Working Conditions
IT has eliminated monotonous or obnoxious tasks
But, 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

44. Cumulative Trauma Disorders (CTDs) Carpal Tunnel Syndrome
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

45. Ergonomics Designing healthy work environments
Safe, comfortable, pleasant place for people to work
Increases employee morale and productivity
Also called human factors engineering

46. Ergonomic Factors

47. Societal Solutions
Using information technologies to solve human and social problems
Medical diagnosis
Computer-assisted instruction
Government program planning
Environmental quality control
Law enforcement
Job placement

48. Societal Solutions Detrimental effects of information technology
Often caused by individuals or organizations not accepting ethical responsibility for their actions

49. 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

50. Case 2: Raymond James Financial, BCD Travel…
Leakage of sensitive customer data or proprietary information is a new priority
Companies are starting to focus on keeping sensitive information within their boundaries
Companies are deploying Outboard content management tools to monitor outgoing information
Companies must monitor messages plus an explosion of alternative communication mechanisms employees use (instant messaging, blogs, FTP transfers, Web mail, message boards)

51. Case Study Questions
Barring illegal activities, why do you think that employees in the featured organizations failed to realize the dangers of loosely managing proprietary and sensitive information?
Would you have thought of these issues?
How should organizations strike the right balance between monitoring and invading their employees’ privacy, even if it was legal for them to do so?
Why is it important to achieve this balance?
What would be the consequences of being too biased to one side?

52. Case Study Questions
The IT executives in the case all note that outbound monitoring and management technologies are only part of an overall strategy, and not their primary defense
What should the other components of this strategy be?
Which weight would you give to human and technological factors?

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

54. 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

55. Public/Private Key Encryption

56. Internetworked Security Defenses
Firewalls
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 can’t prevent it

57. Internet and Intranet Firewalls

58. Denial of Service Attacks
The victim’s website
Denial of service attacks depend on three layers of networked computer systems
The victim’s ISP
Zombie or slave computers commandeered by cyber criminals

59. Defending Against Denial of Service
At victim’s Website
Create backup servers and network connections
At the ISP
Monitor & block traffic spikes
At Zombie machines
Set/enforce security policies
Scan for vulnerabilities

60. Internetworked Security Defenses
Monitoring
Use content monitoring software to scan for troublesome words
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

61. 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

62. Other Security Measures
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 recover organization

63. Other Security Measures
In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software
Fail-over: shifts to back up components
Fail-safe: the system continues to operate at the same level
Fail-soft: the system continues to operate at a reduced but acceptable level

64. Other Security Measures
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

65. Information System Controls
Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

66. 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

67. Protecting Yourself from Cyber Crime

68. Case 3: Cyber Scams, Cyber Criminals
Cyber scams are today’s fastest-growing criminal niche
87 percent of companies surveyed reported a security incident
The 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 are regularly sold online

69. Case Study Questions
List several reasons why “cyber scams are today’s fastest growing criminal niche”
Explain why these reasons contribute to the growth of cyber scams
What security measures could be implemented to combat the spread of cyber scams?
Explain why your suggestions would be effective

70. Case Study Questions
Which of the four top cyber criminals described in this case poses the biggest threat to businesses? To consumers?
Explain the reasons for your choices, and describe how businesses and consumers can protect themselves from these cyber scammers