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Information Systems Today: Managing in the Digital World
10 COIS WEEK 10 Chapter Managing Information Systems Ethics and Crimes Worldwide losses due to software piracy in 2005 exceeded $34 billion. Business Software Alliance, 2006 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Learning Objectives Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Learning Objectives Information Systems Today: Managing in the Digital World
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The Three Waves of Change (I)
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 Information Systems Today: Managing in the Digital World
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The Three Waves of Change (II)
Second wave The Industrial Revolution Began at the end of the 18th century and lasted about 150 years Third wave The Information Age Information becomes the currency Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Digital Divide Major ethical challenge New class system of power Power comes from knowledge The gap in the US is shrinking Rural communities, the elderly, people with disabilities, and minorities lag behind national averages Widening gap between developed and developing countries Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Learning Objectives Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Computer Ethics 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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Information Privacy 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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Information Privacy 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? Information Systems Today: Managing in the Digital World
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How to Maintain Your Privacy Online
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 Information Systems Today: Managing in the Digital World
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Avoid Getting Conned in Cyberspace
U.S. Federal Trade Commission compiled a list of advices (List of top 10 things not to do) Information Systems Today: Managing in the Digital World
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Top 10 List of Things Not to Do (II)
Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Information Accuracy 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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Information Property Who owns information about individuals? How can this information be sold and exchanged? Information Systems Today: Managing in the Digital World
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Data Privacy Statements
Company maintaining the database with customer information legally owns it Is free to sell it Cannot sell information it agreed not to share Must insure proper data handling practices Information Systems Today: Managing in the Digital World
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Spam, Cookies and Spyware
Unsolicited promoting products or services 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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Combating Spyware Windows defender Spyware monitoring and removal Others Include: Ad-aware Spybot Search & Destroy Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Cybersquatting The practice of registering a domain name and later reselling it 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 Information Systems Today: Managing in the Digital World
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Information Accessibility
Who has the right to monitor the information? E.g., capture by Carnivore Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Carnivore Developed to monitor all communication by the government In 2005 FBI abandoned Carnivore for commercially available software Information Systems Today: Managing in the Digital World
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Legal Support for Electronic Communication Privacy
Little support available 1986 – Electronic Communications Privacy Act (ECPA) Mostly geared towards protecting voice communication privacy No other laws protect privacy Some states define rules for companies Need to be open about monitoring policies Need to use good judgment Information Systems Today: Managing in the Digital World
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Need for a Code of Ethical Conduct
Many businesses have guidelines for appropriate use Universities endorse guidelines proposed by EduCom Responsible computer use (based on work of the Computer Ethics Institute) prohibits: Using a computer to harm others Interfering with other people’s computer work Snooping in other people’s files Information Systems Today: Managing in the Digital World
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Need for a Code of Ethical Conduct
Responsible computer use prohibits (continued): Using a computer to steal Using a computer to bear false witness Copying or using proprietary software without paying for it Using other people’s computer resources without authorization Appropriating other people’s intellectual output Information Systems Today: Managing in the Digital World 10-25
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Information Systems Today: Managing in the Digital World
Learning Objectives Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Computer Crime 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 Information Systems Today: Managing in the Digital World
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Types of Computer Crimes and Financial Losses
Figures based on a survey of 639 organizations Information Systems Today: Managing in the Digital World
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Financial Impact of Virus Attacks
Losses from computer crime can be tremendous $14.2 billion in estimated losses due to viruses alone in 2005 Information Systems Today: Managing in the Digital World
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Unauthorized Computer Access
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 Information Systems Today: Managing in the Digital World
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Unauthorized computer access
Frequency of successful attacks is declining Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Federal and State Laws Two main federal laws against computer crime 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 Information Systems Today: Managing in the Digital World
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Federal and State Laws (II)
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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Computer Forensics 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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Hacking and Cracking 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 Information Systems Today: Managing in the Digital World
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Who Commits Computer Crimes?
No clear profile Four groups of computer criminals Current or former employees 85-95% of theft from businesses comes from the inside People with technical knowledge committing crimes for personal gain Career criminals using computers to assist them in crimes Outside crackers hoping to find information of value About 12% of cracker attacks cause damage Information Systems Today: Managing in the Digital World
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Types of Computer Crimes
Information Systems Today: Managing in the Digital World
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Types of Computer Crimes (II)
Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Software Piracy 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 Act Information Systems Today: Managing in the Digital World
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Software Piracy Is a Global Business
Worldwide losses for 2005 estimated at $34 billion Some factors influencing piracy around the world Concept of intellectual property differs between countries Economic reasons for piracy Lack of public awareness about the issue Information Systems Today: Managing in the Digital World
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Computer Viruses and Other Destructive Code
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 attachments Information Systems Today: Managing in the Digital World
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How a Computer Virus is Spread
Information Systems Today: Managing in the Digital World
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Worms, Trojan Horses and Other Sinister Programs
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 Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Internet Hoaxes False messages circulated online New viruses (that don’t exist) 2004 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 addresses from hoaxes Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Learning Objectives Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Cyberwar 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 Information Systems Today: Managing in the Digital World
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Cyberwar vulnerabilities
Command and control systems Intelligence collection and distribution systems Information processing and distribution systems Tactical communication systems and methods Troop and weapon positioning systems Friend-or-foe identification systems Smart weapons systems Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Cyberterrorism 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 Information Systems Today: Managing in the Digital World
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Categories of Potential Cyberterrorist Attacks
Information Systems Today: Managing in the Digital World
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Use of Internet in Terrorist Attacks
Information Systems Today: Managing in the Digital World
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Use of Internet in Terrorist Attacks (II)
Information Systems Today: Managing in the Digital World
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Assessing the Cyberterrorism Threat
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 – United States presidential elections Web sites targeted with political motives DoS attacks launched 2003 – Romanian cracker compromised systems housing life support control for 58 scientists and contractors in Antarctica Information Systems Today: Managing in the Digital World
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Obstacles to Cyberterrorism
Computer systems are complex and attacks may not have desired outcome Fast changing security measures Cyberattacks rarely cause physical harm to victims Information Systems Today: Managing in the Digital World
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The Globalization of Terrorism
Increasing dependence on technology Increasing possibilities of cyberterrorism International laws and treaties must evolve Likelihood of large attacks is small Successful large attack would require Intelligence information Years of preparation At least $200 million Information Systems Today: Managing in the Digital World
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End of Chapter Content REST OF SLIDES IS OPTIONAL, IF TIME
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Opening Case: BitTorrent
Napster 1999 – 2001 existence of a free peer-to-peer file sharing system MPAA and music artists filed series of lawsuits $ 26 million awarded in damages Today – downloading for a fee BitTorrent Protocol designed for transferring files Types of users Leechers – users who download content but don’t contribute Seeders – download and contribute content Use of BitTorrent in the entertainment industry Warner Brothers – In2Movies – users can download movies for a fee Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Wikipedia Free online encyclopedia 4 million entries Anyone can write or edit articles 2006 expert led accuracy study Wikipedia compared to Encyclopedia Britannica Both sources erroneous in scientific articles with small differences in accuracy Wikipedia – 4 errors on average per science article Encyclopedia Britannica – 3 errors on average per science article Wikipedia articles often intentionally modified to misrepresent the truth Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Bundled Services Telecommunications services Telephone service, cable TV and Internet connection bundled together Companies advertise cost savings “Hooking” customers on a bundled service makes them less likely to switch Consumers not always happy with the deal Better tailoring to the customers’ needs necessary Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Attacks on the Net Hackers first started in the 1960s Quest for greater knowledge about computers Belief in free exchange of information Crackers Malevolent desire to disrupt networks Often done to prove certain “cleverness” For profit by fired employees 2000 – five major companies brought down by DoS attacks (Yahoo!, Amazon.com, eBay, Buy.com, and CNN Interactive) 2005 – perpetrator sentenced to 18 months in prison Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
Ethical Hacking Mark Maiffret Started as a hacker Now designs and sells software for companies to secure their networks against hackers eEye Digital Security Maiffret – Chief Hacking Officer Software prevents unauthorized access Don’t hire anyone with a criminal record – “good” hackers don’t get caught Information Systems Today: Managing in the Digital World
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Information Systems Today: Managing in the Digital World
The Liquid Lens Used in portable devices High-resolution images without increase in lens size Lenses available Varioptic Developed based on electrowetting – the tendency of water to spread on a substrate 2 liquids of equal density sandwiched between two windows in a conical vessel Fluidlens Made of water and looks like a contact lens Advantages No movable parts with high durability Low power consumption Optical quality of liquid better than glass or plastic Information Systems Today: Managing in the Digital World
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Cybercops Track Cybercriminals
Federal level Computer Crime and Intellectual Property Section (within the Justice Department) Computer and telecommunications crime coordinator Assistant U.S. attorney – every federal judicial district has at least one State level Crime investigation unit FBI Computer crime squads in 16 metropolitan areas National Infrastructure Protection Center acts as a clearinghouse Available software Software Forensic Tool Kit Statewide Network and Agency Photos (SNAP) Automatic Fingerprint Identification System Classification System for Serial Criminal Patterns Information Systems Today: Managing in the Digital World
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