1. Chapter 13 Security and Ethical Challenges James A. O'Brien, and George Marakas. Management Information Systems with MISource 2007, 8 th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091

2. Learning Objectives Identify several ethical issues in how the use of information technologies in business affects: employment, individuality, working conditions, Privacy, crime, health, and solutions to societal problems Identify several types of security management strategies and defenses, and explain how they can be used to ensure the security of business applications of information technology Propose several ways that business managers and professionals can help to lessen the harmful effects and increase the beneficial effects of the use of IT 2Chapter 13 Security and Ethical Challenges

3. Case 1 Cyberscams and Cybercriminals Cyberscams 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 3Chapter 13 Security and Ethical Challenges

4. Case Study Questions What are several reasons why “cyberscams are today’s fastest-growing criminal niche”?  Explain why the reasons you give contribute to the growth of cyberscams What are several security measures that could be implemented to combat the spread of cyberscams?  Explain why your suggestions would be effective in limiting the spread of cyberscams Which one or two of the four top cybercriminals described in this case poses the greatest threat to businesses? To consumers?  Explain the reasons for your choices, and how businesses and consumers can protect themselves from these cyberscammers 4Chapter 13 Security and Ethical Challenges

5. IT Security, Ethics, and Society 5Chapter 13 Security and Ethical Challenges IT has both beneficial and detrimental effects on society and people  Manage work activities to minimize the detrimental effects of IT  Optimize the beneficial effects

6. Business Ethics Ethics questions that managers confront as part of their daily business decision making include:  Equity  Rights  Honesty  Exercise of corporate power 6Chapter 13 Security and Ethical Challenges

7. Categories of Ethical Business Issues 7Chapter 13 Security and Ethical Challenges

8. Corporate Social Responsibility Theories Stockholder Theory  Managers are agents of the stockholders  Their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices Social Contract Theory  Companies have ethical responsibilities to all members of society, who allow corporations to exist Stakeholder Theory  Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders  Stakeholders are all individuals and groups that have a stake in, or claim on, a company 8Chapter 13 Security and Ethical Challenges

9. Principles of Technology Ethics Proportionality - The good achieved by the technology must outweigh the harm or risk; there must be no alternative that achieves the same or comparable benefits with less harm or risk Informed Consent - Those affected by the technology should understand and accept the risks Justice  The benefits and burdens of the technology should be distributed fairly  Those who benefit should bear their fair share of the risks, and those who do not benefit should not suffer a significant increase in risk Minimized Risk - Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk 9Chapter 13 Security and Ethical Challenges

10. AITP Standards of Professional Conduct 10Chapter 13 Security and Ethical Challenges

11. 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 11Chapter 13 Security and Ethical Challenges

12. Computer Crime Computer crime includes  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 12Chapter 13 Security and Ethical Challenges

13. Cybercrime Protection Measures 13Chapter 13 Security and Ethical Challenges

14. Hacking Hacking is  The obsessive use of computers  The unauthorized access and use of networked computer systems Electronic 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 the vulnerabilities found for private advantage 14Chapter 13 Security and Ethical Challenges

15. Common Hacking Tactics Denial of Service  Hammering a website’s equipment with too many requests for information  Clogging the system, slowing performance, or crashing the site Scans  Widespread probes of the Internet to determine types of computers, services, and connections  Looking for weaknesses Sniffer  Programs that search individual packets of data as they pass through the Internet  Capturing passwords or entire contents Spoofing  Faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers 15Chapter 13 Security and Ethical Challenges

16. Common Hacking Tactics Trojan House  A program that, unknown to the user, contains instructions that exploit a known vulnerability in some software Back Doors  A hidden point of entry to be used in case the original entry point is detected or blocked Malicious Applets  Tiny Java programs that misuse your computer’s resources, modify files on the hard disk, send fake email, or steal passwords War Dialing  Programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection Logic Bombs  An instruction in a computer program that triggers a malicious act 16Chapter 13 Security and Ethical Challenges

17. Common Hacking Tactics Buffer Overflow  Crashing or gaining control of a computer by sending too much data to buffer memory Password Crackers  Software that can guess passwords Social Engineering  Gaining access to computer systems by talking unsuspecting company employees out of valuable information, such as passwords Dumpster Diving  Sifting through a company’s garbage to find information to help break into their computers 17Chapter 13 Security and Ethical Challenges

18. Cyber Theft Many computer crimes involve the theft of money The majority are “inside jobs” that involve unauthorized network entry and alternation of computer 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 cybercrime 18Chapter 13 Security and Ethical Challenges

19. 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 the Internet or company networks Sniffers  Used to monitor network traffic or capacity  Find evidence of improper use 19Chapter 13 Security and Ethical Challenges

20. Internet Abuses in the Workplace  General email abuses  Unauthorized usage and access  Copyright infringement/plagiarism  Newsgroup postings  Transmission of confidential data  Pornography  Hacking  Non-work-related download/upload  Leisure use of the Internet  Use of external ISPs  Moonlighting 20Chapter 13 Security and Ethical Challenges

21. 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 21 A third of the software industry’s revenues are lost to piracy Chapter 13 Security and Ethical Challenges

22. Theft of Intellectual Property Intellectual Property  Copyrighted material  Includes such things as 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 22Chapter 13 Security and Ethical Challenges

23. Viruses and Worms A virus is a program that cannot work without being inserted into another program  A worm 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  Email and file attachments  Disks from contaminated computers  Shareware 23Chapter 13 Security and Ethical Challenges

24. Top Five Virus Families of all Time My Doom, 2004  Spread via email and over Kazaa file-sharing network  Installs a back door on infected computers  Infected email 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, a copy of Notepad is opened, filled with nonsense characters Netsky, 2004  Mass-mailing worm that spreads by emailing itself to all email addresses found on infected computers  Tries to spread via peer-to-peer file sharing by copying itself into the shared folder  It renames itself to pose as one of 26 other common files along the way 24Chapter 13 Security and Ethical Challenges

25. Top Five Virus Families of all Time SoBig, 2004  Mass-mailing email worm that arrives as an attachment Examples: Movie_0074.mpg.pif, Document003.pif  Scans all.WAB,.WBX,.HTML,.EML, and.TXT files looking for email addresses to which it can send itself  Also attempts to download updates for itself Klez, 2002  A mass-mailing email 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 25Chapter 13 Security and Ethical Challenges

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 26Chapter 13 Security and Ethical Challenges

27. The Cost of Viruses, Trojans, Worms Cost of the top five virus families  Nearly 115 million computers in 200 countries were infected in 2004  Up to 11 million computers are believed to be permanently infected  In 2004, total economic damage from virus proliferation was $166 to $202 billion  Average damage per computer is between $277 and $366 27Chapter 13 Security and Ethical Challenges

28. Adware and Spyware Adware  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 users Spyware  Adware that uses an Internet connection in the background, without the user’s permission or knowledge  Captures information about the user and sends it over the Internet 28Chapter 13 Security and Ethical Challenges

29. Spyware Problems Spyware can steal private information and also  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 Removal programs are often not completely successful in eliminating spyware 29Chapter 13 Security and Ethical Challenges

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 30Chapter 13 Security and Ethical Challenges

31. Opt-in Versus Opt-out Opt-In  You explicitly consent to allow data to be compiled about you  This is the default in Europe Opt-Out  Data can be compiled about you unless you specifically request it not be  This is the default in the U.S. 31Chapter 13 Security and Ethical Challenges

32. Privacy Issues Violation of Privacy  Accessing individuals’ private email 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 Computer Matching  Using customer information gained from many sources to market additional business services Unauthorized Access of Personal Files  Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles 32Chapter 13 Security and Ethical Challenges

33. Protecting Your Privacy on the Internet There are multiple ways to protect your privacy  Encrypt email  Send newsgroup postings through anonymous remailers  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 33Chapter 13 Security and Ethical Challenges

34. 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-related 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 Other laws impacting privacy and how much a company spends on compliance  Sarbanes-Oxley  Health Insurance Portability and Accountability Act (HIPAA)  Gramm-Leach-Bliley  USA Patriot Act  California Security Breach Law  Securities and Exchange Commission rule 17a-4 34Chapter 13 Security and Ethical Challenges

35. Computer Libel and Censorship The opposite side of the privacy debate…  Freedom of information, speech, and press Biggest battlegrounds - bulletin boards, email boxes, and online files of Internet and public networks Weapons used in this battle – spamming, flame mail, libel laws, and censorship Spamming - Indiscriminate sending of unsolicited email messages to many Internet users Flaming  Sending extremely critical, derogatory, and often vulgar email messages or newsgroup posting to other users on the Internet or online services  Especially prevalent on special-interest newsgroups 35Chapter 13 Security and Ethical Challenges

36. Cyberlaw Laws intended to regulate activities over the Internet or via electronic communication devices  Encompasses a wide variety of legal and political issues  Includes intellectual property, privacy, freedom of expression, and jurisdiction 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 36Chapter 13 Security and Ethical Challenges

37. Other Challenges Employment  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 because 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 Working Conditions  IT has eliminated monotonous or obnoxious tasks  However, 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 37Chapter 13 Security and Ethical Challenges

38. 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 38Chapter 13 Security and Ethical Challenges

39. Ergonomics Designing healthy work environments  Safe, comfortable, and pleasant for people to work in  Increases employee morale and productivity  Also called human factors engineering 39Chapter 13 Security and Ethical Challenges Ergonomics Factors

40. Societal Solutions Using information technologies to solve human and social problems  Medical diagnosis  Computer-assisted instruction  Governmental program planning  Environmental quality control  Law enforcement  Job placement The detrimental effects of IT  Often caused by individuals or organizations not accepting ethical responsibility for their actions 40Chapter 13 Security and Ethical Challenges

41. 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 41Chapter 13 Security and Ethical Challenges

42. Case 2 Data Security Failures Security Breach Headlines  Identity thieves stole information on 145,000 people from ChoicePoint  Bank of America lost backup tapes that held data on over 1 million credit card holders  DSW had its stores’ credit card data breached; over 1 million had been accessed Corporate America is finally owning up to a long- held secret  It can’t safeguard its most valuable data 42Chapter 13 Security and Ethical Challenges

43. Case Study Questions Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies? What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources like the incident at Lowe’s? What security safeguards would have deterred the loss of customer data at  TCI  Bank of America  ChoicePoint? 43Chapter 13 Security and Ethical Challenges

44. Security Management The goal of security management is the accuracy, integrity, and safety of all information system processes and resources 44Chapter 13 Security and Ethical Challenges

45. 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 45Chapter 13 Security and Ethical Challenges

46. Public/Private Key Encryption 46Chapter 13 Security and Ethical Challenges

47. Internetworked Security Defenses Firewalls  A 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 cannot prevent it 47Chapter 13 Security and Ethical Challenges

48. Internet and Intranet Firewalls 48Chapter 13 Security and Ethical Challenges

49. Denial of Service Attacks Denial of service attacks depend on three layers of networked computer systems  The victim’s website  The victim’s Internet service provider  Zombie or slave computers that have been commandeered by the cybercriminals 49Chapter 13 Security and Ethical Challenges

50. Defending Against Denial of Service At Zombie Machines  Set and enforce security policies  Scan for vulnerabilities At the ISP  Monitor and block traffic spikes At the Victim’s Website  Create backup servers and network connections 50Chapter 13 Security and Ethical Challenges

51. Internetworked Security Defenses Email Monitoring  Use of content monitoring software that scans for troublesome words that might compromise corporate security 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 51Chapter 13 Security and Ethical Challenges

52. 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 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 recovery organization 52Chapter 13 Security and Ethical Challenges

53. Other Security Measures In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software that provide  Fail-over capability: shifts to back up components  Fail-save capability: the system continues to operate at the same level  Fail-soft capability: the system continues to operate at a reduced but acceptable level 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 53Chapter 13 Security and Ethical Challenges

54. Information System Controls Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities 54Chapter 13 Security and Ethical Challenges

55. 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 55Chapter 13 Security and Ethical Challenges

56. Protecting Yourself from Cybercrime 56Chapter 13 Security and Ethical Challenges

57. Case 3 Managing Information Security OCTAVE Security Process Methodology  Risk Evaluation Self-direction by people in the organization Adaptable measures that can change with technology A defined process and standard evaluation procedures A foundation for a continual process that improves security over time  Risk Management A forward-looking view A focus on a “critical few” security issues Integrated management of security policies and strategies 57Chapter 13 Security and Ethical Challenges

58. Case 3 Managing Information Security  Organizational and Cultural Open communication of risk information and activities build around collaboration A global perspective on risk in the context of the organization’s mission and business objectives Teamwork 58Chapter 13 Security and Ethical Challenges

59. Case Study Questions What are security managers doing to improve information security? How does the OCTAVE methodology work to improve security in organizations? What does Lloyd Hession mean when he says information security is “not addressed simply by the firewalls and antivirus tools that are already in place”? 59Chapter 13 Security and Ethical Challenges

60. Case 4 Maintaining Software Security Security professionals have 7 to 21 days before hacker’s tools used to exploit the most recent vulnerabilities become available on the Internet  Microsoft’s monthly patch-release date is known as “Patch Tuesday”  Security software companies go to work immediately to update their products  Update must be thoroughly tested before being deployed 60Chapter 13 Security and Ethical Challenges

61. Case Study Questions What types of security problems are typically addressed by a patch-management strategy?  Why do such problems arise in the first place? What challenges does the process of applying software patches and updates pose for many businesses?  What are the limitations of the patching process? Does the business value of a comprehensive patch-management strategy outweigh its costs, its limitations, and the demands it placed on the IT function? 61Chapter 13 Security and Ethical Challenges