1. 4-1 Chapter Four Overview SECTION 4.1 - ETHICS –Ethics –Information Ethics –Developing Information Management Policies –Ethics in the Workplace SECTION 4.2 - INFORMATION SECURITY –Protecting Intellectual Assets –The First Line of Defense - People –The Second Line of Defense - Technology

2. 4-2 Organizational Fundamentals – Ethics and Security Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful In recent years, such events as the Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security

3. McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved ETHICS SECTION 4.1

4. 4-4 ETHICS Ethics – the principles and standards that guide our behavior toward other people Issues affected by technology advances –Intellectual property –Copyright –Fair use doctrine –Pirated software –Counterfeit software

5. 4-5 ETHICS Privacy is a major ethical issue –Privacy – the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent –Confidentiality – the assurance that messages and information are available only to those who are authorized to view them

6. 4-6 ETHICS One of the main ingredients in trust is privacy Primary reasons privacy issues lost trust for e- business

7. 4-7 INFORMATION ETHICS Individuals form the only ethical component of IT

8. 4-8 Information Has No Ethics Acting ethically and legally are not always the same

9. 4-9 Information Has No Ethics Information does not care how it is used Information will not stop itself from sending spam, viruses, or highly-sensitive information Information cannot delete or preserve itself

10. 4-10 DEVELOPING INFORMATION MANAGEMENT POLICIES Organizations strive to build a corporate culture based on ethical principles that employees can understand and implement ePolicies typically include: –Ethical computer use policy –Information privacy policy –Acceptable use policy –E-mail privacy policy –Internet use policy –Anti-spam policy

11. 4-11 Ethical Computer Use Policy Ethical computer use policy – contains general principles to guide computer user behavior The ethical computer user policy ensures all users are informed of the rules and, by agreeing to use the system on that basis, consent to abide by the rules

12. 4-12 Ethical Computer Use Policy

13. 4-13 Information Privacy Policy The unethical use of information typically occurs “unintentionally” when it is used for new purposes –For example, social security numbers started as a way to identify government retirement benefits and are now used as a sort of universal personal ID Information privacy policy - contains general principles regarding information privacy

14. 4-14 Information Privacy Policy Information privacy policy guidelines 1.Adoption and implementation of a privacy policy 2.Notice and disclosure 3.Choice and consent 4.Information security 5.Information quality and access

15. 4-15 Acceptable Use Policy Acceptable use policy (AUP) – a policy that a user must agree to follow in order to be provided access to a network or to the Internet An AUP usually contains a nonrepudiation clause –Nonrepudiation – a contractual stipulation to ensure that e-business participants do not deny (repudiate) their online actions

16. 4-16 Acceptable Use Policy

17. 4-17 E-Mail Privacy Policy Organizations can mitigate the risks of e- mail and instant messaging communication tools by implementing and adhering to an e-mail privacy policy E-mail privacy policy – details the extent to which e-mail messages may be read by others

18. 4-18 E-Mail Privacy Policy

19. 4-19 E-Mail Privacy Policy

20. 4-20 Internet Use Policy Internet use policy – contains general principles to guide the proper use of the Internet

21. 4-21 Anti-Spam Policy Spam – unsolicited e-mail Spam accounts for 40% to 60% of most organizations’ e-mail and cost U.S. businesses over $14 billion in 2005 Anti-spam policy – simply states that e- mail users will not send unsolicited e- mails (or spam)

22. 4-22 ETHICS IN THE WORKPLACE Workplace monitoring is a concern for many employees Organizations can be held financially responsible for their employees’ actions The dilemma surrounding employee monitoring in the workplace is that an organization is placing itself at risk if it fails to monitor its employees, however, some people feel that monitoring employees is unethical

23. 4-23 Monitoring Technologies

24. 4-24 Monitoring Technologies Monitoring – tracking people’s activities by such measures as number of keystrokes, error rate, and number of transactions processed Common monitoring technologies include: –Key logger or key trapper software –Hardware key logger –Cookie –Adware –Spyware –Web log –Clickstream

25. 4-25 Employee Monitoring Policies Employee monitoring policies – explicitly state how, when, and where the company monitors its employees

26. McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved INFORMATION SECURITY SECTION 4.2

27. 4-27 PROTECTING INTELLECTUAL ASSETS Organizational information is intellectual capital - it must be protected Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization E-business automatically creates tremendous information security risks for organizations

28. 4-28 PROTECTING INTELLECTUAL ASSETS

29. 4-29 PROTECTING INTELLECTUAL ASSETS

30. 4-30 THE FIRST LINE OF DEFENSE - PEOPLE Organizations must enable employees, customers, and partners to access information electronically The biggest issue surrounding information security is not a technical issue, but a people issue 33% of security incidents originate within the organization –Insiders – legitimate users who purposely or accidentally misuse their access to the environment and cause some kind of business-affecting incident

31. 4-31 THE FIRST LINE OF DEFENSE - PEOPLE The first line of defense an organization should follow to help combat insider issues is to develop information security policies and an information security plan –Information security policies – identify the rules required to maintain information security –Information security plan – details how an organization will implement the information security policies

32. 4-32 THE FIRST LINE OF DEFENSE - PEOPLE Hackers frequently use “social engineering” to obtain password –Social engineering – using one’s social skills to trick people into revealing access credentials or other information valuable to the attacker

33. 4-33 THE FIRST LINE OF DEFENSE - PEOPLE Five steps to creating an information security plan: 1.Develop the information security policies 2.Communicate the information security policies 3.Identify critical information assets and risks 4.Test and reevaluate risks 5.Obtain stakeholder support

34. 4-34 THE FIRST LINE OF DEFENSE - PEOPLE

35. 4-35 THE SECOND LINE OF DEFENSE - TECHNOLOGY There are three primary information technology security areas 1.Authentication and authorization 2.Prevention and resistance 3.Detection and response

36. 4-36 Authentication and Authorization Authentication – a method for confirming users’ identities Authorization – the process of giving someone permission to do or have something The most secure type of authentication involves: 1.Something the user knows such as a user ID and password 2.Something the user has such as a smart card or token 3.Something that is part of the user such as a fingerprint or voice signature

37. 4-37 Something the User Knows Such As a User ID and Password This is the most common way to identify individual users and typically contains a user ID and a password This is also the most ineffective form of authentication Over 50 percent of help-desk calls are password related

38. 4-38 Something the User Knows Such As a User ID and Password Identity theft – the forging of someone’s identity for the purpose of fraud Phishing – a technique to gain personal information for the purpose of identity theft, usually by means of fraudulent e- mail

39. 4-39 Something the User Knows Such As a User ID and Password

40. 4-40 Smart cards and tokens are more effective than a user ID and a password –Tokens – small electronic devices that change user passwords automatically –Smart card – a device that is around the same size as a credit card, containing embedded technologies that can store information and small amounts of software to perform some limited processing Something the User Knows Such As a User ID and Password

41. 4-41 Something That Is Part Of The User Such As a Fingerprint or Voice Signature This is by far the best and most effective way to manage authentication –Biometrics – the identification of a user based on a physical characteristic, such as a fingerprint, iris, face, voice, or handwriting Unfortunately, this method can be costly and intrusive

42. 4-42 Prevention and Resistance Downtime can cost an organization anywhere from $100 to $1 million per hour Technologies available to help prevent and build resistance to attacks include: 1.Content filtering 2.Encryption 3.Firewalls

43. 4-43 Content Filtering Organizations can use content filtering technologies to filter e-mail and prevent e- mails containing sensitive information from transmitting and stop spam and viruses from spreading. –Content filtering – occurs when organizations use software that filters content to prevent the transmission of unauthorized information –Spam – a form of unsolicited e-mail –Corporate losses caused by Spam

44. 4-44 Encryption If there is an information security breach and the information was encrypted, the person stealing the information would be unable to read it –Encryption – scrambles information into an alternative form that requires a key or password to decrypt the information –Public key encryption (PKE) – an encryption system that uses two keys: a public key for everyone and a private key for the recipient

45. 4-45 Encryption

46. 4-46 Firewalls One of the most common defenses for preventing a security breach is a firewall –Firewall – hardware and/or software that guards a private network by analyzing the information leaving and entering the network

47. 4-47 Firewalls Sample firewall architecture connecting systems located in Chicago, New York, and Boston

48. 4-48 Detection and Response If prevention and resistance strategies fail and there is a security breach, an organization can use detection and response technologies to mitigate the damage Antivirus software is the most common type of detection and response technology

49. 4-49 Detection and Response Hacker - people very knowledgeable about computers who use their knowledge to invade other people’s computers –White-hat hacker –Black-hat hacker –Hactivist –Script kiddies or script bunnies –Cracker –Cyberterrorist

50. 4-50 Detection and Response Virus - software written with malicious intent to cause annoyance or damage –Worm –Denial-of-service attack (DoS) –Distributed denial-of-service attack (DDoS) –Trojan-horse virus –Backdoor program –Polymorphic virus and worm

51. 4-51 Detection and Response Security threats to e-business include: –Elevation of privilege –Hoaxes –Malicious code –Spoofing –Spyware –Sniffer –Packet tampering