Security and Ethical Challenges

Chapter 13 Security and Ethical Challenges

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

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

Case 1 Cyberscams and Cybercriminals Cyberscams are today’s fastest-growing

criminal niche87 percent of companies surveyed reported

a security incidentThe U.S. Federal Trade Commission says

identity theft is its top complainteBay has 60 people combating fraud;

Microsoft has 65Stolen credit card account numbers are

regularly sold online3Chapter 13 Security and Ethical Challenges

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


IT Security, Ethics, and Society


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

Business Ethics Ethics questions that managers confront as part

of their daily business decision making include:EquityRightsHonestyExercise of corporate power


Categories of Ethical Business Issues


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


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


AITP Standards of Professional Conduct


Responsible Professional Guidelines A responsible professional

Acts with integrity Increases personal competenceSets high standards of personal performanceAccepts responsibility for his/her workAdvances the health, privacy, and general

welfare of the public


Computer Crime Computer crime includes

Unauthorized use, access, modification, or destruction of hardware, software, data, or network resources

The unauthorized release of informationThe unauthorized copying of softwareDenying an end user access to his/her own

hardware, software, data, or network resourcesUsing or conspiring to use computer or

network resources illegally to obtain information or tangible property


Cybercrime Protection Measures


Hacking Hacking is

The obsessive use of computersThe 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

CrackerA malicious or criminal hacker who maintains

knowledge of the vulnerabilities found for private advantage


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


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


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


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


Unauthorized Use at Work Unauthorized use of computer systems and

networks is time and resource theftDoing private consultingDoing personal financesPlaying video gamesUnauthorized use of the Internet or company

networks Sniffers

Used to monitor network traffic or capacityFind evidence of improper use


Internet Abuses in the WorkplaceGeneral email abusesUnauthorized usage and accessCopyright infringement/plagiarismNewsgroup postingsTransmission of confidential dataPornographyHackingNon-work-related download/uploadLeisure use of the InternetUse of external ISPsMoonlighting


Software Piracy 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

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A third of the software industry’s revenues are

lost to piracy

Chapter 13 Security and Ethical Challenges

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


Viruses and Worms A virus is a program that cannot work without

being inserted into another programA worm can run unaided

These programs copy annoying or destructive routines into networked computersCopy routines spread the virus

Commonly transmitted throughThe Internet and online servicesEmail and file attachmentsDisks from contaminated computersShareware


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


Top Five Virus Families of all Time SoBig, 2004

Mass-mailing email worm that arrives asan 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


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


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


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

SpywareAdware 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


Spyware Problems Spyware can steal private information and also

Add advertising links to Web pagesRedirect affiliate paymentsChange a users home page and search settingsMake a modem randomly call premium-rate

phone numbersLeave security holes that let Trojans inDegrade system performance

Removal programs are often not completely successful in eliminating spyware


Privacy Issues The power of information technology to store

and retrieve information can have a negative effect on every individual’s right to privacyPersonal information is collected with every

visit to a Web siteConfidential information stored by credit

bureaus, credit card companies, and the government has been stolen or misused


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.


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


Protecting Your Privacy on the Internet There are multiple ways to protect your privacy

Encrypt emailSend newsgroup postings through

anonymous remailersAsk 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


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


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


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


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 systems37Chapter 13 Security and Ethical Challenges

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 SyndromePainful, crippling ailment of the hand

and wristTypically requires surgery to cure


Ergonomics Designing healthy

work environments Safe, comfortable,

and pleasant for people to work in

Increases employee morale and productivity

Also called human factors engineering


Ergonomics Factors

Societal Solutions Using information technologies to solve human

and social problemsMedical diagnosisComputer-assisted instructionGovernmental program planningEnvironmental quality controlLaw enforcementJob placement

The detrimental effects of ITOften caused by individuals or organizations

not accepting ethical responsibility for their actions


Security Management of IT The Internet was developed for inter-operability,

not impenetrabilityBusiness 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


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


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?


Security Management

The goal of securitymanagement is the accuracy, integrity, and safety of allinformation system processes and resources


Internetworked Security Defenses Encryption

Data is transmitted in scrambled form It is unscrambled by computer systems for

authorized users onlyThe most widely used method uses a pair of

public and private keys unique to each individual


Public/Private Key Encryption


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


Internet and Intranet Firewalls


Denial of Service Attacks Denial of service attacks depend on three

layers of networked computer systemsThe victim’s websiteThe victim’s Internet service providerZombie or slave computers that have been

commandeered by the cybercriminals


Defending Against Denial of Service At Zombie Machines

Set and enforce security policiesScan for vulnerabilities

At the ISPMonitor and block traffic spikes

At the Victim’s WebsiteCreate backup servers and network

connections


Internetworked Security Defenses Email Monitoring

Use of content monitoring software that scans

for troublesome words that might compromise corporate security

Virus DefensesCentralize the updating and distribution of

antivirus softwareUse a security suite that integrates virus

protection with firewalls, Web security, and content blocking features


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


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


Information System Controls

Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities


Auditing IT Security

IT Security AuditsPerformed by internal or external auditorsReview and evaluation of security measures

and management policiesGoal is to ensure that that proper and

adequate measures and policies are in place


Protecting Yourself from Cybercrime


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

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


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”?


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 InternetMicrosoft’s monthly patch-release date is

known as “Patch Tuesday”Security software companies go to work

immediately to update their productsUpdate must be thoroughly tested before

being deployed


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?


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Security and Ethical Challenges