1. Security and Ethical Challenges
Chapter 13
Security and Ethical Challenges
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 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
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3. 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
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4. Case 1: Ethics, Moral Dilemmas, and Tough Decisions
The pervasive use of IT in organizations and society present individuals with new ethical challenges and dilemmas.
If companies don’t set ethical policies and guidelines, or don’t make sure that employees know what they are and understand them, companies cannot hold workers accountable for their unethical behavior.
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5. Case Study Questions
Companies are developing ethical policies and guidelines for legal reasons, but also to clarify what is acceptable and what is not. Do you think any of the issues raised in the case required clarification? Would you take exception to any of them being classified as inappropriate behavior? Why do you think these things happen anyway?
In the first example (Bryan’s), it is apparent that he did not believe justice had been ultimately served by the decision his company made. Should he have taken the issue to the authorities? Or, was it enough that he reported the problem through the proper channels and let the organization handle it, as was the recommendation of Linn Hynds? Provide a rationale for the position you are willing to take on this matter.
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6. Case Study Questions
In the case, Gary chose not to stop his boss from installing unlicensed software, although he refused to do it himself. If installing unlicensed software is wrong, is there any difference between refusing to do it versus not stopping somebody else? Do you buy his argument that it was not really going to hurt anybody? Why or why not?
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7. IT Security, Ethics, and Society
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8. 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
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9. Business Ethics
Ethics questions that managers confront as part of their daily business decision making include
Equity
Rights
Honesty
Exercise of corporate power
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10. Categories of Ethical Business Issues
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11. 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
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12. 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
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13. 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
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14. 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
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15. AITP Standards of Professional Conduct
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16. 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
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17. 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
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18. Electronic Breaking and Entering
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
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19. 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
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20. 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 address or Web page to trick users into passing along critical information like passwords or credit card numbers
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21. 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 , or steal passwords
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22. 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
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23. 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 company’s garbage to find information to help break into their computers
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24. 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
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25. 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
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26. Internet Abuses in the Workplace
General 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
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27. A third of the software industry’s revenues are lost to piracy
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
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28. Theft of 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
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29. 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
and file attachments
Disks from contaminated computers
Shareware
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30. Top Five Virus Families of all Time
My Doom, 2004
Spread via and over Kazaa file-sharing network
Installs a back door on infected computers
Infected 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
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31. Top Five Virus Families of all Time
Netsky, 2004
Mass-mailing worm that spreads by ing itself to all 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
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32. Top Five Virus Families of all Time
SoBig, 2004
Mass-mailing worm that arrives as an attachment
Examples: Movie_0074.mpg.pif, Document003.pif
Scans all .WAB, .WBX, .HTML, .EML, and .TXT files looking for addresses to which it can send itself
Also attempts to download updates for itself
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33. Top Five Virus Families of all Time
Klez, 2002
A mass-mailing 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
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34. 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
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35. 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
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36. Adware and Spyware Adware Spyware
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
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37. 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
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38. 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
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39. Opt-in Versus Opt-out Opt-In Opt-Out
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.
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40. Privacy Issues Violation of Privacy Computer Monitoring
Accessing individuals’ private 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
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41. Unauthorized Access of Personal Files
Privacy Issues
Computer Matching
Using customer information gained from many sources to market additional business services
Unauthorized Access of Personal Files
Collecting telephone numbers, addresses, credit card numbers, and other information to build customer profiles
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42. Protecting Your Privacy on the Internet
There are multiple ways to protect your privacy
Encrypt
Send newsgroup postings through anonymous r ers
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
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43. Electronic Communications Privacy Act and Computer Fraud and Abuse Act
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
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44. 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
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45. Computer Libel and Censorship
The opposite side of the privacy debate…
Freedom of information, speech, and press
Biggest battlegrounds
Bulletin boards
boxes
Online files of Internet and public networks
Weapons used in this battle
Spamming
Flame mail
Libel laws
Censorship
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46. Computer Libel and Censorship
Spamming
Indiscriminate sending of unsolicited messages to many Internet users
Flaming
Sending extremely critical, derogatory, and often vulgar messages or newsgroup posting to other users on the Internet or online services
Especially prevalent on special-interest newsgroups
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47. 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
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48. 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
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49. Other Challenges Employment Computer Monitoring
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
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50. Other Challenges Working Conditions Individuality
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
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51. Cumulative Trauma Disorders (CTDs)
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
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52. Designing healthy work environments
Ergonomics
Designing healthy work environments
Safe, comfortable, and pleasant for people to work in
Increases employee morale and productivity
Also called human factors engineering
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53. Ergonomics Factors
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54. Using information technologies to solve human and social problems
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
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55. The detrimental effects of information technology
Societal Solutions
The detrimental effects of information technology
Often caused by individuals or organizations not accepting ethical responsibility for their actions
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56. 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
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57. Case 2: Raymond James Financial, BCD Travel, Houston Texans, and Others
For companies like Raymond James, leakage of sensitive customer data or proprietary information is a new priority.
Companies are starting to focus on keeping sensitive information within their boundaries.
Companies are deploying Outbound content management tools to monitor outgoing information.
Companies not only have to monitor messages, but also the explosion of alternative communication mechanisms that employees are using, including instant messaging, blogs, FTP transfers, Web mail, and message boards.
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58. Case Study Questions
Barring illegal activities, why do you think that employees in the organizations featured in the case do not realize themselves the dangers of loosely managing proprietary and sensitive information? Would you have thought of these issues?
How should organizations strike the right balance between monitoring and invading their employees’ privacy, even if it would be legal for them to do so? Why is it important that companies achieve this balance? What would be the consequences of being too biased to one side?
The IT executives in the case all note that outbound monitoring and management technologies are only part of an overall strategy, and not their primary defense. What should be the other components of this strategy? Which weight would you give to human and technological factors? Why?
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59. Security Management
The goal of security management is the accuracy, integrity, and safety of all information system processes and resources
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60. 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
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61. Public/Private Key Encryption
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62. 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
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63. Internet and Intranet Firewalls
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64. 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
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65. 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
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66. Internetworked Security Defenses
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
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67. 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
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68. 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
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69. 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
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70. 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
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71. Information System Controls
Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities
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72. IT Security Audits Auditing IT Security
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
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73. Protecting Yourself from Cybercrime
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74. Case 3: 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
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75. Case Study Questions
List several reasons “cyber scams are today’s fastest growing criminal niche.” Explain why the reasons you give contribute to the growth of cyber scams.
What are several security measures that could be implemented to combat the spread of cyber scams? Explain why your suggestions would be effective.
Which of the four top cyber criminals described in this case poses the biggest threat to businesses? To consumers? Explain the reasons for your choices, and describe how businesses and consumers can protect themselves from these cyber scammers.
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76. Case 4: Lowe’s, TCI, Bank of America, ChoicePoint, and Others
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
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77. 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?
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78. Case Study Questions
What security safeguards would have deterred the loss of customer data at TCI, Bank of America, and ChoicePoint? Defend your proposed security measures to avoid the incidents that occurred at each company.
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