Chapter 13 Security and Ethical Challenges James A. O'Brien, and George Marakas. Management Information Systems with MlSource 2007, 8" ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091— TT IT Security, Ethics, and Society = IT has both beneficial Employment ; = —@, Privacy and detrimental / } effects on society and people “ Manage work / activities to Health oO minimize the \ detrimental effects of IT 4 Optimize the \ / beneficial effects Indvduaity + —~ ~e Working Conditions Chapter 13 Secunty and Ethical Challenges 2EL Business Ethics = Ethics questions that managers confront as part of their daily business decision making include: Equity Rights Honesty Exercise of corporate power Chapter 13 Secunty and Ethical Challenges 3ro CC EE Categories of Ethical Business Issues es Executive Salaries Corporate Due Process Comparable Worth Employee Health Product Pricing Sereening Intellectual ‘Customer Privacy Property Rights Employee Privacy Noncompetitive Sexual Harassment Agreements Affirmative Action Equal Employment Opportunity’ Shareholder Interests Employment at Will Whistle-Blowing Employee Conflicts Security of Company Information Inappropriate Gifts Advertising Content Government Contract Financial and Cash Management Procedures Questionable Business Practices in Foreign Exercise of Corporate Power Product Safety Environmental Issues Disinvestment Corporate Contributions Social Issues Raised by Religious Organizations Plant/Facility Closures and Downsizing Political Action Committees Workplace Safety Chapter 13 Security and Ethical ChallengesEe 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 Chapter 13 Secunty and Ethical Challengesa 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 = \nformed 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 Chapter 13 Secunty and Ethical Challenges 6I “AITP Standards of Professional Cond In recognition of my obligation to my employer I shall: AITP Standards of Professional Conduct © Avoid conflicts of interest and ensure that my employer is aware of any potential conflicts. * Protect the privacy and confidentiality of all information entrusted to me. © Not misrepresent or withhold information that is germane to the situation. Not attempt to use the resources of my employer for personal gain or for any purpose without proper approval. * Not exploit the weakness of a computer system for personal gain or personal satisfaction. In recognition of my obligation to society I shall: © Use my skill and knowledge to inform the public in all areas of my expertise. © To the best of my ability, ensure that the products of my work are used in a socially responsible way. © Support, respect, and abide by the appropriate local, state, provincial, and federal laws. © Never misrepresent or withhold information that is germane to a problem or a situation of public concern, nor will I allow any such known information to remain unchallenged. * Not use knowledge of a confidential or personal nature in any unauthorized manner to achieve personal gain, Chapter 13 Security and Ethical Challenges 7TT Responsible Professional Guidelines = Aresponsible 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 Chapter 13 Secunty and Ethical Challenges 8a 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 Chapter 13 Secunty and Ethical Challenges 9= CC EE Cybercrime Protection Measures Antivirus 96% | Virtual private networks 86% Intrusion-detection systems 85% Content filtering/monitoring 77% ) Public-key infrastructure 45% Smart cards 43% Biometrics 19% = Security is about 6 to 8% of the IT budget in developed countries. * 63% currently have or plan to establish in the next two years the position of chief security officer or chief information security officer. = 40% have a chief privacy officer, and another 6% intend to appoint ‘one within the next two years. = 39% acknowledged that their ‘systems had been compromised in ‘some way within the past year. = 24% have cyber risk insurance, and another 5% intend to acquire such coverage. Chapter 13 Security and Ethical ChallengesTT 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 Chapter 13 Secunty and Ethical Challenges na 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 Chapter 13 Secunty and Ethical Challenges 12a Common Hacking Tactics = Trojan House Aprogram that, unknown to the user, contains instructions that exploit a known vulnerability in some software ™ Back Doors Ahidden 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 Chapter 13 Secunty and Ethical Challenges Ba 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 Chapter 13 Secunty and Ethical Challenges 4a 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 Chapter 13 Secunty and Ethical Challenges 16EL 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 Chapter 13 Secunty and Ethical Challenges 16i 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 Chapter 13 Secunty and Ethical Challenges wEs 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 Chapter 13 Secunty and Ethical Challenges 18a 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 Chapter 13 Secunty and Ethical Challenges 19I Viruses and Worms ™ A virus is a program that cannot work without being inserted into another program Aworm 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 Chapter 13 Secunty and Ethical Challenges 20=I TT 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 Chapter 13 Secunty and Ethical Challenges 21TT 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 Amass-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 Chapter 13 Secunty and Ethical Challenges 22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 Chapter 13 Secunty and Ethical Challenges 23a 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 Chapter 13 Secunty and Ethical Challenges 24I Es 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 Caper Series itoaversthe Internet 2a 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 Chapter 13 Secunty and Ethical Challenges 26TT 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 Chapter 13 Secunty and Ethical Challenges arTT 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. Chapter 13 Secunty and Ethical Challenges 28a 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 Chapter 13 Secunty and Ethical Challenges 29CO 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 Chapter 13 Secunty and Ethical Challenges 30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 Chapter 13 Secunty and Ethical Challenges aTT 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 Chapter 13 Secunty and Ethical Challenges 32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 Chapter 13 Secunty and Ethical Challenges 33,a 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 Chapter 13 Security and Ethical Challenges caEE 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 Chapter 13 Secunty and Ethical Challenges 35.ro Ergonomics Ergonomics Factors = Designing healthy Biomechanical Biomechanical Physical Anthropometric work environments “ Safe, comfortable, and pleasant for people to work in U Increases employee morale and productivity “ Also called human factors engineering s Management Systoms Chapter 13 Security and Ethical ChallengesEL 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 Chapter 13 Secunty and Ethical Challenges 7I Es 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 Chapter 13 Secunty and Ethical Challenges 38— CC Security Management = The goal of security management is the accuracy, integrity, and safety of all information system processes and resources Chapter 13 Security and Ethical Challenges 397 a 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 Chapter 13 Secunty and Ethical Challenges 40an a Public/Private Key Encryption @ Yeuwete ane-mat message, @) The enerption process then ve the recipients pute puts a kind of dg lock ky to encrypt ‘nthe message. Evon i someone intercepts v= en ute, the message's ‘ontonts are inaccessible PRIVATE KEY With your encryption software, you create a "key" with two public part ofthe key 1o hose you want to communicate with. Only you can use your private key. nen ne message arves, the sofware uses ‘the private key to verify that the recipient's public ey was used for enrypiion. Chapter 13 Security and Ethical Challenges a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 Chapter 13 Secunty and Ethical Challenges 42= Internet and Intranet Firewalls Chapter 13 Security and Ethical Challenges 4 4. External firewall Keeps out ' ” unauthorized Internet users. Intemal firewall prevents users from accessing sensitive human resources or financial data. Passwords and browser security features control access to specific 2 intranet resources. 3. 4. Intranet server features provide authentication and encryption where: applicable. Network interface software is carefully crafted to avoid creating security holes to back-end resources. 5. 43ee 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 Chapter 13 Secunty and Ethical Challenges 44= a 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 Chapter 13 Secunty and Ethical Challenges 45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 Chapter 13 Secunty and Ethical ChallengesI 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 Chapter 13 Security and Ethical Challenges 47a 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 ata reduced but acceptable level = Adisaster 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 Chapter 13 Secunty and Ethical Challenges 48a a = Methods and Information System Controls devices that . attempt to cst ensure the accuracy, (=| validity, and propriety of information system activities Chapter 13 Secunty and Ethical Challenges 49a 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 Chapter 13 Secunty and Ethical Challenges 60‘= CE EE Protecting Yourself from Cybercrime Roemer tem oe te ete) «Use antivirus and firewall software, 6. Use the most up-to-date version of your and update it often to keep Web browser, e-mail software, and other destructive programs off your programs. ce a 7. Send credit card numbers only to secure . Don't allow online merchants to. sites; look for a padlock or key icon at store your credit card information the bottom of the browser. for future purchases. 8. Use a security program that gives you . Use a hard-to-guess password that control over “cookies” that send infor- contains a mix of numbers and mation back to websites. letters, and change it frequently. 9, Install firewall software to screen traffic . Use different passwords for different if you use DSL or a cable modem to websites and applications to keep connect to the Net. hackers guessing. 10. Don’t open e-mail attachments unless . Install all operating system patches you know the source of the incoming and upgrades. message. Chapter 13 Security and Ethical Challenges 51