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Crime and Security in the Networked Economy Part 4.

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Presentation on theme: "Crime and Security in the Networked Economy Part 4."— Presentation transcript:

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2 Crime and Security in the Networked Economy Part 4

3 The Changing Face of Crime IT Crime IT Security Types of IT Crime –Theft –Fraud –Copyright Infringement –Attacks

4 TECHNOLOGY TRENDS & ETHICAL ISSUES Computing Power Doubles Every 18 Months Advances In Data Storage Advances In Data Mining Techniques Advances In Telecommunications Infrastructure *

5 The Changing Face of Crime Types of IT Criminals –Employees –Outside Parties Hackers –Organized Crime Counterfeit Products Intellectual Property Infringement

6 Risks to Information Systems What causes damage to IS? Human errors, accidents, and omissions 50-80% Dishonest employees % Natural Disasters 10-15% Disgruntled employees 3-4% Water 2-3% Outsiders 1-3%

7 Changing Nature of Crime

8 Types of IT Crime Theft of hardware, data or information –National Computer Registry Fraudulent use of IT –Credit card fraud –Investor fraud –Medical and drug-related fraud –Auction site fraud

9 Security Policies, protection, and tools to safeguard hardware, software, communication network, and data from unauthorized access, alteration, theft and physical damage.

10 Risks To Hardware Hardware Failure Natural Disasters Blackouts and Brownouts Vandalism Theft

11 Risks To Application and Data Software Failure Theft Alteration or Destruction Computer Virus Hacker Mishap –Training

12 Risks to Information Systems

13 Theft/Alteration of Information Secure Passwords –Biometric Controls Data Entry Controls Audit Trails Separation of Duties Back-up copies secured Shred Printouts Secure diskettes

14 Protection from Disasters Fault-tolerant Systems –Extra hardware, software, and power supply components that can back the system up and keep it running. Back-up of Data Secure Area Battery Back-up –UPS

15 Copyright Infringement Software Piracy Business Software Alliance 1980 Software Copyright Act 1997 No Electronic Theft Act (NET)

16 Copyright Infringement Music Piracy Motion Picture Experts Group MPEG version 3 MP3 Rio Player NET Act Coverage

17 Computer Virus Software Program that spreads through system destroying data and Operating System. –Scan Disks with Current Antivirus Program –Know Origin of Software –Don’t Copy –Watch Downloads –Passwords for Access Anti-Virus

18 Virus Generation Process Virus is Created at Terminal or PC Virus is Transmitted to Other Computers via Network or Disk Virus Replicates Itself on New Computers, Taking Over Main Memory Virus Sends Copies of Itself over Network or on Disk to More Computers

19 VIRUS Attacks Worm Trojan Horse Time Bomb Logic Bomb Trapdoor Attacks on Web and Servers

20 Information Technology Security Threats to the Computer –Physical Security Controlled Access –Data Security Backups –Internet Security

21 Information Technology Security Surge Protection Uninterruptible Power Supplies (UPS) Password Policy and Use Personal Identification Number (PIN) System Audit Software

22 Person who gains unauthorized access to a computer network for profit, criminal mischief, or personal pleasure. –Passwords –Callback –Firewall –Encryption HACKER

23 Data Encryption Systems Plaintext –Ciphertext –Public Key Encryption Systems –Private Key

24 SET Encryption Request is Sent to E-commerce Server E-Commerce Server Verifies Transaction Types of IT Crime Secure Electronic Transmission (SET) Purchase is Requested Merchant Sends Record to Bank Transaction is Approved Bank Credits Merchant’s Account

25 Encrypting Communications Increases Security

26 Firewalls Software to separate users from computing resources. Allows retrieval and viewing of certain material, but blocks attempts to make any changes in the information or to access data that reside on the same computer. They are also used to keep unauthorized software away.

27 Firewall Around Network

28 Internet Security 4 Basic Firewall Actions –Packet can be dropped entirely –Alert network administrator –Return failed message to sender –Action can be logged only


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