1. E-Commerce Security and Fraud Issues and Protections
Chapter 11
E-Commerce Security and
Fraud Issues and Protections

2. Learning Objectives
1. Understand the importance and scope of security of information systems for EC. 2. Describe the major concepts and terminology of EC security. 3. Understand about the major EC security threats, vulnerabilities, and technical attacks. 4. Understand Internet fraud, phishing, and spam. 5. Describe the information assurance security principles. 6. Describe the major technologies for protection of EC networks, including access control. 7. Describe various types of controls and special defense mechanisms. 8. Describe consumer and seller protection from fraud. 9. Discuss enterprisewide implementation issues for EC security. 10. Understand why it is so difficult to stop computer crimes. 11. Discuss the future of EC.

3. Major EC Security Management Concerns for 2011

4. The Information Security Problem
Cyberwars and Cyberespionage Across Borders
Cyberwarefare
Attacking Information Systems
Types of Attacks
Corporate espionage
Political espionage and warfare

5. The Information Security Problem
The Drivers of EC Security Problems
The Internet’s Vulnerable Design
The Shift to Profit-Induced Crimes
The Increased Volume of Wireless Activities and the Number of Mobile Devices
The Globalization of the Attackers
The *Darknet
*Internet Underground Economy
The Internet Silk Road
*Keystroke logging (keylogging)
The Explosion of Social Networking
The Dynamic Nature of EC Systems and the Acts of Insiders
The Sophistication of the Attacks
The Cost of Cyber Crime

6. Basic E-Commerce Security Issues and Landscape
Basic Security Terminology
*Business continuity plan
*Cybercrime
*Cybercriminal
*Exposure
*Fraud
*Malware (malicious software)
*Phishing
*Risk
*Social engineering
*Spam
*Vulnerability
*Zombie

7. Basic E-Commerce Security Issues and Landscape
The EC Security Battleground
The attacks, the attackers, and their strategies
The assets that are being attacked (the targets) in vulnerable areas
The security defense, the defenders, and their methods and strategy

8. The EC Security Battleground

9. Basic E-Commerce Security Issues and Landscape
The Threats, Attacks, and Attackers
Unintentional Threats
Human Error
Environmental Hazards
Malfunctions in the Computer System
Intentional Attacks and Crimes
The Criminals and Methods
*Hacker
*Cracker

10. Basic E-Commerce Security Issues and Landscape
The Targets of the Attacks in Vulnerable Areas
Vulnerable Areas Are Being Attacked
Vulnerability Information
Attacking
Attacking Smartphones and Wireless Systems
The Vulnerability of RFID Chips
The Vulnerabilities in Business IT and EC Systems
Pirated Videos, Music, and Other Copyrighted Material

11. Basic E-Commerce Security Issues and Landscape
EC Security Requirements
*Authentication
*Authorization
Auditing
Availability
*Nonrepudiation

12. Basic E-Commerce Security Issues and Landscape
The Defense: Defenders, Strategy, and Methods
EC Defense Programs and Strategy
*EC security strategy
*Deterrent methods
*Prevention measures
*Detection measures
*Information assurance (IA)
Possible Punishment
Defense Methods and Technologies
Recovery

13. Technical Malware Attack Methods: From Viruses to Denial of Service
Technical and Nontechnical Attacks: An Overview
The Major Technical Attack Methods
Malware (Malicious Code): Viruses, Worms, and Trojan Horses
* Viruses
* Worms

14. The Major Technical Security Attack Methods

15. Technical Malware Attack Methods: From Viruses to Denial of Service
* Macro virus (macro worm)
* Trojan horse
Some Recent Security Bugs: Heartbleed and Crytolocker
* Denial-of-service (DoS) attack
Web Server and Web Page Hijacking
* Page hijacking
* Botnets
Malvertising

16. How a Computer Virus Can Spread

17. Nontechnical Methods: From Phishing to Spam and Fraud
Social Engineering and Fraud
Social Phishing
*Phishing
*Pharming
Fraud and Scams on The Internet
Examples of Typical Online Fraud Attacks
Scams
Top 10 Attacks and Remedies
*Identity Theft and Identify Fraud
Cyber Bank Robberies

18. Social Engineering: From Phishing to Financial Fraud and Crime

19. How Phishing Is Accomplished

20. Nontechnical Methods: From Phishing to Spam and Fraud
Spam Attacks
* spam
Typical Examples of Spamming
*Spyware
Social Networking Makes Social Engineering Easy
How Hackers Are Attacking Social Networks
Spam in Social Networks and in the Web 2.0 Environment
*Search engine spam
*Splog
*Data Breach (Leak)

21. The Information Assurance Model And Defense Strategy
Confidentiality, Integrity, and Availability
*Confidentiality
*Integrity
*Availability
Authentication, Authorization, and Nonrepudiation

22. The Information Assurance Model And Defense Strategy
E-Commerce Security Strategy
The Phases of Security Defense
Prevention and deterrence (preparation)
Initial response
Detection
Containment (contain the damage)
Eradication
Recovery
Correction
Awareness and compliance
Security Spending Versus Needs Gap

23. E-Commerce Security Strategy Framework

24. The Information Assurance Model And Defense Strategy
The Defense Side of EC Systems
Defending access to computing systems, data flow, and EC transactions
Defending EC networks
General, administrative, and application controls
Protection against social engineering and fraud
Disaster preparation, business continuity, and risk management
Implementing enterprisewide security programs
Conduct a vulnerability assessment and a penetration test
Assessing Vulnerabilities and Security Needs
*Vulnerability assessment
*Penetration test (pen test)

25. The Defense I: Access Control, Encryption, and PKI
Authorization and Authentication
Biometric Systems
*Biometric authentication
*Biometric systems
Encryption and the One-Key (Symmetric) System
*Encryption
*Plaintext
*Ciphertext
*Encryption algorithm
*Key (key value)
*Key space
*Symmetric (Private) Key Encryption

26. Symmetric (Private) Key Encryption

27. The Defense I: Access Control, Encryption, and PKI
*Public key infrastructure (PKI)
*Public (asymmetric) key encryption
*Public key
*Private key
The PKI Process: Digital Signatures and Certificate Authorities
*Digital signatures
*Hash function
*Message digest
*Digital envelope
*Certificate authorities (CAs)
Secure Socket Layer (SSL)
Other Topics and Methods of Defense

28. Digital Signature

29. The Defense II: Securing E-Commerce Networks
*Firewalls
*Packets
The Dual Firewall Architecture: The DMZ
*Personal Firewalls
*Virtual private network (VPN)
*Protocol tunneling
*Intrusion Detection Systems (IDS)
Cloud Computing Prevents DoS Attacks
Honeynets and Honeypots
*Honeynet
*Honeypots
Security

30. The Two Firewalls: DMZ Architecture

31. The Defense III: General Controls, Spam, Pop Ups, Fraud, And Social Engineering Controls
*Application controls
General, Administrative, and Other Controls
Physical Controls
Administrative Controls
Protecting Against Spam
*CAN-SPAM Act

32. The Defense III: General Controls, Spam, Pop Ups, Fraud, And Social Engineering Controls
Protecting Your Computer from Pop-Up Ads
Tools for Stopping or at Least Minimizing Pop-Ups
Protecting against Other Social Engineering Attacks
Protecting against Phishing
Protecting against Malvertising
Protecting Against Spyware
Protecting Against Cyberwars

33. The Defense III: General Controls, Spam, Pop Ups, Fraud, And Social Engineering Controls
Fraud Protection
Business Continuity, Disaster Recovery, and Risk Management
Risk-Management and Cost-Benefit Analysis

34. Implementing Enterprisewide E-Commerce Security
The Drivers of EC Security Management
Senior Management Commitment and Support
EC Security Policies and Training
Cyber Threat Intelligence (CTI)
EC Risk Analysis and Ethical Issues
*Business impact analysis (BIA)
Ethical Issues

35. Enterprisewide EC Security and Privacy Model

36. Implementing Enterprisewide E-Commerce Security
Why Is It Difficult to Stop Internet Crime?
Making Shopping Inconvenient
Lack of Cooperation by Business Partners
Shoppers’ Negligence
Ignoring EC Security Best Practices
Design and Architecture Issues
Lack of Due Care in Business Practices
*Standard of due care
Protecting Mobile Devices, Networks, and Applications
Mobile Security Issues
The Defense

37. Managerial Issues
What steps should businesses follow in establishing a security plan?
Should organizations be concerned with internal security threats?
What is the key to establishing strong e-commerce security?
What should we do in case we are victims of ransomware?

38. Summary The importance and scope of EC information security.
Basic EC security issues.
Threats, vulnerabilities, and technical attacks.
Internet fraud, phishing, and spam.
Information assurance.
Securing EC access control and communications.
Securing EC access control and communications
The different controls and special defense mechanisms
Fraud on the Internet and how to protect consumers and sellers against it.
Enterprisewide EC security.
Why is it so difficult to stop computer crimes?
The future of EC