McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

13
Security and Ethical Challenges

Learning Objectives
Identify several ethical issues in how the use
of information technologies in business affects
Employment
Individuality
Working conditions
Privacy
Crime
Health
Solutions to societal problems

Learning Objectives
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 information
technology

Case 1: Cyberscams and

Cybercriminals
Cyberscams are todays 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

Case Study Questions

What are several reasons why cyberscams
are todays 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

Case Study Questions

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 Security, Ethics, and Society

Information technology has both beneficial
and detrimental effects on society and people
Manage work activities to minimize the detrimental effects of
information technology
Optimize the beneficial effects

Business Ethics
Ethics questions that managers confront as part of their
daily business decision making include
Equity
Rights
Honesty
Exercise 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

Corporate Social Responsibility

Theories
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

Principles of Technology Ethics

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 competence
Sets high standards of personal performance
Accepts responsibility for his/her work
Advances 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 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

Cybercrime Protection Measures

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

Common Hacking Tactics

Denial of Service
Hammering a websites 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

Common Hacking Tactics

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 computers resources,
modify files on the hard disk, send fake email, or steal
passwords

Common Hacking Tactics

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

Buffer Overflow
Crashing or gaining control of a computer by sending too much
data to buffer memory

Common Hacking Tactics

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 companys 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 dont 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 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

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

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

A third of the software

industrys revenues are
lost to piracy

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 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

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 cant 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

Top Five Virus Families of all Time

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 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

Top Five Virus Families of all Time

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

Spyware
Adware that uses an Internet connection in the background,
without the users 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 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

Privacy Issues
The power of information technology to store and
retrieve information can have a negative effect on every
individuals 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

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

Privacy Issues
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 email
Send newsgroup postings through anonymous remailers
Ask your ISP not to sell your name and information to mailing list
providers and
other marketers
Dont 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

Privacy Laws
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
Online files of Internet and public networks

Weapons used in this battle

Spamming
Flame mail
Libel laws
Censorship

Computer Libel 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

Cyberlaw
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

Other Challenges
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

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

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 problems
Medical diagnosis
Computer-assisted instruction
Governmental program planning
Environmental quality control
Law enforcement
Job placement

Societal Solutions
The detrimental effects of
information technology
Often caused by individuals
or organizations not
accepting ethical
responsibility for
their actions

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

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 cant 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 Lowes?

Case Study Questions

What security safeguards would have deterred the loss
of customer data at
TCI
Bank of America
ChoicePoint?

Security Management
The goal of security
management is the
accuracy, integrity,
and safety of all
information system
processes and resources

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

Public/Private Key Encryption

Internetworked Security Defenses

Firewalls
A gatekeeper system that protects a companys 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 systems
The victims website
The victims Internet service provider
Zombie or slave computers that have been commandeered by
the cybercriminals

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 Victims Website

Create 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 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

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

Other Security Measures

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

Other Security Measures

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 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

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

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 organizations
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 hackers
tools used to exploit the most recent vulnerabilities
become available on the Internet
Microsofts 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

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?

Case Study Questions

Does the business value of a comprehensive patchmanagement strategy outweigh its costs, its limitations,
and the demands it placed on the IT function?