1. Chapter 11 crime and security in the networked economy
Information Technology & the Networked Economy, 2nd Edition, by: Patrick McKeon
Lecture Slides by: Dr. Nidjo Sandjojo, M.Sc
University of National Development “Veteran” Jakarta

2. LEARNING OBJECTIVES
After reading this chapter, you will be able to answer the following questions:
How has the face of crime changed in the networked economy?
What types of crime are having the greatest effects on individuals and organizations in the networked economy?
What kinds of attacks are being made on information technology and users?
How can organizations protect themselves from crime in the networked economy?
How can an organization protect its enterprise network from intrusions over the Internet?
What nontechnical issues should you consider in dealing with IT security?

3. TOPIC The Changing Face of IT Crime Types of IT Crime
Copyright Infringement
Attacks on Information Technology
IT Security
IT Criminals
Theft of Hardware, Data, or Information
Software Piracy
Viruses, Worms, and DoS Attacks
Threats to Computer Systems
Internet Security
Fraudulent Use of IT
Software Piracy and the Law
Internet Vulnerabilities
Physical Security
Securing the Corporate Internet Connection
Credit Card Fraud
Music and Video Piracy
Legal Aspects of IT Crime
Data Security
Fixing Known Security Holes
Investor Fraud
Security Issues
Summary
Firewalls
Illegal IDs
Legal Issues
Auction Site Fraud
Insurance Against IT Crime
Human Aspects of Computer Security
Infringement = pelanggaran

4. Combating Fraud at PayPal
In the short time since PayPal was started in 1998, it has become the leading electronic payment network for online auction web sites, including eBay.
But problems have come with its success, with the biggest issue being fraudulent use of credit cards.
One scam was fairly simple: Criminals stole credit cards and, instead of using them to purchase and sell expensive items such as computers, sent themselves or others cash payments charged to the card.

5. Section 11.1 - The Changing Face of IT (pp. 364 - 366)
This section provides an explanation of: IT Criminals.
In most cases, information technology is used for completely legal purposes.
Unfortunately, as illustrated in the opening case, individuals and organizations sometimes find ways to use information technology illegally for their own profit.
IT crime is an illegal act that requires the use of information technology.
IT security comprises the methods used to protect the hardware, software, data, and users from both natural and criminal damage.

6. Changing Nature of Crime (1)
Table 11.1

7. Changing Nature of Crime (2)
In looking at Table 11.1, you can see that because crime in the 1950s was usually face-to-face, it was local with low monetary impact - it was physically difficult to steal large amounts of money.
It was also physical, and the risk to the criminal was high.
In contrast, computer crime in the 2000s is remote with a potentially high impact in terms of amount of money stolen.
The format is electronic, posing a low risk to the criminal.

8. IT Criminals (1)
IT criminals may be classified in four major categories:
employees,
outside parties,
members of organized crime, and
cyber-terrorists
People outside the organization have used the Internet and other networks to break into computers for various reasons.
The best known are those individuals who seek unauthorized access for a variety of reasons, including “for the fun of it.”
These individuals are often referred to as “hackers” because they hack away at code trying to gain illegal entry to computers.

9. IT Criminals (2)
Organized crime has discovered that IT can prove extremely useful in furthering its objectives.
Cyber terrorists are organized groups of individuals who attempt to damage the IT infrastructure of a country or culture. This group has received a great deal of attention since the World Trade Center and Pentagon terrorist attacks.

10. Hacker
Kevin Mitnick, one of the most widely publicized hackers, was sentenced to a 5-year prison term for his computer crimes and is on parole until 2003.

11. Types of IT Criminals Table 11.2 IT Criminal Type Objective Employees
Steal money from the company or harm it in some way
Outside parties
Steal from the company or damage its infrastructure in some way
Organized crime
Use the company's information technology for monetary gain
Cyber terrorist
Damage the IT infrastructure of a country or culture
Table 11.2

12. Section of 11.2 - Types of IT Crime (pp. 366 - 379)
An IT crime can be committed in a variety of ways. In general it involves:
Theft of Hardware, Data or Information
Fraudulent Use of IT
Credit Card Fraud
Investor Fraud
Illegal ID
Auction Site Fraud
Copyright infringement
Attacks on information technology or users’ computers.

13. Secure electronic transaction (SET)
A system called secure electronic transaction (SET) has been created to combat this type of credit card fraud.
Secure electronic transaction (SET) provides a way for buyers to transfer credit card information to the credit card issuer without the seller seeing the credit card information, by requiring merchants to encrypt all credit card information.
Visa has gone one step further by using smart cards along with a password to protect online businesses from Internet fraud.

14. Types of Computer Crime
Type of IT Crime
Purpose
Theft
Steal hardware, data, or information from individuals or organizations either directly or through networks
Fraud
Use computers and the Internet to steal money or other valuable items by deceiving victims
Copyright infringement
Use software, music, or trademarks, which in many cases are obtained over the Internet, illegally
Attacks
Damage hardware, data, or information
Table 11.3

15. Section 11.3 – Copyright Infringement (pp. 373 - 374)
Copyright infringement (using copyrighted material without paying the copyright holders a fee or having their permission to use the material) is a crime.
Illegally copying or sharing software, commonly called software piracy, has become a very big business that costs companies such as Microsoft a great deal of money each year.

16. Section 11.4 - Attacks on Information Technology (pp. 375 - 379)
Attacks on information technology are much more likely to come through the Internet. The targets typically consist of IT software or data or a server.
Viruses, Worms, and DoS Attacks
Internet Vulnerabilities
Legal Aspects of IT Crime

17. Section 11.5 - Information Technology Security (pp. 379 - 384)
Information technology security entails the protection of the IT assets, including hardware, software, data, and information.
Threats to Computer Systems.
Physical Security.
Data Security.
Internet Security.
Entail = Memerlukan, Membawakan, Mengharuskan, Menyebabkan Perlu

18. Section 11.6 - Internet Security (pp. 385 - 389)
Because the Internet has become the primary method for accessing data and information on computers around the world, Internet security is critical to organizations. Web and sites often come under attack from destructive software. Protecting Web and other Internet servers from these attacks is, therefore, part of Internet security.
Securing the Corporate Internet Connection.
Fixing Known Security Holes.
Firewalls.

19. Section 11.7 - Security Issues (pp. 389 - 391)
In addition to the technical issues, legal, insurance, and personnel issues must be considered when creating a security plan.
Legal Issues.
Insurance Against IT Crime.
Human Aspects of Computer Security.

20. Section 11.8 - Summary (pp. 393 - 394)
How has the face of crime changed in the networked economy?
What types of crime are having the greatest effects on individuals and organizations in the networked economy?
What kinds of attacks are being made on information technology?
How can organizations protect themselves from crime in the networked economy?
How can an organization protect its enterprise network from intrusions over the Internet?
What nontechnical issues should you consider in dealing with IT security?