1. ELC 200 Day 9 Copyright © 2007 Pearson Education, Inc.

2. Agenda Questions? Begin Online Security and payment systems
Assignment 2 corrected
12 A’s, 1 B and 2 C’s
Assignment 3 posted
Due October 11:05
Assignment 4 will be posted later today
Due October 18
Exam 1 covering chaps 1-5 will be on Thursday October 14
20 M/C, 4-5 short essay and one extra credit question
Extra Credit is about the infamous hacker MafiaBoy
On Blackboard
Open book, open notes

3. Chapter 5 Online Security and Payment Systems
Copyright © 2009 Pearson Education, Inc.
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4. CYBER Warfare Russia – Estonia Cyber war Twitter DDoS Korean DDoS
Taught at US Military academies
bh-fed-03-dodge.pdf
iwar_wise.pdf /
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5. Cyberwar Becomes a Reality Class Discussion
What is a DDoS attack?
What are botnets? Why are they used in DDoS attacks?
What percentage of computers belong to botnets? What percentage of spam is sent by botnets?
Can anything be done to stop DDoS attacks?
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6. DDOS http://www.cs3-inc.com/pk_whatisddos.html
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7. The E-commerce Security Environment
Overall size and losses of cybercrime unclear
Reporting issues
2008 CSI survey: 49% respondent firms detected security breach in last year
Of those that shared numbers, average loss $288,000
Underground economy marketplace
Stolen information stored on underground economy servers
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8. Copyright © 2010 Pearson Education, Inc.

9. Types of Attacks Against Computer Systems (Cybercrime)
Figure 5.1, Page 267
Source: Based on data from Computer Security Institute, 2009.
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10. What Is Good E-commerce Security?
To achieve highest degree of security
New technologies
Organizational policies and procedures
Industry standards and government laws
Other factors
Time value of Information
Cost of security vs. potential loss
Security often breaks at weakest link
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11. The E-commerce Security Environment
Figure 5.2, Page 270
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12. Table 5.2, Page 271
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13. General Security Issues at E-Commerce Sites
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14. The Tension Between Security and Other Values
Security vs. ease of use
The more security measures added, the more difficult a site is to use, and the slower it becomes
Security vs. desire of individuals to act anonymously
Use of technology by criminals to plan crimes or threaten nation-state
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15. Security Threats in the E-commerce Environment
Three key points of vulnerability:
Client
Server
Communications pipeline
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16. A Typical E-commerce Transaction
SOURCE: Boncella, 2000.
Figure 5.3, Page 273
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17. Vulnerable Points in an E-commerce Environment
SOURCE: Boncella, 2000.
Figure 5.4, Page 274
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18. Snoop and Sniff
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19. Most Common Security Threats in the E-commerce Environment
Malicious code
Viruses
Worms
Trojan horses
Bots, botnets
Unwanted programs
Browser parasites
Adware
Spyware
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20. Most Common Security Threats
Phishing
Deceptive online attempt to obtain confidential information
Social engineering, scams, spoofing legitimate Web sites
Use information to commit fraudulent acts (access checking accounts), steal identity
Hacking and cybervandalism
Hackers vs. crackers
Cybervandalism: intentionally disrupting, defacing, destroying Web site
Types of hackers: white hats, black hats, grey hats
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21. The Players: Hackers, Crackers, and Other Attackers
Original hackers created the Unix operating system and helped build the Internet, Usenet, and World Wide Web; and, used their skills to test the strength and integrity of computer systems
Over time, the term hacker came to be applied to rogue programmers who illegally break into computers and networks
Hacker underground
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22. The Players: Hackers, Crackers, and Other Attackers (cont.)
Uber Haxor
Wizard Internet Hackers
Highly capable attackers
Responsible for writing most of the attacker tools
Crackers
People who engage in unlawful or damaging hacking short for “criminal hackers”
Other attackers
“Script kiddies” are ego-driven, unskilled crackers who use information and software (scripts) that they download from the Internet to inflict damage on targeted sites
Scorned by both the Law enforcement and Hackers communities
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23. Script Kiddies
script kiddies: pl.n.
1. [very common] The lowest form of cracker; script kiddies do mischief with scripts and rootkits written by others, often without understanding the exploit they are using. Used of people with limited technical expertise using easy-to-operate, pre-configured, and/or automated tools to conduct disruptive activities against networked systems. Since most of these tools are fairly well-known by the security community, the adverse impact of such actions is usually minimal.
2. People who cannot program, but who create tacky HTML pages by copying JavaScript routines from other tacky HTML pages. More generally, a script kiddie writes (or more likely cuts and pastes) code without either having or desiring to have a mental model of what the code does; someone who thinks of code as magical incantations and asks only “what do I need to type to make this happen?”
Source:
More info:
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24. How Hackers Hack Many Techniques Social Engineering Cracking
Get someone to give you their password
Cracking
Guessing passwords
A six letter password (no caps)
> 300 million possibilities
Merriam-Webster's citation files, which were begun in the 1880s, now contain 15.7 million examples of words used in context and cover all aspects of the English vocabulary.
Buffer Overflows
Getting code to run on other PCs
Load a Trojan or BackDoor
Snoop and Sniff
Steal data
Denial of Service (DOS)
Crash or cripple a Computer from another computer
Distributed Denial of Service (DDOS)
Crash or cripple a Computer from multiple distributed computers
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25. Maine’s Anti-Hacker laws
§432. Criminal invasion of computer privacy      1. A person is guilty of criminal invasion of computer privacy if the person intentionally accesses any computer resource knowing that the person is not authorized to do so. [1989, c. 620 (new).]      2. Criminal invasion of computer privacy is a Class D crime. [1989, c. 620 (new).]
§433. Aggravated criminal invasion of computer privacy
1. A person is guilty of aggravated criminal invasion of computer privacy if the person:    A. Intentionally makes an unauthorized copy of any computer program, computer software or computer information, knowing that the person is not authorized to do so;  [1989, c. 620 (new).]   B. Intentionally or knowingly damages any computer resource of another person, having no reasonable ground to believe that the person has the right to do so; or  [1989, c. 620 (new).]   C. Intentionally or knowingly introduces or allows the introduction of a computer virus into any computer resource, having no reasonable ground to believe that the person has the right to do so.  [1989, c. 620 (new).][1989, c. 620 (new).]     
2. Aggravated criminal invasion of computer privacy is a Class C crime. [1989, c. 620 (new).]
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26. Most Common Security Threats
Credit card fraud/theft
Fear of stolen credit card information deters online purchases
Hackers target merchant servers; use data to establish credit under false identity
Online companies at higher risk than offline
Hannaford hack
Spoofing: misrepresenting self by using fake address or other form of identification
Pharming: spoofing a Web site
Redirecting a Web link to a new, fake Web site
Spam/junk Web sites
Splogs
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27. Most Common Security Threats
Denial of service (DoS) attack
Hackers flood site with useless traffic to overwhelm network
Distributed denial of service (DDoS) attack
Hackers use multiple computers to attack target network
Sniffing
Eavesdropping program that monitors information traveling over a network
Insider jobs
Single largest financial threat
Poorly designed server and client software
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28. Spyware Software that sits on your computer
Monitors everything that you do and sends out reports to Marketing agencies
Usually ties to a POP-UP server
Top Spyware
I-Look Up
CoolWebSearch
N-CASE
GATOR
DoubleClick
If you have ever loaded up ICQ Loaded on your PC you have Spyware
If you have ever had KAZAA loaded on your PC you have Spyware
If you have loaded Quicken or TurboTax you have Spyware
C-Dilla
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29. Spyware infestation. Taken by Brandon Waddell.
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30. The Virus: Computer Enemy Number One
Most serious attack on a client computer or a server in an Internet environment is the virus
A virus is a malicious code that replicates itself and can be used to disrupt the information infrastructure
Viruses commonly compromise system integrity, circumvent security capabilities, and cause adverse operation by taking advantage of the information system of the network
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31. Types of Viruses File virus is one that attacks executable files
Boot virus attacks the boot sectors of the hard drive and diskettes
Macro virus exploits the macro commands in software applications such as Microsoft Word
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32. Levels of Virus Damage
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33. Steps for Antivirus Strategy
Establish a set of simple enforceable rules for others to follow
Educate and train users on how to check for viruses on a disk
Inform users of the existing and potential threats to the company’s systems and the sensitivity of information they contain
Periodically update the latest antivirus software
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34. Getting Rid of Viruses Anti-Vir Avast AVG Norton AntiVirus MacAfee
Get a good Virus Projection Software
Free (not Recommended)
Anti-Vir
Avast
AVG
Not Free
Norton AntiVirus
MacAfee
Free for UMFK students and staff
Update definition files often
© 2007 Prentice-Hall, Inc

35. Spyware Solutions
Enforce strict user Web policies on surfing and downloading activities
Install a desktop firewall on every laptop and desktop -
Do not give users administrator privileges
Configure an gateway to block all executable attachments
Ensure desktop antivirus software signatures are up to date -
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36. Tools Available to Achieve Site Security
Figure 5.7, Page 287
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37. Encryption Encryption
Transforms data into cipher text readable only by sender and receiver
Secures stored information and information transmission
Provides 4 of 6 key dimensions of e-commerce security:
Message integrity
Nonrepudiation
Authentication
Confidentiality
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38. Symmetric Key Encryption
Sender and receiver use same digital key to encrypt and decrypt message
Requires different set of keys for each transaction
Strength of encryption
Length of binary key used to encrypt data
Advanced Encryption Standard (AES)
Most widely used symmetric key encryption
Uses 128-, 192-, and 256-bit encryption keys
Other standards use keys with up to 2,048 bits
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39. Public Key Encryption Uses two mathematically related digital keys
Public key (widely disseminated)
Private key (kept secret by owner)
Both keys used to encrypt and decrypt message
Once key used to encrypt message, same key cannot be used to decrypt message
Sender uses recipient’s public key to encrypt message; recipient uses his/her private key to decrypt it
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40. Public Key Cryptography—A Simple Case
Figure 5.8, Page 290
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41. Public Key Encryption Using Digital Signatures and Hash Digests
Hash function:
Mathematical algorithm that produces fixed-length number called message or hash digest
Hash digest of message sent to recipient along with message to verify integrity
Hash digest and message encrypted with recipient’s public key
Entire cipher text then encrypted with recipient’s private key—creating digital signature—for authenticity, nonrepudiation
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42. Public Key Cryptography with Digital Signatures
Figure 5.9, Page 291
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43. Digital Envelopes Addresses weaknesses of:
Public key encryption
Computationally slow, decreased transmission speed, increased processing time
Symmetric key encryption
Insecure transmission lines
Uses symmetric key encryption to encrypt document
Uses public key encryption to encrypt and send symmetric key
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44. Creating a Digital Envelope
Figure 5.10, Page 293
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45. Digital Certificates and Public Key Infrastructure (PKI)
Digital certificate includes:
Name of subject/company
Subject’s public key
Digital certificate serial number
Expiration date, issuance date
Digital signature of certification authority (trusted third party institution) that issues certificate
Public Key Infrastructure (PKI):
CAs and digital certificate procedures that are accepted by all parties
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46. Digital Certificates and Certification Authorities
Figure 5.11, Page 294
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47. Limits to Encryption Solutions
Doesn’t protect storage of private key
PKI not effective against insiders, employees
Protection of private keys by individuals may be haphazard
No guarantee that verifying computer of merchant is secure
CAs are unregulated, self-selecting organizations
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48. Insight on Society In Pursuit of E-mail Security Class Discussion
What are some of the current risks and problems with using ?
What are some of the technology solutions that have been developed?
Are these solutions compatible with modern law?
Consider the benefits of a thorough business record retention policy. Do you agree that these benefits are worth giving up some control of your ?
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49. Securing Channels of Communication
Secure Sockets Layer (SSL):
Establishes a secure, negotiated client-server session in which URL of requested document, along with contents, is encrypted
S-HTTP:
Provides a secure message-oriented communications protocol designed for use in conjunction with HTTP
Virtual Private Network (VPN):
Allows remote users to securely access internal network via the Internet, using Point-to-Point Tunneling Protocol (PPTP)
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50. Secure Negotiated Sessions Using SSL
Figure 5.12, Page 298
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51. Proxy servers (proxies)
Protecting Networks
Firewall
Hardware or software that filters packets
Prevents some packets from entering the network based on security policy
Two main methods:
Packet filters
Application gateways
Proxy servers (proxies)
Software servers that handle all communications originating from or being sent to the Internet
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52. Firewalls and Proxy Servers
Figure 5.13, Page 301
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53. Protecting Servers and Clients
Operating system security enhancements
Upgrades, patches
Anti-virus software
Easiest and least expensive way to prevent threats to system integrity
Requires daily updates
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54. Management Policies, Business Procedures, and Public Laws
U.S. firms and organizations spend 12% of IT budget on security hardware, software, services ($120 billion in 2009)
Managing risk includes
Technology
Effective management policies
Public laws and active enforcement
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55. A Security Plan: Management Policies
Risk assessment
Security policy
Implementation plan
Security organization
Access controls
Authentication procedures, including biometrics
Authorization policies, authorization management systems
Security audit
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56. Developing an E-commerce Security Plan
Figure 5.14, Page 303
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57. What is LOCKSS? What are the advantages and disadvantages to LOCKSS?
Insight on Technology Securing Your Information: Cleversafe Hippie Storage Class Discussion
What is LOCKSS? What are the advantages and disadvantages to LOCKSS?
How is Cleversafe’s storage method different? How does it work?
Why is it accurate to say that Cleversafe’s method is “green” or “hippie storage”?
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58. The Role of Laws and Public Policy
Laws that give authorities tools for identifying, tracing, prosecuting cybercriminals:
National Information Infrastructure Protection Act of 1996
USA Patriot Act
Homeland Security Act
Private and private–public cooperation
CERT Coordination Center
US-CERT
Government policies and controls on encryption software
OECD guidelines
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59. Types of Payment Systems
Cash
Most common form of payment in terms of number of transactions
Instantly convertible into other forms of value without intermediation
Checking transfer
Second most common payment form in the United States in terms of number of transactions
Credit card
Credit card associations
Issuing banks
Processing centers
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60. Types of Payment Systems
Stored Value
Funds deposited into account, from which funds are paid out or withdrawn as needed, e.g., debit cards, gift certificates
Peer-to-peer payment systems
Accumulating Balance
Accounts that accumulate expenditures and to which consumers make period payments
E.g., utility, phone, American Express accounts
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61. Table 5.6, Page 312 Source: Adapted from MacKie-Mason and White, 1996.
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62. E-commerce Payment Systems
Credit cards
55% of online payments in 2009
Debit cards
28% of online payments in 2009
Limitations of online credit card payment
Security
Cost
Social equity
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63. How an Online Credit Transaction Works
Figure 5.16, Page 315
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64. E-commerce Payment Systems
Digital wallets
Emulates functionality of wallet by authenticating consumer, storing and transferring value, and securing payment process from consumer to merchant
Early efforts to popularize failed
Newest effort: Google Checkout
Digital cash
Value storage and exchange using tokens
Most early examples have disappeared; protocols and practices too complex
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65. E-commerce Payment Systems
Online stored value systems
Based on value stored in a consumer’s bank, checking, or credit card account
PayPal, smart cards
Digital accumulated balance payment
Users accumulate a debit balance for which they are billed at the end of the month
Digital checking:
Extends functionality of existing checking accounts for use online
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66. Wireless Payment Systems
Use of mobile handsets as payment devices well- established in Europe, Japan, South Korea
Japanese mobile payment systems
E-money (stored value)
Mobile debit cards
Mobile credit cards
Not as well established yet in the United States
Majority of purchases are digital content for use on cell phone
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67. How has PayPal responded?
Insight on Business Mobile Payment’s Future: Wavepayme, Textpayme Group Discussion
What technologies make mobile payment more feasible now than in the past?
Describe some new experiments that are helping to develop mobile payment systems.
How has PayPal responded?
Why haven’t mobile payment systems grown faster? What factors will spur their growth?
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68. Electronic Billing Presentment and Payment (EBPP)
Online payment systems for monthly bills
40% + of households in 2009 used some EBPP; expected to grow significantly
Two competing EBPP business models:
Biller-direct (dominant model)
Consolidator
Both models are supported by EBPP infrastructure providers
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69. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc.