1. 6-1 6 Chapter Securing Information Systems “66 percent of all Webroot-scanned personal computers are infected with at least 25 spyware programs.” Webroot (2005)

2. 6-2 Learning Objectives

3. 6-3 Learning Objectives

4. 6-4 Information Systems Security All systems connected to a network are at risk o Internal threats o External threats Information systems security o Precautions to keep IS safe from unauthorized access and use Increased need for good computer security with increased use of the Internet

5. 6-5 Primary Threats to Information Systems Security Accidents and natural disasters o Power outages, cats walking across keyboards Employees and consultants Links to outside business contacts o Travel between business affiliates Outsiders Viruses

6. 6-6 Unauthorized Access Unauthorized people o Look through electronic data o Peek at monitors o Intercept electronic communication Theft of computers or storage media Determined hackers gain administrator status

7. 6-7 Gaining Access to a Password Brute force o Try combinations until a match is found Protection: o Wait time requirements after unsuccessful login attempt o CAPTCHA

8. 6-8 Information Modification User accesses electronic information User changes information o Employee gives himself a raise

9. 6-9 Denial of Service Attack Attackers prevent legitimate users from accessing services Zombie computers o Created by viruses or worms o Attack Web sites

10. 6-10 Computer Viruses Corrupt and destroy data Destructive code can o Erase a hard drive o Seize control of a computer Worms o Variation of a virus o Replicate endlessly across the Internet o Servers crash MyDoom attack on Microsoft’s Web site

11. 6-11 Spyware Within freeware or shareware Within a Web site Gathers information about a user o Credit card information o Behavior tracking for marketing purposes Eats up computer’s memory and network bandwidth Adware – special kind of spyware o Collects information for banner ad customization

12. 6-12 Spam Electronic junk mail Advertisements of products and services Eats up storage space Compromises network bandwidth Spim o Spam over IM

13. 6-13 Protection Against Spam Barracuda Spam Firewall 600 o Filters spam and other email threats o Decreases amount of spam processed by the central e-mail server o Handles 3,000 – 10,000 active email users o Spam messages blocked or quarantines

14. 6-14 Phishing Attempts to trick users into giving away credit card numbers Phony messages Duplicates of legitimate Web sites E.g., eBay, PayPal have been used

15. 6-15 Cookies Messages passed to a Web browser from a Web server Used for Web site customization Cookies may contain sensitive information Cookie management and cookie killer software Internet Explorer Web browser settings

16. Information Systems Today: Managing in the Digital World 6-16 Other Threats to IS Security 1. Employees writing passwords on paper 2. No installation of antivirus software 3. Use of default network passwords 4. Letting outsiders view monitors 6-16

17. 6-17 Other Threats to IS Security (II) 5. Organizations fail to limit access to some files 6. Organizations fail to install firewalls 7. Not doing proper background checks 8. Lack of employee monitoring 9. Fired employees who are resentful

18. 6-18 Learning Objectives

19. 6-19 Safeguarding Information Systems Resources Information systems audits o Risk analysis Process of assessing the value of protected assets oCost of loss vs. cost of protection Risk reduction oMeasures taken to protect the system Risk acceptance oMeasures taken to absorb the damages Risk transfer oTransferring the absorption of risk to a third party

20. 6-20 Technological Safeguards Physical access restrictions o Authentication Use of passwords Photo ID cards, smart cards Keys to unlock a computer Combination Authentication limited to o Something you have o Something you know o Something you are

21. 6-21 Biometrics Form of authentication o Fingerprints o Retinal patterns o Body weight o Etc. Fast authentication High security

22. 6-22 Access-Control Software Access only to files required for work Read-only access Certain time periods for allowed access Business systems applications o Built-in access control capabilities

23. 6-23 Wireless LAN Control Wireless LAN cheap and easy to install Use on the rise Signal transmitted through the air o Susceptible to being intercepted o Drive-by hacking

24. 6-24 Virtual Private Networks Connection constructed dynamically within an existing network Secure tunnel o Encrypted information

25. 6-25 Firewalls System designed to detect intrusion and prevent unauthorized access Implementation o Hardware, software, mixed Approaches o Packet filter – each packet examined o Application-level control – security measures only for certain applications o Circuit-level control – based on certain type of connection o Proxy server – firewall acts as the server and intercepts all messages; Network Address Translation

26. 6-26 Firewall Architecture a) Basic software firewall for a home network b) Firewall router Home office Small office

27. 6-27 Firewall Architecture Larger Organization

28. 6-28 Encryption Message encoded before sending Message decoded when received Encryption allows for o Authentication – proving one’s identity o Privacy/confidentiality – only intended recipient can read a message o Integrity – assurance of unaltered message o Nonrepudiation – use of digital signature

29. 6-29 The Encryption Process Key – code that scrambles the message o Symmetric secret key system Sender and recipient use the same key Cons: Management problems o Public key technology Asymmetric key system Each individual has a pair of keys oPublic key – freely distributed oPrivate key – kept secret

30. 6-30 How Encryption Works (Asymmetric)

31. 6-31 Encryption for Websites Certificate Authority o Third party – trusted middleman Verifies trustworthiness of a Web site Checks for identity of a computer Provides public keys Secure Sockets Layer (SSL) o Developed by Netscape o Popular public-key encryption method

32. 6-32 Other Encryption Approaches 1976 – Public/private key 1977 – RSA o Technology licensed to Lotus and Microsoft o Federal law prohibited exporting encryption technology Limited use by organizations 1991 – Pretty good privacy o Versatile encryption program o Global favorite 1993 – Clipper chip o Chip generating uncrackable codes o Scrapped before it became reality

33. 6-33 The Evolution of Encryption Future encryption programs will provide o Strong security o High speed o Usability on any platform Encryption for cellular phones Encryption for PDAs

34. 6-34 Recommended Virus Precautions Purchase and install antivirus software o Update frequently Do not download data from unknown sources o Flash drives, disks, Web sites Delete (without opening) e-mail from unknown source Warn people if you get a virus o Your department o People on e-mail list

35. 6-35 Audit Control Software Keeps track of computer activity Spots suspicious action Audit trail o Record of users o Record of activities IT department needs to monitor this activity

36. 6-36 Other Technological Safeguards Backups o Secondary storage devices o Regular intervals Closed-circuit television (CCTV) o Monitoring for physical intruders o Video cameras display and record all activity o Digital video recording Uninterruptible power supply (UPS) o Protection against power surges

37. 6-37 Human Safeguards Use of federal and state laws as well as ethics

38. 6-38 Learning Objectives

39. 6-39 Managing Information Systems Security Non-technical safeguards o Management of people’s use of IS Acceptable use policies o Trustworthy employees o Well-treated employees

40. 6-40 Developing an Information Systems Security Plan Ongoing five-step process 1. Risk analysis a.Determine value of electronic information b.Assess threats to confidentiality, integrity and availability of information c.Identify most vulnerable computer operations d.Assess current security policies e.Recommend changes to existing practices to improve computer security

41. 6-41 Security Plan: Step 2 2. Policies and procedures – actions to be taken if security is breached a.Information policy – handling of sensitive information b.Security policy – technical controls on organizational computers c.Use policy – appropriate use of in-house IS d.Backup policy e.Account management policy – procedures for adding new users f.Incident handling procedures – handling security breach g.Disaster recovery plan – restoration of computer operations

42. 6-42 Security Plan: Remaining Steps 3. Implementation a.Implementation of network security hardware and software b.IDs and smart cards dissemination c.Responsibilities of the IS department 4. Training – organization’s personnel 5. Auditing a.Assessment of policy adherence b.Penetration tests

43. 6-43 Responding to a Security Breach 1988 – Computer Emergency Response Team (CERT) o Started after Morris worm disabled 10% of all computers connected to the Internet Computer Security Division (CSD) o Raising of awareness of IT risks o Research and advising about IT vulnerabilities o Development of standards o Development of guidelines to increase secure IT planning, implementation, management and operation

44. 6-44 The State of Systems Security Management Financial losses of cybercrime are decreasing o Computer virus attacks result in the greatest financial losses o Only about 25% of organizations utilize cyberinsurance o Only about 20% of organizations report intrusions to the law enforcement Fear of falling stock prices o Most organizations do not outsource security activities o 90% of organizations conduct routine security audits o Most organizations agree security training is important Majority said they do not do enough of training

45. 6-45 Use of Security Technologies CSI/FBI computer crime and security survey respondents (2006)

46. End of Chapter Content 6-46

47. 6-47 Opening Case: Managing in the Digital World: Drive-by-Hacking 60 - 80 % of corporate wireless networks do not use security “War driving” – a new hacker tactic o Driving around densely populated areas “War spamming” o Attackers link to an e-mail server and send out millions of spam messages o Companies pay millions in bandwidth fees Businesses fight back using bogus access points o FakeAP Network scanners distinguish between real and fake APs o Netstumbler Fast Packet Keying – to fix shortcomings of WEP

48. 6-48 Spyware Lurks on Most PCs Webroot o Producer of software to scan and eliminate spyware Webroot company data o 66% of scanned PCs infected with at least 25 spyware programs o Incidents of spyware slightly decreasing

49. 6-49 To Cookie or Not to Cookie Cookies collected by companies to get data about customers o Footprints that marketers can trace o Sometimes sold to other companies Web browsers can protect against accepting cookies o Constant pop-ups o Some sites will not work properly o Customized information will not be available National Security Agency (NSA)

50. 6-50 Anne Mulcahy, CEO and Chairman, Xerox Corporation 1974 – B.A. in English and journalism 1976 – joined Xerox 2002 – promoted to CEO o Xerox in 2002 $17 billion debt o Xerox under Mulcahy First time profitable in years Cut expenses by $1.7 billion Sold non-core assets for $2.3 billion

51. 6-51 Voiceprint 1976 case – State of Maine v. Thomas Williams o Bomb threat o Voiceprint used for conviction of terrorism Each individual has unique voice characteristics 1967-2006 – more than 5,000 law enforcement voice identification cases Spectrogram – visual inspection of waves o Voiceprints used for access authorization

52. 6-52 Is Big Brother Watching You Employers can use equipment to o Read your email o Monitor Web-surfing behavior o Collect keystrokes o Follow the movement of employees RFID and GPS Companies have rights to collect almost any information about employees while on the job

53. 6-53 Backhoe Cyber Threat Telecommunications infrastructure is vulnerable o Damage to telephone lines, fiber-optic cables, water lines, gas pipelines 675,000 incidents in 1 year o Infrastructure information publicly available o Most of Internet communication goes through cables buried along major highways and railroads Only two major routes across US for Internet traffic

54. 6-54 Banking Industry In the past – highly regulated industry o Banks limited to certain locations and services o Efforts to make banks safer o Regulations prevented banks from competition 1970 to present – many regulations eliminated o Acquisitions, consolidations and integration across state lines o Better customer service at lower prices o Benefits to overall economy Internet era o Customers assess banks based on online banking services