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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
Chapter 13 Security and Ethical Challenges 2
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
Chapter 13 Security and Ethical Challenges 3
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

Chapter 13 Security and Ethical Challenges 4


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

Chapter 13 Security and Ethical Challenges 5


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 Security and Ethical Challenges 6


Categories of Ethical Business
Issues

Chapter 13 Security and Ethical Challenges 7


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 Security and Ethical Challenges 8
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
Chapter 13 Security and Ethical Challenges 9
AITP Standards of Professional
Conduct

Chapter 13 Security and Ethical Challenges 10


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

Chapter 13 Security and Ethical Challenges 11


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 Security and Ethical Challenges 12
Cybercrime Protection Measures

Chapter 13 Security and Ethical Challenges 13


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 Security and Ethical Challenges 14
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 Security and Ethical Challenges 15
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
Chapter 13 Security and Ethical Challenges 16
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 Security and Ethical Challenges 17


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 Security and Ethical Challenges 18


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 Security and Ethical Challenges 19


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 Security and Ethical Challenges 20


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


industry’s revenues are
lost to piracy

Chapter 13 Security and Ethical Challenges 21


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 Security and Ethical Challenges 22
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

Chapter 13 Security and Ethical Challenges 23


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 Security and Ethical Challenges 24
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
Chapter 13 Security and Ethical Challenges 25
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 Security and Ethical Challenges 26


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 Security and Ethical Challenges 27


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
Chapter 13 Security and Ethical Challenges 28
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 Security and Ethical Challenges 29


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 Security and Ethical Challenges 30


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 Security and Ethical Challenges 31


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 Security and Ethical Challenges 32
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 Security and Ethical Challenges 33


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 Security and Ethical Challenges 34


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 Security and Ethical Challenges 35


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 Security and Ethical Challenges 36
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 37
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 Security and Ethical Challenges 38


Ergonomics Ergonomics Factors
 Designing healthy
work environments
 Safe, comfortable,
and pleasant for
people to work in
 Increases
employee morale
and productivity
 Also called human
factors
engineering

Chapter 13 Security and Ethical Challenges 39


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 Security and Ethical Challenges 40
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 Security and Ethical Challenges 41


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

Chapter 13 Security and Ethical Challenges 42


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?
Chapter 13 Security and Ethical Challenges 43
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 44


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 Security and Ethical Challenges 45


Public/Private Key Encryption

Chapter 13 Security and Ethical Challenges 46


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 Security and Ethical Challenges 47


Internet and Intranet Firewalls

Chapter 13 Security and Ethical Challenges 48


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 Security and Ethical Challenges 49


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 Security and Ethical Challenges 50


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 Security and Ethical Challenges 51
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 52
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

Chapter 13 Security and Ethical Challenges 53


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

Chapter 13 Security and Ethical Challenges 54


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 Security and Ethical Challenges 55


Protecting Yourself from
Cybercrime

Chapter 13 Security and Ethical Challenges 56


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
Chapter 13 Security and Ethical Challenges 57
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

Chapter 13 Security and Ethical Challenges 58


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”?

Chapter 13 Security and Ethical Challenges 59


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

Chapter 13 Security and Ethical Challenges 60


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?
Chapter 13 Security and Ethical Challenges 61

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